If you're like me, you are obsessed to know the ROI (return on investment) of any expense, especially when it equates to hundreds or thousands of dollars.
Just the other week I was chatting with a friend about coaching. He was interested but started to ask me about the ROI. He was trying to understand it better as it applies to him or as it applies to a business.
I said, "I totally get it bro, let me throw some of the recent statistics your way." He felt my energy and could see the benefits for myself and my clients, but he needed more data.
According to iPEC, 1.5 million searches are made every month by people and companies looking for life coaches, business coaches, and executive coaches.
In 2019, the estimated global revenue from coaching was 2.849 billion USD. (2020 ICF Global Coaching Study)
And while face-to-face coaching decreased sharply after COVID-19 (by 74%), online coaching has become wildly more popular, as it’s increased by 57%. (COVID-19 and the Coaching Industry)
Coaching clients are happy with their results:
99% of individuals and companies who hire a coach are “satisfied or very satisfied” and 96% say they would repeat the process. (ICF Global Coaching Client Study)
95% of clients rate their coaches as “good” or “excellent.” (2009 ICF Global Coaching Study)
68% of individuals who hired coaches were able to make back their investment. Those who make a financial gain on their coaching can on average expect 3.44 times the amount spent. (2009 ICF Global Coaching Study)
86% of companies that could calculate their return on investment said that they at least made back their initial investment. 19% indicated an ROI of 50x the investment. 28% saw an ROI of 10-49x the investment. The median ROI is 7x the investment. (2009 ICF Global Coaching Study)
According to a study, coaching has a 221% ROI. (International Society for Performance Improvement)
51% of companies with a strong coaching culture report higher revenue than their industry peer group. (Human Capital Institute)
Most clients find their coaches through referrals and word of mouth (46%).
I know, that's a ton of data, but check out the power of coaches when it comes to some of the most influential people in the world.
And remember, these were once champions like you, still trying to figure it out.
Ok, what about some of you who are in management, or the executives out there?
Don't worry, I've got you covered. THE ROI IS INSANE ... KEEP READING 👇
14% of coaching clients say that they hire coaches to improve their business management skills. (2009 ICF Global Coaching Study)
61% of coaching clients say they improved their business management skills thanks to coaching. (2009 ICF Global Coaching Study)
In one study, executive coaching had a 788% ROI thanks to increases in areas like productivity and employee satisfaction. 77% of respondents said that coaching had a significant impact on at least one of nine business measurements. (MetrixGlobal)
A survey of 100 executives showed that the average ROI of executive coaching was almost 6x the cost of coaching. (International Coach Federation)
A reliable ROI for executive coaching has been reported as 500%-700%. (iPEC)
Executive coaching helps women improve their performance, satisfaction, and well-being. (International Journal of Evidence Based Coaching and Mentoring)
A case study on women leaders who participated in coaching shows that leadership coaching can improve: self-awareness, self-confidence, self-leadership, leadership style, as well as their relationship to power, conflict, and personal life. (International Journal of Evidence Based Coaching and Mentoring)
75% say that the value of executive and leadership coaching is “considerably greater” or “far greater” than the money and time invested. (International Journal of Evidence Based Coaching and Mentoring)
But wait, what about those of you who have businesses and need business coaching? The returns for you is CRAZY. Check this out 👇
According to Eric Schmidt, Google and Apple owe much of their trillion-dollar valuations to their business coach, Bill Campbell. (CNBC)
80% of coachees report increased self-confidence. (Institute of Coaching)
70% of coachees improve work performance, relationships, and communication. (Institute of Coaching)
One in six entrepreneurs turns to coaching to improve their performance. (Forbes)
One-third of successful entrepreneurs have turned to a mentor or support group (only 14% of entrepreneurs with failed businesses have done the same). (Xero)
33% of founders who are mentored by successful entrepreneurs go on to become top performers. (Endeavor/TechCrunch)
But what about sales? Yes, there is some incredible ROI for sales coaches as well, read 👇
Sales coaching helps improve win rates for forecasted deals with 27.9%. (CSO Insights)
Sales coaching can improve the performance of the middle 60% of an organization’s sales reps. High-quality coaching can improve it by up to 19% and moderate coaching can improve it by 6-8% across 50% of the sales force. (Harvard Business Review)
It takes companies 2-3 years to establish their sales coaching programs. (Value Selling Associates)
⅓ of high-performing companies have ongoing sales coaching programs. (Value Selling Associates)
Over half of companies with formal coaching programs in place for 3+ years experience high growth. (Value Selling Associates)
Almost half of the organizations that have effective sales coaching programs rely on outside coaches. (Value Selling Associates)
For those seeking new career opportunities post-covid, these are the numbers you need.
The investment is well worth it and it shows, keep reading 👇
15% of coaching clients see career opportunities as the most important reason to hire a coach. (2009 ICF Global Coaching Study)
62% of coaching clients say they improved their career opportunities thanks to coaching. (2009 ICF Global Coaching Study)
The three top obstacles to building a strong coaching culture inside an organization are: Limited support from senior leaders (50%), inability to measure the impact of coaching (42%), and a lack of budget for coaching activities (38%). (2020 ICF Global Coaching Study)
In-person and other formats of coaching are equally effective. (Journal of Occupational and Organizational Psychology)
A meta-analysis of 18 studies of coaching in organizational settings showed that coaching has a relatively large effect on clients’ coping capacities and resilience, subjective well-being, attitudes, performance, and goal-attainment. (The Journal of Positive Psychology)
51% of organizations with strong coaching cultures report a higher revenue than similar companies. 62% of employees in those organizations rate themselves as highly engaged. (Human Capital Institute)
A study showed that individual coaching and group coaching helped to reduce procrastination and facilitate goal attainment. (Frontiers in Psychology)
Research shows that coaching has positive effects on performance and skills, well-being, coping, work attitudes, and goal-directed self-regulation. (The Journal of Positive Psychology)
Coaching clients report that they improve relationships (73%), communication skills (72%), interpersonal skills (71%), work performance (70%), work/life balance (67%), and wellness (63%) thanks to coaching. (2009 ICF Global Coaching Study)
62% of employees at companies with strong coaching cultures rate as highly engaged. (Human Capital Institute)
Compared to non-mentored employees, employees who receive mentoring receive higher compensation, a greater number of promotions, feel more satisfied with their career, feel more committed to their career, and are more likely to believe that they will advance in their career. (The Journal of Applied Psychology)
Last but not least, what about those who just want to focus on their overall life?
Some would call this a "life coach", I like to refer to it as a "Purpose Coach."
Regardless of the verbiage, the numbers don't like, keep reading 👇
13% of coaching clients see self-esteem and confidence as the most important reasons to hire a coach. (2009 ICF Global Coaching Study)
80% of coaching clients say that they improved their self-esteem or self-confidence thanks to coaching. (2009 ICF Global Coaching Study)
According to research, life coaching can improve health outcomes for certain patients. (BMC Health Services Research)