While the value of external education is well understood by training practitioners and those who engage with training content, it can be challenging to get other stakeholders on board, particularly when it comes to securing budget. In our recently released 2020 Customer Education Benchmarks and Trends Report, 62% of respondents indicated that their training budgets have increased year-over-year, and a further 83% anticipate their budget will increase in the next 1-3 years. Even in the midst of the COVID-19 pandemic, 13% of respondents reported that they expect to receive additional training budget within the next quarter.
Whether you are trying to kickstart your training program or seeking to expand your existing program, the case for securing additional financial resources from your CFO or leadership team relies on one key capability: demonstrating the positive ROI of training. Not sure where to start? There are two categories of ROI we recommend pursuing: Financial and Return on Time. Read on for an explanation of each type.
If you’re looking for tactical ways to demonstrate ROI, we encourage you to check out our eBook, 6 Ways to Secure More Training Budget.
Often, CFOs see customer training as just another cost line and one that should be minimized however possible. The key to changing their mind is to frame your request in a way they understand and are familiar with: data. There are four primary financial indicators that can help you support your position: customer lifetime value (CLV), annual recurring revenue (ARR), cost reductions, and revenue generation. In our eBook, 6 Ways to Secure More Training Budget, we delve into each of these indicators and show how they work for you.
Return on Time
Depending on the size of your organization, your Customer Success and Support teams may be able to provide premium treatment across all of your accounts. However, each account requires different types of onboarding and support. Plus, it’s likely that these teams are spending a significant number of hours working with users on how to use your product and often dealing with the same questions over and over. This isn’t scalable. You may be asking how this helps make the case for budget. It all comes down to demonstrating the value of training and it’s far-reaching impacts across your organization. For Customer Success teams, a formal training program can help CSMs provide high-quality, personalized support as your company grows, without requiring additional headcount. And for your Support team, on-demand training resources can save them time and the frustration that can accompany fielding the same questions over and over.
At the end of the day, your organization’s leadership team is looking to make smart investments. By clearly articulating the value of training – both from a quantitative and a qualitative ROI perspective – you demonstrate the far-reaching business impacts a formal, well-funded education program can have. Using this strategy, you may find the CFO can quickly become your biggest advocate, instead of a blocker to your program’s growth.