How To Measure The ROI Of Your LMS

Editorial Team

learning management software

A great tool that has gained popularity in recent years is a learning management system (LMS). Due to its availability anywhere, anytime, and its ability to be customised, the learning management system has primarily replaced traditional training methods with eLearning. LMS now make it simple to manage data security, departmental orientation, skills training and compliance training in one tool. This approach works well for small and large enterprises to provide employees with online training sessions worldwide.

Calculating learning management software ROI is essential because an LMS is a significant investment for any business. Let’s take a closer look at the factors to consider while calculating LMS returns.

Analyse The Expenses And Results.

Evaluating the expenses and results of corporate learning management systems is one of the most prominent and straightforward ways to calculate the ROI. Take into account the expenditures and results when calculating the ROI.

Learning management system hosting fees, development, design, implementation and other costs are included in the expenses. Results include a rise in sales, an increase in projects and revenue, a decrease in complaints and more.

Now think about the things that have a monetary value. This aids in comparing costs and benefits to obtain metrics that show whether your online training was successful or needs to be updated.

The Compatibility Of Your Learning Management System With Other Existing Software.

It’s possible your new learning management system may not work with your current third-party tools or have a compatible format. The expense of replacing the program in that scenario will be your responsibility. Hence, data integration is another aspect you should consider when calculating ROI. Making thoughtful decisions and preparing ahead of time are wise practices. You should take these expenses into account in advance if you want to evaluate the ROI of your learning management system. The best investment would not be made if your LMS did not work with your current software.

The Time Spent By Employees On The Courses And Activities.

Another valuable method to help you determine your learning management system ROI is measuring the time spent on various courses and the specific activities contained within them. You can also measure the degrees of interaction and proactive learning using this.

Employees that actively participate in the course are more likely to finish it. They would be happy to come back and finish it on schedule. If they don’t, your learning management system requires some adjustment. This implies your ROI will decline when your learners leave out more frequently.

Creating intelligent training activities and lessons within courses should be the main focus of every course creator.

The Employee Retention Rates.

Professional development programs significantly increase employees’ likelihood of staying with a company. Your training and orientation expenditures will inevitably rise if you have a high employee turnover rate. A new employee is also less effective than an employee who is familiar with the regular procedures and workings of a company. Therefore, you should first and foremost look at your employee retention statistics if you want to determine whether or not your learning management system is worth the investment.

If more employees remain on the job after training, your learning management system is functioning well.


Any business must make a significant expenditure to implement a learning management system. It must therefore be economically sustainable. Businesses implement a learning management system to save money and offer online training sessions. Unfortunately, not every learning management system has the capability of providing a good ROI. Consider the efficacy and functionality of your program when estimating the worth of your learning management system.