We wrap up everything, and we mean everything, you need to know about a learning management system including the best LMS on the market.
The landscape of learning and development is always changing.
However, one of the biggest changes has been the shift from physical classrooms and printed materials to a digital learning ecosystem.
Online courses, virtual classrooms, interactive content, and real-time feedback are just a few examples of how technology enhances learning.
And of course, an LMS serves as the central hub for managing these digital learning environments.
But an LMS is more than just a repository of online courses.
It’s a comprehensive platform that facilitates the creation, delivery, and tracking of educational content.
Related: Why L&D is outdated
It enables educators to design rich, multimedia courses that cater to diverse learning styles.
For learners, it offers the flexibility to access these courses anytime, anywhere, making education more inclusive and adaptable to individual needs.
In this blog we’ll go through:
- What a learning management system is
- Why an LMS is important
- Key challenges with an LMS
- Key features of an LMS
- How much does an LMS cost?
- How to choose the right LMS
Let’s get started.
What is a learning management system?
Before we do anything, you need to know what a learning management system is and where it’s used.
After all, in the L&D world, there are a bunch of acronyms to wrap your head around.
From LMS to LXP and LCMS, understanding what a learning management system is, is step one.
But first, let’s define what a learning management system is:
Definition of a learning management system
A learning management system, also known as an LMS, is a software platform that enables organisations to create, manage, deliver, and track online learning or training programmes.
With ongoing advances, you can track more than ever.
An LMS can be used by businesses, schools, and institutions to facilitate education, employee training, and performance development.
What are learning management systems used for?
In this section, we’re going to focus on the uses of an LMS specifically in the workplace.
There are a whole host of uses that include:
Onboarding and training
Employee training and onboarding are two common use cases of an LMS. With a learning platform in place, you can easily integrate new learners into your business and give them all the tools they need to get off to a running start.
Related: Onboarding best practices
But the learning process doesn’t have to end there.
With ongoing training content, you can ensure that employees stay compliant, perform their job to the best of their ability and learn new skills.
An LMS can be used for extended enterprise training too, for customers, partners, and members.
This is a great way to share learning content for people to learn about a product or system so that they are better equipped.
Development and retention
We already know the benefits of retention.
Investing in your employees in one key way to encourage better employee retention.
After all, 94% of surveyed employees responded that if a company invested in helping them learn, they would stay longer.
Related: Key employee retention statistics you need to know
Upskilling your employees means they are better equipped for their roles, and can more effectively tackle challenges in their day-to-day life.
Sales training
To have an effective sales team, you need a knowledgeable sales team. Investing in an LMS for your sales team is one way to achieve this.
Related: What is product training
With it, you can create easily accessible learning content on key products and features to ensure product knowledge is kept up to date.
Blended learning
Classroom learning is changing, and now most learning is done online.
But while an LMS can host learning content for eLearning, it can also support offline learning.
You can manage your learning events through your LMS and even accompany modules with complimentary online content.
What are the key benefits of using a learning management system?
Compared to historic solutions, it might seem obvious what the benefits of an LMS are.
But it’s worth repeating:
Centralised learning
An LMS provides a single platform to store, manage, and organise all your training materials, making it easier for L&D teams to keep content up-to-date and accessible.
Without an LMS, training materials are often scattered across emails, shared drives, or paper documents, leading to inefficiencies and version control issues.
Efficiency and accessibility
With an LMS centralising the management of educational content, simplifying course creation, enrollment, tracking, and reporting, you can efficiently design and distribute courses, assessments, and materials from a single platform.
Not only does this reduce administrative burdens. It also means that learning is available to learners 24/7.
Whether students are in different time zones or balancing education with other responsibilities, an LMS ensures that learning is flexible and accessible from any device with an internet connection.
Cost savings
Traditional classroom settings and physical learning materials involve significant costs, including rent, utilities, printed textbooks, and more.
An LMS mitigates these expenses by digitising content and delivering it online, leading to substantial savings.
But that’s not all.
There are savings to be made with scaling too.
An LMS supports scalable learning, making it possible to teach large numbers of students without proportional increases in cost.
Consistent training delivery
With an LMS, you can ensure that all learners receive the same training experience, regardless of their location.
This consistency is crucial for maintaining compliance, standardising onboarding, and reinforcing company policies.
Without an LMS, training quality may vary significantly, leading to gaps in knowledge and performance.
And that’s not all.
With digital learning, it means you have one source of truth when it comes to learning materials.
As opposed to people having old, outdated versions of learning content, with an LMS, you can update one course and share it meaning users always get the latest version.
Personalised learning experiences
LMS platforms leverage data analytics and artificial intelligence to create personalised learning paths tailored to individual learner’s strengths, weaknesses, and preferences.
This customisation ensures that each student receives the support they need to succeed, enhancing overall learning outcomes.
And that’s not all.
The learner is prioritised in an LMS.
They learn, as opposed to being taught at.
Students can progress through the material at their own speed, spending more time on challenging topics and quickly moving through areas they find easier.
This flexibility helps accommodate diverse learning needs and schedules.
What are the challenges of using an LMS?
Implementing an LMS can revolutionise training and development, but it’s not without its hurdles.
From user adoption struggles to technical issues and content management, organisations often face challenges that can impact the effectiveness of their LMS.
Here are some key challenges of using an LMS:
User adoption & engagement
Many employees and learners resist using an LMS due to a lack of familiarity, motivation, or perceived complexity.
Related: Complete guide to LMS adoption
Users may avoid training if the system is not intuitive or engaging, leading to lower completion rates.
Related: Marketing strategies that can boost learner engagement
L&D teams must invest in onboarding, communication, and incentives to drive adoption.
Initial setup & implementation
Deploying an LMS requires time and resources, from selecting the right platform to migrating existing training materials.
Related: LMS implementation: must have checklist
Organisations must also customise the system to align with business goals, which can be overwhelming without proper planning.
Content creation & maintenance
An LMS is only as effective as the content within it.
Developing high-quality, engaging courses requires expertise and ongoing updates to keep materials relevant.
Without a content strategy, you risk outdated or ineffective training.
Technical issues & support
Users may encounter bugs, slow performance, or compatibility issues, especially when accessing an LMS on different devices.
Without reliable IT support and vendor assistance, technical difficulties can disrupt training and frustrate learners.
That’s why it is so important to choose the right partner.
Cost & ROI justification
While an LMS can save money in the long run, the initial investment can be significant, especially for premium platforms.
L&D teams must demonstrate a clear return on investment (ROI) to justify the expense and ensure continuous funding.
How does an LMS work?
With over 80% of organisations worldwide using an LMS to support their learning and development initiatives, understanding how these systems function is crucial for maximizing their benefits.
Key features of a learning management system you shouldn’t miss
LMS to LMS, you’re going to find different feature sets.
Related: Moodle vs Totara
But generally speaking, you will see a few core features across all learning platforms:
- Course management
- Tracking and reporting
- Compliance
- Integrations
Let’s look at each in more detail.
Course management
Course management is the core component of an LMS, encompassing the creation, organisation, and delivery of educational content.
This feature allows you to manage all aspects of a course lifecycle.
Key Features:
- Create and upload various types of content, including text, video, audio, and interactive elements.
- Structure courses into modules, lessons, and topics, enabling a logical flow of information.
- Add quizzes, tests, and assignments to help in evaluating learner progress.
- Make use of features for setting deadlines, scheduling classes, and organising course timelines.
Tracking and reporting
Tracking and reporting capabilities allows you to monitor and evaluate learner progress and performance.
This component provides insights into the effectiveness of the learning process and individual learner achievements.
Key Features:
- Monitor learner progress through courses, including completion rates and time spent on each module.
- Track scores, grades, and performance on assessments.
- Generate detailed reports on various aspects of the learning process, such as participation, engagement, and outcomes.
- Provide data analytics to identify trends, strengths, and areas needing improvement.
Compliance
Compliance features ensure that you adhere to regulatory requirements and standards, particularly important in corporate and professional training environments.
This component helps manage and document compliance-related training and certifications.
Key Features:
- Track the completion of required courses and issues certifications.
- Maintain records of training activities for auditing purposes.
- Send notifications for upcoming or overdue compliance training.
- Keep the system updated with the latest compliance standards and regulations.
Integration capabilities
Integration capabilities allow you to connect and share data with other tools.
This ensures seamless data exchange and can enhance the functionality of your LMS.
Key Features:
- Connect the LMS with other systems using Application Programming Interfaces (APIs).
- Allow users to access the LMS using their existing credentials from other systems, improving user experience
- Integrate with various third-party tools and platforms, such as content libraries, video conferencing software, and HR systems.
- Ensures consistent and up-to-date information across different systems with data synchronisation.
How much does an LMS cost?
The cost of a LMS varies widely as you can imagine.
It depends on factors like features, deployment type, user capacity, and licensing model.
Whether you’re a small business, a large enterprise, or an educational institution, understanding LMS pricing structures can help you choose the right platform within your budget.
Related: Best affordable LMS platforms
Pricing models for LMS platforms
LMS providers use different pricing structures, each with its own cost implications:
- Subscription-Based (SaaS LMS) – Many cloud-based LMS platforms charge a monthly or annual fee, often based on the number of active users or total learners.
Prices can range from $2 to $10 per user per month, with enterprise solutions costing more. - Perpetual licensing (One-Time Fee) – Some LMSs, especially self-hosted options, require a one-time purchase fee, which can range from a few thousand dollars to $50,000+, depending on features and customisation needs.
- Pay-per-use – This model charges based on the number of courses accessed, training sessions delivered, or specific features used.
It’s ideal for organisations with fluctuating training needs. - Free & open-source LMS – Platforms like Moodle are free to use but may require investment in hosting, development, and ongoing maintenance.
Related: Totara vs Moodle
Additional costs to consider
Beyond the base LMS cost, you should also budget for:
- Implementation & setup fees – Customisation, branding, and system configuration can add £2,000 to £15,000 in initial costs.
- Content development – Creating high-quality training materials, videos, and interactive courses can require additional software or external experts.
- Integrations & customisation – Connecting an LMS with HR systems, CRMs, or analytics tools may involve extra development costs.
- Support & maintenance – Some providers charge for premium support, updates, and troubleshooting services.
How to choose an LMS within your budget
To ensure you’re getting the best value, consider:
- The number of users you need to support.
- Whether you need advanced features like gamification, AI-driven learning, or compliance tracking.
- The long-term costs, including scalability and maintenance.
- Whether a free or lower-cost LMS meets your organization’s needs.
While LMS costs can vary significantly, investing in the right system can lead to long-term savings by streamlining training, reducing administrative work, and improving learner engagement.
How to choose the right LMS
Choosing the right LMS is crucial.
It can massively impact the effectiveness of your learning programmes and change your business bottom line.
Here are some key factors to consider when selecting an LMS:
1. Define your needs and goals
First off, define why you need an LMS.
For example, academic instruction, product training, professional development, or more.
Determine the primary purpose of the LMS (e.g., employee training, academic instruction, professional development).
From there, identify the types of content you will deliver.
And lastly, consider the number of users (learners, instructors, administrators) and any future scalability needs.
2. Look at user experience and interface
Evaluate the user interface for intuitiveness and ease of navigation for both learners and administrators.
Ideally, you will want an LMS with a clean and user-friendly design.
Don’t forget, you want to make sure that the LMS is accessible on various devices, including smartphones and tablets, to support mobile learning.
3. Features and functionality
One of the most important things to consider is what features you’re going to get access to.
Check for robust course creation and management tools, including multimedia support, assessments, and interactive content.
Ensure there are detailed tracking and reporting features to monitor learner progress and performance.
Look for built-in communication tools such as forums, messaging, and announcements to facilitate interaction.
Lastly, consider whether the LMS allows for customisation to match your branding and tailored learning experiences.
4. Integration capabilities
Verify that the LMS can integrate with your existing systems, such as HR software, CRM, and other educational tools.
Plus, check for API integration capabilities and support for third-party tools, such as video conferencing software and content libraries.
5. Compliance and security
You want to be compliant and ensure team members are completing the right learning content, at the right time.
As such, you need a few tools at your disposal.
Ensure the LMS supports compliance with relevant industry regulations and standards, especially if you operate in highly regulated sectors.
Plus, make sure you assess the security measures in place to protect sensitive data, including encryption, user authentication, and data backup.
Related: What to consider when choosing a new LMS
6. Cost and value
Of course, you need to consider your budget.
Determine your budget and compare the costs of different LMS options, including initial setup, licensing fees, and ongoing maintenance.
On top of that, consider the long-term value and ROI of the LMS by evaluating its potential to improve learning outcomes and operational efficiency.
7. User feedback and reviews
When you’re evaluating a new LMS, you need to look at what customers are saying about a platform.
Research user reviews and case studies to understand the experiences of other organisations with the LMS.
Related: Check out our case studies
Take advantage of free trials or demo versions to evaluate the LMS hands-on and gather feedback from potential users.
Intro to the BuildEmpire LMS
So, now you know all there is to know about learning management systems.
What’s next?
Here at BuildEmpire, we’re platinum partners of global LMS provider Totara.
We pride ourselves on having our own Edition where we’ve edited the core Totara offering and added our own new features like passkeys and gamification.
Key features of the BuildEmpire LMS
As well as all of the core features of an LMS, BuildEmpire also comes with a whole host of extra add-ons and features.
Totara offers a wide range of special benefits that sets it apart from other LMS offerings.
Related: How a Totara LMS can help you achieve your goals
Let’s look at some of the core features that our current customers love.
Branding
Our Edition of Totara has 26 more colour options than core Totara meaning you can take full control of your LMS branding.
And that’s not all.
We also offer multi-tenancy which means you can create custom learning environments for different audiences, but manage them all in one space.
Gamification
Currently, our gamification offering covers points and leaderboards.
With it, you can assign points to:
- Your courses (when they complete them)
- Engaging in forums in Totara Engage
- Sharing resources or comments
- Logging in streaks
This will allow your learners to collect points and be rewarded for engaging on the platform.
And since your users are earning points, the next logical step is leaderboards.
You can create leaderboards for courses, teams and more.
This means you can create competition between your colleagues.
Related: Why it’s important to create competition in learning
eCommerce
Wanting to add eCommerce to your LMS so that you can sell learning content externally?
With our eCommerce plugin in play, you can easily connect your LMS to Stripe for a seamless buying experience.
You can create a new catalogue and add learning content to it to make available for sale.
Of course, you can set a price which will automatically connect to Stripe.
Wrapping up
Well done for getting to the end of this mammoth blog!
Over 3,000 words later and hopefully you’re feeling more confident about what an LMS is and how it works.
Remember, we pride ourselves on creating bespoke and user-focused learning platforms that solve real problems in the workplace.
Book a demo with BuildEmpire to see how our platform works and what you can stand to gain by implementing a solution with us.