We recently released the eBook “Building a Business Case for Customer Training.” So far, we’ve shared the first two steps to build an effective business case for customer training: outlining your pain points and providing potential cost savings. Today’s post will be covering step 3 of building a business case: highlighting revenue generation.
To craft an even more compelling argument for a built-out training program, try framing your business case around revenue generation, as well as cost savings. The following metrics can help:
- Improved Retention & Renewals
One of the biggest benefits of customer training is accelerated time to value. Essentially, once your customers understand how to use your product, they will be more invested in it. This leads to increased product adoption and customer advocacy, which in turn, leads to more expansions.
If your leadership team needs further convincing, emphasize the impact training has on Customer Lifetime Value (CLV). It’s hard to quantify, but in general, the longer a customer stays with you, the more revenue you get from them. And as mentioned above, effective training drives continuous usage.
“It is all about customers for life; how we drive lifetime customers is by helping our customers do the same for their customers, and so on,” said Bill Lawler, Vice President of Sales at Skilljar. “Think of it as the ‘customer circle of life.’ The first 90 days for any customer engagement is so pivotal for the long-term success of that customer relationship.”
- Direct Training Revenue
Not every organization charges for training. However, those that do have found that it can quickly become a revenue source, rather than a cost center.
Take advantage of this and consider implementing a blended, a la carte, or subscription pricing model. In the first case, some courses would be free, while others would be available for a fee. In the second, you would charge per course, so customers could purchase training as needed. And in the third, those who are interested would pay a flat rate for access to content for a full year.
- Ongoing Lead Generation
When exploring ways to expand your training program, we encourage you to discuss training as a marketing tool, since it benefits multiple departments and can be a great way to generate leads.
Here’s how it works. For this use case, you would design content that is helpful for customers and industry professionals as a whole. Students who are interested in training can then register for your courses. And those who do sign up become marketing leads. This provides intrinsic value, as students are able to share their certificates upon completion, which leads to increased brand awareness.
- Franchise & Partner Training
For franchises and organizations with partner programs, consistency is key. They’re operating under your brand after all, so your business results largely depend on theirs.
Provide them with the information they need to succeed. By offering a fully built-out training program, you’re empowering them to sell your product effectively, which should result in significant revenue growth.