Introduction

Business clients for e-learning initiatives are demanding return on investment (ROI) analysis. They want the vendor to provide a "business case" that they can then turn around and show to management. Clients want you to provide an ROI analysis based on whatever information they are able to provide.

The e-learning industry has responded with various ROI calculation methods that focus on delivery cost savings of e-learning vs. traditional instructor-led training. While this approach is adequate for a quick and dirty ROI, it ignores what clients are most interested in the benefits of improving employee performance.

Popular measures such as reduced travel costs and participant time spent on training demonstrate that e-learning is a cost-effective method for delivery when compared to instructor-led training. But does the e-learning event result in increased employee performance? When writing a proposal, you want to focus on performance-related ROI and the methods for calculating the results if you can get the numbers from the client. Focusing on performance rather than cost avoidance creates a powerful business case for your e-learning solution as opposed to one centered totally on cost savings or avoidance.

Why this Section is Needed

When selling e-learning to clients, one effective method is to develop an ROI business case. Show clients how much money they would make with your solution in place. Traditionally, e-learning is sold as a method of cost avoidance or cost savings. Clients are told that if they buy e-learning, they will save thousands...