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[Infographic] The revenue impact of education services

Written by Bill Cushard

Published on October 21, 2020

Most executive teams and founder/CEOs intuitively know that customers will need some level of help in learning how to use the software they just purchased from you. Help could mean documentation. It could mean the best designed software in the world. It could mean support, professional services, or training. It could mean all of these things. The question is not whether customers need help. The question is how much should be invested in this help and what will this help accelerate. 

So, there it is in that last sentence. The two elements you need to account for in your education services business case. The return you plan to deliver based on the investment you need to make. 

There are three main ways that customer training can earn a return:

  1. Direct sales from training courses
  2. Increases in renewals and expansions (net revenue retention)
  3. New product sales

There are three main investments you need to make in order to deliver customer training:

  1. Headcount
  2. Technology
  3. Distribution

Add both of these up. Compare them. Get your return on investment. 

The infographic below describes a model for how you might build that return on investment model. It also describes how to compare the return on customer training investment between offering free training and offering paid training. 

Remember, when you build your business case, these are estimated numbers because you haven’t actually delivered anything yet. So, you want to be conservative about it. And frankly, what is more important than the actual numbers (because they are estimates) is the model you use to derive the numbers. 

As you think through this, consider what your CFO will consider.

2020.10 Orange Learndot-Education-services-ROI-V2


Originally published Oct 21, 2020 12:55:46 PM, updated Oct 21, 2020