3 ways to grow your LMS company

Having recently attended learning technologies 2023 in London I was struck by just how big the show has become. Every learning tech vendor from UK, USA and Europe appeared to be there in some way shape or form – exhibiting or walking the floor/attending the conference. There was a smorgasbord of learning solutions – but the LMS (learning management system) seemed to dominate.

There was every flavour of solution – from the enterprise LMS solution, the LMS and LXP in one solution, the simple LMS, the brand rich/UX LMS, the LMS with content authoring, the frontline LMS, the LMS with skills, the e-commerce LMS, the all in one LMS….and so and so on! It was all very overwhelming for a visitor and almost impossible to know who would be best to partner with…..

Recent research suggests that there are around 1200 LMS vendors globally – and if the recent rise in vendors is anything to go by, many more to come. The market and investment into LMS solutions does seem to be growing still though which is probably what is fuelling ever more VC funding in to the space. However buyers are becoming more mature and many features common/expected resulting in increasing commoditisation. With increased competition the only result is further price erosion – not good for cash hungry growing LMS companies!

So what can LMS vendors do to win in the ever more competitive market place without creating a CAC headache?

Define and execute on your ICP

It seems to me that most of the LMS vendors were happy, and in fact eager to work with anyone with a learning need. This was a learning show, so maybe brand awareness was high on the list of priorities, but a lack of focus on ICP is a common trap many growing companies can fall into. It can create many issues from dilution of messaging, increased churn rates and higher cost of acquisition – so whilst the initial revenue is attractive….be warned about the longer term impact. Clearly defining who your ideal client are and why is critical to ensure the focus that all call align behind – but is only the first step. Many have created their ICP but it is pointless if it doesn’t flood through into both brand, marketing messaging and sales team, no matter how junior they are! Just telling your team who your ICP is just won’t cut it so make sure you have the right strategies in place so your team live and breath your ICP.

Differentiate through Service

It’s amazing when you have new and exciting product/product feature – but if its any good the 1200 odd competitors will immediately look to copy it/better it and will make all sort of promising to prospects about when it will be available. So winning a product feature race can be pretty challenging ambition unless you have an R&D team the size of Apple! So for most LMS companies, alternative leavers to differentiating need to be considered. A critical but often overlooked step is service. We’ve all experience the power of great service in own lives and it’s clear that the learning industry is no different. The more you know, help and add value to your clients and prospects, the better your chances of winning are, even if your product is inferior in some way. So investing into the enablement of your teams to execute effectively through there service can be a very wise choice if you want to maximise your growth

Partner

Building your brand and presence in market can be extremely difficult, costly and lengthy process – particularly in a marketplace as competitive as learning technologies. But there are many established players who may have the ear of your target clients and could provide a short cut into establishing success. So identifying and creating a strong partner strategy can be a fantastic approach to drive growth if implemented effectively. A partnership only works it its win-win (and win again if you include the customers!), so if going down this path you must make sure your programme is well balanced and ensures the success of all stakeholders can be achieved – not just focus on your own interests as that will never work.