Lifelong learning is essential, yet many struggle to develop certification and continuing education programs that are not only valuable but also profitable.
In recognition of this challenge, Ashish Rangnekar, CEO and Co-Founder of BenchPrep, recently shared strategies for creating growth-driving, revenue-boosting learning programs during a Virtual Office Hours session.
Participants pre-submitted questions, leading to a dynamic discussion on enhancing revenue through learning initiatives. This blog delves into the key questions and insights shared by Ashish and our engaged attendees.
Tip #1: Craft Profitable Programs using the Lifelong Learning Strategy Framework
We kicked off the session with the following question:
Crafting a Roadmap for Profitable Programs
Crafting a roadmap for profitable education programs is a common challenge for learning executives. Ashish introduced BenchPrep's Lifelong Learning Strategy Framework to address this challenge, aiding organizations in designing a multi-year growth plan.
This framework revolves around five key steps to help organizations establish a fact base, inventory solutions, narrow down ideas, evaluate options, and execute strategies for success.
Check out this blog to delve into the Lifelong Learning Strategy Framework, where we unpack the framework’s components and illustrate its role in propelling organizational growth and learner success in today’s dynamic professional education landscape.
Overcoming Accreditation Concerns
Many organizations express apprehension about accreditation and certification bodies, particularly regarding the integration of learning products. There's a common misconception that offering education alongside certification exams may compromise accreditation status. However, this fear is unfounded.
Accreditation bodies typically mandate a clear separation between education and certification functions, known as a "firewall." This ensures distinct oversight between exam development and educational programs. By adhering to this separation, organizations can confidently provide robust learning solutions without risking accreditation status.
Numerous organizations have successfully managed this challenge by implementing strategies that uphold accreditation standards while delivering comprehensive learning experiences. By aligning with accreditation guidelines, organizations can develop learning products that meet learner needs while enhancing the credibility and value of their certification programs.
Tip #2: Determine Strategic Pricing for Maximum Impact
Transitioning from our exploration of crafting a roadmap for profitable programs, let’s now delve into the crucial aspect of determining strategic pricing. The next question we were asked was:
Calculating Strategic Pricing
To calculate strategic pricing, it’s first important to align pricing strategies with organizational goals. For example, an organization focusing on maximizing impact should consider volume-based pricing, whereas an organization focusing on maximizing revenue should prioritize margin optimization.
Key Considerations for Pricing Determination
There are three critical considerations that inform strategic pricing decisions:
By integrating these key considerations into their pricing strategies, organizations can achieve a harmonious balance between affordability for learners and profitability for the business, ultimately driving sustainable growth and success in the competitive landscape.
Tip #3: Maximize Revenue with Micro Certifications
As we continue our journey through the realm of revenue-boosting learning programs, it’s time to turn our attention to the impact of micro certifications.
Ashish provided invaluable insights into the strategic implications of embracing micro certifications and how they can contribute to maximizing revenue for associations and credentialing bodies.
Embracing Unbundling: A Strategic Imperative
Amidst challenges faced by associations and certification bodies with unbundling certifications and the rise of micro-credentials, concerns about revenue cannibalization loom large. However, strategic unbundling can align with goals of revenue maximization, enhanced profitability, and increased organizational impact. As consumer preferences shift towards unbundling across sectors, proactive adaptation is crucial for maintaining competitiveness.
One effective strategy is breaking down major certifications into smaller microcertifications, potentially bolstering profitability. However, successful navigation of this transition requires careful consideration of five key factors:
- Expanded Market Reach: Microcertifications offer associations the opportunity to reach a broader audience by catering to individuals seeking targeted skill development or continuing education credits. This expanded market reach can translate into increased enrollment and revenue generation.
- Incremental Revenue Streams: Packaging portions of existing certification content into microcredentials creates additional revenue streams. Learners may initially opt for smaller, focused offerings, with the potential for upselling to the full certification later, thereby maximizing revenue opportunities.
- Flexibility and Customization: The flexibility inherent in micro certifications allows learners to tailor their learning paths according to their specific needs and interests. This customization enhances perceived value and willingness to invest in the program, driving revenue growth for the association.
- Reduced Barriers to Entry: Lower costs and time commitments associated with micro certifications reduce barriers to entry for learners. This accessibility attracts new participants who may eventually progress to pursue the full certification, thus fostering recurring revenue streams over time.
- Potential for Bundling and Packaging: Associations can leverage the modular nature of micro certifications to create bundled packages or offer discounts for multiple credentials. These incentives encourage learners to engage more deeply with the program, resulting in increased revenue and customer retention.
Consistent quality standards across micro certifications and major certifications are crucial. Strategic planning, pricing, and targeted marketing are essential for successful micro-credential positioning and revenue maximization without undermining existing certification streams. Embracing micro certifications alongside traditional offerings enables organizations to access new revenue streams and deliver tailored learning experiences to diverse audiences.
Tip #4: Balance Quality and Revenue by Leveraging Innovative Strategies
Having explored strategic pricing and program development, let's pivot to the crucial aspect of balancing quality and revenue in learning programs.
Learning organizations often grapple with the challenge of delivering high-quality learning experiences while maintaining sustainable revenue streams. Utilize these valuable strategies to achieve this delicate balance:
- Leveraging Technology: Embracing online courses through learning management systems (LMSs) and utilizing AI tools for assessments can enhance reach and reduce overhead costs, ensuring high gross margins.
- Implementing Flexible Pricing and Packaging Models: Offering tiered pricing options, bundling courses, and exploring subscription models provide learners with choice and continuous access while optimizing revenue.
- Leveraging Existing Resources and Expertise: Repurpose course materials and collaborate with industry partners to maximize resources, share costs, and deliver quality learning experiences. By integrating technology, flexible pricing, and resource optimization, institutions can uphold quality while ensuring financial sustainability, fostering a symbiotic relationship between excellence and profitability.
Tip #5: Measure Effectiveness through Comprehensive Evaluation Methods
Navigating the realm of training effectiveness assessment is a pivotal yet complex endeavor. In response to the question,
Ashish outlines two fundamental approaches: short-term and long-term evaluations.
Short-term, you can evaluate the effectiveness by:
- Simple Learning Evaluation (Kirkpatrick Levels 1 & 2): Administer post-training assessments or quizzes to measure knowledge retention and learning immediately after the training.
- Skills Demonstration: Conduct simulations, role-plays or on-the-job observations to assess skill application in a controlled environment
The true measurement is the long-term evaluation:
- Behavior and Results Evaluation (Kirkpatrick Levels 3 & 4): Analyze relevant business metrics like productivity, quality, customer satisfaction, sales figures, or profitability to determine the training's impact on organizational results.
- Longitudinal Data Collection: Continuously track relevant performance indicators and compare data before and after training over an extended period.
By combining these methods and collecting data at multiple time points, you can comprehensively evaluate the short-term learning and reactions, as well as the long-term behavioral changes, performance improvements, and organizational impact resulting from the training program.
Spring Into Learning with BenchPrep’s Virtual Events
The session offered invaluable insights into the intricacies of developing revenue-generating learning programs, thanks to Ashish Rangnekar's expertise and the engaging discussions that ensued.
Looking ahead, we invite you to join us for our "Spring into Learning" event, where we will delve deeper into driving success for both learners and businesses alike. We’re committed to empowering learning organizations to thrive in the ever-evolving landscape of lifelong learning.
Don’t miss out on the opportunity to sow the seeds of success in our upcoming webinar, and check out our other virtual events.
