# What Is LMS Software? Key Insights for New Users | Capterra > In-person training might have worked before, but if it's harder to develop and distribute training, discover how learning management system software can help. Source: https://www.capterra.com/resources/what-is-learning-management-system-software --- Business StrategyEducation & Learning # What Is LMS Software? Key Insights for New Users Written by: Collin Couey Collin CoueyAuthor Collin Couey is a senior content writer at Capterra, covering medical and construction technologies, with a focus on emerging medical and construction indust... [See bio & all articles](https://www.capterra.com/resources/author/ccouey/) and edited by: Lindsay Page Lindsay PageEditor Content Editor Experience I have been an editor at Capterra for three years, specializing in editing data-driven research and tech trends reports for small a... [See bio & all articles](https://www.capterra.com/resources/author/lindsay-page/) Published July 19, 2024 7 min read Table of Contents - [What is LMS software, and why is it important?](#what-is-lms-software-and-why-is-it-important) - [Key features of LMS software](#key-features-of-lms-software) - [What are the benefits of using LMS software?](#what-are-the-benefits-of-using-lms-software) - [Considerations when looking for LMS software](#considerations-when-looking-for-lms-software) ## Learn the ins and outs of LMS software with data and insights from experts. If you're searching for a [learning management system (LMS)](https://www.capterra.com/learning-management-system-software/), you might be finding it difficult to maintain compliance via company training, especially if you’re in the healthcare, manufacturing, or consulting industries where safety and compliance training are mandatory. Other industries require more typical workplace trainings for sexual harassment or company compliance, so finding and distributing the right trainings can help increase staff retention and engagement. In-person learning or training led by a member of your staff might have worked before but if you’re finding it harder to develop and distribute trainings, you might be looking for a solution that is more efficient and effective to free your staff up to focus on more important things. Below, we’ll cover the basics of LMS software so your search can begin with a better understanding and come prepared when going into vendor conversations. Along the way, we’ll weave in insights from one of our advisors, Michael Ziemba, [\[1\]](#sources) to give you a firsthand account of what it’s like to use LMS software. ## What is LMS software, and why is it important? A [learning management system](https://www.capterra.com/learning-management-system-software/) (LMS) is software that supports the creation, management, delivery, tracking, and reporting of educational or training programs. Whether you’re a business that wants to train its employees, a school that wants to teach students, or even a subject matter expert who wants to sell their learning courses online, an LMS platform is the ideal tool to provide structured and engaging learning experiences. _An example of what training LMS software can provide (_[_Source_](https://www.capterra.com/p/130669/Axonify/)_)_ LMS solutions like the one above provide business owners with the opportunity to create custom trainings for their employees to increase their understanding of their business. This can include training on products if you’re in retail, workplace conduct for HR, mandatory HIPAA compliance trainings in healthcare, or safety compliance trainings in field service and construction. Ziemba points out one of the common benefits he hears from business owners who are searching for LMS systems: _“Your training managers can spend time doing other things if they don't have to be in a room administering trainings.”_ Without an LMS system, training would have to be done manually in person with a certified training specialist. That’s time-consuming for everyone involved and less feasible in the new hybrid or remote workplace.  ### Who uses LMS software? Businesses use LMS software to create, store, maintain, deliver, and report on learning content and learner activities, with the goal of upskilling their workforce. Schools and universities use LMS software to support the various roles involved in teaching and learning—facilitating online collaboration and communication among learners, instructors, and administrators. Ziemba highlights how an LMS system can be necessary for certain industries: _“If a business is in a situation where they have to maintain compliance like healthcare or manufacturing, they’re going to need either a specialized LMS or one that’s more robust to build out specific use cases and trainings for their industry.”_  We pulled the top industries based on telephonic conversations that Capterra’s advisor team had with small-to-midsize businesses seeking LMS tools. [\[2\]](#sources) ## Key features of LMS software All LMS software systems include course management, course tracking, and test/assessment features, and most have a variety of common features such as a content library, gamification, and real-time synchronous learning. For the three most critical LMS features according to Capterra software reviews, see the table below: [\[3\]](#sources) **Feature** **Description** **% of reviewers who rate it as critical or highly important** Course management Create customized learning courses, organize them within a planned curriculum, and assign them to learners. 90% Course tracking Track which course materials have been completed by each user, as well as what progress has been made. 84% Tests/assessments Create and administer assessments to measure learner retention of course material. 78% Ziemba agrees that these are the top LMS features that businesses ask for. He goes on to reiterate the importance of tracking and reporting, specifically for healthcare or industries where compliance training is mandatory. “_If you don’t do the HR training,_“ says Ziemba. “_You might get an email from your boss reminding you to do it. If you don’t do the HIPAA compliance training, your business might get sued._” _An example of how LMS systems help track training compliance (_[_Source_](https://www.capterra.com/p/127213/Docebo/)_)_ ## What are the benefits of using LMS software? Ziemba talks extensively about how business owners can see increased efficiency because “_training managers can spend time doing other things if they don’t have to be in a room administering trainings all day.”_ This is especially true if you have a hybrid workplace where your employees might be spread all over the country or globe, so an LMS enables businesses to get these trainings to their employees online. The table below lists a few more benefits of LMS software as well as excerpts from LMS software reviews on Capterra. **Benefit** **Description** **Review excerpt** More agile and comprehensive training programs Users say their LMS has boosted their training efficiency and helped keep employees and other stakeholders up to date on important knowledge. _“\[Our product\] has been an excellent tool both for training our customers and for training our employees, especially in a fast-paced environment where knowledge changes so quickly and frequent updates and retraining are necessary.”_ **–Dave K., director of technical learning, electronic manufacturing** Better communication and knowledge sharing LMS features such as forums, direct messaging, and user-generated content tools allow for more seamless discussions on course materials. _“Students can readily interact with one another via forums, chat rooms, and online conferences, resulting in an immersive learning environment.”_  **–Shivam D., senior machine learning engineer, computer software** Click [here](https://www.capterra.com/learning-management-system-software/#buyers-guide-content) for more LMS software benefits. ## Considerations when looking for LMS software Here are key factors to take into consideration while deciding on which LMS tool best fits your business needs. ### Budget Most LMS products are priced on a “per month” subscription basis that scales based on the number of people you have using the system and the amount of functionality it offers. A basic system for less than 100 users costs, on average, around $219 per month, while a more advanced system for 1,000 users or more averages $1,084 per month. [\[4\]](#sources) - Entry level LMS include the core functionality of course management, course tracking, and knowledge assessments. - An advanced LMS that’s priced higher typically includes additional features such as mobile learning, gamification, and personalized learning paths. First-time buyers should be aware that:  - Installation, integration, and customization are common upfront costs  - Maintenance and support are common recurring costs Ziemba offers software buyers some advice about hidden costs that might come with the territory.  “_The biggest hurdle can sometimes be the cost of the actual course material,_” says Ziemba. “_It doesn’t always come packaged with the system itself. When talking to vendors, make sure to ask if they develop their own courses and training materials or if you’ll have to develop or buy third-party courses._” ### Challenges According to our 2023 Capterra Tech Trends Survey[\*](#methodology), broadly speaking, 38% of business software buyers we surveyed last year reported challenges addressing security concerns when purchasing software. Another 37% reported challenges with compatibility with existing systems (37%). Ziemba mentions that the inability to do in-person trainings is often a reason business owners look to adopt an LMS system, but when it comes to specific challenges, he said that there’s no such thing as one-size-fits-all. That’s why it’s important to have a handle on what specifically you need your LMS to accomplish so that you come equipped to meetings with the vendor to see if their solution is truly right for your business needs. ## Ready to start your search for LMS software? The [Capterra Shortlist](https://www.capterra.com/learning-management-system-software/shortlist/) identifies the top LMS systems based on user ratings and popularity to help small businesses find the best LMS solution for their needs. You can even compare tools side by side so you can see how your favorites stack up against each other. Additionally, you can speak to our Capterra Advisors who can help you find the right software for your needs and budget in 15 min or less, for free_._ [Schedule a call](https://calendly.com/appointments-34/software-advice-appointment?month=2019-11) to chat with a software advisor now. * * * **Survey methodology** \* The 2023 Capterra Tech Trends Survey was conducted online in July 2023 among 3,484 respondents from the U.S., U.K., Canada, Australia, France, India, Germany, Brazil, and Japan, with businesses across multiple industries and company sizes (5 or more employees). Respondents were screened to ensure their involvement in software purchasing decisions. Sources 1. [Michael Ziemba](https://www.linkedin.com/in/mziembatx/), LinkedIn 2. **Capterra advisor call notes:** Findings are based on data from telephonic conversations that Capterra’s advisor team had with small-to-midsize businesses seeking learning management tools. For this report, we analyzed phone interactions from May 31, 2023 and May 31, 2024. [Read the complete methodology](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology). 3. **Capterra reviews data:** Capterra reviews are collected from verified users for individual software products. For this report, we analyzed reviews from April 30, 2023 and April 30, 2024. [Read the complete methodology](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology). 4. **Capterra software pricing data:** Only products with publicly available pricing information and qualified software products within the category, as of December 2022, are included in the pricing analysis. [Read the complete methodology](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology). 5. **Capterra 2024 Tech Trends Survey:** The 2024 Tech Trends Survey was conducted online in July 2023 to understand the timeline, organizational challenges, adoption & budget, vendor research behaviors, ROI expectations, and satisfaction levels for software buyers. [Read the complete survey methodology](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology). * * * Looking for Learning Management System software?Check out Capterra's list of the [best Learning Management System software](https://www.capterra.com/learning-management-system-software/) solutions. ### Was this article helpful? * * * ## About the Authors [### Collin Couey](https://www.capterra.com/resources/author/ccouey/) Collin Couey is a senior content writer at Capterra, covering medical and construction technologies, with a focus on emerging medical and construction industry trends. Collin has presented at the Conference on College Composition and Communication, as well as the Pop Culture Association Annual Conference.  Collin’s research and writing for Capterra is informed by more than 80,000 authentic user reviews and nearly 60,000 interactions between Capterra software advisors and medical and... [### Lindsay Page](https://www.capterra.com/resources/author/lindsay-page/) Lindsay Page has been an editor at Capterra for three years. She specializes in editing data-driven research and tech trends reports for small and midsize businesses. She has more than a decade of experience writing and editing for a variety of industries, with expertise in cybersecurity, corporate and securities regulation, and finance. 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