Best Features of a Learning Management System (LMS): 2025 Guide

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

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The Learning Management System (LMS) market is anticipated to witness substantial growth, with a projected increase in market size from USD 18.7 billion in 2022 to USD 43.6 billion by 2027. The driving factors behind this growth include the increasing adoption of remote learning and the escalating utilization of cloud-based LMS solutions (Research and Markets, 2023).

In light of the increasing demand for remote learning, examining the optimal LMS features is crucial to establish a smooth and efficient e-learning background and environment. At Research.com, our team has developed an extensive guide highlighting the key features of LMS in 2024, supported by thorough research and insights from the industry.

Best Features of a Learning Management System Table of Contents

1. What is an LMS?
2. What is the main objective of an LMS?
3. Benefits of a Software with the Best LMS Features
4. Types of LMS
5. Best LMS Features
6. Can an LMS benefit from integration with a CMMS system?
7. How can you measure the effectiveness of your LMS?
8. Emerging Trends in LMS Technology

What is an LMS?

Due to the widespread use of LMS as a learning medium, researching LMS is crucial to understand its development trends. Prahani et al. (2022) reported that LMS research received contributions from 116 countries between 1991 and 2021. Among these countries, the United States of America led the way with 391 documents, followed by China with 191 documents and Malaysia with 146 documents, making them the top three contributors to LMS research.

An LMS is a software application designed to facilitate the creation, management, and delivery of training programs to your target audience. It is a centralized platform that enables efficient training, assessment, and progress tracking for learners within your organization.

An LMS tool can consolidate all your online courses and training materials into one accessible source. This platform streamlines learning and enhances your business’s knowledge and expertise.

With an online LMS, you gain effective management of your courses and learners. Additionally, you can analyze the outcomes of your courses and derive valuable insights to enhance your training offerings and tailor them to the needs of your audience.

The integrated system of an LMS automates the creation and delivery of training materials. It grants learners convenient access to content and allows you to track and evaluate their performance effectively. It also enhances the employee engagement onboarding process.

What is the main objective of an LMS?

By employing an LMS, learning and development (L&D) departments can create a distance learning environment that maximizes opportunities through the different LMS functions. These encompass the management, documentation, automation, and delivery of educational courses, training programs, and L&D initiatives (Ellis, 2009).

Tarliuk (2019) states that an LMS serves various purposes in the business sector, primarily on general, certification, and compliance training.

Benefits of a Software with the Best LMS Features

The growing need for remote learning has led to a significant expansion in the LMS market, with a projected compound annual growth rate (CAGR) of 18.4% from 2022 to 2027 (Research and Markets, 2023).

Companies in various industries employ LMS capabilities for compliance training, collaborative learning, and application sharing. Here are the key benefits of using software with the best LMS features:

Mobility

A mobile LMS enables easy access to organizational training materials from anywhere, allowing employees to train at their convenience without being restricted to their desks.

Streamlined Training Process

An LMS consolidates all learning content into a single location, eliminating the need to navigate between multiple applications, emails, or company resources. Employees can access important resources quickly, streamlining the training process.

Enhanced Employee Engagement

LMS software offers a blended learning experience with diverse content formats such as written materials, audio, and videos. This variety supports different learning objectives, increasing engagement and combating distractions faced by modern learners.

Tracking, Assessment, and Reporting

An LMS simplifies progress tracking for employers and supervisors. They can easily monitor employee performance, identify areas for improvement, and ensure compliance with required tasks. The LMS helps bridge knowledge gaps and provides insight into employees’ understanding of key principles.

Cost Reduction

Implementing an LMS can lead to significant cost savings for businesses. It eliminates the need for travel expenses and external trainers, as employees can access training materials through the LMS. This removes overhead costs associated with training, such as accommodations and logistics.

Improved Efficiency

LMS platforms offer a more efficient training approach by allowing employees to learn independently and seek guidance as needed. While instructor-led training has its place, an LMS provides automatic support and guidance, empowering employees to train independently and efficiently.

Instant Feedback

An LMS provides immediate feedback to employees after completing a training module, offering an objective assessment of their performance. This feedback helps both employers and trainees gauge the level of comprehension and identify areas that require further review before progressing.

Types of LMS

LMSs come in various types, each with distinct characteristics and catering to different user groups. These differences set them apart and make them suitable for specific purposes.

Small Medium Business (SMB) vs. Enterprise

SMB-focused LMS platforms offer affordability, user-friendliness, and scalability for small to mid-sized businesses. They focus on in-house training.

Enterprise platforms provide advanced LMS features and extended enterprise capabilities at a higher cost. They offer more customization options and support services suitable for larger organizations (Sharma, 2018).

Open-Source vs. Commercial

Open-source LMS platforms provide accessibility to the source code, enabling individuals to modify or improve the software. In general, numerous platforms include the best free LMS that follows an open-source approach, as they originated as university projects rather than commercial ventures (Croitoru & Dinu, 2016).

Meanwhile, a proprietary or commercial LMS operates to generate profit, as educational institutions and organizations pay a fee to access the software. Proprietary software follows a “closed" source model, meaning the source code remains exclusive to the company and is not made available to the public (Pillai & Kevin, 2013).

The terms and conditions for using an LMS are typically outlined in a contractual agreement between the LMS company and the involved parties. The licensing fee, typically charged annually per user, can range from $15 to $100 per user. Apart from the licensing fee, additional charges may be applicable for operating, maintaining, and receiving technical support for the LMS software.

Installed vs. Cloud-Based

An installed LMS refers to a software solution hosted on a local server within an organization’s infrastructure. Once an organization acquires an LMS from a vendor and secures the necessary license for a specified duration, the responsibility of installing and managing the LMS typically falls on the organization’s internal IT team.

In addition, the internal IT team is also responsible for performing upgrades, addressing technical issues, and resolving any other maintenance requirements within the LMS internally.

On the other hand, opting for the cloud-based model transfers the responsibilities of software maintenance, upgrades, and content availability to the vendor. The cloud-based model also offers competitive LMS pricing.

Best LMS Features

The fundamental purpose of an LMS is to empower users in creating training programs, enrolling learners, and effectively monitoring their training progress. Nevertheless, the required features in an LMS can vary depending on the specific needs of each organization, whether they are learning management systems for schools or businesses.

To aid you in selecting the perfect LMS that aligns with your requirements, our team at Research.com has meticulously curated a comprehensive list of the most sought-after and widely utilized LMS features in today’s dynamic organizational landscape.

Security

One of the top LMS features is security. Prioritizing protecting and securing your company’s and learners’ information is paramount. Choosing an LMS that implements robust safety protocols and adheres to industry standards for cloud security and data privacy is essential.

Additionally, consider the importance of personnel in ensuring safety. Assess whether the LMS vendor’s employees participate in an employee security awareness program, which may include security training, background checks, and confidentiality agreements.

With cloud-based LMS, data is securely stored in the vendor’s cloud infrastructure, making it a significant factor in the increasing preference for cloud-based deployments. Over half of LMS users choose this option (Tarliuk, 2019).

Easy Content Creation and Delivery

A crucial aspect of an effective LMS is its ability to facilitate the delivery of course content to learners in a user-friendly manner. It is important to select an LMS that streamlines and simplifies the process of creating courses, ensuring that it is straightforward and accessible.

A robust LMS allows for easy content organization, enabling users to drag, drop, and arrange formats such as slides, videos, audio, and even live training sessions to create engaging and comprehensive courses.

Instant Upload of SCORM and xAPI Course Files

To ensure seamless integration of standardized learning content, it is essential to have an LMS that offers instant uploading of SCORM and xAPI course files. The process should be user-friendly and supported by your preferred authoring tool, guaranteeing proper functionality and compatibility between your files and the chosen LMS.

Multi-Tenant LMS for Audience-Specific Learning Portals

A multi-tenant LMS becomes essential to effectively address different departments’ diverse learning goals and needs and growing numbers of learners within your organization. This solution allows you to create distinct learning portals for each audience, functioning as individualized LMSs.

Centralizing control through a top-level portal allows you to customize course content within each sub-level portal to meet specific training requirements. Efficiently managing training content at scale is a crucial feature that can be easily achieved by copying course content across portals.

Content Branding and White-Labeling

To enhance the user experience and maintain brand consistency, having a customizable LMS that reflects your organization’s identity is important. Customization options may include changing logos, colors, and animated banners. White-labeling allows you to customize URLs and remove references to the LMS provider. The level of customization varies among LMS vendors.

Software Integration and Automation for Training Management

Your LMS should streamline training processes and minimize administrative tasks. Integration with your existing software systems allows for the automation of actions like user creation, data synchronization, and enrolments.

With Single Sign-On, learners can conveniently access the LMS by signing in once through systems like Google Suite. An LMS with software integration should enable seamless data transfer between your LMS and other platforms, facilitating tasks like user management, course enrolments, and data exchange with third-party systems.

Additionally, LMS automation streamlines admin tasks, such as user management and enrolments. Integration automates user actions, while triggered notifications keep learners informed of assigned courses and due dates.

Learner-Friendly Platform for Better Learning Experience

Creating an optimal learner experience relies on having a user-friendly platform. The focus should be on training, not on navigating the LMS. An effective LMS enables easy training access and is compatible with various devices.

To demonstrate a commitment to learning, offering supplementary courses in addition to the mandatory ones is beneficial. By providing a catalog of courses for learners to choose from, they can take control of their learning and foster a sense of autonomy.

Survey Function to Gather User Feedback

Gathering significant feedback and assessing each learner’s learning experience and acquired knowledge within an LMS is crucial to ensure engaging and current training. By incorporating a survey feature, you can collect valuable feedback directly within a course and utilize reports to analyze the responses effectively.

Webinar Tool Integration

You can efficiently schedule and manage webinar sessions by integrating popular webinar tools such as Zoom, MS Teams, GoToMeeting, or Webex into your LMS. Opting for a tool familiar to your learners offers advantages like cost savings and enhanced team collaboration. Furthermore, this integration provides additional LMS features like automatic or self-enrollment, real-time polling, and virtual breakout rooms.

The goal of integration is to minimize duplication and automate time-consuming tasks. An LMS incorporating a webinar tool can elevate your organization’s virtual classroom and blended learning.

Social Learning Tool Integration

Top companies embrace LMS platforms with social learning features to elevate training programs. By integrating social learning seamlessly, learners experience enhanced engagement and enriched learning.

These tools promote training experiences and knowledge sharing among learners, facilitating effective communication with trainers. Through an LMS forum, learners engage in a supportive environment, exchanging insights and assistance. Additionally, the forum acts as a valuable resource hub for accessing extra training information. Embracing this tool fosters a strong learning culture within your company.

Can an LMS benefit from integration with a CMMS system?

Integrating an LMS with CMMS systems and other operational management tools can offer a unified approach to monitoring both training outcomes and on-the-job performance. This integration facilitates real-time data exchange between learning and maintenance processes, supporting streamlined scheduling, enhanced compliance, and proactive identification of skill gaps. By aligning workforce training with operational demands, organizations can optimize resource allocation and improve safety standards while ensuring that employee competencies directly impact day-to-day operations.

How can you measure the effectiveness of your LMS?

Measuring the success of an LMS is crucial for understanding its impact on learning and development and ensuring it meets organizational goals. Here are some key metrics to evaluate LMS effectiveness:

• Learner Engagement: Track metrics like course completion rates, time spent on each module, and participation in interactive elements (quizzes, discussion forums). High engagement indicates that learners find the material relevant and accessible.
• Knowledge Retention and Application: Post-course assessments, quizzes, and skill-based evaluations can reveal how well learners retain and apply new information. Surveys or practical evaluations can show if learners can use their new skills on the job.
• Course Completion Rates: A high course completion rate typically indicates that the LMS content and structure are meeting learner expectations. Conversely, low completion rates may signal issues with course design, content quality, or LMS usability.
• Feedback and Satisfaction Scores: Regular feedback through surveys, reviews, and ratings can provide insights into learner satisfaction. Ask learners about ease of navigation, content relevance, and overall experience to identify areas for improvement.
• Time to Proficiency: Measure how long it takes for employees to achieve proficiency or complete required training. This metric helps determine the LMS’s efficiency in equipping learners with necessary skills.
• Performance and Productivity Metrics: Compare performance metrics (like sales figures, customer service ratings) before and after training. Improved performance can indicate effective knowledge transfer and application.
• Return on Investment (ROI): Track the LMS's cost against benefits, such as reduced training time, increased productivity, and lower training expenses. ROI helps assess whether the LMS justifies its cost.

Emerging Trends in LMS Technology

The landscape of LMS is not static; it evolves rapidly in response to technological advancements and educational demands. Understanding emerging trends in LMS technology can help businesses and institutions future-proof their e-learning strategies while staying competitive.

1. AI-Powered Personalization: Artificial Intelligence (AI) is transforming how LMS platforms operate by enabling highly personalized learning experiences. AI algorithms analyze learner data to recommend tailored content, suggest optimal learning paths, and identify knowledge gaps. This ensures learners receive content that aligns with their individual needs, enhancing engagement and retention.
2. Gamification and Microlearning: Modern learners favor interactive and concise content. Gamification involves integrating game mechanics like leaderboards, badges, and rewards into LMS platforms to boost learner motivation. Simultaneously, microlearning delivers content in bite-sized modules, making it easier for learners to digest information and apply it immediately.
3. Integration of Immersive Technologies: Virtual reality (VR) and augmented reality (AR) are beginning to shape the future of LMS. These immersive technologies provide hands-on training simulations, allowing learners to practice skills in a controlled, virtual environment. This is particularly valuable for industries requiring technical or safety-related training.
4. Enhanced Mobile Learning: Given the increasing reliance on mobile devices, LMS platforms are optimizing their interfaces for mobile accessibility. Mobile learning ensures learners can participate in courses regardless of location, enabling organizations to cater to remote teams or globally distributed workforces seamlessly.

For a comprehensive analysis of the top-rated LMS solutions that incorporate these cutting-edge features, explore our complete overview of learning management systems. This guide provides key insights to help businesses and institutions choose the best platform tailored to their evolving needs.

By staying informed about these advancements, organizations can adopt LMS platforms that not only facilitate learning today but also adapt to the changing needs of tomorrow.

What is the best LMS for you?

With LMS, the objective is to have a comprehensive solution that effectively handles the management, delivery, and tracking of your training. Developing online learning programs requires careful planning, so selecting a system that encompasses all the necessary LMS features for creating, delivering, tracking, and maintaining your training programs is crucial. To simplify the process, consider creating use case scenarios to distinguish between essential and optional LMS features.

Choosing the right LMS with the appropriate features ensures a robust training system that meets your organization’s needs and supports effective training management.

Key Insights

• Market Growth: The LMS market is projected to grow significantly, from USD 18.7 billion in 2022 to USD 43.6 billion by 2027, driven by increased remote learning adoption and the rise of cloud-based LMS solutions.
• Diverse Use Cases: LMS platforms are used across various sectors including businesses, educational institutions, and healthcare, offering tailored solutions for compliance training, collaborative learning, and content management.
• Key Benefits: LMS platforms offer numerous benefits such as enhanced mobility, streamlined training processes, improved employee engagement, efficient tracking and reporting, cost reduction, and instant feedback mechanisms.
• Types of LMS: There are different types of LMS platforms catering to varied needs—SMB vs. Enterprise, Open-Source vs. Commercial, and Installed vs. Cloud-Based. Each type has its own set of features and advantages.
• Essential Features: Important LMS features include security, easy content creation and delivery, support for SCORM and xAPI course files, multi-tenant capabilities, customization and branding, software integration, automation, user-friendly interface, feedback collection, webinar integration, and social learning tools.
• Customization and Branding: Customization options and white-labeling capabilities are crucial for maintaining brand consistency and enhancing the user experience.
• Integration Capabilities: LMS platforms with strong integration features allow seamless interaction with existing software systems, reducing administrative tasks and improving efficiency.
• User Experience: A learner-friendly platform that supports various devices and offers additional courses can significantly enhance the learning experience and foster a sense of autonomy among learners.

FAQ

What is an LMS?

A Learning Management System (LMS) is a software application designed to facilitate the creation, management, and delivery of training programs. It serves as a centralized platform for efficient training, assessment, and progress tracking of learners within an organization.

What is the main objective of an LMS?

The main objective of an LMS is to provide a platform for the effective management, documentation, automation, and delivery of educational courses, training programs, and learning and development initiatives. It aims to create a seamless learning environment that maximizes training opportunities and enhances learning outcomes.

What are the benefits of using an LMS?

Key benefits of using an LMS include improved mobility, streamlined training processes, enhanced employee engagement, efficient tracking, assessment, and reporting, cost reduction, increased efficiency, and instant feedback. LMS platforms also help in compliance training and provide valuable insights into employee performance and training effectiveness.

What are the different types of LMS platforms?

LMS platforms can be categorized based on several factors:

• SMB vs. Enterprise: SMB-focused LMS platforms are affordable and user-friendly, while enterprise platforms offer advanced features and customization options suitable for larger organizations.
• Open-Source vs. Commercial: Open-source LMS platforms provide access to the source code for customization, while commercial LMS platforms are proprietary and require a fee for access.
• Installed vs. Cloud-Based: Installed LMS platforms are hosted on local servers, while cloud-based LMS platforms are maintained by the vendor and accessed via the internet.

What are the essential features of an LMS?

Essential features of an LMS include robust security measures, easy content creation and delivery, support for SCORM and xAPI course files, multi-tenant capabilities, customization and branding options, software integration and automation, a user-friendly interface, feedback collection tools, webinar integration, and social learning tools.

How does an LMS improve efficiency in training?

An LMS improves efficiency by centralizing all training content in one location, automating administrative tasks, providing instant feedback, and allowing employees to learn at their own pace. Integration with existing software systems further streamlines processes, reducing the need for manual data entry and synchronization.

What is the difference between an open-source and a commercial LMS?

An open-source LMS provides access to its source code, allowing users to modify and customize the software to fit their specific needs. In contrast, a commercial LMS is proprietary, meaning the source code is not available for modification, and users must pay a fee to access and use the software.

Why is mobile accessibility important for an LMS?

Mobile accessibility is important because it allows learners to access training materials from anywhere, at any time, using their mobile devices. This flexibility is crucial for accommodating different learning styles and schedules, thereby enhancing the overall learning experience.

How do LMS platforms support compliance training?

LMS platforms support compliance training by providing tools for creating, managing, and tracking mandatory training programs. They ensure that employees complete required courses and stay compliant with industry regulations and standards, often providing automated reminders and comprehensive reporting features to track progress and completion.

What factors should be considered when choosing an LMS?

When choosing an LMS, consider factors such as the platform’s features, ease of use, scalability, customization options, integration capabilities, security measures, pricing structure, and support services. Additionally, assess the specific training needs of your organization and ensure the LMS aligns with those requirements.

References:

• Croitoru, M., & Dinu, C.-N. (2016). A Critical Analysis of Learning Management Systems in Higher Education. Economy Informatics, 16(1/2016), 518. https://economyinformatics.ase.ro/content/EN16/01%20-%20croitoru,%20dima.pdf
• Ellis, R. (2009). A field guide to learning management systems. https://www.coursehero.com/file/31664393/Ellis-Field-Guide-LMSpdf
• Pillai, D., & Kevin, S. (2013). Is it the end of the road for proprietary e-learning solutions? A literary journey to find the truth. The International Journal of Management, 2(1). https://theijm.com/JANUARY13/137.pdf
• Prahani, B. K., Alfin, J., Fuad, A. Z., Saphira, H. V., Hariyono, E., & Suprapto, N. (2022). Learning Management System (LMS) Research During 1991-2021: How Technology Affects Education. International Journal of Emerging Technologies in Learning (Ijet), 17(17), 2849. https://doi.org/10.3991/ijet.v17i17.30763
• Research and Markets. (2023, February). Learning Management System Market by Component, Delivery Mode (Distance Learning, Instructor-Led Training, and Blended Learning), Deployment Type, User Type (Academic and Corporate) and Region Global Forecast to 2027. Research and Markets Ltd 2023. https://www.researchandmarkets.com/report/learning-management-system
• Sharma, N. (2018). Top 5 Differences Between An SMB-Focused And Enterprise LMS. eLearning Industry. https://elearningindustry.com/top-differences-between-smb-focused-and-enterprise-lms
• Tarliuk, D. (2019). Things to know when starting eLearning business. https://www.joomlms.com/elearning/things-to-know-when-starting-elearning-business.html