Customer education has grown significantly in recent years. What was once a task delegated to account managers or customer service representatives is now a formal motion, and companies are investing more in training programs each year. With additional investment comes greater scrutiny, and leaders ask the very pertinent question: “What are we getting out of this investment?” If you’re a customer educator, you may be wondering how to deliver a winning answer. Let’s go and find out!
The Elusiveness of Customer Education ROI
The History of Customer Education Measurement
The journey of customer education (CE) from a simple task to a strategic initiative is fascinating. Initially, customer education was an afterthought, something done informally through account managers or customer service representatives. However, as products and services become more complex, the need for structured educational programs has become evident. Businesses recognize that well-informed customers are more likely to be satisfied, loyal and successful.
This awareness has led to the formalization of customer education programs. Companies are investing in dedicated training departments, online learning platforms and comprehensive resources to educate their customers. Despite this transformation, it is often difficult to measure the impact of these programs. Measurement attempts often rely heavily on engagement metrics, such as the number of training sessions completed or online course completion rates. While these metrics provide some insight, they fail to capture the true business impact of customer education.
Why is it difficult to measure?
The difficulty in measure the ROI of customer education arises from several factors. First, there is an over-reliance on engagement metrics which, while important, do not directly correlate to business results. Metrics such as course completion rates, quiz results, and attendance figures can indicate participation levels, but do not necessarily translate into improved customer behavior or increased revenue.
Second, many attempts to measure customer education ROI rely on loose correlations. For example, a company may notice that customers who participate in certain training courses are more likely to renew their contracts. Although this is a positive sign, it does not establish a direct relationship between education and renewal. Other factors, such as product quality or customer service, could also influence these results.
To truly demonstrate the value of customer education, a more robust and strategic measurement approach is needed.
A modern approach to measurement
Achieving a positive ROI starts with the ability to measure it
The first step to achieving positive ROI through customer education is to develop a clear and effective method for measuring it. This means going beyond traditional engagement metrics and adopting a programmatic approach that aligns customer education with broader business goals.
A programmatic approach involves designing educational programs with clear, measurable objectives directly linked to business outcomes. This approach requires a mindset shift from simply providing training to solving specific business problems through education. By doing so, companies can establish a more direct link between educational initiatives and business outcomes.
To achieve this, customer training programs must be strategically linked to the company’s overall business objectives. This means identifying key areas where training can have the most significant impact, such as customer retention, product adoption or reduced support costs. By aligning training efforts with these goals, companies can ensure that their training programs are not only informative, but also impactful.
Three Steps to Creating Measurable Customer Education Programs
Step 1: Identify Measurable Problems or Opportunities
The first step in creating a measurable customer education program is to identify specific problems or opportunities that education can solve. This involves working closely with various stakeholders, including sales, support, and product teams, to understand the challenges customers face and opportunities for improvement. For example, if customers frequently contact support for the same issues, this may indicate the need for better training on these topics.
Step 2: Target educational programs to solve the problem
Once the problem or opportunity is identified, the next step is to design educational programs specifically targeted to address it. This requires a deep understanding of the customer journey and where training can have the most significant impact. For example, if the goal is to reduce support calls, the training program can focus on providing in-depth training on common issues and troubleshooting steps.
Step 3: Map leading and lagging indicators that connect learning to the business problem
To effectively measure the impact of the educational program, it is essential to establish a set of leading and lagging measures. Key metrics are those that can provide early indications of program success, such as the number of customers completing training or improvement in quiz scores. Delayed metrics, on the other hand, are the ultimate business outcomes that the program aims to achieve, such as a reduction in support calls or an increase in customer retention rates. By mapping these metrics, companies can track the progress of their training programs and make necessary adjustments based on the data.
Tips for getting a positive ROI
Build programs with a strong link between the problem to be solved and customer behavior
One of the keys to achieving positive ROI through customer education is ensuring a strong connection between the problem being solved and customer behavior. This means designing educational programs that are not only informative but also actionable. Customers should be able to apply what they have learned to improve their use of the product or service, which should lead to positive business results.
Leveraging Instructional Design Principles
Effective customer education programs leverage instructional design principles to ensure training is engaging, relevant and impactful. This involves using a variety of learning formats, such as videos, interactive modules and practical exercises, to enable learners to achieve the objectives. Additionally, programs should be designed to be concise and focused, avoiding information overload and ensuring key concepts are clearly communicated.
Be effective by targeting content and delivery
Efficiency is another crucial factor in achieving positive ROI through customer education. This involves targeting content and delivery methods to specific customer needs. For example, instead of offering generic training, companies can offer personalized learning paths based on the customer’s role, experience level, and specific challenges. Additionally, leveraging technologies, such as learning management systems and analytics tools, can help streamline the delivery and monitoring of educational programs, making it easier to measure their impact.
Next steps
Achieving positive ROI through customer education requires a strategic, data-driven approach. Boutique businesses like Échtuscustomer education experts, can help businesses move beyond traditional engagement metrics and adopt a programmatic approach.
Building programs with a strong connection between the problem at hand and customer behavior, leveraging instructional design principles, and being efficient in targeting content and delivery can further improve the impact of customer education initiatives. By following these guidelines, client educators can confidently demonstrate the value of their programs and ensure a positive ROI.
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Vicky Kennedy
Vicky Kennedy is a veteran of the customer training field, having held various training roles for large technology companies like Amazon and Meta, as well as smaller SaaS companies. In 2023, Vicky founded Echtus, a professional services company whose mission is to revolutionize the way businesses use education to achieve meaningful business results.
