Last month I finished up a project supporting Chalkie AI to sell into MATs and US school districts and it really got me thinking on what the future of EdTech sales looks like. If you're not familiar with Chalkie AI, it generates curriculum aligned lesson presentations and activity sheets. It's an amazing platform which is why one of the reasons it's the fastest growing EdTech in Europe.
Over the past 15 years, I've built 3 of my own EdTech companies as well as advised over a dozen category leaders, and this experience led me to develop a very effective growth playbook that consistently drove revenue in the companies I worked with.
The data nerd in me has always been interested in the macro trends that are shaping the schools market, which as a result, shape how companies need to market and sell their product effectively.
The Marketing to Schools report showed that 57% of companies are finding it harder to sell to schools. No-one said it was getting easier and that to me is very curious because a number of established companies (3,000+ school customers) took part. Traditionally, once a company reaches 1,000 schools, sales really accelerate. Brand reputation hits a tipping point (schools trust what other schools are using). Inbound sales increases as word of mouth spreads. As staff move jobs, they might sign their new school up (2nd order effects). With more customers, companies typically have greater marketing funds to deploy - they exhibit at the likes of BETT Show, give out nice goodies, and capture hundreds of leads. Together, you can see how larger companies benefit from this virtuous cycle. Sales should become easier.
However, AI has changed the rules of the game and it's affecting all EdTechs, large and small. Over the past year, I've been re-evaluating my own growth strategies that have served me so well over the years because many are just not that effective any longer.
Every EdTech needs to have a B2C offering
This doesn't need to be a fully fledged sellable product you release on the App Store. What I mean by this is teachers need to be able to experience your product on their own and benefit from it. I'm not talking about a free trial of the school product. This is useful, but it's become a pre-requisite. Schools want to test before they buy, so having a free trial doesn't stand you out from the crowd like it once did.
And the traditional school sales and marketing channels are changing. Here's what I'm seeing personally in my own business and hearing from fellow founders:
- Events and tradeshows are getting more expensive, but the number of leads most companies generate at a show is around the same it's always been. It's costing more to generate each lead.
- Email marketing is becoming less effective. It's really hard to get in touch with schools over email, and if you do, getting them to book a demo is difficult. From the leads you get, conversion is much lower.
- Schools are in a time where they're very price sensitive, and I've seen many instances where they don't buy any solution at all. 3 years ago, if a school trialed a product, 60-70% of the time that would convert to a sale. Last year I worked with companies where their trial conversion was half this number. Budgets have always been tight, but I see schools more willing walk away from trials unless they're fully convinced.
- School buying cycles are becoming longer. As the centralisation of finance (GAG pooling) accelerates in MATs, central teams increasingly control the purse strings meaning an additional layer of approval is needed. And this is before considering it the product fits into a strategic vision that medium / larger Trusts are beginning to develop.
A B2C offering enables you to sidestep much of the above process as you're coming in warm to the school. If you're selling a school license, you already have a champion in the building. You can generate leads much more cheaply with digital methods. And best of all it's faster, much much faster to test.
That's how AI companies like Chalkie AI and Teachmate are seeing rocket ship growth in the UK, as well as the likes of MagicSchool, Diffit, and School AI in the US (who will inevitably come to British shores).
You don't need to become an AI company to acheive faster growth.
I picked the above examples because this new wave of AI-native EdTech companies show how effective going 'teacher first' can be.
'Teacher first' was the strategy that powered Arbor's early growth. When I joined to head up Growth, Arbor had around 250 MIS customers and SIMS was so embedded (they held 82% of the market) that most schools didn't even know they could switch their MIS provider. Today Arbor is a huge success and has 12,500+ MIS customers, but a key part of the story that is largely unknown is the Arbor Insight product, an automated report tool built for headteachers. A B2C product that powered Arbor's early growth.
Moving away from the traditional school sales model can feel a little daunting, especially if you're running a good sized traditional EdTech SaaS business. But the opportunity is you can flip the entire marketing model in school sales.
With a good B2C tool, you can circumvent the need to spend big on the likes of BETT or drop thousands on cold email campaigns.
With AI it's so fast and easier to build, that I do believe it will become essential to have a B2C offering if you want to grow your EdTech business.
I'm not just preaching theory, I've experienced this in my own business. School SCR is a back office compliance tool. It's not exciting or sexy software and I have to be hyper focused to effectively reach our target audience. In June, we won 5 Trust deals (this is our first full sales cycle). The biggest win was a 28 school Trust who signed a 3 year contract, picking us over CPOMS. It cost 57p to generate this lead from a B2C offering we have out there. It really does work.
Something cool is coming... The EdTech Revenue Club!
The EdTech Revenue Club is a private membership community for anyone selling into schools and Multi-Academy Trusts who wants to generate more leads, win more deals, and grow revenue faster.
Over the years I've undertaken lots of advisory and fractional roles, and as much as I love helping companies, I'm only able to work with 1 company at a time. The EdTech Revenue Club will enable me to share my expertise and insights more widely, and equally make it more affordable to access experience and expertise.
Through this community, I'll teaching you high-impact, proven school sales tools and tactics that will help you grow your business, and I'll be combining it with how I'm using AI tools and workflows so you too can gain a competitive advantage.
Pre-register on the landing page for more information when it's released and an exclusive "founding member" offer: The EdTech Revenue Club
Upcoming Masterclasses
1. Sept: AI Marketing that Cuts Through the Noise
In the back-to-school period, teachers receive a tidal wave of marketing at a time when they've never been busier. In this masterclass, we'll look at how you can use AI tools to create high quality content that is unique to your company and valuable to your audience. You'll cut through the noise to generate higher quality leads.
2. Oct: Agentic AI School Sales Agents
Together we'll be build an agentic sales agent to automate outreach to your school leads, personalising each message to your solution and making it unique for their school. Think of it like having an army of great sales people at your disposal, only it costs just £19.99 per month.
3. Nov: Multi-Academy Trust Targeting
Everyone wants to sell into Trusts but with over 1,100 to choose from, knowing where to start can be a challenger. Not only do Trusts comes in all shapes and sizes, but understanding central team buying processes can be a confusing process. What works in one Trust, often doesn't work in the next. In this Masterclass, you'll learn how to identify your first 100 Trusts as well as the tactics and tools to effectively outreach to them.
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As always, thanks for reading. All the best, Jay
