Are you hesitating to invest in online training because its impact seems uncertain to you? Get into the habit of calculating the ROI of your training courses to make decisions with peace of mind.

The return on investment of e-learning – or how to turn content into cash!

Identify the Problem

Your organization is facing a problem (point A), and you want to improve the situation. This could be a low number of inquiries about a specific topic, lost revenue due to inefficient product shelving, or internal time wasted due to a lack of information about a process. Whatever the issue, collect relevant indicators related to the situation you want to see improve (point B).

The Importance of Measurable Objectives

Analyzing the situation not only contributes to calculating ROI but also helps define your learning objectives. These objectives must prompt learners to take action – otherwise, their brains will remain in “observer mode” during your training. Back to ROI : precise, measurable objectives enable you to track the progress of your indicators. Work with your management control team, if needed, to determine the value of each indicator.

Consider Associated Costs

To continue your analysis, let’s now focus on the cost of your training. Start by considering course development costs. Be sure to also factor in indirect costs, such as the time your learners spend on the training, the time spent on administration and communication with your audience, and the time needed for LMS integration. 

How to Evaluate the Qualitative Aspect of Online Training?

While they can’t always easily be included in ROI calculations, qualitative gains still contribute to the success of your project on a larger scale. Often tied to brand image, or resulting in better staff retention, improved internal communication, or stronger knowledge retention, qualitative objectives can be measured through satisfaction surveys or feedback forms.

Medium-term Follow-up

You shouldn’t expect changes within 24 hours of completing online training, but rather over a minimum period of 1 to 3 months. Set the maximum timeframe within which you expect to see change and continue monitoring your indicators to track the progress of the issue. Consider every identified benefit as something gained from the training. At the end of the set period, use the following calculation:
(gain – cost) x 100

Any ROI greater than 100% is proof that your training has found some measure of success.

While the process of calculating your return on investment may seem complicated at first glance, surround yourself with resourceful people within your company. Financial logic and the need for measurable results are truly key drivers for creating effective and relevant online training for your organization.