Business

If you have ever tried to defend creator spend in front of a CFO, you know the problem. The campaign can look busy on the surface. Views are high, comments are positive, and the creators are asking when the next deal is coming.

Then the CFO asks one question: what did we get back in revenue, and how do you know it came from this spend? When the answer leans on Earned Media Value (EMV) only, engagement rate, or brand awareness, the conversation usually ends with budget pressure.

In 2026, that standard is changing. Vanity metrics might help you improve creativity, but they do not justify investment. What wins the budget is attribution to Net Revenue and profit, plus clear math that ties spend to Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), and conversion. CFOs in particular and brands in general need performance-based influencer marketing.

This guide shows how to calculate influencer marketing ROI using the same financial logic you would use for any growth channel. We will also separate Return on Ad Spend (ROAS) from profit based ROI, and walk through creator campaign attribution models and the tracking stack needed to connect an influencer post to a closed deal.

Key Takeaways

Move beyond EMV to Hard Revenue.
Include all costs (agency, product, shipping) in the formula.
Use U-Shaped or Linear attribution to see the full picture.
Automate tracking with UTMs and pixels.

ROI vs. ROAS vs. EMV: Defining Financial Success

Marketers often mix these metrics in the same report. A CFO will not. If you want influencer spend to be treated like a real growth investment, you need to be precise about what each metric measures, what it ignores, and what question it answers.

Earned Media Value (EMV)

What it is: A dollar estimate assigned to impressions, views, likes, or engagement by comparing them to what you might have paid for similar reach in ads.
What it answers: “How much would this exposure have cost if we bought it?”
Why it fails in the boardroom: EMV is built on vanity metrics. It has no direct link to net revenue, profit, or even verified customer actions. Two campaigns can have the same EMV while one drives sales and the other drives nothing but attention. EMV can be useful for creative benchmarking, but it is not a financial result.

Return on Ad Spend (ROAS)

What it is: A revenue efficiency metric.
Formula: ROAS = Gross Revenue / Ad Spend
What it answers: “How much gross revenue did we generate per dollar spent?”
Why it matters: ROAS is a clean way to compare channel efficiency when your goal is revenue generation. It forces you to connect spend to revenue. But ROAS is not profitable. It does not subtract costs like Cost of Goods Sold (COGS), shipping, discounts, refunds, or agency fees. A campaign can look strong on ROAS and still lose money.

Influencer Marketing ROI

What it is: A profitability metric for creator investment, and the primary financial KPI if you need CFO level approval.
Core logic: profit compared to Total Investment.
What it answers: “Did we make money after all costs, and how much profit did this Investment produce?”
Why it matters: ROI is what finance teams use to decide whether to scale, hold, or cut spend. It forces you to define total investment properly and connect it to profit, not just revenue.

Comparison table: EMV vs. ROAS vs. ROI

Metric
What it measures
Core inputs
Best use
Main weakness

EMV
Estimated value of exposure
Vanity metrics like views, impressions, engagement, plus assumed media rates
Creative comparison, top of funnel reporting
Not tied to net revenue, profit, or verified outcomes

ROAS
Revenue efficiency
Gross revenue, ad spend
Comparing efficiency across paid and creator programs
Ignores costs, so it can overstate success

ROI
Profitability
Net profit, total investment
Budget justification and scale decisions
Requires clean cost accounting and attribution

The math difference that matters

ROAS uses Revenue, not profit:

ROAS = Gross Revenue / Ad Spend
Useful when you need to show Revenue per dollar, but it does not tell you if the campaign was profitable.

ROI uses profit and full Investment:

ROI is built on Profit compared to Total Investment, not just the creator fee.
Finance cares about Profit, because Profit is what remains after costs.

If you want a creator report to survive a CFO review, treat EMV as supporting context, not the headline. Lead with investment, revenue, and profit. Then back it up with transparent assumptions and a repeatable tracking method. For more on this, see metrics that matter.

The Exact Formulas to Calculate Creator ROI in 2026

1. ROI

Start with the only ROI formula a CFO will accept. Influencer marketing ROI is a profitability metric, not a feelings metric. The standard formula is:

ROI (%) = (Net Profit – Total Cost) / Total Cost x 100

This is the formula you should use when you want to claim a creator campaign “paid back” the budget.

2. Total Cost

Define Total Cost correctly, or your ROI will be wrong. Most influencer reports quietly treat the influencer fee as the whole cost. That is the fastest way to lose credibility with finance. Total Cost must include every real expense required to produce and fulfill the sale.

Include in Total Cost:

Creator fees (and usage rights if paid separately)
Agency fees or internal labor allocation (if you report that way)
Product seeding costs (free product sent to creators)
Cost of Goods Sold (COGS) for units sold
Shipping and handling
Payment processing fees and platform fees
Returns, refunds, chargebacks (treat as revenue reduction or as cost consistently)
Discounts and coupons (again, handle consistently)

If you leave out COGS and shipping, you can show a positive ROI on paper while the business loses money on every order.

3. Net Profit

Calculate Net Profit the same way your finance team does. Net Profit is what remains after costs. A simple way to structure it for creator campaigns is:

Net Profit = Net Revenue – Total Cost

Where Net Revenue is revenue after refunds, returns, and any adjustments your finance team uses. This is why Net Revenue matters more than top line gross sales when you are trying to prove real ROI.

4. Break-even Revenue

Know your break-even point before you scale. Before you ask for more spend, you should know the Break-even Point, meaning the minimum revenue you must generate to avoid losing money.

Break-even Revenue = Total Cost / Gross Margin %

Example:

Total Cost of the influencer program this month: $50,000
Your gross margin is 60% (0.60)
Break-even Revenue = $50,000 / 0.60 = $83,333.33

If your attributed revenue is below $83,333.33, you are not breaking even yet. If it is above it, you have room to scale, assuming the attribution is credible.

5. CAC

Calculate Customer Acquisition Cost (CAC) for creator campaigns. ROI tells you profitability. CAC tells you efficiency of acquiring new customers, which is often how senior teams compare channels.

Influencer CAC = Total Spend / New Customers

Important details:

Total Spend should match your Total Cost logic, not just creator fees.
New Customers must be net new customers, not all purchases. Otherwise CAC looks artificially low.

Example:

Total Cost: $50,000
New customers attributed to creators: 250
CAC = $50,000 / 250 = $200

If your blended CAC target is $150, creator CAC at $200 might still be acceptable if it brings higher CLV, stronger retention, or higher average order value. For a deeper breakdown, see calculating CAC: /marketing-efficiency-ratio.

6. CLV

Bring in Customer Lifetime Value (CLV) to judge payback, not just first purchase. Influencers often drive higher trust and higher intent, which can affect retention. That is why CLV matters, especially for subscriptions, high ticket items, or products with repeat purchase behavior.

A simple CLV model:

CLV = Average Order Value x Purchase Frequency x Gross Margin x Average Customer Lifespan

Then compare CLV to CAC:

If CLV / CAC is healthy (many teams target 3x or more), the channel can be worth scaling even if first purchase ROI looks modest.
If CLV is unknown, at least estimate the payback period: how long it takes gross profit to recover CAC.

7. What about brand awareness campaigns?

Use cost efficiency, not fake ROI. If the campaign truly has no conversion event to measure, you do not calculate financial ROI honestly. You measure cost efficiency for awareness outcomes, and you keep it separate from performance claims.

Practical options:

Brand lift studies (awareness, consideration)
Share of voice or search lift
Cost per qualified visit, cost per email signup, or cost per lead, as a proxy when you are building the funnel

The key is consistency. If you want to say influencer marketing ROI improved, you must anchor it to profit math and full cost accounting, and then validate the attribution method you used to assign revenue and customers to influencers.

Attribution Models: Tracking the Invisible Touchpoints

If your influencer marketing ROI looks weaker than Facebook or Google, there is a good chance the campaign is not actually underperforming. You are likely seeing an attribution problem, not a performance problem. Influencer campaigns often create demand at the top of the funnel, while paid search, retargeting, or email captures the final click that converts. If you rely on Last-Click Attribution, creators will look expensive even when they are the reason the customer entered your world in the first place.

Below are the attribution models you can use to assign credit across touchpoints. The goal is not to “make influencers look good.” The goal is to assign credit in a way that reflects how people actually buy in 2026.

Last-Click Attribution

What it does: Gives 100% credit to the final touchpoint before purchase.
Why it breaks influencer campaign attribution: An influencer post might drive the first site visit, the email signup, or the app install. Then the customer returns later through Google search, a retargeting ad, or a branded direct visit. Last click gives all credit to the closer and none to the introducer.
When it is acceptable: Rarely. It can work for impulse purchases with one session conversion, but most creator driven journeys are not one session.

First-Touch Attribution

What it does: Gives 100% credit to the first recorded touchpoint.
Why it helps: It credits discovery, which is often the influencer’s true role. It is useful when your objective is growing new demand and you need to prove the creator’s “opening” value.
What it misses: It can undervalue the channels that do the heavy lifting in the middle and at close, like retargeting, email, sales, or affiliates.

Linear Attribution

What it does: Splits credit equally across every touchpoint in the journey.
Why it helps: It prevents one channel from stealing all credit and gives creditors a fair share when they are part of a longer path.
What it misses: Not all touchpoints are equally important. Some are decisive. Some are noisy.

U-Shaped Attribution

What it does: Assigns more credit to the first touchpoint and the last touchpoint, with the remaining credit spread across the middle touches. The model in this brief is: 40% First, 40% Last, 20% Middle.
Why it is often best for creator campaigns: It matches how many influencer paths work. Influencers introduce the brand and frame the intent. Retargeting or search closes the deal. The middle touches still matter, but they should not erase discovery.
How to use it in reporting: Treat the creator as the 40% opener when they are the first recorded touchpoint, or when they are the first meaningful engagement that can be verified (click, signup, install, or survey confirmed source).

Multi-Touch Attribution as the Umbrella Concept

Multi-Touch Attribution is any approach that assigns credit across multiple touchpoints instead of one. First touch, linear, and U shaped are common “rules based” versions. More advanced versions use data driven weighting, but the principle is the same: share credit across the journey.

Why your influencer ROI can look lower than Facebook ads ROI

In many stacks, Facebook is the closest because it retargets the people who first visited from creators. If your reporting uses last click, Facebook appears to generate the sale “cheaply,” and creators appear to “not convert.” That is an attribution error. The sale was assisted by creators, but the credit was not assigned.

Visual description for a U-Shaped model diagram

Imagine a path that goes left to right with five boxes:

Influencer Post
Website Visit
Email Signup
Retargeting Ad
Purchase

Above each box is a percentage.

The Influencer Post box has 40% credit
The Purchase box, labeled Retargeting Ad as the last touch, has 40% credit
The three middle boxes share the remaining 20% credit equally, so each middle box gets about 6.7%

The diagram makes one point clear: the model gives real credit to both introduction and close, instead of letting Last-Click Attribution erase the first touchpoint.

The Tech Stack: Automating the Tracking Loop

A strong attribution model only works if you can capture the right data. The goal is simple: every creator touchpoint should leave a measurable trail that can be tied to a user, a lead, and eventually net revenue in your reporting. You do not need a perfect setup to start, but you do need a consistent one.

UTM Parameters for every single creator link

Create UTM Parameters for each influencer, each platform, and ideally each post.

Minimum fields to standardize:

utm_source (influencer name or handle)
utm_medium (influencer)
utm_campaign (campaign name)
utm_content (platform or post identifier)

UTMs make the first click traceable, which protects Creator Campaign Attribution from being erased by Last-Click Attribution in your analytics.

Promo codes to track conversions that happen without a click

Not every customer clicks a link. Some see a post and search your brand later, or share it in a chat. This is dark social, and it is common for influencer driven demand.

Promo codes give you a second line of tracking when link data is missing.

Best practice:

Unique code per creator for clean attribution.
A consistent code structure (for example INFLUENCER10 or BRAND CREATOR).
A defined policy for discounting so codes do not destroy profit while chasing revenue.

Attribution pixels and conversion events

Use attribution pixels (your ad platform pixel or a server side event) to capture key actions:

View content
Add to cart
Lead form submit
Purchase or subscription start

Pixels let you build remarketing audiences and connect creator driven traffic to later conversions. They also help you see assisted conversions inside multi-touch views.

CRM integration from click to closed won

If you sell B2B, high ticket, or anything with a sales cycle, you cannot stop at checkout tracking. You need CRM Integration so each lead keeps its original source through the pipeline. Tools that are commonly used are HubSpot, Salesforce, and the like.

Minimum setup:

Capture UTMs on the first visit and store them in hidden form fields.
Push those fields into the CRM as lead properties.
Maintain the original source through deal stages, not just last activity.

This is where creator programs become CFO friendly, because you can show an influenced pipeline, closed won revenue, and payback timing.

Post purchase surveys to fill attribution gaps

A simple “How did you hear about us?” questions at checkout can catch what UTMs miss.
Offer structured answers that include top influencers or “Creator on TikTok” or “YouTuber.”
This is not perfect data, but it is often the only way to capture dark social influence when links are not clicked.

A practical reporting view that finance can trust

Build a weekly or monthly report that includes:

Total Investment by influencer and by platform
Attributed Net Revenue by model (first touch, U-shaped, or linear)
Profit and Influencer Marketing ROI
Creator CAC and payback period where possible

The point is to show the same language finance uses: Investment, Revenue, Profit, and time to recover spend.

The ROI Tracking Setup Checklist

UTMs on every creator link, standardized naming convention
Promo codes, ideally unique per creator
Attribution pixels with key conversion events configured
CRM Integration that stores original source and ties leads to closed won revenue
A post checkout or post signup survey to capture dark social touchpoints
A consistent attribution rule (often U shaped or linear) applied across reports

Conclusion

Influencer programs do not fail in finance reviews because creators “do not convert.” They fail because the measurement is incomplete. If you report EMV, views, or engagement as the headline, you are asking a CFO to fund feelings. In 2026, budget is won with revenue attribution, transparent cost accounting, and a repeatable method for assigning credit across touchpoints.

The fastest path to credible influencer marketing ROI is simple: pick an attribution model that reflects how people buy, and build a tech stack that captures the data consistently. For most teams, that means moving away from Last-Click Attribution, applying a U-Shaped or Linear approach for influencer campaign attribution, and enforcing tracking hygiene with UTMs, pixels, and CRM fields that survive the full journey to closed won.

If you want more budget next year, audit your current campaigns this month. Replace vanity reporting with Net Revenue, profit, CAC, and payback. Then you will have numbers that hold up in the boardroom.

Read more:
The Ultimate Guide to Calculating Real Influencer Campaign ROI

The British Business Bank has committed up to £45m as a cornerstone investor in Redrice Ventures’ £75m Fund II, aiming to strengthen early-stage investment across the UK’s creative industries.

The commitment, made through the Bank’s Enterprise Capital Funds programme, builds on a previous £36m cornerstone backing for Redrice’s first fund in 2021, which helped catalyse additional private capital into what became an oversubscribed vehicle.

Founded in 2018, London-based Redrice specialises in seed-stage investments in premium, purpose-driven consumer brands and related B2B technology. The firm focuses on companies operating at the intersection of creativity and commerce, with investments spanning media, sport, health and wellness, sectors where brand identity, storytelling and cultural relevance are central to growth.

The creative industries remain a significant contributor to the UK economy, employing around 2.4 million people and generating £124bn in gross value added. Consumer brands play a critical role within that ecosystem, driving demand for design, advertising, content production and innovation, while the broader creative sector enhances brand reach and international appeal.

Redrice’s portfolio also extends into sport and entertainment, supported by its Redrice Sports Collective, led by Sir Andy Murray and Alistair Brownlee OBE. Sport is regarded as a core creative export sector, combining live performance, media production and digital storytelling into globally marketable experiences.

The British Business Bank said its role as a cornerstone investor enables funds to achieve first close and scale more effectively. The Enterprise Capital Funds programme has backed 51 funds to date, representing more than £3bn of finance.

Christine Hockley, managing director and co-head of funds at the Bank, said the investment was aligned with the government’s growth agenda. “The creative industries are central to the UK’s growth mission,” she said. “As a cornerstone investor, we aim to crowd in additional capital and expand finance options for companies looking to scale.”

Tom March, founder and partner at Redrice Ventures, said the UK’s depth of creative and technical talent positioned it well to produce globally ambitious brands. “In a content-saturated world, the brands that win don’t just acquire customers — they build fanbases,” he said. “Fund II is about backing founders who understand that authentic connection is everything.”

The investment underscores growing institutional support for creative and consumer-focused startups as policymakers seek to strengthen high-growth sectors within the UK’s modern industrial strategy.

Read more:
British Business Bank commits up to £45m to Redrice Ventures to back creative industries

Graduates are increasingly missing out on job offers because they are not considered ready for the workplace, according to new research that suggests a widening gap between academic achievement and professional expectations.

A survey commissioned by Regent’s University London found that 80 per cent of recruiters believe graduates are losing out on roles due to a lack of professional maturity and work readiness. A further fifth described some candidates as “work shy” and lacking self-awareness.

Recruiters said a strong work ethic was the most commonly missing attribute among graduates, followed by communication skills, decision-making ability and accountability. These softer skills are now seen as more important than academic credentials, with 78 per cent of employers saying they prioritise candidates with strong interpersonal skills over those with top grades or technical expertise.

Practical experience is also viewed as critical. Nearly one in five recruiters said graduates fail to secure roles because they lack hands-on, on-the-job experience. As a result, 79 per cent said they favour applicants who have practical work exposure over those without it.

The findings reflect broader concerns about how well traditional university education prepares students for employment. More than 70 per cent of recruiters surveyed said higher education does not adequately equip graduates to thrive in professional environments, suggesting many are struggling not because of academic shortcomings but because of a disconnect between theory and real-world capability.

One in five recruiters said they had rejected candidates directly because of skills gaps they attributed to shortcomings in university preparation.

The pressures are compounded by rising competition for graduate roles and a softening labour market. Data from Jisc show graduate unemployment increased from 5.6 per cent to 6.2 per cent between 2021/22 and 2022/23, while the proportion in full-time employment fell from 59 per cent to 56.4 per cent.

Even when graduates do secure roles, employers report longer periods before they are deemed fully effective. Seventy-one per cent of recruiters said they have extended probation periods for graduate hires because of misaligned expectations around work ethic and softer skills.

Professor Geoff Smith, vice-chancellor and chief executive of Regent’s University London, said the findings highlighted the need for reform in higher education.

“It’s increasingly clear that traditional approaches to higher education are no longer preparing students for the realities of employment,” he said. “Universities must evolve to ensure students can communicate effectively and thrive in professional settings.”

He said Regent’s prioritises experiential learning, collaborative projects and practical engagement with businesses to bridge the gap between academic study and workplace expectations.

The research underscores growing employer concerns that academic success alone is no longer sufficient in a competitive labour market where adaptability, resilience and interpersonal capability are increasingly prized.

Read more:
Graduates missing out on jobs due to lack of workplace readiness, recruiters say

Warrington-based fitness brand Built For Athletes has secured £1.025m in funding from NatWest as it accelerates plans for global expansion and product innovation.

The facility comprises a £525,000 trade loan and £500,000 in invoice finance, providing the fast-growing business with additional financial flexibility to invest in new product lines, scale operations and expand its international footprint.

Founded in 2018 by brothers Daniel and Nicholas Costello, Built For Athletes has established itself as a category-defining backpack brand within the fitness sector. The company is known for its premium, design-protected functional backpacks tailored to gym users and competitive athletes, and has secured high-profile partnerships with Alpine F1 Team, Williams Racing, Red Bull Racing, Borussia Dortmund and fitness competition brand Hyrox.

Chief executive Danny Costello said the funding marks a significant milestone. “This facility provides enhanced financial flexibility to invest confidently in product development, operational capability and international expansion,” he said. “NatWest’s commitment to our long-term vision underpins the sustainable growth of the business.”

The company plans to use the funding to broaden its product range, deepen its global brand presence and invest further in digital marketing, creator partnerships and technology to strengthen direct-to-consumer sales.

Nathan Johnson, senior relationship manager at NatWest, said the bank was keen to back innovative, high-growth firms. “Built For Athletes exemplifies the kind of ambitious UK business shaping the future of sports retail,” he said.

Sustainability remains central to the company’s strategy. Built For Athletes designs durable products to counter fast-fashion waste, partners with BSCI-audited manufacturers, uses fully recyclable packaging and prioritises eco-efficient logistics. It also promotes employee wellbeing, diversity and transparent governance, aligning with NatWest Group’s broader focus on supporting sustainable business growth.

With new capital secured, Built For Athletes is positioning itself to move from a UK success story to a truly global fitness lifestyle brand.

Read more:
Built For Athletes secures £1m NatWest funding to fuel global expansion

Nominations have opened for the 2026 edition of the Black British Business Awards (BBBAwards), marking the 13th year of a programme dedicated to recognising exceptional Black British talent across the UK’s corporate and entrepreneurial landscape.

With nearly 500 professionals and entrepreneurs already honoured since its launch, the awards continue to serve as a prominent platform for celebrating leadership, innovation and impact across British business. Organisers are calling on companies to put forward visionary leaders, high-performing executives and entrepreneurial achievers whose work is shaping industries nationwide.

This year’s programme expands to nine categories, offering broader recognition than in previous years. The STEM category has been split into Science & Engineering and Technology, while Consumer & Luxury now spans Fashion & Beauty, FMCG and Retail & Hospitality. These sit alongside Arts & Media, Entrepreneur, Financial Services and Professional Services.

From the category winners, one overall Black British Business Person of the Year will be selected, joining a distinguished alumni that includes leaders from S&P Global, Microsoft and Netflix.

The 2026 theme, #SHINE, is designed to celebrate visibility, brilliance and measurable impact. BBBAwards chair and executive founder Dr Sophie Chandauka MBE said the theme reflects the importance of authentic growth and collective progress.

“#SHINE recognises those who illuminate pathways for others, drive measurable change and lead innovation across industries and communities,” she said. “When individuals have a platform to grow and shine authentically, collective success follows.”

Nominations close on Wednesday 11 March, with finalists and winners to be celebrated at a ceremony on 9 October at Hilton Park Lane. The event is expected to draw senior business leaders and influencers from across the UK economy.

Sponsors for 2026 include Baker McKenzie, Morgan Stanley, Ralph Lauren and S&P Global.

Last year’s Black British Business Person of the Year was Yvonne Kunihira-Davidson, managing director and EMEA head of tax solutions at S&P Global Market Intelligence. The 2025 Impact Award went to Anne Mensah, vice-president of UK content at Netflix, while the inaugural Icon Award honoured Kanya King CBE, founder and chief executive of MOBO Group.

Organisers say the awards remain a vital forum for recognising excellence and ensuring that Black British professionals receive the visibility and recognition their achievements merit.

Read more:
Nominations open for the 2026 Black British Business Awards

Topshop is making a nationwide return to bricks-and-mortar retail, launching in 32 John Lewis stores in its most significant high street comeback since the collapse of Arcadia Group in 2020.

The relaunch, which also sees Topman stocked in seven John Lewis locations, marks the first time in four years that the brand has returned to physical retail at scale.

Topshop’s original Oxford Street flagship was once a defining force in British fashion, famously drawing crowds when Kate Moss launched her collection in 2007. Its revival within John Lewis stores aims to recapture some of that cultural resonance.

After Arcadia entered administration, Topshop was acquired by Asos, which later sold a 75 per cent stake in the brand to Heartland, the investment arm of Danish billionaire Anders Holch Povlsen, founder of Bestseller.

Historically associated with shoppers aged 16 to 24, Topshop now returns via a retailer traditionally known for appealing to an older demographic. John Lewis said the move is designed to broaden its appeal to younger consumers while reconnecting with millennials who grew up with the brand.

The department store chain has been rebuilding its position after years of intense competition from rivals such as Marks & Spencer, a pandemic-driven shift towards online shopping and previous expansion missteps that left it with excess retail space.

Under a new leadership team, John Lewis has pursued a back-to-basics strategy, focusing on customer service, reintroducing its “never knowingly undersold” pledge and investing heavily in its in-store experience.

The Topshop relaunch coincides with London Fashion Week and features around 130 pieces across denim, tailoring, outerwear and wardrobe staples. Signature styles such as the Jamie and Joni jeans return alongside updated designs. Cara Delevingne fronts the new campaign.

Peter Ruis, managing director of John Lewis, described the partnership as a significant step in its fashion strategy. “To be the exclusive home of an iconic brand like Topshop signals our ambition to be the definitive style authority on the British high street,” he said.

Michelle Wilson, managing director of Topshop, said the partnership would bring the brand back to high streets across the UK “with the level of service our customers expect”.

The relaunch forms part of a wider £800m multi-year investment by John Lewis, which includes refurbishments of key stores, notably its Oxford Street flagship, and the introduction of 14 new fashion brands across womenswear and menswear.

For Topshop, the move represents a symbolic return to physical retail. For John Lewis, it is a calculated bet that brand nostalgia and refreshed fashion credentials can help reignite footfall on Britain’s struggling high streets.

Read more:
Topshop returns to the high street in John Lewis stores

UK unemployment has climbed to its highest level in five years while wage growth continued to ease, strengthening expectations that the Bank of England will resume cutting interest rates in the coming months.

Official figures from the Office for National Statistics show the jobless rate rose to 5.2 per cent in the three months to December, up from 5.1 per cent in the previous rolling quarter. Unemployment has been edging higher since 2022, reflecting a steady cooling in the labour market.

At the same time, average earnings excluding bonuses increased by 4.2 per cent year-on-year, down from 4.5 per cent in November and in line with economists’ forecasts.

The slowdown comes against a backdrop of higher labour costs following the chancellor’s £25bn rise in employer national insurance contributions introduced in October 2024, alongside increases in the national living wage.

Younger workers appear to be disproportionately affected. Payroll data show that employment among those aged 34 and under has fallen by 242,000 since mid-2024, when overall payroll numbers peaked. By contrast, employment among workers aged 35 and over has risen by 71,000.

Martin Beck, chief economist at WPI Strategy, said higher labour costs were weighing most heavily on entry-level hiring. “At the same time, firms are likely reassessing junior roles in the face of rapid advances in AI,” he added.

The softening labour market has reinforced market bets that the Bank of England will cut rates from their current level of 3.75 per cent. According to Bloomberg data, traders are now pricing in a roughly 76 per cent chance of a rate reduction at the next meeting in March.

Paul Dales, chief UK economist at Capital Economics, said the data supported the view that policymakers have “at least a couple more interest rate cuts in their locker”, with the probability of a March move increasing.

At its most recent meeting, the Bank’s monetary policy committee voted 5–4 to hold rates steady, a closer split than anticipated by analysts. Governor Andrew Bailey has since indicated that further policy loosening remains possible this year.

Yael Selfin, chief economist at KPMG, said the latest figures would reassure rate-setters that pay pressures are easing. “The MPC will take comfort from evidence that the labour market continues to soften,” she said.

Wednesday’s inflation figures will be closely watched. Economists expect the consumer prices index to fall to 3 per cent in January, down from 3.4 per cent in December, driven by lower airfares, easing food prices and slower energy inflation. That would mark the lowest reading since March 2025.

Stephen Kinnock, a health minister, pointed to recent job creation and economic growth, saying the UK had delivered the strongest growth among G7 European economies last year. He added that government initiatives were under way to support employment and apprenticeships.

However, business groups argue that recent employment reforms have made hiring more costly and risky. Alex Hall-Chen of the Institute of Directors said unemployment reaching 5.2 per cent underlined the fragility of the jobs market.

“The best way to boost employment is to make it less risky and less costly for businesses to hire staff,” she said, calling for adjustments to the Employment Rights Act and exemptions for small and medium-sized enterprises.

Jonathan Moyes, head of investment research at Wealth Club, said the alignment of weaker job growth and moderating wages could shift the Bank’s stance. “Wage growth has been the last domino holding back rate cuts,” he said. “Now both employment and wages are weakening, the case for further easing strengthens.”

For policymakers, the message from the data is clear: the labour market is losing momentum, and the balance of risks may now tilt towards supporting growth rather than restraining inflation.

Read more:
UK unemployment hits five-year high as wage growth cools

Providing excellent customer service is often essential for a business to succeed. Even with a strong product and competitive pricing, a business can struggle if its customer service doesn’t meet expectations.

Negative experiences, such as delayed email responses, short-tempered shop workers, or frustrating returns processes, can put customers off. In some cases, a single negative experience may be enough to dissuade someone from returning.

In this article, we’ll explain the importance of prioritising customer service for long-term success, with guidance from 1st Formations, a company formation agent.

What does customer service involve?

To improve your business’s customer service, you first need to understand what it involves.

Customer service covers every interaction a customer has with a company, from their first enquiry to after-sales support. These interactions can take place across digital channels such as email and social media, over the phone, or in person. Each touchpoint can influence how customers perceive the business and whether they feel confident buying from it.

It’s worth remembering that good customer service involves resolving issues, such as complaints and refunds, as well as supporting satisfied customers.

Whatever the situation, strong customer service is typically built on three key pillars: responsiveness, consistency, and empathy. Responsiveness refers to how quickly a business acknowledges a customer. Sometimes, a full resolution requires some time, but customers still appreciate a speedy acknowledgement. Consistency ensures everyone receives the same standard of service across channels and team members. Empathy is also important as it helps staff respond thoughtfully and tailor solutions to individuals. When you put these together, you can achieve excellent customer service. With responsiveness, consistency, and empathy in place, customers should receive timely replies, reliable outcomes, and meaningful interactions.

Why customer service matters

The quality of customer service can affect trust, influence the likelihood of repeat sales, and determine if people recommend the business to others. Over time, interactions shape a company’s reputation, which can influence its financial performance.

Customers who experience poor service often reassess their trust in a brand. This may mean they choose not to return and speak negatively of the business. On the other hand, good interactions can reinforce confidence, encourage repeat custom, and lead to positive word of mouth.

Why exceptional customer service increases customer retention

Retaining existing customers is often more cost-effective than acquiring new ones, which is why many growing businesses view improving customer loyalty as a long-term investment.

When customers experience reliable service or see that a business resolves issues effectively, they are more likely to return. In some cases, customers may even pay slightly more to buy from a business they already trust.

Customer service as a driver of reputation

Customer service plays a role in how potential customers form opinions about a business, even if they haven’t experienced the service first-hand. Online reviews and social media posts can influence how people perceive a business, both positively and negatively.

While it’s hard to avoid ever receiving a single negative review, how you respond to disgruntled customers can also shape your reputation. For example, a business that replies to comments and shows that they’re willing to resolve problems can still build trust. By contrast, ignoring problems or responding defensively to feedback can discourage potential customers.

Turning service interactions into business insights.

Approached thoughtfully, customer service can become a strategic decision rather than a reactive response.

While addressing a single complaint may resolve an immediate issue, repeated feedback about the same concern often signals a wider problem. For example, if an individual comments that their coffee isn’t strong enough, an additional espresso might be a short-term fix. However, if it happens repeatedly, it’s likely time to consider changing your café’s choice of coffee. Attentive businesses look for patterns like this and can use them to refine their products or services over time.

Looking beyond complaints, it’s also worth finding out what you’re doing well as a business. A lot of customers are more likely to contact a business to complain rather than praise it. Because of this, it’s worth creating opportunities for customers to share feedback. Try running a survey to uncover what people like and where you could make improvements. If you act on these insights, you can refine your offering and better align it with customer needs.

Consider how service is part of a business’s overall health

Delivering strong customer service is just one part of running a sustainable business. It’s also something that’s only possible if you have engaged employees. As a founder, it’s crucial to support all staff with training, clear standards, and recognition to help the team offer top-tier service.

Providing good customer experiences also relies on smoothness throughout the organisation. While some people may only think of service in terms of direct interactions with customers, behind-the-scenes departments, like logistics and product development, can also influence customer happiness. For example, delayed shipping due to a planning issue reflects poorly on the customer experience. Similarly, inconsistent sizing across a clothing range can frustrate shoppers and put a strain on the business’s returns process.

When back-end operations are optimised, it can become easier for frontline staff to focus on delivering positive customer experiences. Improved service standards can encourage repeat custom and may help reduce customer churn over time, supporting greater financial stability across the business.

Applying customer service principles to build a thriving business

Customer service delivers the greatest value when it’s embedded consistently across a business, rather than treated as a standalone function.

One practical way to apply strong service is by ensuring your systems support customers at every stage of the buying journey. Investing in improving backroom processes, training customer-facing teams to communicate with empathy, and proactively acting on feedback can strengthen customer service at all touchpoints.

It’s important to remember that customer service isn’t a nice-to-have extra. It should be valued as an integral part of a business that can influence reputation, customer retention, and its overall financial health. Organisations that embed service excellence across their operations are often better positioned to build customer trust and succeed.

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Why customer service is integral to business success

The way people access healthcare has changed in recent years, and many now turn to virtual medical services as a more convenient and accessible option. For some, it has become a regular part of their routine.

For others, it is something they are curious about but have not yet tried. Virtual care combines qualified medical professionals, secure digital platforms, and flexible appointment formats to create a service model that supports patients in a more immediate and accessible manner.

Understanding how these services work and what they offer can help individuals determine whether online consultations are a suitable option for their needs.

Saving Time When It Matters Most

Time is often the first thing people consider when thinking about online healthcare, and for good reason. A virtual consultation removes the need to travel to a clinic, search for parking, or sit in a crowded waiting room. Even the preparation involved in a traditional appointment can take up half a day.

Many virtual services enable patients to select appointments that accommodate their own schedules, rather than the other way around. A short consultation slot can often be found during a lunch break, after work, or in quieter moments at home. Some platforms even offer on-demand consultations that begin within minutes. For parents, caregivers, professionals, students, and anyone with a busy lifestyle, this flexibility makes healthcare management far easier.

There is also the practical advantage of shorter waiting times. Online platforms typically operate with efficient booking systems and streamlined processes, which help keep queues moving smoothly. Patients can log in, speak to a clinician, and receive guidance without the long delays that can occur in physical clinics. Over time, these short-term savings accumulate, making managing health concerns feel far more manageable.

Reducing Exposure to Illness

Avoiding exposure to illnesses is a significant benefit of a virtual doctor’s appointment. Waiting rooms can bring together people with different symptoms, which increases the chance of spreading infections. Virtual consultations reduce unnecessary contact and help protect both patients and clinicians. This approach is beneficial during seasonal outbreaks, as well as for individuals with weakened immune systems or those recovering from surgery.

Round-the-Clock Access to Medical Professionals

One of the most substantial benefits of virtual healthcare is constant availability. Traditional clinics close at set times, and many people find themselves in need of advice outside these hours. Virtual medical services bridge this gap by offering support at any time of the day or night.

This kind of availability is beneficial for urgent but non-life-threatening concerns. People dealing with a sudden symptom at midnight or a worry that develops over the weekend can speak to a clinician without waiting for the next working day. Families with young children often find this particularly reassuring. Symptoms that appear late in the evening no longer require a stressful trip to an urgent care centre for simple assessment or reassurance.

For individuals living with long-term conditions, the ability to contact a clinician promptly can help prevent minor issues from escalating into more serious problems. Regular monitoring and timely check-ins can be arranged without disruption to daily routines. Knowing that help is available whenever it is needed gives many patients a greater sense of confidence and control over their health.

Wide Range of Services at Your Fingertips

Many people are surprised to discover just how much can be done virtually. Online healthcare platforms typically offer far more than a simple conversation with a doctor. Patients can access general consultations, follow-up appointments, prescription reviews, and referrals to specialists when clinically appropriate.

Mental health support is also widely available. Many virtual clinicians offer counselling, wellbeing check-ins, and guidance for managing stress or anxiety. For individuals who prefer the privacy of speaking from home, getting an online medical consultation can be a more comfortable option than visiting a clinic. Regular virtual appointments help establish a sense of continuity, which in turn strengthens therapeutic progress.

For patients who need documentation such as fit notes, medical letters, travel certificates, or work adjustment letters, virtual platforms simplify the process. Clinicians can assess symptoms, verify details, and issue the required documentation digitally.

Better Access for People with Mobility or Location Barriers

Virtual medical services provide valuable support to individuals who struggle to attend traditional appointments. Individuals living in rural areas often face lengthy travel times to the nearest clinic or specialist. Online consultations eradicate this barrier, allowing access to high-quality care regardless of postcode.

People with mobility challenges, chronic pain, caregiving responsibilities, or limited transport options can also benefit. Booking a virtual appointment eliminates the strain of physical travel and provides a more comfortable and predictable experience. Patients can speak with a doctor from their bed, living room, or wherever they feel most comfortable.

Cost Efficiency and Practical Value

Virtual care can also help reduce indirect costs related to healthcare. Patients do not need to spend money on transport, parking, childcare, or time away from work. Although prices vary between providers, many find the overall experience more economical when considering the time and costs traditionally involved in physical appointments.

Choosing a Service That Works for You

Virtual medical services provide a combination of convenience, flexibility, and comprehensive support that caters to a wide range of healthcare needs. From time savings to constant availability, from specialist referrals to same-day medical certificates, these platforms enable patients to take control of their care in a practical and accessible manner.

Whether used occasionally or as a regular part of managing long-term health, virtual care provides an efficient and trustworthy option that many people now rely on.

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The Benefits of Choosing Virtual Medical Services

Choosing a healthcare franchise is a big decision, and the UK market makes it even more important to understand what you are actually buying into.

Every franchisor promises support, structure, and a proven model, but the best way to spot a genuinely strong opportunity is to break the evaluation into clear, practical checkpoints. When you look at the details behind fees, territory design, training quality, staffing plans, and regulation, you get a much sharper picture of whether a franchise will help you grow or slow you down.

Breaking Down Fees, Costs, and Unit Economics

The first thing most founders examine is the cost, but the goal is not just to compare numbers. You want to understand how each fee connects to real, measurable value.

What to look for in financial disclosures

What is included in the franchise fee, and what will immediately require extra spend
How the franchisor structures ongoing royalties and whether they scale with performance
Whether marketing fees reflect real marketing activity or just a line item on paper

Some franchisors in the UK publish ranges for fees and typical local authority rates, and these can help you cross check what sustainable margins look like. For example, local authority payment trends in England are outlined in guidance by the UK government, and reading through the material on provider fees can help you understand external pricing pressures. Reporting on care provider fee structures provides a sense of how local authorities approach rate-setting. By comparing a franchise’s projected revenue or margin claims against those real world numbers, you can filter out unrealistic promises.

Territory Mapping and Local Market Entry

Territory quality is just as important as brand reputation. A large territory is not always a good one, and a small territory is not always a bad one. What you want is clarity.

Strong franchisors usually offer:

Transparent mapping tools
Evidence of demand, not just population counts
Guidance on commissioning patterns in the region

This is also where regulatory readiness matters. Some franchisors offer deep, location specific compliance guides, and that level of clarity is a good sign. For instance, if you’re starting a franchise in New York you can see how a detailed regulatory playbook should look by reviewing this kind of planning in a guide that outlines local compliance steps, staffing rules, and registration pathways. That shows the level of practical detail you should expect in any serious jurisdiction specific support.

Training Quality and Systems That Actually Work

A healthcare franchise rises or falls on the quality of its training. You want training that is simple enough for new staff to follow but thorough enough to keep operations safe and compliant. Training should cover care standards, documentation, safeguarding, digital onboarding, and communication protocols. If a franchisor claims to offer training but cannot outline the structure, timelines, or competency checks, that is a red flag.

A good way to evaluate training is to ask current franchisees how long it took them to feel confident. If most of them say several months, that tells you the training may be too shallow, the systems too complicated, or the support too reactive.

Technology and Operational Infrastructure

Many franchisors advertise technology as a key selling point, but you want to look at its real purpose. Does it automate scheduling, care plans, invoicing, and compliance logging? Or is it just a rebranded third-party software with limited support?

Run a simple test. Ask the franchisor to walk you through a real care visit from start to finish in their system. If they cannot show it cleanly and confidently, the tech stack is probably not ready for scale.

Staffing Pipelines and Local Labour Realities

The care sector has staffing shortages, even in an era of growing telemedicine solutions, so a franchise must have a realistic approach to recruitment. Look for practical tools, not just encouragement. This might include job templates, onboarding scripts, local hiring campaigns, or partnerships with training institutions. Ask about historic turnover rates across the network. Low turnover usually reflects strong culture, systems, and support.

Regulatory Scaffolding and Compliance

This is one of the most important parts of evaluating a healthcare franchise. Strong regulatory support should include templates, guidance, supervision frameworks, and clarity on CQC expectations.

A Simple Scorecard to Use

A quick scorecard can make comparisons easier. Rate each category from 1 to 5:

Startup fees and value delivered
Territory clarity and demand evidence
Training depth and practical readiness
Tech usability
Staffing strategy
Regulatory support

High-scoring franchises will be transparent, consistent, and detailed in every category.

Final Thoughts

The best healthcare franchise opportunities are the ones that balance strong systems with realistic expectations. When you look past the sales pitch and focus on what will support you on day one and day one thousand, you can make a grounded, confident decision. If you want more insights, explore similar guides on our blog to continue building a clearer picture of what a strong franchise foundation really looks like.

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How to Assess a Healthcare Franchise Opportunity