Elearning has replaced the traditional classroom learning in this pandemic like never before.
In this context, Learning Management Systems (LMS) became a useful tool to create content for all sorts of training and offering anytime and anywhere accessibility.
Investing in Adobe Connect Pricing is huge for any company, and calculating the Return On Investment (ROI) becomes even more crucial.
Here are the methods by which you can calculate the ROI of your elearning program.
- LMS maintenance Cost
The LMS returns depend on the choice of pricing plan you opted for. Adobe Connect offers different pricing based on their number of licenses.
Among all other LMS systems, cloud-based LMS solutions are cost-effective. They cut down the expense on in-house data storage and technical maintenance.
Plus, it has zero installation costs and training costs.
On the flip side, on-premise LMS provides you with the full control of the operation and has a one-time licensing fee done up-front. It is a great solution for the long term LMS usage.
- More engagement = More money
When you’re calculating your ROI, it is essential to consider engagement as a factor.
For example, When you implement a new LMS for your new course and get a larger audience, it indicates you want to monetize the course.
The more valuable your content, the more will be people willing to pay for it.
This way, you can get back the ROI on LMS you have invested within a few months.
- Employee Retention rates
Today’s employees are looking for opportunities to upskill themselves, and if they don’t get it in their current workplace, they quit.
By providing technical training to existing employees, you can benefit in two ways.
- Retain the talent to face the challenges against your competitors in the market.
- You need not invest your time and money on giving orientation and training to new employees.
An LMS can provide certifications as a reward to the high performing candidates in your company. These motivate the employees to achieve more and more.
Employee retention rate is important to reap the benefits of ROI on Learning Management Systems.
- Analyze the L&D expense sheet
By common sense, reduction in expense indicates the increase in revenue. An LMS serves as the great medium in cutting down the extravaganza that occurs in traditional training.
Trainer’s travel and food expenses printed training materials, and site rental fees are ruled out from the training expense list.
Online training requires only a mobile device or a computer. With the recorded training instructions, employees can access the course anywhere and anytime.
As the LMS like Adobe Connect pricing maintains detailed records on the training, it eliminates the non-compliance penalties against the company.
While calculating the ROI of the LMS, start with the previous records on Learning & Development plus the compliance.
Subtract all the traditional training expenses such as cost spent on printables, training venue, and trainer’s travel expenses.
Compare it with your present LMS pricing plan to understand the drastic difference.
- Calculate the time saved using LMS
Time is money, especially in business. An LMS values the employees’ time in exchange provides efficient training to them.
It minimizes the time and effort on organizing the training and orientation for the employees.
By offering online training, you can minimize managing paperwork. This aspect of LMS is tedious to consider when calculating the ROI.
However, you can do two things for this.
- Analyze the employee seat time for online training.
- Compare and estimate the payroll hours for online training and traditional training.
The Final Takeaway
These are some of the common ways to calculate the Return On Investment on Learning Management System. Please share with us how you calculate the ROI of your LMS.