5 key metrics that help edtech startups improve profitability
While some experts expect a second honeymoon period for edtech, founders in the space need to change their tactics and learn how to get more results with less money.
If you have a good product, a great marketing team and a stellar sales team, it makes sense to expect that you’ll earn a lot. Unfortunately, the reality is that these things don’t help much at all.
As soon as you figure out what makes each of your strategies “effective” or “good,” you’ll succeed. It is important to learn how to break down your tactics to improve revenue.
Direct ways to improve revenue
Address sales department effectiveness
Analyzing metrics begins with determining each manager’s target results. Since a person can only do so much, it is important to know how much time and effort everyone is putting in daily.
It’s important to assess your sales department’s workloads to see if anyone is getting too much or too little work. Often, a sales manager may be assigned too many leads, but this can be detrimental to their effectiveness. Overloaded sales managers cannot communicate with clients efficiently, which negatively affects the overall return on marketing investment.
You can calculate “normal” workloads based on your product and take steps to avoid assigning new leads to overloaded sales managers until their workload has normalized.
The service-level agreement (SLA) of each lead
SLAs can be used as an indicator of how quickly sales managers respond to incoming requests. Our data indicates that elapsed time directly correlates to conversion rates.
Managers should call customers back within 5-20 minutes. Conversion rates can decline by 20% to 30% if callback times are between 30 minutes and an hour. A manager who calls back customers after an hour reduces their conversion rate by half.
Create a simple dashboard to track SLA per day and see if your team is overloaded or does not have not enough leads.
Approval rate of bank deferrals and students loans
5 key metrics that help edtech startups improve profitability by Ram Iyer originally published on TechCrunch