Coaching Classes: The paradigm is changing… Step back & Take Stock

The Impact 

There is no debate, on the positive impact that professional coaching classes have had in helping both students and professionals in their quest to shape their careers. Their contribution has been significant. They have become as important and necessary as schools these days. It is rare to see a kid taking up something without the help of coaching — be it studying, learning a musical instrument or playing sports. It is a trend in India, especially when it comes to the field of education and competitive examination preparation.

The Opportunity

One fact underlines the importance of education in the Indian context. Given a choice, Indians prefer spending more on education than healthcare. As highlighted in the economic survey of 2017-18, the income elasticity on education is lower (0.93) than healthcare (1.95), which means that Indians continue to spend higher on education in relation to the change in their income. 

A study by DataLabs By Inc42 on the data provided in the mentioned economic survey concluded that education is among the top five fastest-growing segments in terms of private consumer expenditure. The compounded annual growth rate (FY12 TO FY16) of expenditure on education-related products was 6.3%, relatively higher than food and beverages (4.1%). All these numbers indicate that the demand for education-related products and services in India is poised to be steady in the coming years and a significant opportunity for growth. In 2019, the total market size of education in India was estimated to be $101 billion, which is a 10% growth compared to the previous financial year.

With an opportunity so huge, it is not surprising that prep schools are proliferating across the country. But how are you going to seize, leverage and monetize this opportunity? Here are some facts that you may want to give a thought to.

The Shift

The delivery mode for imparting coaching education is shifting. Edtech start-ups are at the forefront of this paradigm shift — between 2014 and 2019, the total capital inflow across Indian edtech start-ups was $1.8 billion, growing at a CAGR (2015 to 2019) of 47%. Prior to the edtech investment influx, the traditional coaching centres enjoyed overwhelming dominance of the test preparation demand in the country. The widespread penetration of the internet and smart devices has increased the addressable market for internet based businesses. Slowly but steadily, the edtechs are overtaking the traditional coaching institutes. 

So to neutralize competition and stay ahead, here are some guidelines to contemplate:

• Differentiate

The most effective way and the fastest is to cut through the noise of your competitors is by differentiating your offerings. It could be your value proposition, pricing, the market segment you serve, content delivery options, etc. 

It is key that you identify and choose a few areas of specialization that show future potential as avenues for professional opportunities. But if you choose to go by traditional areas that provide volume, you have to be super-efficient in your operating model to ensure adequate margins for the operations. This segment is super saturated and certain established brands dominate. The fact that candidates travel to certain hubs within the country to attend classes validates that. 

As Peter Thiel said, “you can either be 10x more efficient than your competitors, or be different.” “In a super competitive market where you’re not that different from your competitors, you have no choice but to ruthlessly squeeze out every efficiency.’”

• Leverage Technology as an Effective Tool:

One just cannot ignore the value and benefits of technologies in modern time. If used properly, technology can just revamp a business operation, resulting in the brand to be fruitful in every sort of manner. Same is the scenario with coaching businesses. A coaching business owner should turn tech-savvy in order to grow their business in today’s time. Especially when the learners and consumers are heavily affected by technologies, walking on the same path could create a mutual understanding towards each other, eventually benefiting a coaching organization. 

Coming at a very minimal cost, coaching institutes should invest in applications that could help them in e.g. maintaining a record of attendances, providing notes and assignments to students, remote contact sessions, options for one-on-one coaching etc., 

In fact, some coaching institutes have already started with this service which is proven successful so far.

• Offer Free Content on your Website:

Whether you’re just starting out or looking to grow your coaching client base, a free trial is a must. From blog posts, consultation calls, to detailed guides, the quality of free content you offer to potential clients will determine the amount of price they’re willing to pay. Teaser videos of some of your flagship offerings need to be available on your website. 

Providing amazing free content is not only a differentiation strategy to help you stand out, but it’s also a way to increase your sales. When you can “wow” clients on the amount of great value you are putting out for free, the natural inclination is to wonder what you can bring to the table when they purchase your premium/paid services.

• Referrals:

  Asking for referrals after providing a great experience is one of the best ways to market & grow your business. By allowing your clients to be your sales team, you’re able to acquire free clients that have built-in trust in what you can offer. 

  Short videos showing client feedback and appreciation are a must on your website. 

You can also sweeten the deal for your clients by giving them an incentive through a referral fee for each client they refer. But none of this happens unless you ask. It may feel uncomfortable, but remember that the worst thing your clients can say is, “no.”

• Free Seminars:

Marketing also includes conducting activities such as free workshops or counseling sessions where you give away free give-away items like key chains, hats, pens, etc. with your company’s logo on it. This would also be a good time to distribute brochures and e-books too as your audience would keep it along with the give-away item. These activities allow you to subtly promote your product and brand because the event gives the consumer a first-hand experience of who you are and the give-away and brochure a reminder when they sit to make a choice. 

No matter how much you market your coaching classes, the ultimate advertisement is your teaching material, quality of education and the flexibility with which the content can be delivered. The effectiveness and efficiency that you exhibit in your operations, will ultimately translate to results. That will be the catalyst to sustain, grow and differentiate in a fairly cluttered, chaotic and competitive coaching landscape.