Get All Access for $5/mo

How to Measure Franchise Success With Comparative Testing This simple task is imperative for decision-making and business growth.

Opinions expressed by Entrepreneur contributors are their own.

The following excerpt is from franchise expert Mark Siebert's book The Multiplier Model. Buy it now.

When it comes to franchise success, continually striving for improvement is key. In the marketing world, we call these A/B tests.

In an A/B test, the goal is to isolate two variables to determine which one works better. This is imperative for decision-making and business growth.

Here's a quick example

Let's assume you're running a pay-per-click (PPC) ad for 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 results against similar audiences, you could see which message resonates better.

Related: Find Out Which Brands Have Ranked on the Franchise 500 for Longest, Earning a Spot In our New 'Hall of Fame'

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 can significantly improve how well your message resonates with 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 are all 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).

If you're testing PPC ads, you could send the respondents 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 the power of the message on the landing page. Now your testing process begins to look like a decision tree.

Related: These Are the Top 200 Global Franchise Brands in 2023

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 the message to the media that 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 that across 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 should only keep it if it generates revenue for you at a rate that allows you to provide your service (or your product) profitably.

If your marketing costs are so high that 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 almost every repetitive function of business operationsfrom site selection and build-out to hiring and training to purchasing and pricing to production and delivery.

Related: The 9 Provisions Every Franchise Agreement Needs to Have — and What They Mean

Get started with The Multiplier Model

Going from small business to successful startup to 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. In The 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.

Clarissa Buch Zilberman

Freelance Writer, Editor & Content Marketing Consultant

Clarissa Buch Zilberman is a writer and editor based in Miami. Specializing in lifestyle, business, and travel, her work has appeared in Food & Wine, Realtor.com, Travel + Leisure, and Bon Appétit, among other print and digital titles. Through her content marketing consultancy, By Clarissa, she leverages her extensive editorial background and unique industry insights to support enterprise organizations and global creative agencies with their B2B, B2C, and B2E content initiatives. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

7 Telltale Signs of a Weak Leader

Whether a bully or a people pleaser who can't tell hard truths, poor leadership takes many forms.

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.