Investing in a learning management system (LMS) can come with a long list of benefits. It can help organizations store, organize, and access materials, as well as making it easy to track employee progress and performance. A great learning management system can even boost workplace productivity, and enhance profit margins.
The best way to experience each of these benefits is to improve the return on investment (ROI) of a learning management system.
Improving the ROI of Your Learning Management System
While the benefits of a learning management system are extensive, you can improve your system’s ROI in just a few steps that will allow you to track, demonstrate, and increase the business value of your LMS.
4 Steps to Improving Your Learning Management System ROI
Achieving a learning management system that boosts your organization’s bottom line means focusing on specific actions like driving revenue, cutting costs, and improving workplace productivity. Follow these steps to ensure your system achieves the highest value for your business.
- Choose a Cost-Effective System
The entire point of a learning management system is to boost efficiency and provide more effective eLearning opportunities at scale. But an LMS that drives costs rather than cutting them will quickly drain your organization’s budget.
Here are few things to look for that signal a cost-effective system:
- The LMS doesn’t charge per user
- There are no additional costs associated with replacing outdated technology
- It improves operational efficiency
- It provides opportunities for generating revenue
Switching systems or implementing a new LMS creates short-term costs, but the long-term benefits of increased productivity and lower expenses should far outweigh the initial investment.
- Reduce In-Person Training Sessions
In-person training is costly. You need a venue, instructor, catering, and physical training materials. Additionally, many organizations have to pay travel expenses in order to provide on-site training, which can drive up costs dramatically.
An efficient learning management system creates a seamless training process that doesn’t require in-person instruction. Is also reduces or eliminates the need for on-site training, thanks to multimedia eLearning content such as video courses, online conferencing, and training gamification.
As your business grows, your LMS can grow with you. Instead of paying more for larger venues and more catering, and LMS makes it easy to redistribute standardized courses and create personalized learning paths that employees can access from anywhere in the world.
- Decrease Turnover Costs by Increasing Employee Retention
Turnover is expensive, and employee retention is directly linked to employee satisfaction. If you want to retain employees you need to invest in a LMS that allows you to promote professional development so your employees can meet their goals.
Help your employees grow professionally and become more productive by providing easily accessible training content, with learning paths that help them identify and fulfill career development goals.
Here are a few ways you can do that:
- Create specific certifications and courses
- Implement online coaching programs
- Allow employees to track their progress and development
- Take Advantage of Monetization Opportunities
The best learning management systems provide e-commerce tools that allow you to generate new revenue streams.
With eCommerce, you can sell your training. You can make elective courses for employees to purchase, or sell training on your products and services to customers, partners, or third-party vendors. By selling your training you create a sustainable source of new revenue that requires little effort. You simply need to create the course and keep it updated.
Make Improving ROI a Business Goal
A great learning management systems will naturally provide a high ROI by improving training, productivity and satisfaction, but forward-thinking companies can increase ROI beyond those initial benefits. Make improving the ROI of your LMS an objective that you work toward over time, improving training courses to improve employee satisfaction, and optimizing how you monetize your LMS. When done well, you’ll find that your LMS’s ROI can grow significantly as you use it more effectively.