Franchises are overinvesting in low-ROI channels while underfunding high-performers like Email/SMS.

Essential Statistics

• Email/SMS: 4% spend, 595% ROI.
• Local SEO: 28% spend, 274% ROI.
• Directories: 11% spend, 172% ROI.
• Paid Ads: 39% spend, 81% ROI.
• Other: 12% spend, 106% ROI.
• Social: 6% spend, 17% ROI.

Key Takeaways

• Email/SMS delivers the highest ROI by far, yet gets the lowest investment.
• Local SEO is a strong performer with a significant ROI gap vs. paid ads.
• Paid ads dominate spend but underperform on returns.
• Franchises are overspending on social with minimal ROI.
• Directories are underutilized but generate decent returns.
• High ROI channels are often the most underfunded.
• This imbalance creates budget waste and missed growth.

Actionable Insights

• Reallocate budget toward Email/SMS. It compounds ROI with minimal spend.
• Audit your ad spend ROI. If it’s below 100%, shift dollars elsewhere.
• Increase Local SEO investment. It punches above its weight for long-term visibility.
• Test directory partnerships for low-cost, high-return exposure.
• Reduce spend on social unless you have proven conversions.
• Use this chart to justify shifting spend to decision-stage channels.
• Double down on efficiency—not just awareness.

Chase what grows faster and bigger. Double down on the channels that compound your ROI instead of just consuming your budget. – Neil Patel