The ROI of Training: How It Increases Revenue and Reduces Costs

The ROI of Training: How It Increases Revenue and Reduces Costs

There are many reasons why companies exist, however the truth is that one of the main reasons is to make money. A company that does not generate money is a hobby and most likely will be dead soon.

That’s why it always calls my attention that when businesses evaluate their investments, they often overlook training, considering it a cost rather than a revenue generator. But the numbers tell a different story—training delivers an impressive return on investment (ROI) by driving revenue growth and cutting operational costs.

Don’t believe me? Look at the image in this post from a study conducted by the Forrester Consulting Group.

Training either makes you money or saves you money. How?

Training Reduces Employee Turnover

Employee turnover is costly. Replacing an employee can cost anywhere from 50% to 200% of their annual salary when you factor in recruitment, onboarding, and lost productivity. Training addresses this by fostering employee engagement and satisfaction.

A well-trained employee feels valued and empowered, which boosts loyalty. In fact, companies that invest in employee training see 53% lower turnover rates than those that don’t. Happy employees stay longer, reducing the churn that eats into your bottom line.

Training Increases Customer Retention

When customers fully understand how to use your product or service, they see value faster, encounter fewer frustrations, and stay loyal. Educated customers are empowered to make better decisions and maximize their experience, leading to higher satisfaction and reduced churn.

A study by the Technology Services Industry Association (TSIA) found that customers who engage in education programs are 92% more likely to renew their subscriptions or contracts. That’s a direct line to stable and growing revenue.

Training Boosts Revenue

Training doesn’t just retain employees and customers—it drives revenue growth. Educated employees perform better, close deals faster, and innovate more effectively. On the customer side, those who understand your product are more likely to use it to its full potential, explore additional features, or upgrade to premium offerings.

For example, Salesforce found that trained customers use 68% more product features, increasing their likelihood of renewing or expanding their subscriptions. Similarly, well-trained sales teams outperform their peers, driving top-line growth.

Training Lowers Operational Costs

Mistakes are expensive. When employees aren’t trained properly, errors happen more frequently, leading to wasted resources, rework, or even compliance violations. Training minimizes these risks by ensuring employees are knowledgeable and efficient in their roles.

Additionally, scaling customer education through training materials (like videos or interactive modules) reduces the need for costly one-on-one support. With proper training, you can serve more customers with fewer resources.

A Proven Investment

The ROI of training is clear: better employee retention, happier customers, reduced costs, and sustainable revenue growth. Companies that prioritize training gain a competitive advantage by creating a knowledgeable workforce and an empowered customer base.

If you’re looking to optimize your business performance, it’s time to view training as the strategic investment it truly is. The returns will surprise you.

If you want to talk training, just send me a message and increase your revenue or decrease your costs!