When you offer your online courses and services at Turion or any other platforms, it is important to know certain key performance indicators (KPIs). These KPIs give you a good sense of what is helping you with your offerings versus what is not helping you. For example, the KPIs can be a guide to your pricing strategy, customer satisfaction, where to invest more on marketing, and so on. Surveys can be a good source of information, but in our opinion, people’s actions are far more telling than what they say on a survey. Moreover, with these trackable KPIs, people don’t need to take extra time to fill out a survey.
Here’s a few KPIs that you should look out for:
The conversion rate measures the percentage of visitors who actually make a purchase. A low conversion rate may indicate issues with your sales funnel, pricing, or course presentation.
Churn rate refers to the percentage of customers who cancel or request refunds after purchasing your online course. A high churn rate could suggest dissatisfaction with the course content, delivery, or value for money.
Customer Lifetime Value (CLTV)
CLTV estimates the total revenue you can expect to generate from a customer over their lifetime. It takes into account the average purchase value, the average retention period, and the average number of repeat purchases. Maximizing CLTV involves increasing customer loyalty, reducing churn, and encouraging upsells.
Return on Investment (ROI)
The formula of ROI is Net Profit / Cost of investment x 100%. ROI helps you understand the profitability of your online course. It calculates the net profit generated relative to the initial investment. Monitoring ROI allows you to evaluate the effectiveness of your marketing campaigns, sales efforts, and cost management. Other than financial ROI, it is also important to consider the time and effort being put into an investment. Certain investments demand a larger amount of time and effort to execute, which may or may not be worthwhile. A big no-no will definitely be something that requires large financial investment, along with a lot of time and effort. Things like this will lower your ROI drastically, so stay away from those. Nonetheless, if you find something that is worth the time and effort, then we say go get it.
Traffic Sources and Conversion Rates
Analyzing the sources of your website traffic and their respective conversion rates can provide insights into which marketing channels are driving the most valuable traffic. This helps you optimize your marketing budget and focus on channels that yield better results.
Net Promoter Score (NPS)
This is one of the surveys that we think can be very helpful. NPS is a metric used to measure customer loyalty and satisfaction. It provides insights into how likely customers are to recommend your product or service to others. NPS is widely used across various industries as a benchmark for customer experience and loyalty. It is basically done by asking your customers one question: “On a scale of 0 to 10, how likely are you to recommend this course to a friend or colleague?”. Responses will be split into three categories, namely: Promoters (score 9-10), Passives (score 7-8), and Detractors (score 0-6). To calculate the NPS, you subtract the percentage of Detractors from the percentage of Promoters. The final NPS score ranges from -100 to +100.
From our experience, the best courses score from +30 to +60. Some outliers can get even higher. Decent courses get anything from 0 to +20. Anything that scores below the decent range might mean something is terribly wrong. However, don’t get discouraged by a low score. Many courses, even companies selling products and services, start off with a very low NPS. Keep identifying points of improvement using other KPIs, and you should be good.
Monitoring KPI’s over time can be very beneficial to your success. It is also crucial to not overreact when you get bad numbers, and make appropriate adjustments using the data.