In order to determine the profitability of a project, investors generally analyze the investment portfolio. Return on investment is among the tools used as a basis for comparison. This indicator not only helps with decision-making, but also makes it possible to analyze the performances of the various actors in the project. How to estimate the return in terms of elearning ? What are the points to take into account in order for the performance to be positive?
What do you need to know about return on investment or ROI?
ROI is the acronym for Return On Investment, or return on investment. It is generally expressed as a percentage. In terms of digital marketing, ROI is an indicator to measure the profitability of the amounts invested. Thanks to the predictive bases it displays, this tool makes it possible to reinforce the choice whether to continue or stop the project, but also to identify areas for improvement in order to obtain better performances. The same is true when it comes to an e-learning project. Take for example a Farm Bidule game on mobile. It's about learning how to manage a virtual farm. Well, by comparing with a real farm, you will find that it has nothing to do with it and that your ROI in terms of learning to manage a farm is almost zero. Let's note in passing that you could have guessed it.
In general, ROI is determined by dividing the benefit by the cost. In terms of digital training, the same formula is applied. The benefit corresponds to the gain generated by the impact of learning and the cost is equivalent to the implementation costs. According to Kerin Bennington, a specialist at UNC Kenan-Flager Business School, The ROI in vocational training is linked to the performance observed at the end of the training. This performance can be monetarily quantified.
In e-learning, The benefits can also be expressed by customer satisfaction, workforce reduction, productivity improvement, expense reduction, or revenue increase. On the other hand, The cost of development of the training project concerns course design costs, travel costs, the remuneration of trainers, installation costs or infrastructure costs, among others. The aim of the operation was, among other things, to generate the most benefits with minimal development costs. So, if you want to plant cabbages, you can find online horticulture courses, sometimes free of charge. More efficient and cheaper than Farm Bidule (which is supposed to be free, but we are often tempted to buy bonuses, right?)
How to maximize the return on investment in e-learning?
E-learning has developed widely over the last few years. It can facilitate interaction between members of a training group to ensure knowledge sharing, in a form of social learning. For example, this is the case in a learning community. All members of the group contribute by sharing their knowledge, by asking questions in order to obtain collective answers or by participating in the search for a solution to the problems encountered by other collaborators. Learning is therefore participatory.
There is no precise or specific procedure to make digital training profitable. However, to optimize the return on investment, it is possible to proceed in several ways. Extensive research has shown that e-learning saved up to around 45% of the time spent on traditional training, that is to say in the room. For example, by taking online courses, the learner saves on their travel time and on the time allocated to the course follow-up schedule. If the learner is a company employee, he does not record any drop in production during the training since the latter can be continued outside of working hours. E-learning costs less than face-to-face, and that's already appreciated. What's more, in the event of a global epidemic, for example, there are no cancellation fees for traditional courses. Everything can be done from home.
The other advantage of e-learning lies in the flexibility it offers to both learners and instructors. No geographical constraints are imposed since it can be followed anywhere. Courses can also be translated into multiple languages. The evolution of learners can be verified through evaluations or scenarios that can be carried out online. In addition, e-learning ensures greater customer satisfaction. Indeed, it provides rapid training that improves learner performance in a short period of time. Thus, by being reactive and agile in decision-making, the employee offers a better service to his customer.
To encourage employees or collaborators to opt for e-learning, it is recommended to provide them with more information about the added value of the training : its importance, the advantages it provides, etc. They must also be provided with training materials that allow them to find information in a short period of time. These can be modules accessible on social networks or on applications accessible on smartphones or tablets. Storytelling can also be an effective way to get learners interested in e-learning.
There is even a method called Story learning, based on comic books. For comic book aficionados, your favorite characters may not appear there, otherwise copyrights can increase the cost of training by much to enormously.
It is also possible to use the Gamification Which consists of reward learners for their efforts and their individual development, through serious games or serious games. For example, one can imagine winning a pack of cabbage seeds when you have reached one hundred turnips harvested (as part of an agricultural training course).
Involve employees more in the life of the company through good corporate communication also encourages them to increase their performance and to invest fully in its development. You inevitably transmit less knowledge to each other when you are not required to communicate. In general, the lack of communication is detrimental to teamwork (we wanted to open the door today, that's it).
How to assess the ROI of digital training in practice?
To calculate and maximize the return on investment in e-learning, it is possible to use the Kirkpatrick evaluation method combined with the Philips calculation technique. For this combination to be effective, it is important to respect two main steps. First of all, it is necessary to establish the benefits and benefits of training using Kirkpatrick's valuation levels and quantifying them in monetary terms.
Mounted in the form of a pyramid, the 4 levels concern (from the base to the top) reaction, learning, transfer and results (from the base to the top). Then it is necessary to compare these benefits with the costs of carrying out the training. ROI focuses on learner satisfaction, evaluating learning, estimating learner behaviors, and the impact of training on the business.
Regarding crucifers, you can count the number of vegetables that grew compared to last year to assess the “Do you know how to plant cabbages” training. Depending on the results, you can continue with the course “Why planting cabbages has nothing to do with our business” or “How to cook 1534kg of cabbages”.
Both in e-learning and in other forms of training, the return on investment is an essential step following the implementation of any project. ROI here consists in the analysis of the benefits and costs associated with learning. Dedicated calculation methods can help maintain or create a satisfactory level of training in your company.
(And cabbages, forget it, we're talking to you about it but we don't even like it...)
