Return on Investment Model Creation

Government Employment & Training Agency

A Welsh Government employment and training agency gained an adaptable ROI model to quantify impact across customer segments, enhancing their ability to articulate value through targeted cost and outcome analysis.

Sector: Training & Development

Location: UK

Ownership: Public Sector

Duration: Short Term

Challenge

A wholly owned subsidiary of the Welsh Government, our client provides all age, independent and impartial information, advice and guidance service for citizens. It had an increasingly important role due to the economic and social impact of Covid. Looking to be able to better articulate its ROI for the Welsh Government, it approached us to support with this challenge.

Solution

We engaged with key stakeholders; mapped customer cohorts and journey permutations; identified and constructed cost and outcome data.

  • Three primary sources of variable costs - marketing & campaigns; communication channels; colleague employment – were scrutinised in detail, identifying the direct costs associated with the customer journey

  • Customer journey permutations were described and quantified, allowing for the identification of outliers and recommendations for segmentation to provide more effective, differentiated servicing

Outcome

  • We provided the results of deep analysis of customer experience input, outcomes and trends. This identified the variable costs directly incurred by the sample customer journey.

  • This analysis was developed to provide an adaptable model to allow similar analysis to be undertaken by the client for different customer segments and experiences, providing ‘business case envelopes’.

  • Three proposed bases for the client to calculate the societal costs of a sample customer in a given cohort without the impact of its intervention were identified, thus providing a true Return on Investment calculation.