First Time LMS Buyers' Guide

If you’re brand new to learning management systems and looking to make your first purchase, it can be easy to get overwhelmed. There is a lot of information out there, and it can be difficult to understand industry jargon and translate it into real-world impact. Friend to friend, we’ve put together a glossary of some of the most commonly used vocabulary in L&D and LMS conversations to help you out. After the glossary, we’ll chat some more about these terms in detail and other important aspects of buying an LMS for the first time.

LMS Glossary: Key Terms for First-Time Buyers

General LMS Terms

LMS (Learning Management System) – Software used to create, manage, and track training or educational programs.

LXP (Learning Experience Platform) – A more experience-focused, learner-driven alternative to an LMS.

eLearning – Education or training delivered electronically, usually through an LMS.

Blended Learning – A mix of online and in-person training methods.

Instructor-Led Training (ILT) – On-location face-to-face training with an instructor.

Virtual Instructor-Led Training (VILT) – Live, online training sessions facilitated by an instructor.

Content & Course Management

SCORM (Sharable Content Object Reference Model) – A standard for eLearning content that ensures compatibility with different LMS platforms. If you’ve ever interacted with an LMS software before, it’s likely that you’ve experienced SCORM or xAPI content. This is the type of content that is usually a combination of video learning with pop-up quizzes, short/long answer reply, etc.

xAPI (Experience API or Tin Can API) – A modern standard for tracking learning experiences both inside and outside an LMS. xAPI content specifically is an advanced content model that seeks to capture external data from simulation tools or real-life interactions in order to track learning progress.

AICC (Aviation Industry CBT Committee) – An older eLearning standard, now largely replaced by SCORM and xAPI.

Course Authoring Tool – Software used to create interactive eLearning content (e.g., Articulate, Captivate).

Learning Path – A structured sequence of courses designed to achieve a specific learning goal.

Microlearning – Short, focused learning modules for quick consumption.

Gamification – The use of game-like elements (badges, points, leaderboards) to boost engagement.

Adaptive Learning – AI-driven or rule-based customization of learning experiences based on learner progress.

Competency-Based Learning – A model where learners progress by demonstrating mastery of specific skills.

Prescriptive Learning – These are programs that are planned or ‘prescribed’ by HR or L&D leaders to solve certain challenges a business is facing. Examples include mandatory compliance, leadership training to solve succession planning issues, etc.

Elective Learning – Elective learning is user-driven and not assigned by an administrator. It often pertains to skill growth and plays an important role in keeping employees engaged and well-utilized in their current roles while preparing them for a future within your organization.

User Roles & Experience

Administrator – The person responsible for managing LMS settings, users, and content.

Learner/User – The individual taking courses through the LMS.

Instructor/Trainer – The person facilitating training or managing course content.

SSO (Single Sign-On) – A system that allows users to access multiple platforms with a single login.

UI/UX (User Interface/User Experience) – The design and usability of the LMS for learners and admins.

Tracking, Reporting & Compliance

Learning Analytics – Data collection and analysis to measure learner performance and course effectiveness.

Completion Rate – The percentage of users who finish a course.

Assessment & Quiz Engine – A tool within an LMS for creating and managing quizzes, tests, and exams.

Certification & Compliance Training – Mandatory training to ensure regulatory compliance (e.g., OSHA, HIPAA, GDPR). This can have legal implications and vary by industry and location, so it’s important to remain up to date with the standards.

Reports & Dashboards – Tools that provide insights into learner progress, engagement, and performance.

Integration & Deployment

API (Application Programming Interface) – A set of protocols that allow different software systems to communicate (e.g., LMS integrating with HR tools).

LTI (Learning Tools Interoperability) – A standard that enables external learning tools to connect with an LMS.

SaaS (Software as a Service) – A cloud-based LMS hosted and maintained by the vendor.

On-Premise LMS – An LMS installed and managed on a company’s internal servers, rather than cloud-hosted.

Mobile Learning (mLearning) – Accessing learning materials via mobile devices.

LMS Pricing & Buying Considerations

Per-User Pricing – A pricing model where fees are based on the number of active users.

Per-Course Pricing – A model where fees are based on the number of courses accessed.

Freemium LMS – An LMS that offers free basic features with optional paid upgrades.

White-Labeling – Customizing an LMS with a company’s branding (logo, colors, domain).

Implementation & Onboarding – The setup and training process for launching an LMS.

Support & SLAs (Service Level Agreements) – Vendor commitments to system uptime, customer support, and service quality.

What To Look For in an LMS

Now that we’ve established a basic vocabulary, let’s talk about some of these terms in more detail. Two of the major challenges in selecting an LMS can seem like two sides of the same coin. It’s important to define your goals and needs before beginning an LMS search. On the other hand – you don’t know what you don’t know, and without understanding LMS capabilities, it can be difficult to know what to ask for. So let’s set up a basic framework for determining what to look for in an LMS.

1. Define Your Goals and Needs

What do you need the LMS for? (Corporate training, education, compliance, onboarding, etc.)

What types of content will you deliver? (Videos, quizzes, SCORM, xAPI, PDFs, live sessions, etc.)

Where will you acquire your content? Will it be made in-house, purchased from a learning provider, or a mix of both?

How many users will be on the platform?

2. Key Features to Look For

User-friendly interface – For both admins and learners.

Course creation & management – Does it support different formats (SCORM, xAPI, video, PDF)?

Automation & integrations – Does it integrate with HR software, CRMs, or communication tools like Slack and Zoom?

Personalized reporting – Ability to edit and customize reports to suit your needs

Assessments & tracking – Ability to measure learner progress and performance.

Customization & branding – Can you modify the platform to reflect your brand?

Mobile-friendliness – Learners should be able to access content on mobile devices.

Security & compliance – Ensure it meets industry standards (GDPR, HIPAA, etc.).

3. Deployment Options

Cloud-based (SaaS) – No need for IT infrastructure; updates are automatic and managed by the LMS provider.

Self-hosted – More control over data, but requires internal IT resources to setup and maintain.

Open-source – Free to use but may require technical expertise for setup and maintenance.

4. Scalability & Flexibility

Will the LMS grow with your business?

Can you add new users, courses, or features easily?

5. Pricing Models

Pay-per-user – Monthly fee per active user.

Pay-per-course – Cost based on the number of courses taken.

One-time license fee – Higher upfront cost but no recurring fees.

Freemium/Open-source – Free with optional paid upgrades or support.

6. Support & Training

Does the LMS provider offer onboarding and training?

What kind of customer support is available (chat, email, phone)?

Is there a knowledge base or community forum?

Is there programmatic or strategic support offered or is it purely technical?

7. Try Before You Buy

Take advantage of free trials or demos.

Test usability, features, and compatibility with your existing systems.

Get feedback from potential users (employees, administrators, etc.).

How to Choose an LMS

If you’re new to online employee development and choosing an LMS, it can be difficult to know what to look for. While every organization is different and has unique needs, many teams don’t want to purchase something with too many bells and whistles that they don’t know how to use. For example, BizLibrary offers multiple package options for organizations to select a tier that makes the most sense to them, with the option for expansion later on. Scalability is essential for first-time LMS buyers – and also one of the most difficult things to plan for. If I were chatting with an HR or L&D friend who had never purchased an LMS before and didn’t know where to begin, this is what I would recommend.

First, I’d ask about how they became aware of the need for an employee training system. What are they currently doing that needs an upgrade? Some organizations may be going through a period of growth and their typical onboarding system no longer fits the bill. They need a standardized platform that gives every employee the same starting experience, instead of leaving it up to individual teams or locations. Other organizations may be experiencing culture difficulties, rapid turnover, or productivity loss, and need a way to upskill their workforce en masse. An organization that is simply seeking an LMS for onboarding, for example, wouldn’t need personalization features that some LMSes offer. However, an organization that needed an LMS primarily for upskilling, reskilling, and leadership would seriously benefit from personalization capabilities.

Secondly, I’d ask about their content. Do they already have existing digital learning content that they’d like to transfer to a new LMS? Do they know what format that content exists in (SCORM, xAPI, AICC)? AICC, for example, is a legacy content model that many organizations with legacy training programs still use. We would encourage most organizations to update to SCORM or AICC for continued use (as we would encourage regular content updates anyway to ensure that the content is still relevant!) but if your content is AICC or in another format, they will need to ensure any corporate LMS they choose will support it. Tools such as SoftwareAdvice and Capterra can help you perform an LMS features comparison to narrow down your list of options (a great way to put that LMS guide glossary into practice!).

If they don’t have existing training content or are seeking to expand their content options, I’d ask if they knew what they were looking for. Many LMS providers also sell training content, but not all of them do. It’s often more cost-effective to go with an all-in-one learning provider, but some organizations choose to segment their experience for greater customization. Additionally, not every learning and development provider that sells training content sells the same type or quality of content. Some organizations offer hyper-specific training libraries by industry, others specialize in general work skills training, some also offer learning libraries based around certain types of software or other work tools.

I’d also ask what kind of tracking and reporting features they were looking for. Some organizations need detailed and specific completion and reporting features to ensure compliance with mandatory training.

Those are the bare bones features of an LMS. User import, content delivery, progress & completion. Additional features such as content personalization, learning paths, AI admin assistance are recommended for an optimal experience, and we understand that it can feel overwhelming to a first-time buyer!

After we’ve covered the basics of how they discovered their need for an LMS, what kind of content they have or what they’re looking for, we’d also talk about cost and implementation. Per-user is one of the most common LMS pricing models, which is why choosing the best LMS for your organization can feel like such a high-stakes decision. It’s also why it may be wise to go with an LMS provider that is specific to the size of your organization. For example, BizLibrary specializes in small to mid-size growing organizations, while other L&D providers such as Docebo offer enterprise LMS systems intended for large organizations with global workforces.

I’d also ask about their LMS implementation plan and first program goals. The first steps taken right after purchasing the LMS are vital to the success of the entire project. If a product is purchased but the implementation fails and utilization is low, the investment in an employee training system ultimately fails. The importance of implementation cannot be overstated, which is why we dedicate entire teams at BizLibrary to the success of your LMS implementation plan. BizLibrary guides clients through the setup and launch of their first learning programs and are with them every step of the way – for no additional charge. Not every LMS provider can say the same for their implementation process or their ongoing support – and is absolutely something that I would urge an LMS prospect to ask their sales development representative about.

I would encourage my HR or L&D friend to utilize a tool that can help them sort through the wide variety of LMS providers out there. However, if they were in an organization within 100 to 2,500 employees, I’d also encourage them to check out BizLibrary. We are often a first-time buyer’s choice due to the balance we strike between simplicity and sophistication.

We offer what many organizations need – simple and scalable user import and management, consistent and stable content delivery, with easy to access and understand analytics information to help prove the value of your programs. In addition, we also offer more complex features that seek to improve the lives of our administrators and learners through AI features like automated user import, content personalization, blended learning support and more. We’re not too intimidating to begin with and your feature access can grow as your organization grows if it’s a good fit. A BizDevelopment representative would be happy to give you a no-frills platform tour if you’re interested – no pressure. It doesn’t hurt to look!