Training Industry Quarterly - Fall 2008 - (Page 33) this budget difference could be attributable to the industry. All of the companies with bigger customer training budgets were in the Technology industry. By contrast, when employee training was bigger than customer training, it was usually bigger by only one to two times. Only a few of the companies with bigger employee training budgets were in the Technology industry. Survey respondents were much more optimistic about customer training budget changes from 2008 to 2009 than employee training budgets. 89% of survey respondents believed that customer training budgets would either go up or stay the same. By contrast, 70% of respondents believed that employee training budgets would either stay the same or go down in 2009. Further, most of the 48% who predicted their customer training budgets would go up believe it will go up by significant percentages. 41% of the 48% expect their customer training budgets to go up by over 10%, with a full 19% expecting them to go up by 20% or more! Table 3 shows the distribution of budget change expectations for both types of budgets. nically complex products. In fact, about 73% of survey respondents from the Technology industry expected their customer training to grow in 2009. By contrast, only 20% of those in all the other respondents’ industries expected any growth in their customer training. In Conclusion Customer training deserves its fair share of attention among corporate training leaders for three reasons. First, it has a strong impact on metrics that matter, especially customer satisfaction and training revenue. Second, when it’s bigger than employee training within the same company, it is often much bigger than employee training. Third, it is showing promising growth rates that offer a big ray of hope in training – an area that is often vulnerable to cuts during difficult economic times. Tracy Hollister is general manager of market intelligence for Training Industry, Inc. You can e-mail Tracy at thollister@trainingindustry.com. Table 3 Customer and employee training Budget change expectations for 2009 60% 40% 20% Customer training Employee training 54% 41% 22% 12% Same 0% 0% Down 20%+ 4% 4% Down 10-19% 7% 7% 12% 12% Up 10-19% 19% 8% Up 20%+ Down 1-9% Up 1-9% Increased Optimism Why all this optimism about customer training budgets? Some respondents explained that budgets were going up to accommodate growth in new products and customers. Others cited the need to increase customers’ access to online learning, particularly as some companies that are affected by the economic downturn cut back on travel expenses for onsite training. Finally, some thought more was being invested in customer training due to its financial importance to the company. Companies may be more committed to investing in budgets supporting customers and new product launches because it is more closely linked with the company’s success than some types of employee training. Another theory about what could be driving some of this growth in customer training is because the vast majority (80 to 85%) of firms have experienced increases in product breadth, complexity and the rate of entry into new markets (Harvard Business Review, August 2006). This may translate into a greater need for customer training, particularly among companies with tech- About the study Training Industry, Inc. and Expertus conducted an online survey in August 2008 with 34 customer training professionals or leaders. The charts in this article include only the respondents who answered that question. All training suppliers and training consultants were excluded, along with those in the government sector whose goals may have differed from corporate training leaders. Almost two-thirds (64%) were in the Technology industry, which was defined as computers, software, ISPs, etc. This relatively high proportion of respondents in Technology may further indicate that industry’s level of interest and focus on customer training. The remainder of respondents’ industries were scattered in Business Services/Consulting (12%), Telecommunications (6%), Banking/Finance (6%), with 3% each in Utilities, Mining, Oil and Gas, and Construction. Respondents were well-represented among companies of different sizes. 38% were in smaller companies of 1,000 or less employees. 35% were from companies between 1,000 and 5,000 employees, and 27% were companies with over 5,000 employees. 33 Training Industry Quarterly, Fall 2008 / A Training Industry, Inc. ezine / www.trainingindustry.com/TIQ http://www.trainingindustry.com/TIQ
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