What Franchises Need to Know About Satmetrix

What to do when your customers go from engaged to enraged.


The advent of social media has ushered in a new customer service paradigm. Interactions between a business and its customers — positive or negative– are now part of a company’s narrative thanks to platforms like Facebook and Twitter.


For businesses, this presents an opportunity to engage with its customer base and obtain feedback on its products and services. Under normal circumstances, this is a good, even great, thing. But, when a customer turns from engaged to enraged, a business is often caught off-guard, especially if a customer chooses to vent his or her frustration publicly. An angry customer is a scary thing; an angry customer on Twitter or Facebook is terrifying.


Dissatisfied customers present a unique challenge to franchises. Negative feedback expressed publicly can not only tarnish the reputation of the local outpost, but also influence a potential customer’s perception of the brand overall. As Forbes reported earlier this year, “when you make a decision to choose one brand over another, you’re influenced more by the company’s reputation than any particular product it offers.”


So how do you manage your reputation, keep your customers happy, and protect your bottom line? Satmetrix has a suggestion: put your net promoter score to work.


There are three types of customers: promotors, passives, and detractors. Customers that support and advocate for your brand are promoters. Those that support your business but aren’t telling their friends and family about you are considered passives. Customers that speak out against your business due to a poor experience are labeled as detractors. A brand’s net promoter score is calculated by subtracting the percentage of detractors from the percentage of promoters and provides a company with a numeric indication of its customer base’s level of satisfaction.


Traditionally, a net promoter score was calculated through surveys, which have become so ubiquitous they’re ineffective. Fewer and fewer customers care to respond to surveys because they get so many. Spark Score, a program from Satmetrix, surveys what customers are already saying by sweeping the Internet and social media.


At this point, the folks at Satmetrix decided to go a step further. After the net promoter score has been calculated, more questions are asked. In doing so, Satmetrix is able to draw a correlation between the net promoter score and what’s causing a customer to recommend your brand or, in some cases, to not recommend your brand. The goal is to identify the moment that franchises (and other businesses) are dropping the ball in order to fix the underlying error, improve overall customer relations, and ultimately win customers back.


A recent study performed by the Gallup Business Journal indicates that bringing on new customers is about emotion, not price or product. It costs more money to woo a new customer than it does to keep an existing one. In addition, satisfied existing customers spend an average of 2.6 times more than one that’s relatively satisfied and 14 times more than one that isn’t satisfied.


In the graph below, total revenue is represented by the total sales from passive and promoter customers in a nonexistent company. Total potential revenue represents the total sales from promoters, passives, and detractors who have returned as passive customers after having their customer service issues resolved. On average, the difference between the total and total potential revenues each month is $9,333.


The way Satmetrix has designed their program gives franchises the ability to assign each customer type a value, placing into perspective the real cost of a dissatisfied customer. In the case of the nonexistent company above, one detractor equals 2.6 passives and 1 promoter. So, when you lose a customer due to a poor customer service experience, you may need two customers to make up the difference in lost revenue.


At the end of the day, it’s more than the loss of a customer and sales; a detractor also has the ability to turn potential clients into detractors before they’ve even become a paying customer. When you’re looking to try a new restaurant or need help mowing your lawn you turn to family members and your friends for recommendations. The same applies to every business.


Satmetrix hasn’t stopped at creating a better net promoter score or helping companies assign a value to each customer type. With Satmetrix, sales teams can respond to customer service emergencies in real-time, assuaging a dissatisfied customer’s frustrations before they’ve said sayonara and been welcomed with open arms by a competitor. It’s also at this point that Satmetrix can help companies identify exactly where they’re going wrong in the sales process. As Carol Tice of Entrepreneur magazine points out, two of the best ways to keep angry customers from storming out and never coming back are reaching out via social media and fixing the broken policies.


What People Have to Say About FranServe Franchises

Questions about what it’s like to be a FranServe franchisee? Read what real franchisees had to say about their business relationship with the  franchise consultants.


“I was introduced into the Franchise Consultant idea from a personal friend who knew my strengths and mentioned looking into it.  I never realized there was such a thing.  I made my calls and became very impressed with the overall business model of becoming a Franchise Consultant.  It would allow me to utilize all of my past professional experiences.

The result has been extremely rewarding.  It is the most enjoyable job I have had in my professional career.  The economic times brings new meaning for those who are tired of job changes every 2.5 years and not finding another for another average of 40 weeks, per the US Department Labor of Statistics.  There are more businesses and franchises that bring unique and proven business models to investors who want to own their own business.  As a Franchise Consultant I am able to assist those looking for a career change.  Many times my clients have called and thanked me to put them into a new career that has made such a positive impact in their lives.”

– Dick Humphrey, Silverthorne, CO



“I have been a franchise consultant for just over two years.  Previously I owned a computer franchise for around 9 years and while having a lot of success with it I became interested in helping others get started and help them find similar success.  When I found out about franchise consulting I knew it would be a great fit for what I wanted to do.  Within two months of getting started I closed a deal worth $50K in commission.  I’ve been enjoying it ever since.  I enjoy the freedom I have while doing this and for an entrepreneurial person like myself, I feel like this provides me with the entrepreneurial playground I was looking for.  What I have learned over the last two years is absolutely invaluable.  I feel like I’m on the cutting edge of the franchise industry.”

– Jamie Smid, Waterloo, IA



“I have been a Franchise Consultant for almost 3 years now and it continues to be one of the best decisions I have ever made.  I was introduced into the world of franchising back in 2005 when I began doing franchise sales for a home care franchise company.  I had never really heard of franchise consultants before and realized very quickly their value to Franchisors.  Consultants made my job easier, because I knew they were only sending me qualified candidates.  In 2009 I made the leap to consulting and haven’t looked back.  It has given me everything I need in a career, great money, flexibility and joy in knowing I am helping people find the business of their dreams.”

– Vicktoria White, Atlanta, GA



“I had thought seriously about owning my own business for a long time. I had some prior experience as an owner a few decades back. I had owned a restaurant with another partner back in the late 1980’s for five years; unfortunately it was not a franchise.  To make a long story short, I studied franchise business options for about a year before I finally made my decision to become a Franchise Consultant. I had looked at many different brand categories but in the end, franchise consulting really seemed to be a great fit for me overall.

I signed my agreement in October, 2010. I resigned my prior job and went at this full-time and whole heartily. I set specific goals and worked diligently at achieving those goals.  I closed my first deal, put money into my bank account, January 2011. My second deal closed in March, 2011. That second deal returned my entire investment and more and I was already into the black. I finished my first full year well ahead of my initial monetary goals that I had set. Being your own boss certainly gives you a lot of flexibility and enables you a much better life style than working for a corporate office. I just hated having someone else’s thumb on my head, relentlessly pushing for results. I love being my own boss and that feeling is even greater knowing that my earnings are higher than I had ever earned in the past.   I am very happy with the decision I made to move forward and become a franchise consultant. It was one of the best decisions I have ever made for myself.”

– John Fretty, Casselbury, FL



“My name is Susan Fraize and I have been a franchise consultant for over 9 years.  I enjoy every minute of my “professional choice”, made in 1996, to leave the education field, after having spent 13.5 years as a teacher and administrator.

My background includes a BA in Elementary education, a MS in School Administration and an ED. S. in School Administration.  I was an Elementary Educational Administrator at the age of 26 and continued for 10.5 years as a principle.

One I decided to leave the education field I chose to work in the franchise field as a consultant.  I he found the experience to be ever-changing, enjoyable, and financially rewarding.  I work from home, set my schedule, thus; I have created a “life-style” which meets the needs of me and my family.”

– Susan Fraize Carmel, IN



“I spent a lot of time in the corporate world and I also owned several traditional brick and mortar businesses.  I did well, but I got tired of all the long hours and all the costs involved in running those types of businesses.  Before I decided on becoming a Franchise Consultant, I researched quite a few businesses.  Franchise Consulting was the only business that satisfied all my criteria:  a fast growing, recession-proof industry, a low investment, low overhead, high income potential, time flexibility, professional clientele, and fulfillment from providing a valuable service to many people.  I have been very pleased with my decision.   I achieved a six figure income in my first year, and I have tripled my income since then.  Also, I have much more control of my time and I feel a great deal of satisfaction from helping other people achieve their goals.”

– Michael Reis, Norcross, GA

Beyond the Easy Bake Oven

How One Franchise Is Teaching Kids to Cook Better Than Their Parents

The idea of a child using a knife is enough to make any parent nervous. For Barbara Beery, it’s not so bad. For the past 25 years, Barbara has been surrounded by children with knives as a cooking instructor.


Born and raised in Austin, TX, Barbara has spent most of her life cooking. As a child, she was always in the kitchen with her mother. As a mother, Beery was always in the kitchen with her three young children. After the arrival of her third child, Beery needed a little extra cash.


Not wanting to put her kids in daycare, Barbara put her degree in education to work as a part-time preschool teacher. In her spare time, she taught cooking classes for children out of her home in Austin, Texas. She realized that, as a teacher, she had access to a large potential customer base: children and their busy parents.

All it took was a flier to fill a few of Beery’s cooking classes  After a few years of teaching both preschool and cooking classes, Barbara saw children’s cooking classes were something she could pursue full-time. That was 25 years ago.


From Kitchen to Franchise


From the very beginning, Barbara never simplified the recipes she taught to her students. “Kids can do so much more than just frost a cupcake,” explains Beery.


Most of the recipes Beery teaches are inspired by adult cookbooks (as opposed to those penned for children). Instead, she substitutes ingredients and changes a few names to make them appropriate for younger and smaller chefs. “Children are so beyond throwing a peanut-butter-and-jelly something together,” Beery says.


Today, Barbara Beery is the President and Owner of Foodie Kids, a franchise opportunity that teaches children’s cooking classes and sells child-appropriate cooking materials. She still teaches classes at the franchise’s Austin, Texas location; it’s what she “really loves.” In addition, Barbara writes the franchise’s curriculum, divines new recipes, and creates new classes.


When it comes to new classes, Barbara feels it’s important to stay up-to-date with the media, food trends and various new movies. For example, one summer she built a series of classes around the movie “Ratatouille” following its release. Of course, she’s constantly in contact with her little chefs and their parents. “There’s nothing more invaluable than listening to our customers.”


How Foodie Kids Works


As a franchise, Foodie Kids generates revenue in two ways: through cooking classes and its retail store. Each location separates the retail portion from the kitchen area for obvious health and safety reasons, but onlookers are able to watch cooking classes through large glass windows.


The retail area of the franchise is, according to Beery, “a cross between a kitchen supply store like Williams-Sonoma and a fabulous toy store like FAO Schwartz.Everything you can imagine having to do with kids and with cooking we sell,” Beery says.

Anytime the retail portion of Foodie Kids is open, kids can come in to make a snack for free. Not only does this entice children into the retail area (which is great for franchisees), it allows parents the opportunity to sit down, relax, and enjoy a cup of coffee while their little ones are happily playing. An added bonus? “It’s not their kitchen,” says Beery. There’s nothing to clean up.

In the Foodie Kids kitchen, children are taught according to their age and/or experience level. Those who are new to cooking or are very young will use child-appropriate safety knives, which are sold in-store. Foodie Kids also teaches a knife skills workshop. According to Beery, most children between 7 and 8 cannot use sharp knives that aren’t designed for children. “A 7 or 8 year old who has grown up in a cooking family can use a sharp knife,” says Beery.


“As many recipes as you can think of– that’s what we do,” says Beery of the cooking classes. “Children have made turkey sliders, homemade buns, vanilla ice cream, crêpes, chocolate croissants and coq au vin,” she says. Several of her students have gone on to culinary academies to become chefs.


“Cooking is one of those things that with the right environment and instruction, a child can be instantly successful. The best part of my job is when the little light bulb goes off in a child’s head, when they accomplish whatever we’re working on for the first time. It doesn’t matter if it’s a 2 year old or a 10 year old.”


Finding Franchisees


While the only location in current existence is the original in Austin, potential franchisees shouldn’t be alarmed. Barbara has been in the business for 25 years and Foodie Kids has only been franchising since mid-May of 2012.


If you’re interested in becoming a franchisee, loving to cook and loving kids are both important but they’re certainly not all Barbara looks for when selecting entrepreneurs to further Foodie Kids. “This is a business, it’s not a hobby. This isn’t something to tinker around with for three to five hours a day and walk away from,” Barbara says of her franchise. She makes the point that it is a small business.


“We don’t want an absentee franchisee. These parents and grandparents are bringing in their most precious possession to teach and do right by. You need to have your face in that store.” Beery asserts.


Once an entrepreneur becomes a Foodie Kids franchisee training begins in Austin at the original Foodie Kids location. Additional training is provided on-site at the franchisee’s new location for 3-5 days during the initial opening week. Barbara hopes that the new franchises who join Foodie Kids will incorporate new ideas into the program.


“You can’t think of everything!” she quips.



Success Story


If you’re wondering as to the practicality and profitability of a children’s cooking franchise in this economy, Beery has proved that it’s possible be successful. Foodie Kids in its current incarnation began two years ago and, despite never advertising, experienced the kind of success you don’t hear of– even in a booming economy.


“We opened the doors and we had profit in the first three months,” says Beery, much of which she credits to her local reputation.


That said, Foodie Kids provides a service that busy and working parents need and feel are of value. Barbara feels that cooking classes for children were once considered a luxury but now are ways for busy parents to keep kids busy during the summer months and after school when parents have to run errands, be at work, or need alone time.

For more information on becoming a Foodie Kids franchisee, visit http://www.franchiseclique.com/franchise/Foodie-Kids.