Their concern is the return on investment. With a small workforce, will they be able to get a good ROI? Whether you are a small business or a large enterprise, an LMS is excellent software to have. It saves your time, money, and effort. Moreover, you'll be able to give your employees, customers, and partners a great learning experience. 

Whether you use the world's best LMS for entrepreneurs, a custom eLearning solution, or a cheaper LMS, there are ways to improve your return on investment. Let's learn four ways of improving the return on investment of your LMS. 

Choose a cost-effective system. 

A lot of people misinterpret the term cost-effective as cheap. Cost-effectiveness means getting more done with fewer resources or money invested. By lowering the investment, a cost-effective LMS increases your return on investment. When I say investment, I also take into account the time and effort that goes into it and not just the money. 

Here are some signs that your LMS is a cost-effective investment. 

Analytical reports 

If your LMS provides automated analytical reports, it is worth the investment. Analyzing the performance of your employees gives you a better understanding of their abilities, capabilities, and technical knowledge. Knowing the strengths and weaknesses of your employees is the first step toward better employee management. Moreover, it helps you improve your course. 


You want your LMS to be compatible with the systems you use in your company currently. Moreover, think about the software you might want to integrate into your LMS in the future. For example, an LMS-CRM integration helps you close more deals, is cost-effective, and gives you valuable data. It is one of the most important integrations. Figure out what integrations you'll need and find an LMS which offers that. Integrating databases saves a lot of your time and gives you a better chance of analyzing the results. 

Doesn't have too many additional expenses

Some LMSs cost less initially, but later, for every small update and additional feature, you'll be asked to pay a hefty amount. Such LMSs are expensive in the long run.  

Offers multiple payment options 

Find a good vendor that offers multiple payment options. If an LMS vendor is offering strictly pay-per-user, you should look for another. Having more options allows you to pick the one that is best for you. 

It makes your job easier 

If you are investing in technology, it should make your life easier. It shouldn't take you longer to do tasks than necessary; the system ought to be able to accomplish them automatically.

Use pay per active user

The best way to increase your LMS is by reducing the cost. There are many payment models, but out of all the payment models, the most cost-effective one is pay per active user. So even if someone enrolls in the course but isn't using it, you don't have to pay for it. 

Reduce in-person training 

In-person training is very costly. You have to invest a lot of money in venues, catering, electricity bills, learner stationery, instructor fees, etc. With an LMS, the need for in-person training is reduced. Most of the training can happen using on-demand videos and assignments. You can use micro-learning to make it easier for the learners to grasp new things. If you need to, you can include a few instructor-led sessions, but there is no need for such sessions every day. 

Increase employee retention 

Great resignation is what is disturbing all companies around the globe. It has become more difficult to retain your employees in your company. The two biggest reasons people leave your company are poor employee engagement and a lack of development opportunities. With an LMS, you can increase employee engagement by using collaborative activities. Moreover, since distributing courses is easy with an LMS, you'll be able to extend the learning and development opportunities to the entire workforce. 

Make money with your course.

You might have developed a course for your employees, but that course might help other people too. So why not sell it? Some LMSs have eCommerce tools that let you easily monetize your training course. This adds to your earnings, thus improving your ROI. 

Bottom Line 

I hope this article helped you understand how to improve your LMS's ROI. An LMS is a gift for small businesses. Whether you are buying the most expensive LMS or the cheapest, ensure you get the best ROI.