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One of the hardest things about selling training, is that it’s intangible. Everyone knows the benefits that training can bring them. The trouble is, it can be hard to really know what your team need to succeed.
Think of it this way. You could buy your teenage relative the latest no.1 album on iTunes, but the chances are, you don’t really know what they listen to. And even if they do like an artist, that doesn’t mean they’ll actually want to own their music. How do you give the gift of learning, when you don’t know what the learner wants?
Training tokens answer that very question. Training tokens allow the immediate purchase of credits that can be redeemed – just like a gift card. This means you can both deliver a “product” now, and a service later. Not only does this remove the worry of wasting resources on irrelevant training, it empowers teams to take responsibility for their personal development. In this post, we’ll look at how you can use training tokens to improve your training operation.
Before getting started with training tokens, it’s important to understand your current capacity in full. How many more hours of training delivery could you currently support? Be cautious over your level of commitment. If you were to sell a batch of training tokens, and they were all redeemed at the same time, do you have the resources to meet high demand?
Often, the answer to this comes from two elements – resource tracking, and customer management. With Administrate, it’s easy to keep track of your resources and manage them effectively, ensuring that you won’t have a supply shortage. For the customer side of the equation, it’s even easier. Simply create email templates reminding customers of how long they have left to redeem their tokens, and schedule them to automatically send through Administrate’s communication triggers. You’ll be able to track the redemption rate, and apply this to your planning.
You might sell a high number of training tokens in January, but then pull in no further revenue until March – despite delivering a lot of training in the interim. Handling this requires a change of mindset, and awareness that your revenue stream could become front-loaded. This isn’t a bad thing, but does mean that it’s important to keep an eye on your cash flow. Check out our Xero integration to find some clever ways of doing just that. It’s also worth considering that training tokens might not be redeemed before expiry – almost half of all gift cards never are! While the number in the training industry isn’t likely to be as high, there’s certain to always be some degree of breakage. Consider this possibility when forecasting your resourcing over the coming months.
As time goes on, you’ll likely want to review the success of your training token implementation and the wider impact it’s had on the organisation. Administrate provide an industry leading reporting engine, enabling teams to save hours compiling and researching. Not only does that represent a huge saving in terms of resource spend – it’s a chance to empower your staff by freeing them from repetitive paperwork. Not convinced? Let one of our customers tell you exactly how it happened.
Economics can be broken into two key areas – macroeconomics, and microeconomics. Essentially, macroeconomics is regarded as being wrong about things in general, while microeconomics is about being wrong on specific things! For the purpose of this post, we’ll focus on microeconomics – in particular, behavioural economics, and how people approach purchasing. We won’t go in depth on the field (though here’s a really good starting point), but we can still use key principles of the theories to our advantage.
Consider how you plan to frame your offering. Kahneman and Tversky’s ground-breaking research introduced the concept of Prospect Theory. In short, their work describes how people will approach the subject of risk when probabilities are known. Essentially, decisions aren’t made on the final outcome (the training purchased), but the potential losses and gains (time out of office, more skilled workforce). When applied to the sale of training tokens, we can position the offering in a way that delivers maximum value. Tokens allow teams to have more flexibility, enabling them to schedule the potential loss of time for the most suitable business period. At the same time, they still benefit from a more skilled workforce, and can use training as a staff retention tool.
Secondly, it’s important to note that for most consumers, the perception of value between losses and gains is asymmetrical. In other words, consumers “feel” losses far more than gains. This in many ways ties into the first point – has the value they targeted been derived from the product? As long as the answer remains yes – in this case, yes to having access to training – customer satisfaction can be expected to grow. From here, we can begin to assess how we price courses in terms of tokens, and how we sell tokens.
There’s no shortage of options available, but a good place to start is often a three tiered system – Gold (5 tokens), Silver (3 tokens), Bronze (1 token). If selling tokens in blocks of 5, this will enable a user to get through the first two levels of training and derive value from their tokens, before purchasing access to premium level tuition. Crucially, this will leave them with 1 token spare, allowing them to start a new course! Consider the level of tuition required at each level, and ensure your token price that reflects that. To help you get started, our ROI calculator is a really useful tool for assessing the potential costs involved.
Ready to get started with training tokens, and maximise your potential revenue? Why not check it out for free by clicking here?
If you’re involved in the planning or delivery of professional training, we’re giving away a free Amazon gift voucher for completing a demo with Administrate!
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