As an observer of the education and training industry, the articles I have read either talk more about enrollment conversion and traffic acquisition, or follow the trend in the Internet circle and talk about growth hacking and fission to attract new users. I feel tired of all of them.

In fact, anyone who has worked in education and has a deep understanding of education will reach a consensus: the growth of educational products does not depend on traffic, but on retention.

Especially in online education, which has been very popular in recent years, more attention should be paid to retention. However, many people in the Internet circle directly apply the Internet's strategy after coming in. A typical example is a certain headline. What is the result?

Therefore, as the future development direction of the education and training industry, whether online education can retain users is of vital importance. This article will systematically analyze how online education can retain users.

Why online education needs to do a good job of retention

1. The Compounding Effect of Retention

The growth of any product will focus on retention, and this is especially true for online education, especially K12 education. This is because a higher retention rate will be more conducive to long-term and stable growth.

Qu Hui, the author of "Silicon Valley Growth Hacker's Practical Notes", once gave such an example in the book.

Suppose Company A and Company B start from scratch. Company A has a monthly retention rate of 80% and 5 million new users per month, while Company B has a monthly retention rate of 95% and 2.5 million new users per month. After 6 months, Company A is still ahead of Company B. After 3 years, Company B will surpass Company A.

This is the compound interest effect of retention , which will ensure that the party that is at a relative disadvantage in development has the opportunity to overtake and exchange time for space. The prerequisite for achieving this strategic goal is to have a higher retention rate.

Therefore, if Company A and Company B are replaced by any other online education company, the principle will be the same. As long as the retention rate is significantly higher than that of competitors or the industry average, there is a very high possibility that they will become the leader after a period of time, and with the help of the word-of-mouth effect brought about by high retention, the growth will become more benign. This is one of the reasons why the twin stars of education and training can beat small and medium-sized institutions.

Therefore, retention rate is one of the core indicators that need to be paid attention to in the growth of online education.

2. Retention is more than just repurchase

When talking about the retention rate of online education, most people think it is the renewal rate, or the repurchase rate (repeat purchase = renewal + expansion of subjects) . In fact, this is not the case, because the calculation of the renewal rate has a lot of room for manipulation. It depends on the time node you use to calculate it. Is it based on the first class or the last class, or according to the time when the renewal reminder starts? There is no unified standard in the industry, and each company can set its own.

Therefore, when I see some online education companies saying that their repurchase rate is 80%, I always question it, even though what they say may be true.

So, how should the retention of online education be judged? The author believes that there are three parts: refund, class renewal and subject expansion, and the corresponding indicators are refund rate, class renewal rate and subject expansion rate.

However, it should be noted that the purpose of expanding courses is to increase consumption frequency to kidnap users, thereby stabilizing and increasing retention. Moreover, users of expanded courses must also renew their classes later.

Therefore, for the sake of convenience, the retention rate can be calculated from the two aspects of refund and renewal (repurchase), that is, retention rate = "number of users who renew their classes (repurchase) + number of recalled users" / (number of users before renewal (repurchase) + number of refunded users).

So, how to improve retention rate? This formula already gives the direction.

Two aspects help online education improve retention

As the author said, retention includes three parts, namely refunds, class renewals and subject expansion. Therefore, if you want to improve the retention rate, you need to do two things: reduce refunds and actively renew classes and expand subjects.

1. Reduce refunds: anti-refund, recall and unexpected service

One characteristic of educational products is their ultra-low frequency and long usage cycle. Students often study in weeks, and the learning time ranges from two to three months to half a year, a year, or even longer. In such a long usage cycle, it is inevitable that users will drop out midway. If the loss ratio, that is, the refund rate, can be reduced during the usage cycle of educational products, the retention rate can be significantly improved.

There are three things you can do to reduce chargebacks.

(1) Loss warning

Based on students' performance during the learning process and data feedback, predict the possibility of students' refund in advance.

If a student fails to attend classes, punch in, do exercises, or submit homework for several consecutive classes, cannot be contacted or communicated for a long time, or has a continuous decline in accuracy, etc., once the student encounters the above situation, the teacher can remind the student as soon as possible, such as through an app or text message reminder, or the teacher can take the initiative to contact the student by phone or WeChat, and communicate and comfort the student, so as to minimize the risk of refund.

(2) Exceeding Expectations

Generally speaking, it is normal for teaching products to be refunded. The main reason is that the effect is not significant or the demand is no longer matched. For these students, the refund can be reduced through early warning reminders and communication.

However, if students can feel that the experience and service exceed their expectations, the risk of refund can also be reduced, and they can even be helped to renew their classes and continue following the program. This is called emotional stickiness.

Therefore, when formulating service standards for teaching products, you can set minimum and maximum requirements, and link attendance rate, refund rate, and class renewal rate to performance to control and improve the overall service level.

Especially the attendance rate. Both logically and empirically, a higher attendance rate will lead to higher retention and conversion, whether it is a low-priced course or a full-priced course. Therefore, from a service perspective, improving attendance rate should be the focus. As for the specific methods, standards can be set for the time, rhythm, and method of pre-class contact, and game mechanisms such as rewards, redemption, and upgrades can be designed at the product level.

Of course, for many K12 online education products, the best way is to set standards for the teaching process with the core of improving attendance rate and completion rate, such as the seven-step teaching method, the eight-step teaching method, the ten-step teaching method, etc. However, these are actually similar. The key point is that each step stipulates the teacher's behavioral standards and frequency, such as how many times to contact before class, how long to accompany during class, how long after class to answer questions, how long after class to complete homework and playback, etc., to ensure class consumption and improve completion rate. If most of them can be implemented in place, a reasonable refund rate can be guaranteed.

(3) Recall

Recall is a very important task in teaching operations. Although students will leave for a short period of time, they can continue to come back to study in the next learning cycle.

The specific recall work is as follows: at the class renewal node, use push, text messages, teacher phone calls and other means to remind new class registration and discount information, especially one-on-one communication with teachers, which should be the focus of the recall work. The best way is to design a unified communication template and communication training to ensure the maximum recall effect.

For example, design the logic of recall speech: the first step is to ask about the learning situation, the second step is to recommend classes or new subjects based on the results, the third step is to inform about the discounts and other benefits of the new class, and the fourth step is to guide the purchase.

2. Actively extend classes and expand subjects: sustainability, rhythm and stratification

Renewal or repurchase is of central importance to the growth of educational products, and the renewal rate or repurchase rate is one of the core evaluation indicators for whether an educational product is qualified. A qualified educational product should have a renewal rate or repurchase rate of at least 60%, while an excellent one should have a renewal rate or repurchase rate of 80% or even 95% or more.

This is because the higher the renewal rate, the more it shows that users recognize the product and the institution, and the greater the effect of word-of-mouth enrollment.

So, how to improve class renewal rate? There are four aspects that require attention:

(1) Sustainability of the curriculum system

The users of educational products are able to renew their classes fundamentally because educational products themselves are renewable. Learning is a continuous process, and if users choose to study at a certain institution, there is a high probability that they will continue to follow it.

However, one of the most obvious characteristics of educational products with high repurchase rates is a clear system. Users can achieve their learning goals and realize learning effects step by step according to this system, and this system must have gradients and differences.

Taking elementary school mathematics as an example, we first learn addition and subtraction, then multiplication and division, then mixed operations, and then learn to add brackets, and finally more complex operations. This is the gradient and level difference, which is why mathematics products have a high renewal rate and why there is a national brand.

When looking at Chinese language products, why are there no national brands? The Chinese language products are not designed to be sustainable. For example, for composition, students from grade one to grade six can all write "My Dream", but it is difficult for students to see breakthroughs, so the renewal rate is poor.

It can be seen that the sustainable design of the curriculum system is a prerequisite for class renewal.

In this regard, we can learn from a leading institution, which has created a complete system of elementary school mathematics, set corresponding goals according to the learning cycle, and upgrade it layer by layer, thus ensuring the sustainability of both content and ability.

(2) Design of preferential treatment and benefits

The preferential design for class renewal is the focus of this work, and generally follows the following principles:

First of all, certain discounts must be given to new and old users. The general principle is that the discounts for old users should be greater than those for new users, and the maximum discount window period for old students should be earlier than the discount period for new users.

A friend of mine once did a survey on K12 renewal discounts. The usual discounts are between 9.2 and 9.5 yuan. Coupon issuance is usually divided into levels and usage thresholds, and the face value of the coupons is between 20 and 200 yuan.

Secondly, you can add subject expansion discounts when you renew your classes. Generally, there are two forms: different discounts for different subjects and discounts for multiple subjects. The latter is used more likely and more frequently.

Furthermore, referral discounts are also a key point in the design of renewal discounts. By setting invitation incentives for old and new students, it is possible to recruit new students and maintain old students at the same time. The general principle is that old students invite new students, and both parties maintain the same discount level. The discount amounts for old students can be stacked, but there will be restrictions on their use.

In addition, the timing and form of the discount must also be designed.

For synchronous classes (such as winter and spring followed by summer and autumn), old students have two discount deadlines, one in the middle of the long-term class and one before the start of the new long-term class, while new students only have one; for holiday classes (such as summer vacation followed by autumn), the discount deadline is close to the end time of each holiday class.

As for the forms of discounts, there are two main ones: discounts (rarely used now) and coupons. There are many creative ways to issue coupons, such as smashing golden eggs, opening treasure chests, opening red envelopes, etc., to increase the fun of the discount and improve user participation rate.

The above is the discount design for class renewal. For examples, you can see how a certain offline institution designs its summer and autumn renewal discounts: the renewal discount period for old students is four days earlier than that for new students, and the discount amount is 50% higher; there are four-digit discount amounts for new grade subjects; additional discounts for joint registration for summer and autumn; the discount amount for joint registration of multiple subjects is doubled, etc.

Of course, in addition to the preferential design, you can also give away some extra courses, such as training camps, micro-courses, lectures by famous teachers, etc., or give away peripheral products, teaching aids, books and other physical items that can reflect the sense of value.

(3) Develop communication strategies for veteran students

Generally speaking, once the products and discounts are determined, you can notify old students to renew their classes, using more forms and channels such as push, SMS, WeChat, and phone calls. Regardless of the form of notification, if you want to maximize the renewal rate, you need to stratify old students.

The stratification dimensions of old students are mostly based on learning data and communication records. Two dimensions can be selected for specific implementation, such as attendance rate and willingness to renew classes. In this way, four types of old students can be distinguished: automatic type (high attendance and high willingness), active type (low attendance and high willingness), passive type (high attendance and low willingness), and giving up type (low attendance and low willingness).

There are four types of students, each with a different communication strategy:

Automatic type: direct notification, appropriate concern, system introduction of product information, preferential policies, class renewal rhythm, etc.;

Proactive: Direct notification and a certain degree of communication to understand the specific situation and pay regular attention in the future;

Passive type: Carefully understand the students’ situation, especially the reasons for their low willingness to renew the course, and provide solutions first, then guide them to renew the course;

Abandonment type: Don’t ignore it directly, continue to notify normally, then transfer it to the traffic pool for operation and implement a long-term influence strategy.

The above is just a demonstration of the stratification of old students. It is not the only method. It should be flexibly designed and adjusted according to the actual situation. In addition to communication strategies, personalized service strategies can be designed, such as recommending activities and benefits that suit the user type.

(4) Design of the rhythm of press conferences, lectures, courses, activities, etc.

Renewing classes requires a rhythm. It is impossible for us to let users sign up whenever we want. We must give users time to consider, and also give them time to communicate and prepare. Therefore, the rhythm of renewing classes needs to conform to the rules of the teaching cycle.

The specific implementation is as follows:

An evaluation of class renewal is conducted in the middle of the course service. Teachers conduct preliminary interviews with parents and collect the first wave of class renewal data.

One month before the formal renewal of classes, teachers will receive unified renewal training and relevant welfare activities will be launched for users;

The day before the formal renewal of the class, a press conference will be held for all students. The teacher will organize a class parent meeting to introduce the curriculum system, renewal policy, and time arrangement.

The formal renewal of classes begins with promotion through various channels, including official website, push, SMS, WeChat, one-on-one communication with teachers, and class group promotion;

Various operational activities are carried out between different renewal windows, and the renewal situation is summarized in stages until the overall renewal is completed.

The above is the overall rhythm of class renewal. Among them, the design of operational activities in different class renewal windows can be combined with recruiting new students, expanding subjects, and referrals, and combined with class renewal to form a complete customer acquisition campaign.

For example, you can create a gimmick and launch a combination activity, which includes lectures, training camps, materials, Q&A and other services. Only old students can participate and give them coupons as a reminder to renew their classes. New students can also participate, but they must be recommended by old students or come from a different discipline. This threshold design can be used to promote new recruitment and expansion of disciplines.

Summarize

This article analyzes the retention strategies of online education and provides a series of feasible retention solutions. I hope it will be useful to readers. Finally, let’s summarize the key points of this article:

(1) The core of online education growth is retention, which includes two aspects: refund and renewal (repurchase). For example, the calculation of retention rate is: "Number of renewal (repurchase) users + number of recalled users" / (number of users before renewal (repurchase) + number of refunded users)

(2) There are two main strategies for improving retention in online education, namely reducing refunds and actively renewing classes and expanding courses. Reducing refunds requires three aspects: loss warning, exceeding expectations, and recall. Actively renewing classes and expanding courses requires efforts in the sustainability of the course system, preferential welfare design, stratification of old students, and rhythm design.

Author: Dugu

source: Wild Operation Community (id: dugu9bubai)