Lots of companies debate between using an LMS(learning management system) or an LXP(learning experience platform) for their learning, but this is the wrong way to look at things. Here’s why, in a simple analogy:
Imagine you’re at lunch and want a burger and fries, but there are only two options on the menu:
- A wrap with fries
- A burger with salad
Simple enough, right? You talk to the server, make a substitution, and get the meal you want.
Here’s what you don’t do: You don’t pay for both meals and then just eat half of each. You don’t order one of the meals and then settle for a side you don’t like.
But for some reason, this is what organizations do when they think about learning technology like an LMS or LXP: They look through options on someone else’s menu and get a solution that isn’t right for them.
Let’s talk (briefly) about what the difference is between an LMS and an LXP and then look at why neither one is right for you—or any financial services company.
Should you get an LMS or an LXP?
The answer isn’t one or the other. The answer is ‘no.’
LMS vs. LXP
First, let’s start with some bad news: The terms ‘LMS’ and ‘LXP’ are ambiguous. There’s no distinct set of features that one has and the other doesn’t. It’s kind of like ‘vegetable,’ which is a human-made term that doesn’t reflect biology. It’s culinary, not scientific.
Being a vegetable has something to do with being edible, being a plant, and not being too sweet. In the same way, an LMS has something to do with centralized content management and an LXP has something to do with user-generated content.
This table highlights some of the distinctions. But again, they aren’t perfect.
The problem
Asking if you need an LMS or an LXP is a bit like asking if your business should sell mutual funds or ETFs. Here’s what that chart might look like:
Of course, mutual funds and ETFs aren’t totally different. They’re both diversified, they both have management fees, etc. And the lines are blurry, like when an ETF is actively managed.
Most financial services companies don’t commit to selling only ETFs or mutual funds and many investors don’t invest all of their money in one or the other.
So why do organizations feel like they need to have either an LMS or an LXP? We suspect it’s because of software proliferation and budget concerns: The average business is using 130 different SaaS platforms. That means a complex tech ecosystem and a lot of recurring expenses.
Here’s the twist, though: You can get the benefits of an LMS and an LXP without needing multiple tools and without blowing up your budget.
Today’s best learning platforms do it all: Skills training, social learning, customer education, compliance, and everything else. Personalized for every audience, tailored to your brand, and all from one place.
The frame shift
Are you ready for 25 years of learning tech history in three paragraphs? Let’s go:
The first learning tools (LMSs) were built for admins. They were optimized for managing and distributing content, doing tasks like enrollments, and they looked like all software did in the Windows XP era. Charming and nostalgic to look at, but you would never go back.
Then came LXPs, which were built for learners and optimized for learner engagement. These platforms look great, are legitimately engaging, and even track data like course completions, time spent learning, and more. This is where most learning tech is today.
But there’s a new breed of learning tech: Learning platforms. They provide a great experience for admins and learners, but they’re optimized for business. They’re designed to impact the metrics businesses care about: Not course completions or time spent learning, but skills, productivity, revenue, and customer retention. They are all-in-one platforms built to meet every learning need without adding extra complexity to a business’ tech stack.
Debating between an LMS and LXP is like debating between a horse-drawn carriage and a Model T.
Don’t choose an LMS or an LXP. Choose not to settle.
You wouldn’t want to settle for a burger or fries. You wouldn’t want to choose between a mutual fund or an ETF. So don’t choose between an LMS and an LXP.
Seriously: The market is vast and technology is advancing incredibly quickly. There are platforms out there that can solve all your learning challenges:
- The power to deliver personalized training to employees, customers, and partners—from one platform
- Integrations with every part of your tech stack (even legacy systems)
- Social learning, community, user-generated content, and gamification
- AI and automations to save time, automate workflows, and generate content
- A content marketplace with relevant and in-demand skills, including Finance-specific courses
- Airtight security and compliance tracking to make audits easy
There’s no substitute for world-class learning. And there’s no reason to settle for less.
