Why Is Customer Education Important? 5 Benefits of Educating Customers

‍

Businesses with successful customer education programs are reaping significant rewards. These initiatives boost customer experience and positively impact revenue and costs–consider a 63% reduction in attrition, a 50% improvement in productivity, and a 55% increase in wallet share. (source: 2024 and Beyond: The Evolution of Customer Education)

Simply put, educating your customers empowers them. They understand the value of your product faster when you equip them with the knowledge and instructions to master it.

In this article, we'll explore the benefits of customer education and discuss how you can leverage it to boost your bottom line.

5 benefits of investing in customer education

Customer education has several key benefits for your business, including:

1. Increased product adoption

When customers know how to use your product, they're more likely to fully embrace it. Educated users quickly adopt all features, boosting initial sales and driving ongoing usage. This leads to greater customer loyalty by helping them get the most value from your product. 

‍

For instance, Alarm.com saw a significant boost in product adoption by launching Alarm.com Academy. This program educated the company's dealer partners through live and virtual training, webinars, and certifications. This, in turn, equipped partners to better sell and support their security products.

2. Improved customer satisfaction

Confident customers are happy customers. Providing thorough training and resources helps users better navigate initial challenges, which builds customer loyalty and advocacy. 

Asana used Skilljar to closely track customer engagement and learning, which resulted in a 19-point increase in their Net Promoter Score. Their trained customers understood the product better, which led to higher satisfaction and loyalty.

3. Reduced customer support costs

With self-service educational materials like tutorials and FAQs, customers can resolve many issues on their own, reducing the burden on your support team. This lowers operational costs and allows support staff to focus on more complex inquiries. 

Paycor's use of Skilljar’s scalable training model is one such example. By making self-service resources widely available, they reached more customers and reduced support interactions and call volume, which cut overall costs.

4. Enhanced customer retention and loyalty

Investing in education shows your commitment to your customers’ success. When customers feel supported, they're more likely to stay loyal. This leads to improved customer retention and increased lifetime value as they explore advanced features and make additional purchases.

Egnyte University, powered by Skilljar, offers on-demand training with customized learning paths. This approach led to faster time to value (TTV) for new customers without overwhelming them. The faster they learn how to use your product, the greater the chance of them staying with it. 

5. Competitive advantage

Comprehensive customer education resources set your brand apart from the competition, positioning you as a leader in customer support and engagement. Moreover, educated customers can also better articulate your product's benefits, boosting your market position through word-of-mouth.

‍

Smartsheet's customer education program generated significant training revenue within the first year through subscriptions and paid certifications. Their well-educated customer base used the product more effectively, giving Smartsheet a competitive edge.

Goals of customer education programs

Here are the five most important goals of effective customer education programs.

1. Facilitate customer enablement

The main goal of education is to help customers fully grasp our product or service. To start, give them the tools, resources, and support they need in the form of knowledge bases, help centers, and a dedicated customer support team. You can also offer detailed customer training, self-service portals , and on-demand training modules. This helps your customers become skilled, confident users who can make the most of your product's features. They can also solve problems independently and efficiently, which enhances their overall experience. There’s also the added benefit of a well-educated customer base that will share the benefits of your products with colleagues and others in the industry.

2. Reduce customer support costs

Educated customers tend to need less assistance from support teams. Providing comprehensive educational materials can significantly reduce the volume of support inquiries, which leads to lower operational costs.

3. Drive product adoption and engagement

Customer education programs can accelerate the adoption of new features and updates. When customers understand the benefits and how to use new functionalities, they are more likely to integrate them into their routine, increasing overall engagement with your product.

4. Facilitate upselling and cross-selling

Educated customers who understand the full value of your product are more likely to be interested in additional features, upgrades, or complementary products. This creates opportunities for upselling and cross-selling, driving additional revenue.

5. Support customer success initiatives

Customer education is crucial for your broader customer success strategy. Equipping users with the necessary tools and knowledge allows you to proactively address potential issues and guide them to derive maximum value from your product on their own, with less reliance on customer success teams.

‍

Informed and confident customers are more likely to renew, leave positive reviews, and recommend your product. Holistic support makes customers feel valued and successful, leading to long-term relationships and sustained growth.

Industries that benefit from customer education

Technology and software

For those in the tech industry, especially SaaS companies, customer education is crucial. It helps onboard new users, drive product adoption, and help them get the most out of complex software. Training programs like webinars, tutorials, and certification courses help users become proficient and confident in your software. This not only reduces support costs, but also boosts customer satisfaction and retention.

‍

See this case study for Smartsheet to see how they used certification to generate $$ revenue. 

Healthcare

In healthcare, knowledge is power—and safety. Healthcare providers and medical device companies need to keep professionals and patients up to speed on new technologies, procedures, and compliance. Training reduces errors, while also improving patient outcomes and compliance. It is critical to have a modern LMS for healthcare training and offer online training modules, video tutorials, and certification programs.

‍

Check out this case study for Homecare Homebase (HCHB) to learn how it increased its revenue by 40% YoY.

Manufacturing

Customer education programs can help clients understand complex machinery, maintenance procedures, and safety protocols. Detailed training and resources reduce downtime, improve safety, and boost overall efficiency. On-demand training and interactive simulations work especially well in this industry.

‍

Discover how Alarm.com leveraged Skilljar to ensure its partner network has the necessary know-how to successfully support its offerings.

Financial services

In the financial sector, trust is built on knowledge. Customer education can demystify complex financial products and regulatory changes, empowering clients to make informed decisions. Financial institutions can offer online learning and personalized financial education programs to help customers understand investment strategies and compliance requirements. This not only builds trust, but also encourages long-term client relationships.

‍

Find out how Paycor streamlined training, reducing manual processes and creating a scalable model that boosted retention and product satisfaction.

Retail and e-commerce

Retailers and e-commerce platforms can teach customers how to get the most out of their products and services. This includes tutorials on using online platforms, tips for product usage, and customer service training for staff. Educated customers mean fewer returns and a better overall shopping experience.

How to create a customer education strategy

Below is a quick guide to creating—or enhancing—your organization's customer education strategy.

Step 1: Align with business goals

Start by aligning your customer education strategy with your business goals. Understand your primary objectives and design your education initiatives to support them.

‍

For example, if you aim to reduce churn, focus on educating customers about product features and engagement. If you're looking to drive upsells, highlight advanced features and benefits.

Step 2: Map the customer journey

Understand the customer lifecycle and identify key toucpoints where education can make the most impact. Then, tailor your educational content to address specific needs at each stage, ensuring customers receive the right information at the righttime.

‍

Here are a few ideas to get you started:

• Onboarding: Kick off with comprehensive customer onboarding to cover basic usage and key features, ensuring a solid foundation and quick start for first-time customers.
• Post-purchase: Follow up the initial purchase with detailed training on product capabilities, using follow-up emails, tutorials, and interactive workshops.
• Renewal: As renewal nears, offer refresher courses or new training on updated features to remind customers of your product's value. Address any lingering pain points to reinforce their decision to stay.

Step 3: Segment your audience

You likely have different target personas or audiences. So, segment your audience based on the following to deliver automated training resources when they are most likely to need them.

‍

• Industry: Tailor your training content to specific industries. For example, financial services companies need different training compared to healthcare providers. Customizing content to industry-specific use cases reinforces relevance and effectiveness.
• Role: Different roles require different training levels. For instance, an IT administrator needs in-depth technical training, while end-users benefit from practical, day-to-day usage tips.
• Product usage: Segment based on familiarity with your product. Beginners need basic tutorials, while advanced users might appreciate deep dives into complex features and optimization techniques.

Tip: Use data and analytics to create detailed customer personas. This helps in tailoring content that resonates with each segment.

Step 4: Create a content strategy

Develop a content strategy that includes various formats to suit different learning preferences:

‍

• Interactive tutorials: For hands-on learners
• Video guides and micro videos: For visual learners
• Webinars and workshops: For those who prefer live interaction
• Documentation and FAQs: For those who prefer reading

‍

Additionally, hire professional instructional designers and writers to create engaging and effective materials. High production values, clear instructions, and interactive elements significantly enhance customer learning and retention.

Step 5: Leverage technology

To deliver your educational content effectively, invest in a Learning Management System (LMS). The platform centralizes training materials, so content management, updates, and tracking are streamlined.

‍

Skilljar tracks progress and provides analytics, ensuring your training is effective and highlighting areas for improvement. Plus, it integrates with CRM systems to offer personalized learning experiences based on customer data. This tailored approach increases learner engagement and enhances user experience, ultimately driving customer success.

Step 6: Foster a learning community

Next, build a community around your product to encourage peer-to-peer learning. 

‍

A community-driven approach not only empowers customers, but also gives you valuable insights into common challenges and questions. This helps you tailor your educational content more effectively.

Set up forums and discussion groups where customers can share experiences, ask questions, and provide solutions, especially within their own industry with those who relate to their pain points. User-generated content, like product reviews, tips, and tutorial videos, also enhances the learning experience. 

Step 7: Measure and iterate

How effective is your education program? To measure this, track the following metrics:

‍

• Course enrollment and completion rates: Are customers signing up for and finishing the courses?
• Customer satisfaction scores: Are they happy with the training?
• Support ticket reduction: Are support tickets decreasing?
• Product usage rates: Are they using the product more effectively with a faster time to value (TTV)?

‍

Continuously refine your strategy with this information. You should regularly update content based on feedback and metrics to keep it relevant. Consider offering personalized recommendations, tailored learning paths, and adaptive technologies to further enhance engagement and effectiveness for each customer.

Choosing the right customer education LMS for your organization

When selecting an LMS for customer education, start by aligning it with your business goals. Are you looking to reduce support costs, boost retention, or enhance product adoption? Prioritize an LMS with robust content creation tools, customizable interfaces, and detailed analytics. 

Seamless integration with existing systems, scalability, and excellent customer support are also important. A user-friendly learning platform tailored to your customers’ needs, including mobile accessibility and multilingual support, will significantly enhance your customer education efforts.

Skilljar offers superior customer education solutions

Skilljar stands out from other LMS platforms by  helping you create best-in-class online courses, delivering self-paced training, managing user groups, and tracking progress—all aimed at educating your customers.

This targeted approach helps you create a strategic customer academy that fosters deeper relationships and drives business outcomes such as higher product adoption and reduced support costs. Request a Skilljar demo to learn how to enhance your customer education efforts today.