LMS Tips: Increase Your Learning Managament System ROI and Payback

April 2007


Well implemented e-Learning systems often benefit many parts of an organization, but still too often leave opportunities untouched. Maximizing Return on Investment (ROI) for an e-Learning system (specifically, asynchronous web training) 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. Some classroom situations require hiring temp workers for coverage during training. 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 business process improvement using operational measurements (metrics) is often overlooked. Each industry is different, as is each business, regardless of industry. Cost savings may be easily quantified for reducing employee turnover and improving ramp-to-productivity levels with new hires, after cost factors have been identified and combined with a predetermined goal. Each industry has it's own way of measuring processes with key cost components. These may include a customer complaint, length of service call, equipment down-time, injury due to safety failure, or any number of different compliance issues that exist, just to name a few. Each department or line manager is focused on performance measurement, and some of these metrics may be universal across the organization.

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) Cost savings may be achieved by re-purposing marketing content as training content and reducing duplication in effort and expense. Marketing collateral and information content for new product rollout may be uploaded into the training area, which is then available for new hires as well, and c) Increased responsiveness in the marketplace, especially during rapid expansion, reduces errors and mistakes. Training content may be changed in one location and be made instantly available to all.

4)      Provision training for external customers. Sales channel or distributor training can significantly boost sales and customer satisfaction. Issuing Certificates of Completion and improving your authorized dealer network translates into increased quality and consumer confidence. In many cases, by providing web-based training to your customers, your target market may experience a higher value and quality than what is available from your competitors. Perhaps you may also reduce service calls and complaints with this proactive approach. Reducing un-necessary service calls and complaints are solid savings that can be documented.


A hallmark of transitional leadership in today's ever-changing global marketplace is delivering on-demand training and education to employees, vendors, dealers, distributors, and customers. We know that measuring your ROI is important to you. Investing in the right Learning Management System can increase your sales and competitiveness immeasurably, plus reduce expenses at the same time.

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