top strategies for assessing the roi of online learning

Top Strategies for Assessing the ROI of Online LearningJames Nicolson & Nimritta Parmar

E M P O W E R TA L E N T

James NicolsonLMS Sales Engineer

Nimritta ParmarLMS Marketing

Coordinator

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Today’s Topics

1. Calculating ROI• Classroom-based training• Webinar training• LMS (Open Source vs.

Proprietary)

2. Tips for Maximizing Your ROI

How are you currently conducting training?

– Face-to-face– Web-conferencing sessions– Proprietary platform– Open source LMS

Poll Question

Measure the costs and benefits of training through the particular method you are using

Costs – course development, course materials, registration, staff, promotions, facility, equipment, evaluation.

Savings & Benefits – improved performance, increased productivity, decreased labour, income generation

Calculating ROI: Step 1

Calculate how long it takes before the benefits outweigh the costs

Also known as the “Payback Period” – how long before training pays for itself?

Payback period = costs/monthly benefitsX Number of months

Calculating ROI: Step 2

Other outcomes to measure and consider:

• Engagement and Reaction• Learning & Retention• Application, Behaviour & Learner Response• Impact on Business

ROI isn’t always monetary

Do you currently have a method for calculating ROI?

– Yes, and it’s effective– Yes, but we need more insight– No, we do not

Poll Question:

Costs of Learning

• How many people do you train per year?

• What is the average cost of each course?

1. Costs of Classroom-based learning

Real-time training cost considerations:

• Do you pay people to travel to courses?

• Do they require accommodation?• What is the annual cost for an LMS?

… Compare to Online Learning

• Lower training costs• Train more learners, more effectively• Doesn’t need to be in real time • Deliver consistent training• No cost of travel/accommodations

Example: Webinar-based Training

Webinar-based training..• Online – reduces the cost of learning• Recorded – reach a large audience with

one piece of learning material• Low cost - services accommodating 100+

participants for a monthly fee between $50-$100

Example: Webinar-based training

Webinar cost considerations: • How much time and money is invested in

developing a webinar • How long are your webinar presentations?• How engaged are your students?• How effective are full courses delivered in a

webinar format?• Can you re-use this presentation, or is it a one-

time use?

Now, why an LMS?

• Students can manage their own schedules• Access sophisticated administrative functions– Compliance tracking, certifications, HR functionalities,

performance management, 360 reviews

More effectively train learners, and better track learning

Open Source LMS or Proprietary LMS

Fundamental ROI question:

If you’re considering a new LMS, are you interested in paying a license fee per user, or on a perpetual basis?

Freely Distributed

Easy to MoveLarger User Community

First of all, what is Open Source

Open Source LMS vs. Proprietary LMS

Proprietary LMS

• Licensing fee per user • Single support channel• Vendor driven development• Sole, proprietary vendor and

platform. • Locked In • May or may not include

upgrades

Open Source LMS

• Free/minimal licensing fee required

• Community Drive• Extensive Functionality• Extensive Partner Community• No lock-in• Upgrades/New features don’t

cost extra - No hidden costs

Open Source LMS vs. Proprietary LMS

Considerations beyond the cost…

• Risk of disruption• Community of open source• User-friendly

Open Source Services

• Hosting• Training• Customization• Support• Theming• Reporting/Analytics• X no licensing (image), and

no lock in

• Run as many courses as you like

• Onboard new employees more effectively

• Other cost and times savings

• Streamline course registration

• Leverage 3rd party tools

Benefits of Open Source LMS

1. Be transparent – Communicate the value of the LMS

2. Make sure your LMS is easy to use

3. Get the right support from your vendor

4. Use data and analytics to track learner progress, and learning outcomes

Tips for Maximizing Your LMS ROI

Questions? Ask Away!

• Resources will be sent out in our follow-up email• PowerPoint• Recording• Learning resources we discussed

Next Steps

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