This guide outlines the best metrics to track LMS effectiveness and determine the return on investment from a training program in 2026, based on Kirkpatrick and Phillips models, along with recent research and data obtained from actual examples.
The reader will be provided with actionable recommendations for tracking effectiveness, attributing business gains, and maximizing return on investment through his/her training programs.
Importance of Training ROI Today
Companies that invest in training long-term will generate 218% more revenue per employee and a 24% higher profit margin in 2026 than businesses that do not invest in long-term training. Companies that track their training programs with traditional metrics, such as completion rates, often report an 80% or higher completion rate; however, this has no real meaning unless the employee is applying what he or she learned on the job.
Advanced LMS systems now utilize artificial intelligence analytics to tie employee learning to business metrics; such as customer satisfaction scores and sales win percentage rates, thereby demonstrating that training is an investment in growth and increased revenue rather than a cost center.
Extremely high ROI Corporate Learning programs produce a $30 return for every $1 spent on training by increasing employee productivity; However, to truly realize these high returns, training programs must be evaluated from all aspects of performance.
The CFO’s primary concern is to establish a correlation between the investment made in training and the attributed uplift in business results; thus, the LMS provides information to support this objective.
Key Frameworks for LMS ROI Measurement
Kirkpatrick Model Levels
The Kirkpatrick Model comprises four Levels and LMS tools are assisting with automating the collection of data for the four Levels.
- Level 1 is Reaction: after the course, a survey is sent asking participants about their experience so the LMS can calculate the Net Promoter Score (NPS) (target NPS >70).
- Level 2 is Learning: the LMS will collect the results of pre- and post-training assessments as a measure of knowledge improvement. The goal is for all learners to achieve an improvement of 20-30%.
- Level 3 is Behaviour: LMSs provide feedback from managers regarding the application of skills (30/60/90 day evaluations).
- Level 4 is Results: LMS data will measure KPIs related to business productivity and the improvement of productivity based on LMS training is typically between 15-20%.
Additional Read:
Meet SkillTriks: Your Corporate LMS Plugin for Smarter Team Training
Phillips ROI Extension
Phillips adds a fifth Level of the model for Financial ROI: (Net Benefits – Cost)/Cost x 100. The LMS dashboard provides the connection to Level 4 Results as a monetary value (i.e., a 353% ROI for LMS sales training).
| Framework | Levels | LMS Integration Example |
|---|---|---|
| Kirkpatrick | 4 (Reaction to Results) | Automated quizzes, surveys, KPI feeds |
| Phillips | 5 (Adds ROI %) | Cost tracking + revenue attribution |
Essential LMS Metrics
Evaluate six different metrics; do not allow vanity metrics to take priority.
- Prioritize Time to Proficiency, KPI Uplift, and Phillips Calculations when calculating your Master Training ROI in 2026 using your LMS – to transform your training costs into a proven revenue driver. The use of these metrics today will enable you to remotely verify your training budget and the ability to scale your impact. Start today to assess your Q1 LMS Data for evidence of your success.
- Business Metric Uplift – The use of KPIs (such as Net Promoter Score and Win Rate) to compare pre-training gains vs post-training gains. Employ the use of control groups to provide attribution. You should expect to see a gain of 15% to 18%.
- Completion and Retention Rates – You should maintain a target completion rate of 90% or higher for the training provided. Strongly consider also implementing a series of periodic spaced quizzes to measure the trainees’ ability to retain knowledge. (It is possible to measure 60-day recall rates) aiming for an 80% or higher success rate.
- Behavioral Change Score – This is measured via quantifying AI-observed shifts in the trainees’ ability to execute workflows and/or via the supervisor rated confidence levels in the trainees’ abilities (taken from pre- and post-training surveys).
- Cost Savings and Productivity – This metric captures errors reduced and decreases in turnover. For example, a 10% reduction in turnover can generate savings in turnover-related costs of as much as $30,000.
- Capability Heatmaps – This is a measurement tool that shows the ability of roles to cover all of the skills necessary to perform their job as well as integrate with HR systems to identify skill gaps and help address them.
| Metric | Target Improvement | Business Impact |
|---|---|---|
| Time to Proficiency | 10% faster | Lower onboarding costs |
| KPI Uplift | 15% | Revenue growth |
| Retention | >80% at 60 days | Reduced retraining |
Here is the complete list of steps to successfully implement your training program:
- Map Your Program to Company Goals.
- Establish a Baseline for Performance Prior to Receiving Training; Use Your LMS to Develop Benchmark Metrics.
- Implement Your Training Program in A/B Cohorts and Track Results Using Dashboards.
- Evaluate the Impact of Your Program on Performance with Regression Analysis Tools (like those offered by LMS BI).
- Calculate the ROI of Your Training Program as follows: Gains – Cost divided by Cost multiplied by 100; Repeat Quarterly.
- Provide Your Stakeholders with a Heated Map of Your Program Results.
Errors with Comparing Your Training Program:
Many of the major training resources out there do not consider the need for control groups and long-term tracking. This often results in some resources claiming inflated numbers.
Fix: Always compare trained vs. untrained participants for data’s sake; collect data for 90 days post-training. Many of the articles that discuss training ignore the use of Artificial Intelligence. The use of modern LMS’s allows for AI technology to facilitate and track learning in real-time.
At SkillTriks, we provide customized LMS platforms for companies based in Ahmedabad like KrishaWeb. We will be happy to integrate your Key Metrics into our LMS system, complete with online dashboard views to track progress; and ROI calculators designed to give you 100%+ Return on Investment (ROI) through our mobile-based AI systems.
Conclusion
Prioritize Time to Proficiency, KPI Uplift, and Phillips Calculations when calculating your Master Training ROI in 2026 using your LMS – to transform your training costs into a proven revenue driver. The use of these metrics today will enable you to remotely verify your training budget and the ability to scale your impact.
