How to Measure Franchise Success With Comparative TestingThis simple task is imperative for decision-making and business growth.
The following excerpt is from franchise expert Mark Siebert's bookThe Multiplier Model.Buy it now.
When it comes to franchise success,不断追求进步key. In the marketing world, we call these A/B tests.
In an A/B test, the goal is toisolate two variablesto determine which one works better. This is imperative for decision-making and business growth.
Here's a quick example
Let's assume you'rerunning a pay-per-click (PPC) adfor a home-service business, and you want to know whether an ad that touts same-day service is more effective than one offering a money-back guarantee.
By running both ads and measuring the resultsagainst similar audiences, you could see which message resonates better.
Now take that example and tweak it
Then you could try two more ads with two completely different messages and measure their results against the winner of the first test or go head-to-head in a real-time matchup.
Doing this cansignificantly improve how well your message resonateswith your customers.
Do this again and again, and ultimately you will have statistical evidence as to which message (or messages) work best to attract your targeted buyer.
Refine your A/B tests even more
There areall kinds of variants and refinements you can try. Perhaps B won your first A/B test, and now you need to decide between B and C (this process of incrementally improving your messaging can — and should — go on virtually forever).
Ifyou're testing PPC ads, you could send therespondents to different landing pages, creating two sets of A/B tests with your messaging — one that measures the drawing power of the initial message and one that measures thepower of the message on the landing page. Now your testing process begins to look like a decision tree.
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Test across different media types
What we are talking about here is creating a system that you have tested, measured and refined until each element of the system works.
Now imagine that the system you've built for your advertising message can be extended beyond just themessage to the mediathat carries it. Each form of media can produce different leads for you,at a different cost per lead. And each of those leads will have a different value to you in terms of cost per sale. So you need to measure these variables during your testing process as well.
If you can do thatacross the entire marketing spectrum, you can refine your media mix and your advertising budget along with your message. This will allow you to optimize your marketing and create a true system for the entire marketing process.
Keep in mind, though, that when you measure this system against your financial performance, you shouldonly keep it if it generates revenuefor you at a rate that allows you to provide your service (or your product) profitably.
If yourmarketing costs are so highthat it becomes impossible for you to turn a profit, you need to go back to the drawing board and find something (different marketing, hopefully, but perhaps different products or services) that will allow you to make money.
Go beyond the marketing example
The example above is how successful marketing systems are created.
But these systems are not just limited to marketing: In the best businesses, they are incorporated in almostevery repetitive function of business operations—from site selectionand build-out to hiring and training to purchasing and pricing to production and delivery.
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Get started withThe Multiplier Model
从小型企业到成功的初创企业scalable growth takes more than just good luck. It takes a system. Over the last 34 years, franchising consultant and growth expert Mark Siebert has been sought out by more than 70,000 executives looking to expand their companies. Out of those 70,000, only 5,000 had the right systems in place to go from successful to scalable. InThe Multiplier Model, Siebert discusses the factors that determine if an entrepreneur is ready to scale their venture — and the best ways to get started.Read more.
