How the Learner Analysis Can Have an Impact on Training ROI: A Case Study (Part 2 of 2)
Rachel Schell, M.S.
Leadership Development & Training Expert | CEO of RASPersonalized Solutions | Founder of the Emerging Leaders in L&D | LinkedIn Top Voice
Are you curious about how conducting a learner analysis can save time and money? In this 2-part series, we explore two case studies to answer this question. In part 1, we presented the case of Company A, which did not conduct a learner analysis. In part 2, we focus on Company Z, a training solutions provider for academia, corporations, and non-profit organizations. With the help of a learner analysis, Company Z aimed to redesign its course library to cater better to the needs of its clients.?
Did their learner analysis have a positive impact on their training ROI?
Let’s find out.?
Disclaimer: While I am not disclosing the name, the information presented is from an actual client. The information has been gathered and published with their permission.
Training Profile
In prior years, Company Z had established itself as the preeminent industry standard for subscription-based, blended learning catering to corporations. However, over the past two years, the company witnessed a consistent decline of 5% in subscriptions to its course library. This decline raised concerns that the courses might become outdated based on client usage.?
Against the backdrop of a post-pandemic society and a changing workforce, Company Z's instructional design team was entrusted with the task of reassessing the need to revamp and deliver content. The objective of this project was to ascertain if collegiate, corporate, and non-profit organizations would prefer content that is entirely available online, rather than in a blended format. Additionally, the visual aspects of training required upgrading to cater better to the three identified learning audiences. The ultimate aim was to increase the sales revenue of educational content by 10%.
The intent of Company Z was to retain its corporate clients and establish a presence in academia and non-profit sectors. To gauge the success of the new training, the company employed key performance indicators (KPIs), including monthly course completion rates by each client type, course evaluation feedback averages, and the number of new sales leads in the pipeline for academia, corporate, and non-profit clients.
Project Requirements
The first step included conducting a learner analysis. The objective of this analysis was to provide guidance on four aspects of program design: content focus, course structure and delivery, modality, and assessment. The analysis set out to answer the following questions:
To achieve these objectives, the learner analysis process was comprised of five milestones:
Learner Analysis Process?
In order to establish a comprehensive understanding of the training needs and preferences of their client base, Company Z invested in a thorough learner analysis. The objective of this analysis was to determine if a redesign of their existing content was necessary, and to identify the budget and process required for this task. The results of the Course Engagement Feedback revealed that most of Company Z’s clients preferred online learning that is compatible with mobile devices, and that is presented in smaller, microlearning lessons, as they complete their learning while engaged in other activities.
Through this learner analysis, several key themes emerged. The need for microlearning was identified as high, with clients stating that the existing course content was too lengthy and difficult to retain. The importance of mobile learning was also emphasized by all client types, as they faced issues with course scalability and user interface usability. Additionally, clients expressed a medium need for additional training assets, such as infographics and workbooks, as well as for modern design aesthetics.
Moreover, the analysis identified that Company Z’s content did not always align with the specific needs of certain client types, such as those within the non-profit sector. However, the analysis confirmed that the demand for asynchronous, self-paced, and on-demand learning was consistently high among all client types. Overall, the findings of this learner analysis provided critical insights that were utilized to guide the redesign of Company Z’s training materials to ensure that they meet the evolving needs of their clients.
The Learning Recommendation?
The learning recommendation was developed based on the results of the learner analysis conducted by Company Z. The recommendation consisted of four phases, targeting soft skills, human resources, and safety management courses.?
In Phase 1, the recommendation was to rebrand the aesthetics of all existing training resources such as infographics and workbooks, to modern design principles. In Phase 2, eLearning courses were reviewed to incorporate microlearning strategies and the best technology modality for mobile learning, such as Articulate Rise 360, Edapp, and 7Taps. Phase 3 recommended designing and developing course content to add training resources to courses without such options, and determining whether the training printable could replace the eLearning course. Quality was prioritized over quantity. Finally, Phase 4 proposed developing mobile learning courses to complete library updates and to develop strategy applications for all soft skill courses, considering how users would apply concepts in real-time on the job. All 4 phases of the project were scheduled to be completed in 9 months.?
In order to ensure that the training program was a sound investment, a thorough analysis of the potential return on investment (ROI) was conducted prior to the design and development process. The first step in calculating the ROI was to identify the Total Monetary Benefits of Training for Company Z. This involved setting key performance indicators (KPIs) such as course completion rates by client type, course evaluation feedback averages, and the number of new sales leads in the pipeline for academia, corporate, and non-profit clients.
The ultimate goal was for the company to generate an additional $500,000 in sales with the addition of the new course offerings. Company Z made the decision to invest in conducting the analysis and determining the potential ROI, which in turn led to a clear understanding of the costs and benefits before design and development began. Based on the learner analysis findings and learning recommendation, it was determined that design and development of the training could be accomplished with a budget of $85,000.
Following the presentation of the recommendation to stakeholders, Company Z decided to move forward with the learning recommendation. The overall budget for the project was accepted by stakeholders, as well as the addition of an instructional designer, an eLearning developer, and a project manager. Additionally, three employees at Company Z were appointed as subject matter experts (SMEs).
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Design and Development Outcomes
The design team successfully completed all 4 phases of the project in 9 months and were able to deliver the project under budget. To calculate the total cost of training, resource costs were taken into consideration, which included the rates of the instructional designer, eLearning developer, and project manager. The project manager spent 5 hours per week on the project, while the design team spent 40 hours per week for every week they worked on the project. It's important to note that SMEs were employees, and therefore their rates were not included in the resource costs. The total time spent by both the resources and SMEs were calculated separately.?
Total Cost of Training: $77,900
Total Design/Development Team Time: 1,380 Hours?
Total SME Time: 65 Hours?
Calculating ROI of the Training
To determine the Return on Investment (ROI) of the training, the following formula was used:?
ROI = (Total monetary benefits of training - Total cost of training) / Total cost of training x 100%
Total Monetary Benefits of Training: $500,000
Total Cost of Training: $77,900
Total Amount of Time Estimated (Resources + SMEs): 1,445
Return on Investment: 5.42%
Was this training effective??
With a ROI of 5.42% this training would be considered effective. In the end, the design team delivered the project within the 9 month timeframe and for $7,100 less than originally budgeted. The KPI’s set for this training were met within the first year.?
Did the learner analysis have an impact on training ROI??
Company Z's learner analysis had a positive impact on their training ROI. The analysis helped the company understand the evolving needs and preferences of their client base and guided the redesign of their training materials to cater better to those needs. The company's instructional design team identified four aspects of program design, content focus, course structure and delivery, modality, and assessment, and developed a recommendation consisting of four phases targeting soft skills, human resources, and safety management courses. The overall budget for the project was set at $85,000, and the ROI was calculated based on key performance indicators such as course completion rates by client type. The ultimate aim was to increase the sales revenue of educational content by 10%, which the company hoped to achieve by retaining its corporate clients and establishing a presence in academia and non-profit sectors.
In the end, the design team completed the training within the timeline and for $7,100.00 less than originally budgeted. The courses have been a success for the company and KPIs continue to be met for these courses.?
Would you like to find out how a learner analysis can help you deliver your next project on time and under budget??
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