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Coursera // Stanford
Pre-Business Association
Consulting Team
Final Presentation
May 12, 2016
Grace Geng, Economics Class ...
Roadmap
Overview
Customer Profiling
Case Studies
Recommendations
Customer Responses
Summary
Coursera presents unique strategies in the online education space
Coursera EdX Udacity Udemy
Code
Academy
Comprehensive
co...
Roadmap
Overview
Customer Profiling
Case Studies
Recommendations
Customer Responses
Summary
Customer brand awareness is strong
120mm new
tablet users in
3 years.
89% of Stanford students have heard
about Coursera
2...
Most popular type of courses and incentives are professional
The most popular types of courses are Engineering and Busines...
Young users are growing and willing to pay
Coursera is the one of the most popular online education websites. Most young u...
Comment Highlight - What do you like about Coursera
Affiliations with top colleges and access to
professors from those col...
Comment Highlight - Potential Improvements for Coursera
Some more interactivity would be nice - there's
not much interacti...
Roadmap
Overview
Customer Profiling
Case Studies
Recommendations
Customer Responses
Summary
Udacity –
•
• Encourages users to take more courses
•
•
•
•
•
•
–
•
• Allows users to experience all of the content without letting them graduate or get credential
•
•
•
●
○
○
●
○
○
●
○
○
●
●
●
●
Recommendations
Roadmap
Overview
Customer Profiling
Case Studies
Customer Responses
Summary
Referral Model
Sampling Model
...
Referral Program
Alumni can share their Coursera experience to get coupons for both themselves and their friends.
Competit...
• Build a Coursera alumni
database, which helps
to create a Coursera
community and gain
recruiters’ attention
• Address th...
Alumni Referral - Share your experience in exchange for coupons
Alumni can share their Coursera experience to get coupons ...
Multi-level Referral - Exponential growth and community engagement
Multi-level referral programs can create a network expo...
Multi-level Referral - Get coupons when your friends refer friends
Users can refer their friends to get coupons for themse...
Recommendations
Roadmap
Overview
Customer Profiling
Case Studies
Customer Responses
Summary
Referral Model
Sampling Model
...
• More users means more
data to analyze. This
gives Coursera the
necessary information to
help bring new courses
and mater...
• More users means more
data to analyze. This
gives Coursera the
necessary information to
help bring new courses
and mater...
Freemium - A system that is known to work
Alumni can share their Coursera experience to get coupons for both themselves an...
Specific recommendation:
• Give a 14 day free trial
• 14 days are better than 7 because many courses take
months
• Make of...
Recommendations
Roadmap
Overview
Customer Profiling
Case Studies
Customer Responses
Summary
Referral Model
Sampling Model
...
• 54% of customers would consider increasing the amount of business they do with a company for
loyalty rewards1
• Acquirin...
For customers who complete and pass a certain number of courses:
• Provide coupons for use on future courses following cer...
Roadmap
Overview
Customer Profiling
Case Studies
Recommendations
Customer Responses
Summary
Second Coursera survey for 25+ users
● Respondents: 133 Stanford Alumni
● 130 over the age of 25
● 63.2% heard of Coursera...
Promotional strategies preferred by people who know Coursera
For people who have heard of Coursera, a free introductory co...
Promotional strategies preferred by people who have not heard of Coursera
For people who haven’t heard of Coursera, a free...
• The majority of people want to obtain recognition in exchange for taking a Coursera
course to completion
• People also h...
Comment Highlights: What would convince you to take a paid Coursera
course?
[A 1-week free trial], nothing else would
conv...
Roadmap
Overview
Customer Profiling
Case Studies
Recommendations
Customer Responses
Summary
Final Rankings
Top Choices: Free Introductory Course or Free One Week Trial
Secondary Choices: Friend Referral or Official...
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Coursera Final

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Coursera Final

  1. 1. Coursera // Stanford Pre-Business Association Consulting Team Final Presentation May 12, 2016 Grace Geng, Economics Class of 2017 Graeme Hewett, Economics Class of 2018 Andrew Jabara, Economics Class of 2018 Sidd Gupta, Economics Class of 2018 Sarah Min, Economics Class of 2019
  2. 2. Roadmap Overview Customer Profiling Case Studies Recommendations Customer Responses Summary
  3. 3. Coursera presents unique strategies in the online education space Coursera EdX Udacity Udemy Code Academy Comprehensive courses ✔ ✔ ✔ Professional learning ✔ ✔ ✔ ✔ ✔ Casual learning ✔ ✔ Partner with colleges ✔ ✔ Partner with employers ✔ Subscription ✔ ✔ Free courses ✔ ✔ ✔ Coursera has limited competition within the market segment • Coursera provides a variety of courses from top universities • EdX is the main competitor, which offers more free courses and some university credit • Many other competitors focus on computer science online courses specifically Coursera uniquely positions in the comprehensive online education segment with significant partnership with educational institutions.
  4. 4. Roadmap Overview Customer Profiling Case Studies Recommendations Customer Responses Summary
  5. 5. Customer brand awareness is strong 120mm new tablet users in 3 years. 89% of Stanford students have heard about Coursera 23% of non-Stanford participants have heard about Coursera -- Out of the 109 Stanford students surveyed -- Out of the 81 participants surveyed 32% of total participants have taken at least one course with Coursera -- Out of the 190 participants surveyed
  6. 6. Most popular type of courses and incentives are professional The most popular types of courses are Engineering and Business. Main incentives are Professional Certificates.
  7. 7. Young users are growing and willing to pay Coursera is the one of the most popular online education websites. Most young users are willing to pay. People start to take Coursera courses at an early age.
  8. 8. Comment Highlight - What do you like about Coursera Affiliations with top colleges and access to professors from those colleges; Huge volume of participation from colleges and universities from around the world. “ ” There are lots of different subjects, and you have flexibility in terms of scheduling or learn during your fragmented time. “ ”
  9. 9. Comment Highlight - Potential Improvements for Coursera Some more interactivity would be nice - there's not much interaction with other people “ ” Organization of course info, maybe a "quiz" on first steps? -- leading you to what your interests are and what a good first class would be? “ ” Course completion has been the major problem and I think having sets of transferable "skill" badges e.g. debugging, HTML, Writing Proofs etc. would be helpful. “ ” End of course qualification that is recognized outside of Coursera“ ”
  10. 10. Roadmap Overview Customer Profiling Case Studies Recommendations Customer Responses Summary
  11. 11. Udacity – • • Encourages users to take more courses • • • • • •
  12. 12. – • • Allows users to experience all of the content without letting them graduate or get credential • • •
  13. 13. ● ○ ○ ● ○ ○ ● ○ ○
  14. 14. ● ● ● ●
  15. 15. Recommendations Roadmap Overview Customer Profiling Case Studies Customer Responses Summary Referral Model Sampling Model Award Top Customers
  16. 16. Referral Program Alumni can share their Coursera experience to get coupons for both themselves and their friends. Competitors use alumni’s success as their major selling point • Udacity lists its top alumni and their current job titles on their front page • EdX and Linux both have extensive sections how on they have changed their users’ careers Alumni can share their Coursera experience to get coupons • Upon finish a course, users can choose to submit their current job or new job progress in exchange for coupon for themselves and their friends • Past users can send their friends invites through a quick link and receive coupons by number of invitations sent • Alumni can share their Coursera’s experience through their social media and receive free courses based on the number of likes received • Alumni database can be used to build online community or serve as content for social media marketing M
  17. 17. • Build a Coursera alumni database, which helps to create a Coursera community and gain recruiters’ attention • Address the customers’ need for an online learning community Online Community An alumni referral program can associate Coursera courses with professional success, create a strong online community, and encourage user retention Alumni Referral - Build online community and alumni retention • 126/190 participants in the first survey listed “Professional Certificate” as a reason for purchasing online courses • Demonstrate what the Coursera certificate can do Professional Incentives • Encourage to finish courses • Invite past users to take more courses • 5% of customer retention rate typically increases 25 – 75% of customer value, due to their referral behaviors Alumni Retention
  18. 18. Alumni Referral - Share your experience in exchange for coupons Alumni can share their Coursera experience to get coupons for both themselves and their friends. Competitors use alumni’s success as their major selling point • Udacity lists its top alumni and their current job titles on their front page • EdX and Linux both have extensive sections how on they have changed their users’ careers Alumni can share their Coursera experience to get coupons • Upon finish a course, users can choose to submit their current job or new job progress in exchange for coupon for themselves and their friends • Past users can send their friends invites through a quick link and receive coupons by number of invitations sent • Alumni can share their Coursera’s experience through their social media and receive free courses based on the number of likes received • Alumni database can be used to build online community or serve as content for social media marketing
  19. 19. Multi-level Referral - Exponential growth and community engagement Multi-level referral programs can create a network exponentially through users’ personal relationships. Achieve high growth • Incentivize users to develop their personal network in Coursera • Transform users into sales force • Increase mentorship among referrals Increase community engagement • Create a community of users • New users are introduced to Coursera through multiple angles • The referral program becomes recurring for users Introduce personal relationships • Users bring in their personal relationship to Coursera • Increase social media posting content
  20. 20. Multi-level Referral - Get coupons when your friends refer friends Users can refer their friends to get coupons for themselves, their friends, and middle connections. Multi-level referral has been the strongest growth point for some companies • NU Skin, a cosmetic company grew its China presence by 320% in the past 2 years through a multi-level referral program • Other companies such as Amway and Avon all experience significant revenue growth through the programs Users get coupons when their friends bring in new users • Users have their friends enter a unique code when creating account • When the new user makes a purchase, all users signed up in the chain receive a coupon • A chain can go up to 6 levels Potential risks • Coupon must incentivize users to buy courses without giving away too much • Dilute the brand
  21. 21. Recommendations Roadmap Overview Customer Profiling Case Studies Customer Responses Summary Referral Model Sampling Model Award Top Customers
  22. 22. • More users means more data to analyze. This gives Coursera the necessary information to help bring new courses and material. • See what people like and don’t like. Need more computer science, you can do that. Course Analytics A ‘freemium’ model can allow Coursera to increase its user base, develop courses based on what people learn, and brings stability to the business. Sampling summarize • Encourages new users to learn new material and expand their knowledge base • Smaller barrier of entry for people. Allows them to dive into the service without having to sacrifice anything Larger User Base • Certain number of paid and non-paid users • This helps better predict what revenues will be in the future, based on number of paid users • Stability is important. Stable Cash Flows M
  23. 23. • More users means more data to analyze. This gives Coursera the necessary information to help bring new courses and material. • See what people like and don’t like. Need more computer science, you can do that. Course Analytics A ‘freemium’ model can allow Coursera to increase its user base, develop courses based on what people learn, and brings stability to the business. Freemium - Encourages users to explore and try new courses • Encourages new users to learn new material and expand their knowledge base • Smaller barrier of entry for people. Allows them to dive into the service without having to sacrifice anything Larger User Base • Certain number of paid and non-paid users • This helps better predict what revenues will be in the future, based on number of paid users • Stability is important. Stable Cash Flows
  24. 24. Freemium - A system that is known to work Alumni can share their Coursera experience to get coupons for both themselves and their friends. Competitors use their ability to offer free courses as a major selling point • Udacity shows its free courses on the very front of its website • EdX touts its free courses in the variety of industries People want education to be free • Education, especially online education is expected to be free or low cost • The freemium model allows this to happen while giving people the option to purchase more/different subjects and methods or learning • Gives the ultimate price discrimination model for customers • Coursera gains the ability to gauge how many people use the service and the potential market of the company • Nearly every non-paying customer can be converted into a paying customer Direct Increase in Revenue • According to our survey, a large number of people wanted Coursera to offer more free courses that led into a gateway for paying for services • Students and adults have no problem with paying for education • Test Prep is a multi-billion dollar industry1 • The barrier to entry is too great currently for the average customer 1. http://clients1.ibisworld.com/reports/us/industry/Default.aspx?entid=1544
  25. 25. Specific recommendation: • Give a 14 day free trial • 14 days are better than 7 because many courses take months • Make offers through voucher codes on social media, but only allowing one code per user Advantages: • Gives users exposure to all products but only for a limited amount of time • Low marginal cost of free trials makes it an optimal strategy Risks: • People manipulating the system by creating multiple accounts to get multiple free trials • The first 2 weeks must be impactful so we can hook the users Free 14 Day Trial – Increase exposure with low marginal cost A free weekly trial would be an effective method of attracting paying customers because it gives them the paid model experience without as much of a loss as expanding the freemium model.
  26. 26. Recommendations Roadmap Overview Customer Profiling Case Studies Customer Responses Summary Referral Model Sampling Model Award Top Customers
  27. 27. • 54% of customers would consider increasing the amount of business they do with a company for loyalty rewards1 • Acquiring a new customer can cost five times more than satisfying and retaining current customers2 1. http://web.clickfox.com/rs/clickfox/images/cf-survey-results-brand-loyalty.pdf 2. http://www.destinationcrm.com/Articles/Web-Exclusives/Viewpoints/Listen-to-the-Voice-of-the-Customer-53239.aspx When students are rewarded for passing within a certain time limit, they have incentive to study harder, causing them to: Pay more attention to the presentation of course material Utilize more of the provided Coursera resources Have a positive view of the experience following completion of the courses A Rewards Program can allow Coursera to increase customer satisfaction, build customer loyalty, and retain current customers.
  28. 28. For customers who complete and pass a certain number of courses: • Provide coupons for use on future courses following certification Benefits: • Gives customers motivation to use the site more frequently • Encourage paid users to finish the courses • Increases loyalty of the customer base • Gives customers incentive to continue taking more courses on the site Risks: • Those who don’t receive the reward may feel discouraged • Customers who receive rewards may not necessarily be loyal customers Users can receive coupons for future use when they pass a certain number of courses.
  29. 29. Roadmap Overview Customer Profiling Case Studies Recommendations Customer Responses Summary
  30. 30. Second Coursera survey for 25+ users ● Respondents: 133 Stanford Alumni ● 130 over the age of 25 ● 63.2% heard of Coursera beforehand
  31. 31. Promotional strategies preferred by people who know Coursera For people who have heard of Coursera, a free introductory course is the most popular incentive, followed by a free trial week and asked by a friend/family member. Certificates given Asked by a friend to take together Asked by a family member to take together Taken the free introductory course Experienced a free one-week trial to explore courses
  32. 32. Promotional strategies preferred by people who have not heard of Coursera For people who haven’t heard of Coursera, a free one-week trial is the most preferred, followed by free introductory course and asked by a family member/friend. Certificates given Asked by a friend to take together Asked by a family member to take together Taken the free introductory course Experienced a free one-week trial to explore courses
  33. 33. • The majority of people want to obtain recognition in exchange for taking a Coursera course to completion • People also highly value the recommendation of friends, more so than family Summary of people’s incentives for completing courses
  34. 34. Comment Highlights: What would convince you to take a paid Coursera course? [A 1-week free trial], nothing else would convince me, except a friend who has taken a course and had a valuable experience.“ ” Friend referral is only one I would even consider. “ ” I would take a paid Coursera course if I needed it for work, or if I thought it would be a lot of fun.“ ”
  35. 35. Roadmap Overview Customer Profiling Case Studies Recommendations Customer Responses Summary
  36. 36. Final Rankings Top Choices: Free Introductory Course or Free One Week Trial Secondary Choices: Friend Referral or Official Recognition/Certificate

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