Are you an online educator looking to take your teaching to the next level? Meet Lens, the ultimate solution for online educators. With Lens, you can transform dull Zoom sessions into engaging and interactive learning experiences that keep your learners coming back for more. The platform enables EdTechs to deliver immersive and interactive learning experiences that enhance student satisfaction and retention rates. Read on to discover how EdTechs can benefit from using Lens to drive revenue growth.
EdTech Pre and Post-Pandemic
India’s EdTech landscape has rapidly transformed in recent years, driven by online learning, increasing smartphone penetration, and growing demand for skills training. According to a report by RedSeer Consulting, the size of the EdTech industry in India is expected to reach $4 billion by 2025 at a CAGR of 39.77%. Even before the pandemic, Indian EdTech companies showed early signs of success in selling their services abroad, with companies like Eruditus and LeverageEdu leading the way. However, the pandemic acted as a catalyst for growth, and Indian EdTech firms saw massive traction across North America and Southeast Asia, helping them capture higher ARPUs and provide services that would have had limited demand back home.
While the growth potential of the Indian EdTech market is enormous, with growth comes challenges. In 2022, the EdTech industry faced severe financial constraints, with some companies struggling to keep up. One of the biggest challenges EdTech companies faced was the rising customer acquisition cost. Before the pandemic, the Customer Acquisition Cost (CAC) for EdTech was approximately 20-25%. However, during the pandemic, the same CAC increased to a whopping 70-80% of revenue. This cost became so high that it couldn’t justify the unit economics, disrupting the LTV to CAC ratio. Companies that could afford to spend on pricey marketing and advertisements continued to do so, while those who could not simply exit the race.
Innovating a Solution
This is where Lens can help. By turning Zoom into an effective platform for online teaching, Lens can help EdTech companies keep their learners engaged, evaluate the effectiveness of their live classes, and ultimately increase their retention rates. This improved engagement and retention can lead to a higher Lifetime Value (LTV) for the EdTech companies, which can allow them to justify spending more on customer acquisition costs (CACs).
As the EdTech industry in India continues to grow at an unprecedented rate, it is becoming increasingly clear that only companies with sustainable business models and cost structures will survive in the long run. To remain competitive and succeed in the EdTech industry, companies must maintain an optimal balance between their CAC, LTV, and customer satisfaction. With Lens, EdTech companies can achieve this balance and thrive in the ever-growing EdTech market.
Edtech companies face several challenges in retaining and engaging their students in live online classes, which can ultimately impact their profitability. Limited options available to students and high customer acquisition costs can impede growth, and the opaque nature of live classes makes it difficult for instructors to personalize teaching and keep learners engaged, leading to a decline in retention rates.
To overcome these challenges, edtech companies can leverage the power of referrals by providing a differentiated and delightful customer experience that encourages customers to recommend them to others. This reduces the need for expensive marketing campaigns and helps to drive growth.
In this regard, Lens is uniquely positioned to address the challenges faced by edtech companies by providing a suite of features that can help improve engagement and retention rates in online classes. By turning Zoom into an online teaching powerhouse, Lens can help edtech companies increase engagement and retention rates in live classes.
The platform provides several features, including attentiveness and engagement level tracking, polls, live Q&A, and leaderboards, to increase student participation and interest during class sessions. Moreover, Lens provides instructors with real-time feedback and insights into student behavior, enabling them to personalize their teaching and improve engagement and retention rates. This can help edtech companies differentiate themselves from their competitors and drive growth by justifying higher customer acquisition costs.
Boosting Customer Retention Through Lens
Customer retention is a crucial factor in profitability for edtech companies, with a reduction in retention potentially reducing profit margins by up to 37%. However, early warning signs, such as attentiveness and engagement levels, can help reduce attrition rates significantly. Including micro-action planning steps and increased engagement through collaborative browsers, polls, and leaderboards have also been shown to improve retention rates significantly.
Finally, adding more steps to the learning process, such as remedial classes, 1:1 discussions, and group projects for at-risk learners, can help to increase retention rates and profits for edtech companies. Estimates from trials with 30 leading edtech companies show that these strategies can increase retention and profits by 83.3% and 23.5%, respectively.
In conclusion, EdTech companies in India face numerous challenges as they strive to capture a share of the rapidly growing online education market. However, they can overcome these obstacles and thrive with the right tools and strategies. Lens, with its ability to turn Zoom into an interactive teaching platform, is one such tool that can help EdTechs improve student engagement, retention rates, and, ultimately, revenue growth. So, if you’re an online educator looking to take your teaching to the next level, it’s time to put on your Lens and see the world of online education in a new light!
