It’s a common question: we invest in upskilling our team, but how do we know if that marketing training actually delivers a return? For Australian SMEs, calculating the ROI of marketing training and development isn’t about complex formulas, it’s about linking learning to measurable business outcomes. It requires a bit of planning upfront, but the insights are invaluable.

The biggest mistake we see is treating training as a cost centre, rather than an investment. To properly analyse ROI, we need to define what ‘return’ looks like. This isn’t just about people enjoying the course; it’s about tangible improvements in marketing performance. Here’s how we approach it:

• Establish Baseline Metrics: Before any training, identify key performance indicators (KPIs). These might include website traffic from specific channels, lead generation rates, conversion rates, customer acquisition cost, or even social media engagement. These are your ‘before’ numbers.
• Define Training Objectives: What *specific* skills will the training deliver? If it’s a social media course, is the goal to increase followers, improve engagement, or drive website clicks? Tie these objectives directly to the baseline metrics.
• Calculate the Training Cost: This isn’t just the course fee. Include travel, accommodation, staff time away from their usual duties, and any materials. Get a total cost figure.
• Measure Post-Training Performance: After a reasonable period (typically 3-6 months) measure the same KPIs. What’s changed? The difference between the ‘before’ and ‘after’ numbers represents the improvement attributable to the training.

Now for the calculation. Let’s say the training cost $5,000 and resulted in a $15,000 increase in revenue. The ROI is (($15,000 – $5,000) / $5,000) x 100 = 200%. This means for every dollar invested, you generated two dollars in return. Remember, this is a simplified example. You can apply this logic to any of your chosen KPIs – a reduction in customer acquisition cost is just as valuable as increased revenue.

Don’t get bogged down in perfection. The goal isn’t to have a flawlessly precise number, but to gain a clear understanding of whether your marketing training investments are paying off. Regularly reviewing these calculations will help you optimise your learning and development budget and ensure you’re focusing on the skills that deliver the greatest impact for your business.

To get started, identify one key marketing area where skills development could make a difference and begin tracking the baseline metrics. This simple step will set you on the path to data-driven training decisions.