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Three Key Elements to Develop Your LMS Value Proposition

June 18 2019 | (0) Comments

LMS value propostion imageWhether you’re looking to purchase an LMS for the first time, or you’re looking to switch to a new LMS, identifying and promoting the tangible business results you’ll gain from an LMS are important to gaining buy-in and purchase approval. We know first-hand that this is no easy task. It requires effort, analysis, education, and justification to persuade your key stakeholders into consensus and final approval. Having a well thought out LMS value proposition will help you with this initiative. If you’re looking to create a compelling case for an LMS, there are three key elements to consider when developing your LMS value proposition.

What are your primary business drivers?

What’s the primary reason why you’re looking to implement an LMS? Are you looking to increase the productivity of your staff or reduce expenses? Perhaps your current LMS is cumbersome, time-consuming to manage and not well liked by your learners. Establishing business drivers that focus on what is important to your organization or how your organization focuses on performance measurement should be included in your LMS value proposition. Examples of typical business drivers include the following:

  • Productivity
  • Onboarding
  • Operating costs
  • Sales opportunities
  • Customer satisfaction
  • Profitability
  • Risk reduction

What movement words can you incorporate into your value proposition?

A strong value proposition presents movement words. For example, if your organization is getting ready to launch a new product, ideally you’d like to “accelerate” your time-to-market. Movement words are used to help describe a better state or a better outcome then what your organization has currently. Examples of movement words include:

  • Accelerate
  • Increase
  • Decrease
  • Reduce
  • Improve
  • Minimize

What metrics will you use to track the ROI of your LMS investment?

Adding metrics to quantify your value proposition is probably the most compelling aspect of your LMS value proposition. The metrics suggest a measurable value of what you’re trying to achieve. The metrics that you use in your value proposition are also the metrics you should use to monitor the return on investment (ROI) of your LMS investment once it’s been implemented. Metrics would ideally be represented in percentages, dollars, or time as examples.

Example LMS Value Propositions

Here are some example value proposition statements to help you start thinking about your own initiatives.

  • By implementing this LMS we will accelerate our sales team’s new hire onboarding time by 56% which, in turn, will result in a 25% increase in sales opportunities in our pipeline.
  • By switching over to this new LMS that supports electronic signature, we anticipate a 25% reduction in administrative overhead expenses and an overall reduction in organizational risk.
  • By implementing this LMS for online customer training we will increase our profitability an average of 38% while effectively reducing the number of incoming calls to our customer support center.
  • By implementing this LMS we will reduce the number of days our sales team spends in live annual training events from 7 days to 3 days. As a result, our administrative and travel expenses will be reduced by an average of 57.6%.

Conclusion

Learning and development professionals are under constant pressure to prove the value of their training initiatives. This is even more important if you’re looking to purchase new systems, software, or tools to assist you with your training initiatives. Creating an effective value proposition that clearly defines the benefits your organization will receive will bring you one step closer to gaining stakeholder consensus and purchase approval.

Source: https://www.jillkonrath.com/sales-blog

Picture of industry crusader Susan DistasioSusan Distasio | eLearning Industry Crusader | ePath Learning, Inc.

About the Author:  Susan Distasio is an eLearning Industry Crusader focused on advocating for advancement and change in the eLearning and professional development industry.  An avid seeker of knowledge and continuous improvement, Susan is happy to share her research, observations, and thoughts regarding “all things related to learning and development.”  When she’s not out on the learning crusade, Susan can be found with the wind in her hair riding her Harley or simply enjoying life with her husband, Steve, and her Siamese cat, Elvis, and with family and friends.