Video training is a powerful and cost-effective way to deliver engaging and interactive learning experiences to your manufacturing workforce. Whether you want to improve safety, compliance, productivity, quality, or innovation, video training can help you achieve your goals and boost your bottom line.
But how do you measure the return on investment (ROI) of your video training? How do you know if your video training is effective and worth the time and money you spend on it? How do you demonstrate the value of video training to your stakeholders and decision-makers?
In this post we will explore some best practices for measuring the ROI of video training in manufacturing. We will cover:
What is ROI and why is it important for video training?
How to define organization objectives and align them with business goals
How to collect and analyze data to measure outcomes and impact
How to calculate and communicate ROI using a simple formula
How to optimize and improve video training based on your results
What is ROI?
ROI is a financial metric that compares the benefits (or returns) of an investment to its costs. It is usually expressed as a percentage or a ratio that indicates how much profit or value an investment generates for every dollar spent.
Why is ROI Important for Video Training?
ROI is important for video training because it helps organizations evaluate the effectiveness and efficiency of their learning initiatives. It helps to answer questions like:
How much did video training improve employees' performance, skills, or knowledge?
How much did video training reduce errors, accidents, waste, or downtime?
How much did video training increase customer satisfaction, retention, or loyalty?
How much did video training save or generate in terms of money, time, or resources?
By measuring the ROI of your video training, you can:
Justify spending and secure more budget for future projects
Demonstrate individual and team contributions and value to the organization
Identify what works and what doesn't in video training
Optimize and improve video training based on data and feedback
How to Define your Objectives and Align Them with Business Goals
The first step in measuring the ROI of your video training is to define your objectives and align them with your business goals. This will help you clarify what you want to achieve with your video training and how it supports your organization's strategy and vision.
To define your objectives, consider leveraging the SMART framework, which stands for Specific, Measurable, Achievable, Relevant, and Time-bound. sing this framework, your objectives should be:
Clearly state what you want to accomplish with your video training.
Example: Increase employee productivity by 10% in six months.
Define how you will measure the progress and success of your video training.
Example: Track employee output, quality, and efficiency before and after the video training.
Set realistic and attainable goals that challenge but do not overwhelm your learners.
Example: Provide adequate support and resources for employees to complete the video training.
Ensure that your objectives are aligned with your business goals and priorities.
Example: Improve employee productivity to meet customer demand and increase revenue.
Specify when you expect to achieve your objectives and how long the video training will last.
Example: Complete the video training by March 31st and measure the results by June 30th.
To align your objectives with your business goals, you can use a framework such as the Kirkpatrick Model, which categorizes learning outcomes into four levels:
Level 1: Reaction
This level measures how learners react to the video training.
Example: Did they enjoy it? Did they find it useful? Did they complete it?
Level 2: Learning
This level measures how much learners learn from the video training.
Example: Did they acquire new knowledge or skills? Did they improve their understanding or confidence?
Level 3: Behavior
This level measures how learners apply what they learn from the video training.
Example: Did they change their behavior or performance? Did they adopt new practices or methods?
Level 4: Results
This level measures how the video training impacts the organization's goals, including safety, financial, production, and more.
Example: Did it improve productivity, quality, safety, or customer satisfaction? Did it reduce costs, errors, waste, or turnover?
By defining and aligning your objectives at each level of the Kirkpatrick Model, you can ensure that your video training is relevant and meaningful for both learners and stakeholders.
How to Collect and Analyze Data to Measure your Outcomes and Impact
The next step in measuring the ROI of your video training is to collect and analyze data to measure video training outcomes and impact. This will help your organization to quantify the benefits of video training and compare them to costs.
To collect data, you can use various sources and methods such as:
Ask learners to rate their satisfaction, engagement, and understanding of video training materials. It can be helpful to determine how effective a particular training video is, and whether or not it needs to be re-assessed or updated.
Assess learners' knowledge, skills, or attitudes before and after the video training. For example, "Did they pass a quiz or a certification exam? Did they demonstrate competence or proficiency?"
Observe learners' behavior or performance on the job or in simulated scenarios. Determine if they were able to follow the correct procedures or standards, and use the best practices or techniques.
Gather feedback from learners, managers, peers, customers, or other stakeholders. Management could ask "Did they express satisfaction or appreciation? Did they report improvement or success?"
Track and analyze key performance indicators (KPIs) that are relevant to your objectives and goals. For example, "Did you see an increase in output, quality, efficiency, or revenue? Did you see a decrease in errors, accidents, waste, or costs?"
To analyze data, leverage various tools and techniques such as:
Summarize and present your data using measures of central tendency (mean, median, mode) and dispersion (range, standard deviation). For example, "The average score of learners on the post-test was 85%, with a standard deviation of 10%."
Test your hypotheses and draw conclusions from your data using statistical tests (t-test, ANOVA, chi-square) and confidence intervals. An example might be "There was a significant difference between the pre-test and post-test scores of learners (t(49) = 4.5, p < 0.05)."
Display and communicate data using charts, graphs, tables, or dashboards. For example, you could share a chart that shows the improvement in productivity of learners after the video training.
How to Calculate ROI Using a Simple Formula
The final step in measuring the ROI of your video training is to calculate and communicate your ROI using a simple formula. This will help you compare the benefits and costs of your video training and express them as a percentage or a ratio.
To calculate your ROI, you can use the following formula:
ROI = (Benefits - Costs) / Costs x 100%
Let’s walk through a real-life example.
Say your video training resulted in $50,000 worth of benefits (such as increased productivity, quality, or revenue) and cost $10,000 to develop and deliver (such as equipment, software, or time). Your ROI would be:
ROI = ($50,000 - $10,000) / $10,000 x 100%
ROI = 400%
This means that for every dollar you spent on your video training, you gained four dollars in return.
How to Communicate ROI
To communicate your ROI, various methods are available such as:
Write a formal report that summarizes your objectives, methods, data, results, and conclusions. An example could be charts, graphs, tables, or dashboards to illustrate ROI for particular training videos.
You can create a slide deck that highlights your key findings, recommendations, and best practices. For example, "The following slides show how we achieved a 400% ROI with our video training."
You can tell a compelling story that illustrates the impact and value of your video training. An example could be "Let me share with you how one of our learners improved his performance and saved his company thousands of dollars after watching our video training."
You can showcase the feedback and success stories of your learners, managers, customers, or other stakeholders. For example, "Here are some quotes from our learners who completed our video training and improved their skills and knowledge."
How to Optimize and Improve your Video Training Based on Results
Measuring the ROI of your video training is not a one-time event, but an ongoing process. You should continuously monitor and evaluate your video training and use your results to optimize and improve it.
To optimize and improve your video training, you can:
Recognize and reward your learners, instructors, designers, and other team members who contributed to the success of your video training. Congratulate employees on completing a video training or achieving an above-target ROI.
Share results, insights, and best practices with the organization and industry. You might say "We have learned a lot from our video training project and we want to share our findings and recommendations with you."
Seek feedback from learners, managers, customers, or other stakeholders on how to improve video training. Share that you’d love to hear from them on how you can make video training more engaging, relevant, and effective.
Implement changes based on your results, feedback, and best practices. Make improvements to video training based on suggestions and data, and institute any other changes you’ve identified as needed and being helpful.
Video training is a powerful and cost-effective way to deliver engaging and interactive learning experiences to your manufacturing workforce. To ensure that your video training is worth the investment, you need to measure its ROI.
By following the best practices outlined in this post, you can:
Define your objectives and align them with your business goals
Collect and analyze data to measure your outcomes and impact
Calculate and communicate your ROI using a simple formula
Optimize and improve your video training based on your results
By doing so, you can demonstrate the value of video training to your organization and stakeholders, justify your spending and secure more budget for future projects,