Demystifying Ed Tech Sales Funnel for Demand Generation

EdTech is a rapidly evolving sector, expected to grow at a CAGR of 13.6% from 2023 to 2030. There are a couple of factors responsible for the growth. The pandemic boosted EdTech, as many students switched to online learning. This led to new forms of remote education when everything closed.

Smartphones are helping more people study whenever and wherever they want. Innovations in EdTech and the need for collaborative learning also drive growth.

Many companies see the great potential of EdTech, which has made the market more competitive. It has become highly challenging for EdTech companies to create and sustain demand for their products and solutions.

The need of the hour is to implement an effective sales funnel that supports effective demand generation. Keep reading to know more.

What is Demand Generation?

Demand generation marketing uses the inbound methodology to create awareness and interest during the customer lifecycle or sales journey. To create a successful demand generation strategy, you must think about every step in the sales process. This includes when a customer first visits your website, all the way to when they become a happy customer and beyond.

Marketing and sales activities involve creating awareness, attracting leads, and driving customer demand for a product.

The demand generation process is closely aligned with the sales funnel as they both map potential lead journeys from awareness to action. So, let's explore what a sales funnel means and how you can generate demand with every stage of the funnel.

Sales Funnel of An EdTech Industry: Grow Your Business with Effective Demand Generation

A sales funnel is a series of steps prospects take, from learning about your EdTech company to becoming buyers. Establishing a sales funnel is one of the most effective ways to boost your demand and nurture leads.

Using it lets you know how potential customers buy and their stage. You can use these insights to decide which marketing channel and content to use. This will help guide the prospect toward the purchase.

The sales funnel tailors content and messages to meet customer needs and increase conversions.

The five main stages of an EdTech sales funnel are as follows:

1. Awareness

'Awareness' is at the top of the funnel. It's the earliest part of the customer journey, where they go through a specific problem and search for potential solutions. As they try to understand the problem, they will look for a trusted source of information, which is where your business comes in.

For instance, your customers might be interested in learning more about Python so that they may be looking for online courses. You aim to provide well-informed and relevant content aligned with your brand and offerings.

To engage leads and generate demand, build your brand presence and show the audience who you are with valuable content. Here's how you can do this:

• Search Engine Optimization

If your website is on the first page of search results, it is easily seen and gets more visitors. Try to rank higher on search engines by leveraging relevant keywords the audience uses to search your industry. Focus on creating a schedule for publishing content and stick to topics and ideas thriving within the EdTech sector.

• YouTube Presence

After Google, YouTube is the most used search engine. Your business is likely to connect with its target audience on the platform. You can improve brand awareness by having a presence on YouTube. Create videos showcasing your product, featuring customer testimonials, and providing helpful how-to guides. These videos will help you attract potential customers and generate interest in your solutions.

• Paid Advertising

Paid advertising is a good idea in the awareness stage because not all leads will find your business independently. Sponsored social media and Google advertising will help attract an ideal audience and introduce them to your brand.

2. Interest/Research

This is the second stage, where you cultivate the target audience. The first interactions at the awareness stage will hook some prospects and draw them deeper into the funnel. With their interest developed, these people will learn about your EdTech company and your solutions. They may visit your website, read your blogs or explore your products.

Some ways to nurture leads at this stage and push them forward include:

• Targeted Content

Content plays a critical role in almost every stage, but targeted content is created with your ideal audience in mind. If your EdTech business is focused on e-learning, your target audience would be students or adults interested in learning more. Your writing should be about topics they care about and posted on social media they use.

• FAQs

A page of frequently asked questions has answers to common problems that potential customers often have. They help address the target audience's issues and build trust with your brand. Not to mention, FAQ pages are great for improving SEO, ranking position, conversion rate, and customer experience.

• Webinar

Webinar provides information about your business in a non-committal way. Companies that host webinars appear as credible and reputable in the industry.

3. Evaluation

At this stage, potential customers review and compare EdTech solutions to other options. Though they are interested in making the purchase, they aren't 100% convinced as of yet. To help companies make decisions, they should provide helpful information or incentives for their specific needs. This will demonstrate the unique value of their products or services.

Some ways companies can nurture potential leads during the evaluation stage include:

• Free Trial

Offering free trials of your EdTech solutions is a great way to show the unique value of your product and how it benefits. You can provide a free month's trial and persuade customers to purchase the paid version. A subscription period followed by an auto-renewal is also a good idea. It helps because not all prospects use their free trial on time, and autorenewal helps to remind them.

• Free Consultation

A free consultation is a great way to connect with leads and pitch your ideas, whether in person or online. Consultations are great for smart boards, interactive projection screens, and in-classroom tablets.

4. Action

This is when potential leads take the desired action and convert into customers by purchasing your product. The ways to ensure sales for your product in the decision stage are shared below:

• Providing Social Proof

Social proof takes the form of reviews, existing customers' media coverage and more to convert your leads into customers. People trust and rely on the words of others. Showing what other customers think about your solutions is an effective way to build trust and generate sales.

• Exclusive Offers

Some leads might be easily convinced to purchase your products for others, but a little extra nudge is required. This is where exclusive offers enter. Coupons, discounts, and contests, among others, make leads feel special.

5. Retention

This sales funnel stage is often overlooked once a lead turns into a customer, so it is usually not found in many horns. But keeping customers coming back is essential for your EdTech business to succeed. Loyal customers who love your brand can convince others to buy your products.

Some way to retain customers and keep in touch with them includes:

• Newsletters

A monthly or weekly newsletter keeps your brand fresh in the customer's mind without seeming forceful. You can share industry updates, new product launches, relevant insights or news with newsletters.

• Reward System

Reward systems help customers feel like they're gaining something with every purchase. Building brand loyalty becomes easy when customers feel valued and appreciated. Your reward doesn't have to be specific to your EdTech sector but can be anything from Air miles to coffee cards.

• Request Feeback

Collecting customer reviews and ratings offers a chance to interact and make them feel like their thoughts matter. They also help to improve products for higher user satisfaction. These are a great source of content for the research and purchase stage.

Summing Up

There is a wide array of opportunities awaiting businesses wanting to enter the EdTech industry. Companies can face challenges, but a sales funnel attracts leads, generates demand, and secures growth.

An EdTech sales funnel will help you understand the target audience and where they stand in the sales journey. With that, you can develop marketing and sales tactics to convert them and successfully generate sales for your products. 

We help EdTech companies improve their sales funnel and conversation rates with strategic solutions and tools at Growth Jockey.

Frequently Asked Questions

1. What kind of content can EdTech companies create for the consideration stage?

EdTech companies can create content for consideration stage to nurture leads includes case studies, whitepapers, and webinars. This stage focuses on providing valuable information and underlining how your product is the best.

2. What are the benefits of hosting a webinar for an EdTech Business?

Webinars allow EdTech companies to build a professional network and effectively connect with their target audience. It helps them to position themselves as an authority figure in their industry. Not to mention, webinar content can be repurposed as a blog or podcast.

3. How can EdTech companies create compelling content that resonates with their target audience?

To create content that resonates well with the target audience and understand their needs and pain points. Research your target demographic, build ideal buyer personas, and understand the stage where the target audience stands to develop relevant content.