The Indian EdTech market will reach $10.4 billion by 2025. The sector grows at a remarkable rate of 39% each year.

Online education has become the main learning source for the 21-50+ age group, but growth numbers alone don’t guarantee success. EdTech companies constantly work to keep their users active and involved on their platforms.

Let me share some proven strategies in this piece that can help in how EdTech companies can boost customer retention. These approaches will help create lasting value for learners and grow your business sustainably, regardless of whether you’re a startup or a seasoned player.

What is Customer Retention in EdTech industry?

EdTech companies need to know how to keep their students coming back to their platform. Traditional schools rely on physical buildings to retain students naturally. But EdTech platforms must work harder to keep users interested and committed.

The EdTech sector faces tough retention challenges. Industry data shows a churn rate of 13.2%. This means 13 out of every 100 course subscribers leave. All the same, there’s a lot at stake. The Indian EdTech market reached USD 3.42 billion in 2021. Experts project it to grow over 30% yearly from 2021 to 2026.

The math behind customer retention is simple. You calculate it as the percentage of customers who stay active after a specific time:

Retention Rate = Number of active customers at end of period / Average number of customers during the period

Two vital factors determine customer retention in EdTech:

1. Goal attainment: Students stay when they achieve their learning goals
2. Customer satisfaction: A positive and rewarding experience keeps them engaged

Several elements affect how long students stay on EdTech platforms:

• Quality of academic content and programs
• User-focused design and experience
• The core team’s engagement level
• Support services availability
• Overall learning experience

EdTech companies see multiple benefits from strong retention:

• Cost efficiency: Keeping existing users costs less than finding new ones
• Increased lifetime value: Happy users take more courses
• Better advocacy: Loyal users bring in referrals
• Stable revenue: Subscriptions create predictable income

So, companies like Toppr have boosted subscriptions by 133% through tailored campaigns. Testbook achieved 15% more conversions from free to paid users.

EdTech marketing strategy has transformed to optimize retention. Companies now look beyond just getting new users. They understand that existing users accelerate growth and conversions. This focus on making platforms “sticky” becomes significant during economic downturns.

Learn how EdTech companies can boost customer retention with proven strategies that work

5 Ways to Retain Customers in EdTech Industry

EdTech companies that use smart retention strategies see their student satisfaction soar to 82%. Here are six proven ways to keep your users engaged and excited about coming back.

Understand User Behavior

Your EdTech platform collects so much user data that shows how students use your platform. Looking at these interactions helps you spot learning patterns and areas that need work. You can then create better content that fits their needs. Evidence-based methods let you track student progress and see patterns in what they do. This helps you meet their learning needs before they lose interest.

Personalization

Making things personal boosts how much students participate and stick around. The data tells you how to:

• Create learning paths that match each student’s progress
• Suggest content that fits different learning styles
• Break big goals into smaller, doable steps
• Help students who need extra support

Research shows 82% of students like mixed learning methods with personal touches better than old-school teaching.

Use Marketing Automation

Smart automation helps you grow while keeping things personal for each student [link_2]. The system can check on every student, find who might leave, and step in to help. It also watches for warning signs that students might drop out, so you can act fast to keep them engaged.

Providing Excellent Customer Support

Great customer support makes all the difference in keeping students around. Look at how fast you respond, what your team knows, and how well you solve problems. Schools with top-notch support save big on dropout costs – almost $40,000 per student [link_3].

Continuously Improving and Updating Products

Small changes based on feedback and data add up to big improvements over time. This step-by-step process helps your platform grow with what users need, fixing problems before students notice them.

Push Notifications

Smart use of push notifications gets more people using your mobile app and keeps them coming back. These messages remind students about deadlines, share course updates, and bring back inactive users. The trick is finding the right balance – 60% of students say good digital tools make a big difference in how happy they are with their learning platform.

How to increase sales in an EdTech company?

The EdTech sector demands fresh approaches to connect with educational institutions and learners. Here are proven strategies that can help boost your EdTech sales, based on industry insights:

Listen more than you talk. Sales professionals who truly grasp their prospects’ challenges are 46% more likely to achieve their targets. The key lies in asking the right questions about educators’ specific problems and paying attention to their responses, rather than focusing on product features.

Make the ROI crystal clear. Educational institutions run on tight budgets and need to know exactly what they’ll save in dollars. Your platform’s time-saving features should translate into concrete financial benefits by calculating hourly rates and time saved.

Support your promises with data. Randomized controlled trials are ideal, but smaller companies should at least gather evidence that shows results. Educational buyers need solid proof before they risk their reputation on new tech solutions.

EdTech as a Service (EaaS) works better than one-time purchases. This subscription model focuses on continuous support and updates, which creates predictable costs and builds lasting relationships with institutions.

Custom educational podcasts with industry experts and success stories can make a real difference. These help showcase how your products tackle common educational challenges naturally.

A freemium business model lets users try your platform before they commit financially. This approach drives sign-ups and opens doors to premium conversions.

EdTech-specific sales training helps your team master pedagogical concepts and curriculum standards. Sales teams that understand educators‘ language consistently outperform those using generic sales tactics.

These strategic approaches can help your EdTech company build genuine connections with educational buyers and boost sales substantially in this competitive market and this is how EdTech companies can boost customer retention.

Conclusion EdTech Customer Retention

Success in the EdTech industry just needs more than acquiring new users – you must build lasting relationships with existing customers. EdTech companies can boost their retention rates by a lot through informed personalization, excellent support, and continuous product improvements.

Understanding user behavior and implementing targeted interventions create real differences. The proof lies in companies like Toppr and Testbook that have shown remarkable results. Their personalized campaigns achieved conversion uplifts of up to 133%.

Each student’s learning experience remains unique. EdTech platforms must adapt and evolve based on user feedback while you retain control of ROI metrics for institutional buyers. Your partner in creating engaging educational experiences, visit Campaign HQ, offers expert guidance to implement these retention strategies.

FAQ

How to scale an EdTech company?

EdTech companies need a comprehensive approach that focuses on sustainable growth. Your business model should support expansion without increasing costs proportionally. Market analysis shows that subscription models enable efficient scaling through digital platforms, though they need substantial upfront investment in content creation. It is another way in How EdTech Companies Can Boost Customer Retention.

The path to effective scaling includes:

• Building partnerships with reputable educational institutions to gain credibility
• Running market research before new segment entry
• Adapting products to meet local standards
• Using automation to manage higher volumes

What are cogs in EdTech?

COGS (Cost of Goods Sold) in EdTech represents direct costs tied to delivering educational services. A well-laid-out SaaS business model should keep COGS at 10-20% of total revenue, which results in 80-90% gross margins.

EdTech COGS typically include:

• Costs for application hosting and monitoring
• Support and account management expenses
• Data communication costs
• Fees for embedded software licenses
• Website development and maintenance
• Costs for professional services and training staff

Keep in mind that leaving out relevant expenses from COGS calculations can make your gross margin look artificially high, which investors might question during due diligence.

Who is the target audience for EdTech?

EdTech markets cover a variety of audience segments with unique needs. K-12 products focus on games and interactive learning to boost engagement. Higher education needs powerful research tools and ways to collaborate. Professional development serves working professionals who want flexible options to upgrade their skills.

The market also includes corporate training for staff development, language learning platforms, and niche educational areas. Your target audience needs clear definition—the most successful EdTech startups “target an audience they know and affiliate with” instead of trying to reach everyone.

How do companies measure customer retention?

EdTech companies use several metrics to assess customer retention. Customer Retention Rate (CRR) shows the percentage of users who stay on your platform. Customer Churn Rate (CCR) tracks those who leave.

Other vital metrics include:

• Net Promoter Score (NPS) to track recommendation likelihood
• Customer Lifetime Value (CLV) to calculate total customer revenue
• Logo retention rate to measure yearly customer retention

Enterprise software businesses should reach 90% logo retention to match industry leaders. Companies focusing on SMBs need to achieve 75-80% retention across their customer base.