Well, actually, that’s always been an important consideration, but you’ll have to work hard to find a franchise system that provides this critical consideration. Most franchisors do not do a good job of teaching franchisees how to capture and keep the “right” customers . . . nor do they support systems that will help achieve same.
Not all franchise systems are created equal
But remember, all franchisors are not created equal. Some are better than others. You’ve got to look for the world-class performers! Be confident: They’re out there.
Franchisors (and as a result, their franchisees) generally do not understand the value of a customer. (I’ve written about customer value at FranchiseMastermind.com and I urge you to review those articles. You should also view my videos on this topic).
Budgeting to retain customers
Business owners in general will spend a considerable sum of money annually to attract new customers, but they’ll spend very little — maybe nothing — to retain customers. Of course, whether they capture the “right” customers or the “wrong” customers is a whole ‘nother story that we’ll tackle at another time.
This is why you buy a franchise
As a franchisee, you’re not expected to know everything. You’re not expected to be an expert. And you’re probably not a customer acquisition and retention expert (though you will need to be). And that’s part of the reason why you buy a franchise.
You’re buying the franchisor’s system. That system better be a good one for identifying the right customer for your business, then capturing the right customer, and then (and this is so important, especially today) keeping the right customer. If you don’t keep ‘em you’ll go out of business, or spend your profit on finding new customers. Ouch!
Evaluate the franchisor’s customer retention system
As you evaluate a franchisor’s operating system, keep this information in mind. If the system can’t help you capture and keep the right customers, move on. Find another system! Because economically, nothing is more important than the right customers . . . get the wrong customers and you’re going to be a very dissatisfied franchisee.
And a franchisor that doesn’t know the difference can’t come to your rescue. Save yourself the agony: avoid that franchisor.