How to Choose an LMS: Find The Best System For Your Organization

Are you looking for a way to deliver, track, and manage your educational content and training programs? Learning management system (LMS) selection is an important decision that impacts the sustainability, scalability, and success of your organization — whether you’re running a coaching business, a corporate training program, or an online course platform.

Choosing a LMS can impact engagement, ROI, and training outcomes, which is why it’s not only about the features included in a LMS, it’s about ease of use and alignment with your goals and vision.

Deciding how to choose a LMS can be a tad bit overwhelming with the number of options out there… How do you choose the best LMS? What are the benefits of a LMS? What are the key features you should be looking at? How do you evaluate each LMS?

Luckily for you, we have carefully crafted an expert LMS decision guide on how to choose the best LMS for your organization’s needs, goals, and resources. This step-by-step guide will help you simplify the LMS selection process — with some helpful downloadable comparison templates — allowing you to confidently select a suitable LMS for your organization. 

Ready to learn how to choose an LMS? Let’s get started. 

Skip ahead: 

• Why choosing the right LMS matters
• Step-by-step LMS decision guide
• LMS comparison chart template
  • LMS decision matrix template
• How to choose an LMS: Make a decision that supports your strategy

Related: How to Build A Scalable B2B Online Learning Experience

Why choosing the right LMS matters

Before we dive into our LMS decision guide and uncover how to pick the best LMS for companies, let’s examine why choosing the right LMS is crucial to the success of your organization. 

A learning management system is a software platform that allows educators, trainers, or businesses to create and organize learning materials, monitor learner progress, and facilitate interaction and feedback. 

Essentially, a LMS streamlines the processes of administration, reporting, documentation, tracking, and automation; this provides structure for interactions within and outside of organizations, allowing team members to deliver educational content and fulfill necessary learning objectives. 

Benefits of choosing the right LMS for your organization include:

• Learner engagement and experience – An intuitive and user-friendly LMS engages learners and reduces friction. A poor interface can lead to frustration and impact learning outcomes.
• Scalability and flexibility – The right LMS can grow with your organization, seamlessly accommodating new users, courses, and features without a system overhaul.
• Alignment with goals – Every organization has different objectives, such as selling online courses, community-based learning, or compliance training. The right LMS should support your organization’s specific goals (e.g., certifications, monetization, or tracking competencies).
• Time and cost efficiency – A well-chosen LMS streamlines administrative tasks and automates repetitive work, saving time and reducing the need for technical support.
• Data and analytics – Tracking learner progress, engagement rates, and completion metrics allows your organization to improve content and outcomes through data-driven decisions.
• Integration with your existing ecosystem – The right LMS will be able to integrate seamlessly with your existing tools (e.g., email marketing, payment systems, or HR software), creating a cohesive workflow.
• Support and reliability – Strong support from your LMS provider ensures security, stability, and evolving functionality.

A well-implemented LMS can transform how learning happens in an organization by creating a more personalized, scalable, and impactful experience for both learners and administrators. A well-suited LMS allows for faster onboarding, better engagement, and more efficient training delivery.

On the other hand, a LMS that is a poor fit for your organization could lead to adoption failure, internal friction, and wasted time, money, and resources. These are easily avoidable — so it’s wise to be choosy when shopping around!

Related: How To Build A Business Case For Your LMS and Maximize Its Efficiency and ROI

Step-by-Step LMS decision guide

There are many platforms out there that claim to be “the best LMS for companies” – however, how do you choose the best LMS for your organization?

We have put together a step-by-step LMS decision checklist that provides a structured framework to help inform your selection process when looking to integrate a LMS into your company. 

1. Define your goals

This may seem obvious, but defining your business goals is the most essential step when it comes to LMS selection. Before diving into things like features and pricing, get crystal clear on what you need your LMS to accomplish.

• Internal vs. external training

Do you want your LMS to be geared towards internal training (such as employees and contractors) or external audiences (such as customers, students, or partners)? Defining the objective of your LMS will weed out the platforms that won’t be as useful to you. 

• Monetization vs. workforce enablement

Is your company focused more on monetization (such as selling courses and subscriptions) or enablement (such as skill-building, onboarding, and engagement)?

• Training vs. learner engagement 

What is the overall goal of your organization – do you prioritize compliance and certifications, learning engagement, or standardized onboarding?

Why this matters: 

Be specific when defining your goals!

Your organization’s goals will influence everything from design and features to the type of analytics you need in a LMS platform. A compliance-driven enterprise might need deep reporting and user tracking, while a coaching business may value community features and e-commerce integrations.

2. Understand your users

Your LMS is only as effective as its user experience. To select the best LMS for your organization, you’ll need to know exactly who will be using the system — and how.

User groups to consider:

Who is the target user group for your LMS? This will greatly impact what kind of features you need your system to have. Here are the main LMS user groups.

• Admins and operations – Those who manage users, settings, and content
• Facilitators and instructors – Those who create and deliver learning content
• Learners and students – Those who take courses or participate in the learning or training experience

User considerations:

• What devices will they use most (desktop, tablet, mobile)?
• Do learners prefer structured paths, self-paced learning, or social/community-based learning?
• Will there be language accommodations or accessibility considerations?
  

Why this matters:

Understanding your audience ensures you select a LMS platform that feels intuitive and welcoming — not clunky or confusing. This directly affects adoption and engagement, so you’ll want to choose wisely to ensure the smoothest transition. 

3. Set your budget and resources

When choosing the right LMS for your company, budget is a main factor that influences what kind of platform you’ll go for. This is why it’s extremely important to consider your goals and understand your users — if you don’t have the biggest budget, you’ll want to get the most bang for your buck.

Selecting a LMS platform involves more than just subscription fees — look at the total cost of ownership.

LMS budget considerations:

• Platform cost – What are the monthly/yearly pricing tiers?
• Customization fees or add-ons – What kind of features are included in the platform cost? Are you able to purchase additional add-ons if needed?
• Cost of integrations or third-party tools – What is the pricing structure when it comes to adding extra support tools? Is this an option?
• Support plans or service level agreements – What is the cost to add 24/7 support for your team and users?

Team resources:

Consider what internal resources your organization has to help run your LMS — your existing resources are a key factor to consider when thinking about which LMS to choose.

• Do you have an in-house team to manage setup and ongoing administration for your LMS?
• Do you have an existing team that is in charge of creating or migrating content, or will you need to hire new team members to support this?
• Will you need ongoing IT support or instructional design help?
  

Why this matters:
 

A low-cost LMS can become expensive if you lack the resources to manage it. Opting for a more premium LMS may offer bundled services — that include things like integrations or customizable tools — saving you time and effort in the long run.

4. Prioritize must-have features

There are certain features in a LMS that may be non-negotiable for your organization. Create a feature checklist (or download the one we have created below) that directly supports your goals and user needs. Avoid being distracted by flashy extras that don’t serve your purpose or mission.

Common feature must-haves:

• Analytics and reporting (completion rates, quiz scores, user engagement)
• Mobile responsiveness or a dedicated mobile app
• E-commerce (subscriptions, bundles, coupon codes)
• Content formats (video, SCORM, PDFs, assessments, certificates, gamification, microlearning)
• Integrations (Zoom, Google Workspace, Slack, CRM, HR tools)
• Technical support (chat, email, 24/7, onboarding assistance)
  

Create a shortlist of 3–5 key LMS features based on feedback from internal stakeholders — especially end users and admin roles.

Why this matters:

Choosing a LMS platform that meets your non-negotiables ensures long-term business success and helps avoid frustrating workarounds.

5. Evaluate Delivery Model: SaaS vs Self-Hosted

Your organization’s LMS can either live in the cloud (SaaS) or on your own servers (self-hosted). Each option has distinct pros and cons — when comparing different LMS systems, it’s important to take these factors into consideration. 

SaaS (cloud-based LMS):

• Pros: Easy setup, automatic updates, secure, accessible from anywhere
• Cons: Limited customization, ongoing subscription costs
• Examples: Thinkific, LearnWorlds, TalentLMS

Self-hosted LMS (open-source or custom builds):

• Pros: Full control over customization and can be cost-effective at scale
• Cons: Requires technical expertise, manual updates and maintenance, higher upfront costs
• Examples: Moodle, Totara, Open edX

Why this matters:

A SaaS vs. self-hosted LMS will be very different from each other in terms of set-up and maintenance, which is why it’s crucial to be very clear on which is the best delivery model for your organization.

An SaaS LMS platform is more ideal for fast deployment and minimal IT burden, while a self-hosted system LMS platform is more suited towards organizations needing high levels of customization or for those working in highly secure environments.

Related: LMS Reporting: Leveraging Analytics for Student Engagement Insights

LMS comparison chart template

Choosing an LMS is not just a technical decision — it’s a strategic one. The right platform aligns with your goals, enhances the user experience, and grows with your organization. Now that you know how to choose an LMS based on your organizational needs, you’ll need a system for comparing the best LMS platforms out there for your industry. 

Pro tip: Share these tables with stakeholders in your company to get a feel for the best suited LMS. 

Click here to see a list of the best white-label LMS platforms in 2025, and use the following LMS comparison chart template to inform your selection process.

Download our LMS comparison chart template here.

Platform Name	Pricing Structure	Target User Base	Main Features	Support Levels	Trial or Demo Options
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

LMS decision matrix template

Once you list all the potential LMS platforms your organization would be interested in using, narrow down your top three choices. Next, use the table to rate each LMS — once you’ve finished, add up the scores to see which LMS platform is the most compatible with your organization’s needs.

Download our decision matrix template here.

Category	Criteria	Weight	LMS A	LMS B	LMS C
Goals Alignment	Supports internal & external training
	Monetization features
	Compliance & certification support
	Supports learner engagement strategies
User Experience	Intuitive for learners
	Admin dashboard is user-friendly
	Mobile-responsive or has app
	Multi-language and accessibility support
Features & Functionality	Customizable learning paths
	Built-in assessments and quizzes
	Reporting & analytics
	Gamification & interactive learning
	Artificial intelligence (AI) features
	Community & social features
	Certificate generation
	SCORM or xAPI support
Technical Considerations	SaaS model
	Self-hosted model
	Integrates with existing tools
	In-depth analytics
	Security and data privacy standards
	Single Sign-On (SSO) available
Support & Pricing	Transparent pricing model
	Offers onboarding and training support
	Customer service availability (24/7, chat, etc.)
	Fits within company budget

Instructions:

1. Assign a weight out of 5 (0 = not important, 5 = very important) under the weight column to gauge how important each criteria item is in a LMS for your business.
2. List your top three choices for LMS platforms, and assign each LMS a score out of 5 (0 = not supported, 5 = excellent support) for each criteria.
3. Multiply the weight × score to get a weighted score per row.
4. Add up the totals to compare LMS options objectively.

Related: B2B Online Course Sales: 5 Strategies for Increasing Your Revenue

How to choose an LMS: Make a decision that supports your strategy

The best way to find a suitable LMS platform for your organization is to research and compare — there is no one-size-fits-all. The best LMS is the one that aligns with your specific goals, users, and resources. 

Here are some final tips in our LMS decision guide:

• Assess your organization’s needs and objectives
• Involve key internal voices and stakeholders early on
• Define your budget and consider the cost of total ownership 
• Explore pricing models
• Assign team members to support LMS development
• Prioritize specific features 
• Look at integration with existing systems
• Request a demo and prepare a list of questions
• Determine the ROI of a potential LMS

Thinkific Plus is a highly scalable, standout white-label LMS, allowing businesses to deliver fully branded online learning experiences. A dedicated Customer Success Manager is provided to guide you every step of the way, helping you grow your learning platform under your brand name. With flexible customization options and unlimited courses, digital downloads, websites, landing pages, and custom domains, it’s the perfect LMS solution for enterprises who want to scale their educational offerings without compromising on brand integrity.

Learn more: Download our free Thinkific Plus Evaluation Guide to explore LMS features, pricing, and benefits in more detail. If you’re ready to jump in, contact the Thinkific Plus team for a quote.

Remember, choosing the right LMS platform allows your company to refine training or learning processes, enhance user experiences, and move closer towards achieving goals. This is a huge decision that can greatly impact an organization — by following this step-by-step approach and our LMS decision guide, you’ll be equipped to make a confident, future-proof choice when it comes to learning management system selection.