How to See a Positive ROI from Customer Education

Customer education has gained significant momentum over the past few years. What was once a task delegated to account managers or customer service representatives is now a formal motion, and businesses are investing more into education programs each year. With additional investment comes additional scrutiny, and executives are asking the very valid question, “What are we getting out of this investment?” If you’re a customer educator, you may wonder how to provide a winning answer. Let’s dive in to find out!

The Elusivity of Customer Education ROI

The History of Customer Education Measurement

The journey of customer education (CE) from being a mere task to a strategic initiative is fascinating. Initially, customer training was an afterthought, something that happened informally through account managers or customer service representatives. However, as products and services grew more complex, the need for structured education programs has become evident. Businesses are recognizing that well-informed customers are more likely to be satisfied, loyal, and successful.

This realization 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, measuring the impact of these programs often remains elusive. Attempts at measurement often rely heavily on engagement metrics, such as the number of training sessions attended or the completion rates of online courses. While these metrics provide some insight, they fail to capture the true business impact of customer education.

Why It’s Difficult to Measure

The difficulty in measuring the ROI of customer education stems from several factors. Firstly, there is an overreliance on engagement metrics, which, while important, do not directly correlate with business outcomes. Metrics like course completion rates, quiz scores, and attendance figures can indicate participation levels but do not necessarily translate to improved customer behavior or increased revenue.

Secondly, many attempts to measure customer education ROI rely on loose correlations. For instance, a company might notice that customers who participate in some training are more likely to renew their contracts. While 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 be influencing these outcomes.

To truly demonstrate the value of customer education, a more robust and strategic approach to measurement is required.

A Modern Approach to Measurement

Realizing Positive ROI Starts with the Ability to Measure It

The first step to realizing a positive ROI from customer education is to develop a clear and effective method for measuring it. This means moving beyond traditional engagement metrics and adopting a programmatic approach that aligns customer education with broader business objectives.

A programmatic approach involves designing education programs with clear, measurable goals that are directly tied to business outcomes. This approach requires a shift in mindset from simply delivering training to solving specific business problems through education. By doing so, companies can establish a more direct link between education initiatives and business results.

To achieve this, customer education programs must be strategically connected to the company’s overall business objectives. This means identifying the key areas where education can have the most significant impact, such as customer retention, product adoption, or support cost reduction. By aligning education efforts with these objectives, companies can ensure that their training programs are not only informative but also impactful.

Three Steps to Building Measurable Customer Education Programs

Step 1: Identify Measurable Problems or Opportunities

The first step in building a measurable customer education program is to identify specific problems or opportunities that education can address. This involves working closely with various stakeholders, including sales, support, and product teams, to understand the challenges customers face and the opportunities for improvement. For example, if customers are frequently contacting support with the same issues, this could indicate a need for better education on those topics.

Step 2: Target Education Programs to Address the Problem

Once the problem or opportunity has been identified, the next step is to design education programs specifically targeted to address it. This requires a thorough understanding of the customer journey and the points at which education can have the most significant impact. For example, if the goal is to reduce support calls, the education program might focus on providing in-depth training on common issues and troubleshooting steps.

Step 3: Map Out Leading and Lagging Metrics that Connect Learning to the Business Problem

To effectively measure the impact of the education program, it is essential to establish a set of leading and lagging metrics. Leading metrics are those that can provide early indications of the program’s success, such as the number of customers who complete the training or the improvement in quiz scores. Lagging 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 out these metrics, companies can track the progress of their education programs and make data-driven adjustments as needed.

Tips for Yielding a Positive ROI

Build Programs with a Strong Connection Between the Problem to Solve and Customer Behavior

One of the keys to yielding a positive ROI from customer education is ensuring a strong connection between the problem to be solved and customer behavior. This means designing education programs that are not only informative but also actionable. Customers should be able to apply what they have learned to improve their usage of the product or service, which in turn should lead to positive business outcomes.

Leverage Instructional Design Principles

Effective customer education programs leverage instructional design principles to ensure that the training is engaging, relevant, and impactful. This includes using a variety of learning formats, such as videos, interactive modules, and hands-on exercises, to empower learners to achieve the objectives. Additionally, programs should be designed to be concise and focused, avoiding information overload and ensuring that key concepts are clearly communicated.

Be Efficient Through Targeting Content and Delivery

Efficiency is another crucial factor in yielding a positive ROI from customer education. This involves targeting the content and delivery methods to the specific needs of the customers. For example, instead of providing generic training, companies can offer personalized learning paths based on the customer’s role, experience level, and specific challenges. Additionally, leveraging technology, such as learning management systems and analytics tools, can help streamline the delivery and tracking of education programs, making it easier to measure their impact.

Next Steps

Seeing a positive ROI from customer education requires a strategic and data-driven approach. Boutique firms like Echtus, experts in customer education, can help businesses move beyond traditional engagement metrics and adopt a programmatic approach.

Building programs with a strong connection between the problem to solve and customer behavior, leveraging instructional design principles, and being efficient through targeting content and delivery can further enhance the impact of customer education initiatives. By following these guidelines, customer educators can confidently demonstrate the value of their programs and ensure a positive return on investment.

Vicky Kennedy

Vicky Kennedy is a veteran of the customer education space, having worked in a variety of education roles for big tech firms like Amazon and Meta, and smaller SaaS companies. In 2023 Vicky founded Echtus, a boutique professional services firm on a mission to revolutionize the way companies use education to achieve meaningful business results.