Though EdTech is still in its infancy, it’s growing continuously and has the potential for even more growth. Before, EdTech companies’ products were incredibly basic due to a lack of demand and rather poor design and user experience. Today, there’s more focus on product-led growth (PLG) within the EdTech industry, providing people with bright, easy-to-use apps hyped up by its users. A great example is Duolingo, which uses gamification to increase retention and customer loyalty.
Estimated reading time: 2 minutes
In this article, I’ll talk about how the EdTech industry started focusing on PLG and how this approach can help increase engagement and customer retention.
The topics you can expect to find in this article are:
- The EdTech industry’s shift to Product-Led Growth
- Benefits of a PLG approach in EdTech
- Gaining and retaining users
- Conversion to paid users
- Higher engagement
- Time To Value
- Gamification in EdTech
The EdTech industry’s shift to Product-Led Growth
The focus on Product-Led Growth has spread across a wide range of industries, and EdTech has been no exception. With everything online evolving so quickly during and post-pandemic, the education system has had to reinvent itself – and fast!
It would be amazing for any of us to walk into any classroom today and see the massive changes teachers are making; adding computers, working together, using iPads, etc. Since this industry is constantly evolving, people have discovered that there are other ways to learn besides attending school. In today’s world, we can all gain knowledge through computers, mobile phones, software, and applications, which is why EdTech has started snowballing. Check our blog post on “How professors are adapting to EdTech” for a more in-depth look.
But how are those companies growing that quickly? The answer is simple; with a product-led growth strategy. There’s a ton of evidence to show that adopting a PLG focus can bring your business the level of success you’re searching for. Here are just some of the major benefits of a PLG approach in the EdTech industry:
Benefits of a PLG approach in EdTech
Gaining and retaining users
Growth in users refers to the number of people who signed up in a specific time period to use the product. Using the PLG strategy, users who like the product and start to use it for free will be more likely to purchase it. If they continue using it and find it useful, they’re more likely to become a long-term, loyal customer.
Through product-led growth, EdTech companies can dramatically widen their top of the funnel with engaged users and create a lot of goodwill. As a result, companies using this strategy are more likely to convert free users into paid subscribers, basing strategy on the product as the main driver of the company.
One of the main purposes of PLG is to maintain proactive engagement with each customer. This is an essential way to determine the value of the product provided. A good example of this is a classroom app that uses the number of engaged users (teachers) as an indicator of when the school is ready to buy schoolwide licenses.
Time to Value
TTV is the period of time a user reaches the “aha” moment when first starting to use the product. It’s also related to the onboarding process they receive. The shorter, the better.
Gamification in EdTech
Everyone agrees that playing games while learning is fun, right? It has been demonstrated that the introduction of game elements to non-game contexts improves learning by increasing student motivation. Because of this, gamification is now a key element for the EdTech industry, effectively keeping users engaged.
Given its highly engaging qualities, gamification is widely used in the online classroom, typically until students reach twelfth grade. Not only does it encourage learning, but also motivates action, influences behavior, and drives attention and knowledge acquisition.
How can EdTech companies benefit from gamification?
EdTech companies can improve their products by adding games designed with AI, Big Data, cloud technology, mobile learning, and VR. All of these tools will:
- Increase gamified learning and allow students to use their imaginations to apply educational concepts.
- Allow teachers to apply those gamified practices when introducing new subjects and make their classes more dynamic.
- Gain insights into the effectiveness of different solutions in the EdTech market.
Product-Led Growth in EdTech
The data is clear! Product-Led Growth is the new trend in EdTech companies for many reasons. Not only does it give you a chance to create a more successful product and facilitate user engagement, but it also allows you to understand your customers better to create a more successful company.
In short, EdTech companies are now developing PLG strategies and placing more emphasis on customer retention, satisfaction, and loyalty rather than on the buyer.
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Emily G.-Cebrián Lomban is the CEO and Co-founder of FROGED, the award-winning Product Success platform, and Forbes Spain’s Top 100 Creatives. She is a highly sought-after international speaker, most recently at IESE, TechCrunch Disrupt, ICEX, and was recently named one of the top 100 Creatives in Spain by Forbes. She has an extensive background in business development in software, energy, and industrial sectors. She has launched and expanded businesses in Brazil, Malaysia, France, and Spain, developing and managing multinational and multidisciplinary teams, and has co-founded FROGED, a Product Success platform built by SaaS for SaaS, designed to help businesses increase conversion rates and prevent churn.