The Metrics that Matter for Edtech: 6 KPIs to Improve Profitability and Efficiency
In the fast-paced world of edtech, companies are constantly on their toes, navigating a sea of operational challenges. With hundreds of players entering the global education market, it’s tough times for any company that leaves things to chance.
Like all great explorers and adventurers, edtech companies too need a compass – key metrics and KPIs that guide their journey towards greater profitability and efficiency. At Locale, we have the privilege of working with some pioneering companies who are using these metrics to make sure nothing falls through the cracks in their business operations.
Let's dive into these metrics:
Teacher Attendance %
Picture this – students log in, eager to learn, but the teacher is a no-show. Bummer, right? It’s not just frustrating for the students; it's a bad look for the company.
When teachers fail to show up for scheduled classes, it leads to student dissatisfaction and can increase student churn. That's why monitoring teacher attendance rate is crucial for an tele-education company.
There are 2 steps to solve this problem and improve the teacher attendance rate metric.
- Firstly, send a proactive alert to let students and parents know ahead of time if the teacher is unavailable, helping to manage expectations and maintain a smooth learning experience.
- Secondly, send an alert to the operations team that so-and-so teacher wasn’t available. The operations team will then figure out if the teacher was unavailable due to conflicting classes, network connectivity issues, or something else. If this is a regular occurrence, the operations manager should ideally do an analysis of the reasons behind it and make changes in the business processes accordingly.
Student Attendance %
What if it's the students who are missing classes? That’s a red flag for student engagement, as learners miss out on valuable content and learning opportunities. It’s also a leading indicator to student churn.
By keeping tabs on student absenteeism, companies can setup alerts and nudges to the missing students to rekindle their interest. Assigning an operations staff member to check in on these students can also make them feel valued and lessen dropout rates.
Project Completion %
Students lagging behind on projects? Late project submissions can hinder students' progress and lead to reduced engagement with the course. Less engaged students will eventually end up failing in the course or will leave the course midway through.
Tracking project completion rates is paramount since it ensures students aren't left behind. Automated alerts can remind students about deadlines. Simultaneously, alerting the operations team about late submissions helps them offer support, helping students cross the finish line on time and sustain their interest in the course.
Cart Abandonment Rate
For an edtech company, every student counts, and losing them at the final step can be disheartening. Addressing cart abandonment, therefore, is essential.
By tracking the cart abandonment rate and implementing personalized follow-up strategies, companies can bring students and parents back into the buying loop, improving the buying experience and boosting the company's growth trajectory. Moreover, an operations person can also be alerted who will reach out to these potential customers and understand their issues with the course they are interested in.
Feature Failure Rate
Students often encounter technical difficulties and glitches while using certain features like video playback. Sometimes, the app crashes as well. These issues can lead to student churn if not addressed promptly.
By tracking the Feature Failure Rate and providing prompt and efficient customer support, businesses can ensure quick resolutions, improving customer satisfaction, loyalty, and overall user experience.
Class Cancellation Rate
Frequent class cancellations can lead to student dissatisfaction and, over time, student churn. Monitoring the Class Cancellation Rate allows edtech operations teams to identify the frequency and reasons for cancellations. This insight can help in creating robust strategies to minimize cancellations and maintain a consistent learning experience.
Other significant metrics
Net Promoter Score (NPS), Payment Failure Rate, and New Demo Booking Rate are some other metrics that edtech companies need to track. Tracking these KPIs and metrics enables companies to proactively manage customer issues, thereby providing a smoother learning process and enhanced customer satisfaction.
I already track all these metrics on my dashboard. I’m sorted, right?
Dashboards are great at providing you with a snapshot of the business. However, they’re not that useful for companies who want to solve things proactively. With dashboards, you only get to know about things are they’ve become a pain. Not to mention, nobody has the time to refresh dashboards constantly.
If you want to positively impact the above metrics, a better method is to use real-time alerts to loop in concerned team members as soon as something goes wrong. The team can then solve the issue proactively before it becomes a pain. Done this way, your operations team gets to be on top of things, leading to them improving the above metrics constantly.
Some of the alerts which can help you get proactive at business operations:
- Alert ops team when teacher/mentor is absent from class
- Alert ops team on consecutive cancellations by the teacher
- Alert program manager on students absent in consecutive classes
- Alert ops team on TAT breach in project completion
- Alert success team for NPS drop rate
- Alert sales team on users not able to book the session successfully
- Alert finance team on payment delays
If you are eager to know more about how Locale helps you set up alerts, book a call with one of our specialists to have all your questions answered today! Or check out our platform for free at https://go.locale.ai/signup