Return on Investment (ROI) - can be measured in a number of ways.
Whilst many coaching studies 'measure' ROI using estimates of impact (for
example, by asking a business leader what percentage of growth was supposedly
delivered by coaching), this study was different. It measured the growth rates
of two groups. One coached. One with no coaching. The coached group achieved
higher rates of growth than the uncoached group. The value of those increased
sales have impact over time in the studied scenario (with rates of attrition
applied, based on independent studies of persistence rates). Taking the value
of the increase in financial performance, the payback period for the investment
in coaching, was achieved just one month after coaching concluded.
The ROI - calculated by growth, minus investment - was nearly 500% at year 3.
No calculations were included for any other elements of positive financial gain (staff turnover, sick days, recruitment costs, lost opportunity costs) – this ROI is simply the increase in sales minus the cost of coaching. All figures, and modelling for this case study are available in an anonymised form, for those who want to look at these data.
The financial model and ROI were calculated by an independent sales and marketing data analytics professional.
© 2020. Purple Patch Coaching