The ROI of Coaching and Consulting: A Comprehensive Analysis
Posted on January 16, 2024 by Nick Rustad, MBA, One of Thousands of Entrepreneurship Coaches on Noomii.
Many clients of mine have asked, at the beginning of our work, what is the ROI in coaching?
If you’ve ever wondered about the return on investment (ROI) of coaching and consulting, you’re not alone. Many students and professionals often ask how they can explain their value to their clients. After all, “coaching” is an intangible service. Sure, there are industries like health coaching where clients get tangible results, but for most coaches, the results aren’t that concrete.
The Power and Popularity of Coaching
Fortunately, numerous studies and research show just how powerful and popular coaching can be. According to the Institute for Professional Excellence in Coaching (iPEC), there are 1.5 million searches 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 a staggering 2.849 billion USD, according to the 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, increasing by 57% (COVID-19 and the Coaching Industry).
Client Satisfaction and ROI
Coaching clients are generally happy with their results. A whopping 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). Furthermore, 95% of clients rate their coaches as “good” or “excellent” (2009 ICF Global Coaching Study).
When it comes to ROI, 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).
For companies that could calculate their return on investment, 86% said that they at least made back their initial investment. 19% indicated an ROI of 50x the investment, and 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 by the International Society for Performance Improvement, coaching has a 221% ROI. Moreover, 51% of companies with a strong coaching culture report higher revenue than their industry peer group (Human Capital Institute).
How Clients Find Coaches and Program Duration
Most clients find their coaches through referrals and word of mouth (46%). The majority (73%) of coaching programs last one year or less (2009 ICF Global Coaching Study).
In conclusion, the ROI of coaching and consulting is significant, both for the coach and the client. It’s a thriving industry with a bright future, offering tangible benefits and high satisfaction rates.
