A bigger risk than the credit crunch

The credit crunch must be biting. So far this month: I have not spent money on a cruise; I have not bought that new laptop I promised myself; I have not even bought that insect repellent gadget that was offered in the Sunday supplement; and I have certainly not changed to that high-interest internet bank. I have also been forced to cut back on the purchase of my favourite lager, biscuits, chocolate bars and breakfast cereal.

But do I take pleasure at the result of my economies? As a marketing and sales professional, I am more concerned when companies lose my business, not through any credit cut-back on my part, but because they failed to answer my enquiry, or failed to carry stock needed to fulfil my order.

No doubt in the next few months, we shall be hearing the usual tale of how sales are harder to obtain, and how customers are less prepared to buy. It is always easy to blame "the economy", but for every finger you point, three are pointed back at you.

In my dealings with franchisors, talking in those alcoholic-relaxed hours between the conference dinner and the conference departure, I have yet to meet a single one that is truly, deeply, happy with the way their sales are managed by their franchise network. I accept that selling is stressful, rating just below a divorce, or making a speech. It is still avoided by many franchisees, which expect the franchisor to serve up oven-ready customers.

Thrown into selling at an early point in my career, I soon realised how difficult it was to gain and maintain good customers. I learned some hard lessons from the best sales staff in the business, and have adhered to their simple rules ever since.

The moment you begin your new franchise is the only opportunity you have to set the future of your sales process. Typically, you have only 48 hours to respond to an enquiry. Not all enquiries will be of equal value. Business is so communication-driven that the speed of information delivery is often as important as the information itself. If the prospect has a choice, they are just as likely to go with any company that provides the information.

My experience in the motor trade taught me not to be diverted by the 'tyre kickers' who while away a spare hour with a sit and twiddle in the latest sports model. But it would be foolish to automatically reject any 'tyre kicker' contacting your franchise. Though it should soon be obvious that they are in no position to buy in the immediate future, it would still be wise to offer a basic level of company and product information.

Your enquiries will arrive from a number of sources - advertising, direct mail, public relations, the franchise website and telephone call centre, but until you determine the quality of the 'lead', it should not be considered active. This is the moment a franchisee can make two obvious mistakes - they either ignore the enquiry entirely, dismissing it as 'junk', or they go overboard and forward costly full-colour promotional literature through the first-class mail.

The most cost-effective response is to break inquires down into a two-stage process, by dispatching a simple printed letter asking for more information, or directing the enquiry to your web page, where qualifying questions are also set. My policy is to then dispatch a personalised letter with information on the same day the qualified enquiry is received. If that means my evening dinner is delayed or missed, then that's a small price to pay.

If the enquiry has the potential to be vitally important to the future of my franchise, then I am prepared to travel and deliver the information by hand the same day.

Concerned at the thought of producing difficult technical information within a short time frame? Utilise past responses of your own, or contact other members of your local franchise network for their assistance with new areas and then 'cut and paste' the information paragraphs into your letter or email response.

Email is an integral part of franchise communication but research strongly suggests that it works best with existing customers. Provided you have asked the qualifying question, "May we communicate with you by e-mail?" and received their assent and address, then it is permissible. But bear in mind that few will purchase based solely on information contained in the message.

So how can we ensure that these millions of wasted enquiries are turned into new customers, pleasing both franchisor and franchisee? There are three prime rules that your franchise should follow:

Develop ways of ensuring that your customer is kept fully informed at each stage of the process. Send that email or make that call to confirm information/order receipt, dispatch or progress.

Improve staff involvement by allocating each customer to one person, who should keep hand-written records, to avoid data protection problems, of the customer's preferences and wishes. The frustrations of telephone calls, unanswered requests and misplaced orders will be removed.

Provide inquirers with exactly the information they desire. I was delighted to note on a visit to my local Cartridge World that the franchisee had on the counter a comprehensive folder containing all the answers needed to complete the refilling of my laser printer. Each piece of information was stated as a fact. There were nbo mentions of "about", "could be", "average" or any other weasel word. Whether the franchisee or the franchisor had gathered that information was of no consequence, because with just four simple answers he had my business.