Product Operations: Customer Acquisition, Retention and Conversion in the K12 Education Industry!

K12 education is currently divided into different tracks such as question searching and answering, question banks, tools, and tutoring. Whether it is "education + Internet" or "Internet + education", compared with the traditional education and training industry, it has become more open and transparent, and user behavior has also changed greatly.

Any type of product operation needs to start with understanding its users.

1. User characteristics of K12 education industry

1. The motivation for paying is mainly driven by profit. Compared with the interest-driven results, users are more profit-driven.
2. The products and services on the student side and the parent side are inseparable.
3. Focus on experience, and it is a necessary step before making a decision.
4. Exclusive factors are difficult to change.

These characteristics of users in the education industry determine that the education industry pays more attention to refinement in operations and conversions, and at the same time requires higher coordination between R&D, teaching, products and operations.

2. How to build an operating model for the K12 education industry?

The products in the K12 education industry are different and all require refined operations to maximize cost-benefit, but the key behaviors of users and operation models are indeed different.

To establish an operating model, it is necessary to determine the user's key behaviors (or key conversion nodes) based on the product.

The following only provides ideas and does not represent the actual model.

Taking K12 question search and answer products as an example, the operating model is roughly as follows:

• Use photo search as the entry point to attract users to use it (user usage scenarios).
• Take a photo to search for questions and check the answers (solve user problems through technology and product experience).
• Keep users interested (guide users to stay) by summarizing and interpreting knowledge points in the questions, testing similar questions, etc.
• Stimulate new demand through online Q&A or short video learning (one-on-one tutoring or special knowledge point learning to increase consumption frequency).
• Scenario guidance, search, live broadcast, etc. of key/difficult/common test points guide long-term live class conversion (user conversion).
• Improve the competitiveness of live broadcast products, and improve user experience to increase retention and renewal (core competitiveness of products).
• Services for students and parents (product word-of-mouth spread, continuous growth).

Taking online tutoring products as an example, the operating model is roughly as follows:

• Parents find that their children’s performance in a certain subject is poor and hope to provide systematic tutoring on that subject. (User demand scenario)
• Parents began to understand the training schools, class types, tutoring methods, class times, services, etc. (Operation of different channels to enhance users’ awareness of products)
• Parents audition and experience the course with their children, and then decide whether to enroll their children. (Increase user conversion)
• Services for students and parents. (Promote word of mouth)

After the operation model is initially built, it is necessary to reach a consensus on the overall idea from all aspects (products, channels, operations, sales, etc.), and then verify the model, continuously optimize it, and drive the continuous growth of products and users.

To break down this system layer by layer, the AARRR model needs to be used.

3. User acquisition and exposure

Traffic is the source of students and the core of conversion. User acquisition and exposure are compulsory courses for operations in the education and training industry.

1. Common user acquisition channels

User acquisition is inseparable from channels, and the channels in the education and training industry mainly come from contributions from both online and offline parts.

• Online channels: search, online alliances, information flow advertising, social media advertising, resource exchange, short videos, KOL, self-media (Toutiao, Baijiahao, etc.)...
• Offline channels: schools, teaching points, ground promotion...

Here are just some of the ones I use, if you have others, please add them.

1. Traffic acquisition based on WeChat ecosystem

Official accounts, WeChat groups, Moments (including advertising), mini-programs, self-media...

User acquisition under the WeChat ecosystem has become a new battleground, especially the various gameplays derived from the WeChat ecosystem have a relatively significant effect on user acquisition and activation. Currently, fission is the most commonly used one.

Fission = carrier + tool + creativity + value + technology + operation

• Carrier: In the WeChat ecosystem, there are five carriers that support fission: official accounts, WeChat groups, H5, personal accounts, and mini programs.
• Tools: Common forms of fission include: group buying, distribution, invitation, bargaining, group transfer, etc.
• Creativity: gameplay, fun, gimmicks. In actual operation, it is difficult to succeed with only one gameplay. Usually it is a combination of gameplay, such as collecting cards + red envelopes during the Spring Festival, which combines fun and benefits.
• Value: The core of fission is based on the ability to meet user needs and pain points.
• Technology: The supporter of user experience.
• Operation: The essence of fission is the planning and implementation of an activity. This is accomplished through clarifying goals, breaking down tasks, designing processes, refining execution, following up on feedback, analyzing data and summarizing results.

1. Common Misconceptions About User Acquisition

In the actual operation process, everyone knows which channels to start from, but the results are often not as expected. This is mainly because we need to avoid some misunderstandings when it comes to user acquisition:

• Department boundaries or KPI settings can lead to breaks in the user acquisition chain. Especially when promoting a channel, there needs to be a person in charge to interact with the entire chain and product of the channel, coordinate the guidance strategies and mechanisms, data points and analysis after the user comes in, and make coordination and layout in advance.
• Define the key indicators for each department at this stage: for example, channel operations need to focus on the number of new users, single acquisition cost, and new user retention rate; the product department needs to focus on registration conversion rate, feature retention rate, etc.

I have personally experienced a project where a large number of users were introduced in the early stage, but because the channel users were not differentiated, many users were lost later.

Therefore, attention to and analysis of data during the new user introduction period is the key foundation for subsequent user stratification and activation.

Focus on finding your own growth tools - growth tools are means that can help you acquire users efficiently.

For example: the growth tool for question-searching and question-answering products is intelligent question search, and the growth tool for tutoring online schools is trial classes and live classes.

For example:

This is a very common scenario in daily operations. During promotion, many organizations will direct users to WeChat official accounts.

The page showed "Click the menu to participate in the book redemption activity - a message popped up with the method of receiving Long Yingtai's books". However, when I followed the instructions, I jumped to another activity, and the book redemption activity mentioned at the beginning was never found.

This is a typical case of a broken user acquisition path, and the effect is predictable - the first experience has already created a bad impression, and the user loses the motivation to continue.

4. User Activation and Retention

The main purpose of user retention is to increase user usage frequency and duration and extend user life cycle.

The key indicator of user retention is: usage of core functions.

For example: the core indicators of question-searching and question-answering products are the number, frequency, and duration of user searches and questions, which serve as the data basis for user stratification.

The core indicators of tutoring products are: the number of trial class appointments and the number of people participating in the trial classes.

User activation and retention mainly consider the following points:

1. Before defining the key behaviors of users, it is necessary to define the criteria for activation and retention.

For example: stimulating new users to register and complete their information is considered activation, and screening entry-level users for potential paying users is also considered activation

So, the next thing to consider is: what actions and behaviors do you want the user to take next?

1. User grouping and screening: determine which users need to be activated

• There may be a big difference between users who have simply completed registration and users who have used the camera function.
• There is also a big difference in the function usage between users from this channel and users from another channel.
• Different regions may also have very different levels of activity.

These may all be the screening criteria for our activation objects.

1. User activation retention mechanism

Boot mechanism:

Adding a new user is the first step in activation.

Pay attention to "newbie guidance" and allow users to operate as much as possible, use core functions, and improve the user experience. Especially for products with a strong sense of operation and usage, it is even more important for users to be able to complete the product process as much as possible during their first experience, and there should be an easy-to-find path to using the functions. Try to simplify the operation steps and lower the usage threshold.

Incentive Mechanism:

The biggest difference between education and training and other industries is that learning is passive.

Continuous motivation is both an affirmation of learning and a motivation for users to continue learning.

The incentive mechanism is mainly designed based on psychological factors such as emotion, interest, and honor.

for example:

• Encourage student users to complete the study of a certain topic online, and give medals and comments on the progress achieved after completion, so as to continuously improve the sense of accomplishment of student users.
• Take advantage of the competitive spirit among students, hold PK competitions, and display honor rolls.
• Students who often help other students answer questions on the platform are regularly awarded "Little Helper" honorary medals, which encourages users to interact and socialize and inspires a sense of mission.

Gamification design is also a way to motivate and promote activity, such as: user growth system, membership levels, etc.

Profit-driven:

The main profit driver is: guiding users through physical and virtual objects.

for example:

• Issue coupons with a validity period to new users.
• Rebate coupons will be given to students who complete the online course for the first time.
• Private lessons will be given to key active users.
• Red envelope rewards will be given to those who give excellent answers to specific questions.

Experience/Technology Driven:

Experience/technology-driven is particularly important in tool products, user conversion and service stages.

for example:

• The response speed, accuracy and richness of question search and answer products during the user introduction period all rely on technology.
• In online dual-teacher classrooms, whether during trial classes or formal classes, the technology's support for the needs of teachers, students, and parents determines whether users can eliminate their doubts about the effectiveness of online learning.

Function driven:

Whether it is the optimization and improvement of functions or the introduction of new functions, it will bring a wave of user activity.

The optimization of existing functions is a booster for users who have already developed a certain degree of stickiness. Some of the launch of new functions are based on product ecology considerations, while others are based on user operation considerations.

for example:

• The launch of live tutoring courses for question-searching products is based on the consideration of the entire product ecosystem.
• The launch of the live broadcast communication community provides a tool communication platform to reduce user barriers during operations.

Word of mouth drive:

Reactivate dormant users through word of mouth and referrals, strengthen operations on loyal users, and make them your promoters.

For example: common introductions between students and their parents, or dissemination in the circle of friends.

System driver:

It would be best if a user activation mechanism could be set up in advance and an early warning mechanism could be set up for users who need to be activated based on the data situation.

Social Drive

Activate users through their social needs.

for example:

• Seeing your classmates answer a question in the community inspires you to participate.
• I saw my classmates studying a certain course and I was curious and wanted to listen.

Data driven:

A very famous case of data-driven development:

Through analysis and research, Twitter found that its active users will choose to follow five to ten more users than churned users; another version is that active users will follow 30 users in the first month; and the plug-in will add 5 friends within a week.

Twitter therefore found the difference between active users and inactive users, and improved the user experience value by optimizing products and operational paths.

1. The essence of improving product retention is to increase product value

Question-searching products were criticized when they were launched, as teachers and parents opposed students cheating.

The product can launch a feature that can help students establish study plans to improve positive guidance in learning. At the same time, the frequency of use will be increased, and the operation department will then revise and guide the students' plans based on the data.

5. User Conversion and Services

1. User conversion

The conversion here mainly refers to: monetization - allowing users to complete the first conversion in a shorter time, increasing the average order value and consumption frequency.

User conversion in the K12 education industry naturally cannot avoid the following key points:

User value provided

It would be best if users could quickly obtain the value of the product, but in general it is difficult for a product to hit user needs and pain points in one go. In particular, many products take a roundabout way in the early stages, first having functions to attract users before they can realize conversions and monetize.

For example: this is true for question search, question bank, and question-answering products.

At this time, we need to consider the product side:

• How to closely link question searching with paid Q&A and tutoring?
• When operations staff discover that users combine question searching with Q&A and tutoring, how can they intervene to improve user experience and purchase conversion rates?

A quick action hook for users

To quickly prompt users to take action, you need a conversion hook, which may be an internal conversion factor of the product itself or an external conversion factor.

For example: after the user completes the question search, recommend special courses on related knowledge points.

The user chooses to purchase the experience or the user does not get the answer they want after searching for the question. Based on the need to solve problems, we choose online Q&A, and these are internal conversion factors.

If the user does not make a purchase after searching for questions, and the operator finds that the user has searched for related knowledge points several times recently, the operator will issue a coupon to the user. The user chooses to use the coupon for the first purchase. This is external intervention conversion.

Is the user conversion process path convenient?

Whether the user's conversion process and path are clear and convenient is related to whether the user can successfully complete the conversion.

For example: Is there a purchase entry for related courses? Does the receiving entrance have clear notice of users’ common questions? Is the payment smooth? etc.

1. User Services

User services in the K12 education industry is a relatively heavy sector, and it also involves multi-party services provided by schools/institutions, teachers to students, and parents. Therefore, achieving service satisfaction is a systematic project - poor coordination between departments and links will result in user loss.

The output of service process and results is the cornerstone for users to establish trust, a sense of belonging and word of mouth, and is also the lifeblood of the education industry.

• User value and services: User value and services are mainly composed of lecturers, teaching assistants, class teachers, etc. The output of teaching results is the education industry’s greatest demand for product value.
• Service process and results: In the K12 education industry, good teachers and tools do not necessarily bring the expected good results. Because it is the parents who have expectations, and it is the students who actually learn, and it is closely related to the cooperation between parents and students. At this time, the service process may be the embodiment of the results, such as: special attention and personalized guidance to students online and offline, and full communication and feedback with parents.

6. Dissemination and Recommendation

User communication and recommendations in the K12 education industry are more rigorous in the early stages of user use, but once a circle of trust is formed, it is easy for users to form a large-scale word-of-mouth reputation.

Therefore, user dissemination is mainly considered from the perspective of the product-side user dissemination mechanism, the recommendation chain, and the operation and maintenance of loyal users.

For example: sharing and forwarding on the product side, user dissemination guidance, user renewal policies, spiritual rewards for outstanding students, user referral rewards, etc., will not be elaborated here.

Source: summer