Here is the list of the top KPIs for EdTech to boost your company’ sales
Before you deep dive into several key performance indicators or KPIs for EdTech it is good to briefly discuss their background: key performance indicators are measurable values that function as a measure of performance for your educational technology or EdTech firm. Key performance indicators for EdTech help you determine whether crucial goals are being achieved. KPIs for EdTech are vital metrics that help you distinguish successful activities from less successful ones. Not every firm uses the same Key Performance Indicators, there exist numerous, and which ones are appropriate to utilize hinges on your type of business, company, and even department/activities. Here is the list of the top KPIs for EdTech to boost your company’ sales:
The number of active users is very interesting for educational technology or EdTech services and apps. Active users represent the number of unique visitors that perform activities on an EdTech app or webpage. Key Performance Indicators for EdTech allow you to have insight into the number of active users you can better predict the demand for a product and the user growth rate.
Next on the list of the top KPIs for EdTech to boost your company’s sales is the gross margin. It shows you the difference between the total production costs of your educational technology product or service and the total revenues of the related sales. In order to arrive at your EdTech company’s operating profit (EBIT) you deduct operational expenses such as sales, marketing, R&D, and more from the gross margin.
When you are the founder of an educational technology firm and have never heard about the burn rate, you should scratch your head. The burn rate is one of the vital key performance indicators for determining the runway and helps you establish at what point in time your firm will be out of money based on your current cash flows.
The conversion rate is one of the key performance indicators for Edtech used to count the number of people that perform a certain action based on a ‘call to action’ represented as a percentage of the total amount of people that have been exposed to the call to action. The eventual conversion to a final customer gives validates both the ability of an educational technology firm to sell a product/service and the demand of the market for that product/service. It is one of the important key performance indicators in order to boost educational technology sales.
Customer Acquisition Costs (CAC)
This is an important KPIs for EdTech particularly used to show the average expenses required to acquire a new customer. These typically include sales and marketing expenses. The CAC informs you about the effectiveness of your sales & marketing strategy and helps you with optimizing the return on investment (ROI) of these tactics.
Customer Lifetime Value
The customer lifetime value (CLTV or LTV) is one of the most important key performance indicators for EdTech as it is a prognosis of the total revenues that one client will generate on average during the full period that he/she is buying or using your services or products.
New Leads and Clients
The next KPIs for EdTech are plain and easy: the number of new leads and new customers developed in a given period. Each and every educational technology firm has targets related to acquiring new customers. On the basis of the conversion rate from lead to client, you can calculate the number of leads you need to achieve your target of new clients. It is one of the crucial key performance indicators.
In this list of the top KPIs for EdTech next is Revenue (growth)! The existence of revenue validates that there is demand for your educational technology products or services and revenue growth indicates that you have adopted an effective sales and marketing strategy. Revenue growth is a crucial key performance indicator as it expresses the growth per week or month.
Vital for educational technology or EdTech company: the runway. The runway is a key performance indicator used to show the time your company has left until there is no money left anymore, usually expressed in a number of months. The runway is hence closely related to the burn rate.