Cost vs Benefits Analysis of Custom eLearning Solutions

Cost vs Benefits Analysis of Custom eLearning Solutions

Cost vs Benefits Analysis of Custom eLearning Solutions

The cost of a Custom eLearning course depends on various factors. I will share my understanding of the process of cost-benefit analysis for custom eLearning.

The good news first!

While choosing from a buffet of choices to give shape to your Custom eLearning solutions, you may end up paying a hefty sum! The good news though is that the cost of a Custom eLearning solution is actually quite low when you consider your long-term return on the investment.

Why pay so much?

When you use Custom eLearning solutions to train your employees, you will need dedicated team members to oversee the development of the courseware. When you hire the services of learning professionals and subject matter experts, you pay for their expert advice and input. Similarly, each of your choices regarding the level of interactivity, multimedia, and LMS platform carry a price tag to them. On compounding, depending on your requirements, the cost of the Custom eLearning may be a large amount.

What’s the bigger picture?

In the short term, Custom eLearning aims at increasing productivity and decreasing costs, and contributes to an increase in profits for the company. You may be tempted to simply look at the cost of the Custom eLearning, evaluate the break-even point when the increased profits can offset the cost, and conclude whether to go in for Custom eLearning or not. But this approach would be flawed. This is because the real benefits of Custom eLearning come over the long term, and you need to consider these benefits when performing a cost-benefit analysis.

So, how do we understand the benefits? Let’s look at them next.

Long-term benefits

Here is a gist of the long-term benefits that you will have when selecting Custom eLearning as a choice of instruction.

New streams of revenue

Custom eLearning helps reduce the time to gain familiarity of the product, then train, and then sell.

Multiple locations/teams can be given the same training at the same time, reducing confusion and need for re-training.

Happy, committed, motivated workforce; reduced attrition

You can, through Custom eLearning solutions, change the knowledge, skills, and attitudes of your employees.

Savings earned through more usage

Once you have your Custom eLearning, you can run it as many times as you wish, for as many employees as required—at no extra cost. An example would be induction programs.

Savings when you need to modify/maintain

You can upgrade your Custom eLearning with the latest changes to keep it relevant—a cheaper option than going in for brand new training.

How to calculate ROI

So, what should you do to calculate the actual return on investment for Custom eLearning?

First, identify the strategic goal or objective that your training is aligned to. Evaluate how important it is and how the training helps in achieving it.

Next, decide on the components of the Custom eLearning, once again evaluating how your choice aligns with the all-important goals of the training.

Now, you need to identify the long-term benefits that you aim to achieve through the training. Develop measurable metrics to evaluate the performance of the training. Arrive at the savings and/or increased revenue that arise from the benefits.

Deduct these from the cost and you will get the actual cost, usually in the negative, indicating that you are bound to get far higher returns than the cost you shell out!


Custom eLearning solutions are a great way to ensure that you achieve your business and training goals.

At Tesseract Learning, our ID strategists will ensure that your Custom eLearning is designed in the most optimal manner.

To learn how we can help your organization in implementing Custom eLearning, do reach out to me by writing to

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