Value of Training
BNI study shows it increases retention, referrals, and revenue.
Did you know that a well-trained chapter generates 277 percent more business per member as compared to chapters with less-trained members? Much has been written about the value of corporate spending on training. Surprisingly, most business owners and CEOs remain unfamiliar with the benefits of such investments. Data from many recent studies provide evidence to suggest that organizations that invest in more training days produce greater revenue per employee.
Based on this we did our own research to find out if chapters with high training attendance generate more business per member. Here are the key findings from our research:
277% increase in average seat value
255.75% increase in average referral value
152.4% increase in visitors per week
68.7% increase in referrals per member per week
152.4% increase in visitors per week
51% increase in retention rate
Increased Seat Value
From our studies we found that our top chapters generated 18.26 lacs of business per member whereas the bottom chapters generated only 4.84 lacs per member. (18.26 lacs is equal to US $30,400.)
Upon further analysis we found that the top chapters also have very high training attendance. On average, 73.13% of the members have attended at least one training in six months. One of our top chapters has training attendance of 86.45% out of which 69% of the members have come back for two or more trainings.
Trainings help you and your chapter to increase the business generated per member by 277%.
Increased Referral Value
From our research we found that the top chapters also had high average referral value. The average referral value of these chapters was Rs 40,068 (US$668) as compared to the bottom chapters, whose average value was only Rs 11,264.
On further analysis we found that the chapters at the bottom had an average of only 62.17% training attendance as compared to the top chapters that had an average of 73.13%. Out of 62.17% members only 28.7% have come back for two or more trainings. Therefore, set a goal to attend more trainings and increase your chapter average referral value by 255.75%.
We also looked to see if the number of visitors increased. The top chapters on average invited 8.38 visitors every week.
On the other hand, the chapters which were at the bottom invite only 3.32 visitors every week. Average training attendance for these bottom chapters was as low as 57.7%. Therefore, attending more training's will help you and the chapter to invite more visitors and increase the visitors per week by 152.4%
For a chapter to be able to generate more money for its members, it is essential for every member to contribute. Do you want to learn how to increase the referrals passed per member per week by 68.7%? The top chapters we considered for the research passed 1.94 referrals per member per week whereas the chapters at the bottom passed 1.15 referrals per member per week. The chapters at the bottom had training attendance of only 63.98%. Thus, high training attendance helps the chapter to increase the average referrals passed per member per week by 68.7%.
The top chapters we considered for our research were amongst the chapters with the highest retention rate. The average retention for these was 75%, compared to the bottom chapters at 49.67%.
The study clearly showed that the top chapters with high training attendance performed better in all the aspects of BNI. Attending more training helps members gain clarity, set smart goals, and improve management, communication, and presentation skills. It also helps members collaborate and partner with other businesses, become better leaders, and learn best practices. Training gives members an edge over competitors. No other organization spends as much time as BNI in educating members on how to make the most of their membership as well as maximize profits in their own business. Last year, we spent over 100,000 person hours in Leadership Team training alone! Other training opportunities include Member Success Training, Presentation Skills Training, Referral Skills Workshop, Power Team Training, and Social Media Training.
Chapters that don’t make effective and continuous investments in training themselves and their members will continue to under-perform those chapters that do. So ask yourself, do I have the training and skills I need to become the best member I can become?
David Kaplan reveals in Verne Harnish’s new book, The Greatest Business Decisions of All Time, “Jack Welch’s most enduring decision was to create a world-class internal business school for GE managers, known as Crotonville. When Jim Baughman, a former professor from the Harvard Business School who was running Crotonville gave Welch a chart-filled preview of his presentation to the GE board of directors, Welch replaced the specific “payback analysis” figure on the last chart with the word “INFINITE,” to underscore Welch’s belief in the limitless ROI for Crotonville.”
Now, most of us aren’t Jack Welch and we certainly can’t afford our own in-company university, but that’s no reason to not embrace what Jack Welch knew…that when it comes to investing in training, the return is INFINITE.
So will you be attending 2 or more BNI training’s every 6 months?
Tags: January 2014 Edition, members, Referral Value, referrals, Retention, Seat Value, training, visitors
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