September 2008 e-learning newsletter - Increase Your ROI

Maximize Your ROI

September 2008

Well implemented e-Learning systems often benefit many parts of an organization, but often leave opportunities untouched. Maximizing Return on Investment (ROI) for an e-Learning system is always a major goal regardless of whether you already have a system in place or if you are just now conducting a needs analysis.

It may be helpful to consider combining different approaches and strategies when seeking the highest possible return for your investment in web training. Here are several different perspectives:

  1. Replacing in-person training sessions with web training is a very basic savings strategy. Travel, lodging, and meal expenses for trainers and trainees, combined with the meeting space and amenities expenses, can be significant when compared to providing an online course. Most find it easy to calculate these savings, but it still can be very difficult to place a value on the lost productivity (or sales revenue) involved.

2)     Analyzing process improvements using operational metrics is often overlooked. Cost savings may be easily quantified for reducing employee turnover and improving ramp-to-productivity levels with new hires. Identify cost factors and combine them with a predetermined goal. These may include the cost of a customer complaint, length of service call, equipment down-time, injury due to safety failure, or any number of different compliance issues that exist.

3)     Rapid expansion and new product roll-outs are processes where significant savings may be achieved. These savings come in several forms:

a.      Faster time to market, or speed to market performance, can increase revenue and competitiveness.

b.      Re-purposing marketing content as training or new hire content and reducing duplication in effort and expense.

c.      Updating training content, especially during rapid expansion, reduces errors and mistakes.

4)     Provisional training for external customers, such as sales channels or distributors, can significantly boost sales and customer satisfaction. Issuing "Completion Certificates" and improving your authorized dealer network translates into increased quality and consumer confidence. By providing web-based training to your customers, your target market may experience improved value and quality. Reducing service calls and complaints is a bonus to this strategy and results in solid savings.

Each department or line manager should be focused on performance measurement, and some of these metrics may be universal across the organization. These improvements translate directly into cost savings and improved fiscal performance.

A hallmark of visionary leadership in today's competitive global marketplace is delivering on-demand training and education to employees, vendors, dealers, distributors, and customers. Investing in the right Learning Management System can increase your sales, enhance competitiveness, reduce your expenses and maximize your ROI.

 



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