Customer training is an important part of your business activities because you get an opportunity to teach the customer about your product. The training provides great benefit as it helps the customers fully comprehend your product and not only use it for once-off purposes. As a result, they turn into loyal, repeat customers who use your products in long-term.
The Customer Training ROI is a metric where you can measure the success of your customer training method. It measures the investment you have made and profit you have gained from customer training.
It also gives you a reason that makes you want to continue using customer training as a way to onboard new clients and retain the ones you have.
Not all training will pay off the same
The saying that goes “different strokes for different folks” applies immensely when you measure your customer training ROI. The reason behind this is because most companies face different problems, according to their size, industry and other contributing factors.
These factors have a different impact on each business, so not all of your training methods might work at all times. More especially, don’t expect that customer training provided by another company will work for you.
So, when you measure your customer training ROI, expect that there might be inefficiencies due to each unique circumstance each business faces.
Also, once you have fully measured your ROI with the help of a 360-degree assessment, don’t jump into reinvesting or freshly investing in a certain type of training. For example, you might choose to train your customers on how to benefit fully from using your digital camera with a quick 15-minute course.
You might think you need to expand and you are hastily thinking of increasing the time of the training. This might be inefficient because maybe your customers like that it’s short, so, you need to assess all the data first.
Breakdown your ROI
Where there are a lot of forces at play, you need to break down and categorize them to see the most effective one. This is because you may be getting an increasing ROI which only has one driving force and all other customer training methods are inefficient.
Because of this, you need to carefully assess your customer training strategy and categorize to differentiate each method being used. Afterward, you need to investigate each category and see how much benefit has been derived from those methods. Your category would look like this:
- In-store trainers
- House call trainers
- Manuals and guidelines
- Flyers and pamphlets
- YouTube channel
- Videos embedded on our site
From this list, you can then measure the performance of each factor and see which ones are the most beneficial. You can start working your customer training strategy redevelopment from there when required.
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Measure your ROI using sales
The bottom line of every business boils down to the question, does it make money? So, the most important customer training ROI you can use is the sales margins of the company. Are they shrinking? Are they increasing? This assessment is very valuable when you evaluate the efficacy of your customer training strategy.
Don’t be scared of the work involved when looking at the books. However, if you feel like you won’t understand the content of your business books fully, you can ask for a professional to help you go through them. Look at the performance of your sales since you rolled out your customer training program and measure how efficient it is.
You can use the statistics you get from that assessment to measure the overall customer training ROI and see if it is viable for your type of business.
If not, you may need to tweak your program here and there to better fit your industry, niche, and size of your business. Sometimes your own employees might also need training.
The sales of your company directly impact the overall revenue. So, while you check your sales margins, you may find it beneficial to check your revenues as well. The whole point of creating a customer training program is increasing your revenues.
It should be a two-way street. You invest your money, resources and time and the training program should pay back its dues.
By measuring the progress of your revenues from the time you started your training program, you will clearly see if it is benefitting you. This is where all the factors intersect because all of the factors involved in your customer training should boost your sales which will boost your revenues in turn.
If you don’t have any success with your revenue, you may need to completely change the methods and strategies you use. The benefit should be greater than the loss; don’t continue with a strategy that doesn’t work for you.
The results of using a strategy that only consumes money and doesn’t give back could be embarrassing, especially if it leads to the foreclosure of your business.
Look into mistakes
The main reason why you should measure your customer training ROI is that you need to ensure if it is beneficial. If it isn’t, you may need to perform changes, some may be minor, but some may be drastic. So be prepared to take those necessary steps when needed.
Looking into your mistakes or the mistakes done by your trainers will help you realize where you can strengthen your customer training program.
You may be able to see obvious inefficiencies, like unnecessary methodologies that waste time and resources. However, some may be so little to the extent that you can’t recognize them plainly, but need some careful examination of your company books.
The key to fine-tuning your customer training program is not procrastinating but taking direct action, as soon as you recognize an error. Don’t be alarmed by the errors you or your team may make. After all, we are all human. However, you need a solid, future-oriented plan-of-action if it happens.
For example, if you recognize that most of your customers don’t view the YouTube instructional videos you post but prefer hand-on training, you should follow their lead. You can do that by minimizing the monthly expenditure you spend on videos and focus more on hands-on training.
Your customers should be bringing business to you and if possible, they should also be referring other people to your business. Having a customer training program will help them understand your products deeper and see how they all work.
Once they see how all your products relate to each other (if you have more than one product), they will call again and buy more products from your range. You will then have more long-term clients that support your business continually. That customer turnover will also increase your revenue and help your business or brand grow stronger.
Your training should also reveal your other products and make your clients realize how they supplement the product they are buying. Once you measure the success of this, you may realize if your customers can turnover more revenue, or you should start rebranding.
Your customers should also be satisfied with your products and be free to recommend them openly. Customer training can make this a possibility because your clients will have fewer problems when trying to use your product.
Less frustration equates to the enjoyment of using your product and that will amount to a happy client. When your clients are happy, they will write positive reviews about you online and even recommend through word-of-mouth.
As a result, you will start getting more clients and your business will grow. How can you measure customer satisfaction? You can measure your client’s customer satisfaction through the volumes of calls to your customer helpline.
You can also measure it by the number of positive reviews online. If you still get more disgruntled customers calling your helpline or if they post negative reviews about you online, there may be something wrong with your strategy. It is time to go back to the drawing board because this will negatively impact your customer training ROI.
The training costs are an important resource for carrying out the training. The reason for this is that you need to pay trainers, buy or print the material or pay for third-parties to prepare the material for you.
You may even need those third-parties to do the training on your behalf due to lack of skills. If those costs are skyrocketing and much more than the money you get from training your customers, that is bad for your business.
So, use the metrics outlined above to ensure that you get the most out of your training. Perhaps you need to cut back on the costly training material you are possibly using, or maybe you don’t need the number of trainers that are on your payroll.
The ultimate trick is bringing the costs of your training below the money you get, for you to profit from your investment. So, keep tabs on how much you pay for every single thing involved in your customer training program, for you to get accurate statistics and reports.
Another thing that is just as important is using the reports you get from your trainers on how the training is going. They need to relate to you how your clients are feeling about the training program and how they are reacting to it. Are they bored during their session, or are they actively engaged?
All those details may impact the ROI you get, so you need to ask those questions. The details you get from these reports can help you see which method of delivering information can be effective. Is it a short informative video or long manual and guidelines that will reach your customers?
Even the language may come to play in this matter because if the information is not communicated in that person’s language, he might not understand fully. You, instructors, will tell you what needs to be done for you to benefit more from the investment you make towards your customer training program.
Compare the data collected
Once all is said and done, you need to compare the results you got from the assessment you made and see if this is working for you. Compare the current data with historical data that details how your company was doing before the customer training program.
Intensive analytical skills will be needed here because you need to carefully compare what is best for your business. Compare everything, from revenue books to sales margins, and also check out customer reviews and training reports. These resources will give you an idea with what the emotions are towards your customer training program.
You may need a growth analyst to help you go through your books so you might prefer visiting one. However, it should all be worth it and add value to your business.
Training your customers may seem like a tedious unnecessary job, but the fact is that if you train your customers well, they will stay for longer. Above staying for longer, they will recommend you to their friends and families because of their level of satisfaction for the service they received.
While on the other hand, your business will be growing day by day and gaining more revenue and sales from this strategy. Measuring your customer training ROI is very important and the tips outlined above will help you do it easier.
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