Transforming Student Retention for Online Schools

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“The most foundational and cost-effective way to grow an online school and create value is to not lose the business you already have.” This quote from Jean-Marc Aberola, CEO of Bridge Education Group, highlights the critical importance of student and client retention for any language business. Studies support this claim showing that acquiring a new customer can cost five times more than retaining an existing one.  This principle applies equally to consumer-focused language businesses and corporate language training companies, where it is crucial to retain both the corporate client and their learners.

In this white paper, we unpack the research conducted between May and July 2024 and the presentations delivered at the Language Leaders Student Retention Summit 2024, to understand why students drop out and offer practical solutions to keep them on track. 

The first part of this paper focuses on the learner journey, highlighting common dropout points and their underlying reasons. The second part outlines key strategies that have proven effective across various language companies, providing actionable steps to improve student retention.

Understanding the Learner Journey

Typical Student/Learner Life Cycle

To improve student retention, it's essential to first understand the typical life cycle of a language learner. This cycle generally includes the following stages:

1. Enrollment: The learner signs up for a course, often driven by a personal or professional goal.
2. Onboarding: Initial orientation where learners get acquainted with the language instruction provider, virtual classroom software, course structure, homework, expectations, and resources available to them.
3. Initial Assessment and/or First Experience: For both self-study and learners receiving live instruction, it is common for learners to complete an assessment to determine their starting proficiency level and learning path.
4. Regular Learning: The learner follows a structured learning path that may involve both self-study and live instruction using the provided online school platform, ideally with regular assessments or reviews to monitor progress and adjust the plan as needed.
5. Completion and Renewal: The learner achieves a milestone or completes their course. At this point, they decide whether to continue, pause, or stop their engagement with the provider.

It is worth noting the difference between a learner “turning over” and “dropping out”. It is not uncommon for learners to move on after achieving specific short-term objectives. It could be after passing an exam, completing a trip or gaining a promotion. Turnover is not always an “issue” that needs to be addressed and it is common for these previously satisfied learners to return to the same company to achieve the next language milestone.

However, if a meaningful number of learners “drop out” of a language course or program, this is problematic for an online language school. It typically means that the language business is not catering for their needs.

Understanding the above stages helps us identify when and why learners turnover or decide to drop out. We can then look at targeted interventions to keep “at risk” learners on track.

Common Dropout Points and Reasons

Despite the best efforts of language training providers, dropout rates remain a significant challenge. Let’s delve into the common points in the learner journey where dropouts occur and the reasons behind them:

1. Time Constraints: Many learners, especially working professionals, struggle to balance their language studies with their other commitments. The initial enthusiasm can quickly fade when faced with the realities of their busy schedules. As Alex Asher, CEO of LearnCube, found while conducting his timely research in June 2024, "Time constraints are a big issue because often, in both B2C and B2B, students leave because things get busy, and learning a language falls down the priority list."
2. Fluctuating Motivation: After the initial excitement of starting a new course, learners often experience a dip in motivation. Without regular engagement and encouragement, this can lead to permanent dropout. If a learner is mandated to learn with your organisation rather than opting in voluntarily, this could have a big influence on a learner's intrinsic motivation and commitment to the course.
3. Financial Constraints: Language learning with a professional provider or teacher is an investment, and financial positions can change during a course. Unexpected financial difficulties can force students to prioritise other expenses over their language learning.
4. Wrong Approach: Learners can become unhappy if the resources and tools provided do not match their needs or preferences. This is more common in corporate language training, where learners may, or may not, prefer or be offered live instruction. Some learners may thrive on self-study apps, while others may find them insufficient or demotivating, especially when transitioning from beginner to intermediate levels. For example, a learner may initially be content with an app to build initial vocabulary but find it insufficient to progress further.

Next, we will examine the specific points in the learner journey where dropout rates are highest and explore strategies to mitigate these issues.

Points of Highest Dropout Rates

Understanding when learners are most likely to drop out is crucial for language companies to develop effective retention strategies. From the research, we noticed three key phases where dropout rates are highest:

Early Stages Post-Enrollment

The period immediately following enrollment is critical. During this phase, learners are often enthusiastic and motivated by their initial goals. However, the reality of balancing language studies with other responsibilities can quickly become overwhelming. New learners may feel anxious and unsure about their ability to integrate language learning into their busy lives. This initial fear and the newness of the experience can cause many to falter.

It is common for learners to not complete any steps or engage with the provider after signing up. Others might give up after the first class because it was not what they expected. Without adequate support and engagement strategies from the language school, this initial burst of motivation can dissipate, leading to early dropouts.

Mid-Program When Initial Motivation Wanes

Without regular check-ins, goal adjustments, and motivational boosts, learners are at risk of losing interest and dropping out midway through the program. The novelty of learning a new language can wear off before a learning habit has been well established, and the sustained effort required can start to feel daunting. This is particularly true if learners do not see immediate progress or if their initial excitement is not continually reinforced.

Our research indicated that companies with the lowest retention rates tend to reconnect with students only after three classes or the first 30 days. Effective strategies involve more frequent follow-ups and consistent engagement to keep students motivated.

During Transitions

Transitions between different levels of language proficiency, such as moving from beginner to intermediate or intermediate to advanced, are another danger zone for potential dropouts. These transitions often require a shift in learning strategies and can present new challenges that learners did not face at earlier stages, increasing the likelihood of churn.

The increased difficulty and the need for a different approach can be discouraging, especially if learners do not receive adequate guidance and support during these transitions. Ensuring that learners are well-supported and prepared for these shifts is crucial to maintaining their engagement.

"We notice the highest dropout rates during the initial stages and transitions in the learning process." - Industry Leader

By identifying these key dropout points, language training providers can develop targeted strategies to support learners through these critical phases. In the following sections, we will explore specific approaches to address these challenges and improve student retention throughout the learner journey.

Key Metrics for Learner Retention and Satisfaction

Measuring and monitoring key learner retention and satisfaction rates is essential for spotting opportunities for improvement and implementing effective strategies. Language training providers rely on several key metrics to gauge these aspects:

Attendance Rates

For those offering live online classes, attendance rates are a fundamental indicator of student engagement. High attendance rates generally reflect a strong commitment to the course, while low attendance can signal potential dropout risks. Monitoring attendance helps providers identify which students are struggling to keep up and may need additional support.

"We track attendance rates as they are a clear indicator of a learner's commitment and potential issues early on." - Research Contributor

Our research indicates that private class attendance rates tend to be higher than group class attendance rates. Typically attendance rates for private classes are 90%+ compared to 75%+ for group classes.

Completion Rates

Completion rates for language courses and programs are another critical metric. They show the percentage of learners who successfully finish their courses. High completion rates of around 90% are indicative of effective course design and learner satisfaction, while lower rates may highlight issues with course content, structure, or support mechanisms.

Student Satisfaction Scores

Student satisfaction scores provide direct feedback from students about their experiences. These scores can be gathered through regular surveys and evaluations, offering insights into what students appreciate and what areas need improvement. High satisfaction scores often correlate with better retention, as satisfied students are more likely to continue their studies.

Ideally, language companies auto-prompt students after every live online class to rate the teacher and possibly other aspects of the class. At LearnCube, we typically see our customers achieve an average of 4.7 out of 5 stars. Speaking with other language leaders as part of the research, it is not uncommon for a quality assurance team to check every class that does not match the ideal standard, particularly if a pattern appears to be emerging from a particular student or teacher.

Engagement Levels

For asynchronous learning, companies look at both the time learners spend on the platform and how often they engage on the platform. This data is valuable not only for validating the learner’s or corporate client’s decision to choose the language training provider but also for identifying opportunities for improvement and pinpointing weak areas where learners are likely to drop out.

Gathering Data and Insights

Laiz Maiochi from Voxy noted at the Language Leaders Student Retention Summit that technology, including AI and data analytics, plays a crucial role in predicting and preventing dropouts. 

Monitoring Metrics

For asynchronous learning, many companies have developed platforms that report on metrics like time spent on the platform. However, research highlighted the issue where the insights gleaned are too limited, or broad, to be useful. Effective reporting systems should provide both a broad overview of company performance and detailed insights to identify specific opportunities for improvement.

Feedback Systems 

Companies that prompt learners for feedback after every class tend to be the most responsive. From LearnCube’s experience, we typically see 40% of all classes are rated and approximately 10% of classes the learners provide written feedback. While some scepticism exists about the effectiveness of regular surveys delivered by email, knowing how low open rates often are for this kind of communication, there were examples in the research where email surveys were similarly effective with 40%+ response rates.

The better the data systems a language company has, the clearer the visibility on teaching quality, teacher performance, and course design. This enables the company to focus resources where they matter most. All the top corporate language training companies involved in the research invest significantly in dedicated teams to proactively track and address issues and opportunities. Monitoring leading indicators of learner dropout is crucial for the growth and success of a language business.

Successful Strategies for Improving Retention

The previous sections outlined what causes learners to leave and clients to churn. This section outlines some actionable strategies to improve student retention whether your focus is B2C or B2B. 

Strategies for B2C language companies

In the B2C sector, the learner’s personal interest drives engagement and retention. For example, individuals often enrol in language courses out of personal desire to achieve specific goals, such as passing an exam or improving communication skills.

Understand Student Motivation

Motivation is the second most important reason students give up their language learning. According to our research, after time constraints, students' motivation can vary significantly based on personal goals, career aspirations, or external pressures such as mandatory training programs.

"As often the case both in B2C and in B2B we find that students leave because things get busy and the prospect of learning a language starts falling down the priority list." - Alex Asher

Our research highlights the importance of both intrinsic and extrinsic motivation in maintaining high levels of engagement and reducing dropout rates.

Intrinsic Motivation: This stems from a student's internal desire to achieve a goal and is the most impactful on student retention and sustainability.

Extrinsic Motivation: Driven by external rewards or pressures, extrinsic motivation can also be effective, especially when thoughtfully integrated into the learning program.

Investing in the initial consultation with the student to understand their goals and genuine motivations for learning the language pays off in higher student retention.

Set Realistic Goals with Your Students

Often, individual student start a language program without any clear goals, leading to a gap in motivation. Goals are essential as they help learners commit and stick with a program, even when inevitable obstacles arise.

As Kristina from EnGen mentioned in the Student Retention Summit, their coaches "...work with the learner to explicitly discuss what are your short, medium, and long-term goals, because the goal can't be just, 'I want to speak English, right?'"

By setting specific, realistic goals, learners can have a clear path to follow and milestones to achieve, which significantly enhances their commitment and motivation throughout the course.

Provide Personalised Learning Pathways

Students are more motivated when they feel that their learning path and program are tailored for them. Motivation, accountability, discipline, and an effective learning experience are key ingredients for long-term retention. In his book, LangTech: A Deep Dive Into Online Language Education, Its Future and a Framework for Success, Alex Asher discusses the exciting shift from standardised to personalised, and now to personal learning.

New developments in AI offer tantalising opportunities for increasingly personalised learning experiences, making this an exciting time for our sector. In the course of our research for this white paper, several companies reported experimenting with adaptive pathways, AI-powered recommendation engines, and spaced repetition techniques to provide a more personalised learning experience for self-study students.

As an example in how to make live online lesson more personal, LearnCube has embedded a new AI Teacher Assistant into their Whiteboard to empower language teachers to create bespoke language exercises instantly for their students in or out of the classroom. In addition, LearnCube provides a “Smart Highlighter” tool to help teachers gather insights into the live lesson, such as vocabulary and grammar, which is valuable to the student, teacher and school

What ways are you helping your students feel like their individual needs and wishes are being incorporated into their program?

Keep Your Best Teachers

One of the most effective ways to keep students engaged is through the accountability provided by a human teacher. This is an area where AI still falls short. Many language companies recognise the strong correlation between teacher retention and student retention. One company noted that it is not uncommon for student to stay with a company for years as long as they have the same teacher. When a teacher leaves, students often either follow them or give up entirely.

Therefore, companies should focus on retaining their teachers, not just their students. Strategies for teacher retention include better pay, professional development opportunities, involvement in relevant decisions, and building a supportive community. 

Interestingly, some companies employ the opposite strategy by intentionally rotating teachers. This approach has two key benefits: it exposes students to different accents and teaching styles, and it mitigates the impact of a teacher leaving for professional or personal reasons. However, this approach, and the possible benefits, should be clearly communicated to students from the start to set proper expectations and usually giving students at least 30 days' notice.

Let Learners Turnover

We made the distinction between student “turnover” and “drop out”, under the Typical Student/Learner Life Cycle section above. Having spoken with one of the most successful B2C language companies on this subject, the Chief Administrative Officer highlighted that not all churn is bad churn that would require a response. “Forcing” students when they’re not motivated to stay can be counter productive. This school noted that "we found that a huge number of students return after a long time. 60% of students who buy from our annual promotion emails are returning after a break of 4 years or more…We want to let them come back in their own time, and provide an environment conducive to a happy experience with happy memories.” 

For B2B corporate language training companies

Learners whose programs are funded by their companies often face unique challenges with motivation and commitment. Many busy professionals struggle to balance their learning commitments with their work and personal lives, making it difficult to attend regular classes and leading to higher dropout rates.

Unlike privately paying individuals, these learners may lack motivation because they have not personally invested in the program. This financial investment often acts as an important commitment device. Furthermore, learners may be required to follow a mandated learning path for promotional or compliance reasons, which can further diminish their intrinsic motivation.

Corporate language training companies must also focus on client retention, not just individual learner retention. Companies, particularly HR departments, need to be convinced of the program's value. They typically look for metrics such as participation rates and return on investment (ROI) in language training.

So, what can language training companies do to improve both learner and client retention?

Understand Your Target Group

Understanding your target group is essential for developing effective retention strategies. As Anja Spilker, CEO of Zaloa Languages, noted "Your retention strategy should always depend on your target group." By deeply understanding your learners' cultural backgrounds, financial resources, and learning motivations, you can create a more engaging and supportive learning environment, crucial for long-term retention.

In the B2B sector, the company usually pays for the language program and often dictates the services provided to the learners, significantly impacting motivation levels. Companies typically invest in language programs for three main reasons:

• Acute Need felt by the individual and organisation.
• Business Impact such as developing talent for future roles.
• Benefit Programs that aim to attract and retain staff.

Being aware of these three categories helps set expectations with stakeholders and determine the best retention strategies.

Key Challenges to Address

• Time Constraints: Many learners, especially busy professionals, struggle to balance their learning commitments with their work and personal lives, leading to decreased motivation and increased dropout rates.
• Low Motivation: Laiz Maiochi of Voxy observed that engagement varies significantly among the three groups. Learners with an Acute Need are typically more engaged, followed by those in Business Impact programs, with the lowest engagement often seen in those enrolled in Benefit Programs. Additionally, learners mandated to undergo training are particularly difficult to motivate as they often feel a lack of agency and may be more defensive about their progress.

By understanding these specific needs and challenges, you can implement tailored strategies that improve both learner and client retention.

Align On Expectations & Success Criteria Early

Laiz Maiochi from Voxy highlights the importance of setting realistic goals and agreeing on how to measure progress. Voxy uses benchmarks based on observations from three learner categories (Acute Need, Business Impact, Benefit Program) to help align expectations.

Aligning Return on Investment (ROI) is crucial for companies engaging with language training providers. As Anja Spilker notes, “The retention rate of a company stays higher if you can present an ROI, return on investment that is focused on the business values.”

Unrealistic expectations can significantly impact student retention. When learners enrol in a language course believing they will achieve fluency in a short period, they often become disillusioned if progress is slower than anticipated. This is particularly common in both B2C and B2B contexts where motivations and external pressures differ.

Voxy leverages data analysis and benchmarking to predict learner behaviour and set realistic expectations. For example, if a company has an unrealistic expectation of learners, for example improving by two levels in six months, Voxy can use historical data to show what is typically achievable within that period. This approach helps align learner expectations with actual outcomes, reducing the likelihood of disappointment and dropout.

Voxy addresses misconceptions by providing clear and detailed information about the language learning process during the initial enrollment phase. This includes discussing the expected time commitment, the importance of practice, and the typical progress benchmarks based on the learner's starting proficiency level.

As Laiz noted, “One of the things that [Voxy] learned was the importance of ensuring [the customer and learner journeys] are aligned… We could bring metrics that would prove the value of the investments that were being done.”

Laiz also mentioned, “This is why we have the benchmarks… We're much more structured and able to understand… How are we going to be measuring the ROI of the program? Then we can define [the key metrics]... [This is] very powerful for the renewal conversation.”

By setting realistic goals and aligning expectations from the outset, language training providers can significantly improve learner retention and satisfaction.

Avoid The “Wrong” Kinds of Clients for You

When sales growth is sluggish, it is easy to feel tempted to bring on clients that are not the right fit, are going to be painful to work with, and/or have the wrong expectations mentioned above. 

While the cost of losing a customer is high, the cost of accepting “bad quality” customers is also high. As Jean-Marc Alberola, CEO of Bridge Education Group noted, the “cost of acquiring misfit customers is massive:

• More expensive to win
• More expensive to serve
• Less likely to buy more
• More likely to leave you

So be careful with who you target and who you work with.

Begin with a Needs Assessment

Motivation is significantly impacted by personalisation. Learning pathways should ideally be designed based on detailed needs analyses conducted at the initial stages of the learner’s journey.

Looking at research contributors, one company exemplified this strategy. The company offers one-on-one instruction tailored to the learner’s goals, interests, and schedule. By conducting a thorough needs analysis at the start, the company ensures each lesson is relevant and engaging, which significantly boosts retention. Additionally, the personal relationship between the student and the instructor creates a sense of accountability and motivation to continue with the lessons.

By focusing on topics that learners are passionate about, the company ensures that students remain engaged and motivated throughout their learning journey. This tailored approach helps maintain high levels of interest and commitment, leading to better retention rates and overall success.

Offer Multilingual Coaching

At the Student Retention Summit 2024, Kristina Ekis from EnGen demonstrated how their multilingual coaching program addresses these challenges.  As EnGen discovered, “...the lessons themselves are 100 percent in the target language…but our interface and the support services, to the extent possible, are all in the learners first language.”

Coaches work closely with learners, providing support in their native language and helping them set realistic goals. This personalised approach has significantly improved retention, as learners feel more supported and are more likely to stay engaged.

The results at EnGen are compelling. Kristina noted, “Learners with coaching consistently outperform learners who do not have coaching. They spend an average of nearly 30 hours working on the platform, which is a significant difference. We have internal milestones that we set, and milestone attainment is 36 percent higher and proficiency improvement is 17 percent higher for learners with coaching versus those without. So, all across the board, learners who have access to a coach perform better.”

At EnGen, multilingual coaches work with learners to set short, medium, and long-term goals. These goals are specific, measurable, and tailored to each learner’s individual circumstances, making them more achievable and aligned with realistic outcomes.

Finding the right balance between optimising for cost and optimising for impact is crucial. Kristina mentioned that EnGen aims to automate all repetitive tasks, including initial support and troubleshooting, to free up time for coaches to focus on direct interactions with learners. Kristina notes, “We want them to be able to connect with a human if they have to.”

Enlist Company Leadership

Leadership buy-in is essential for creating a culture that values and prioritises language learning. When leadership actively supports and promotes learning initiatives, it sends a clear message to employees that these programs are important. Laiz Maiochi emphasises that

"If this is not in the company's agenda, this is not going to be on people's agenda." Laiz Maiochi from Voxy.

Without the support and commitment of leadership, retention initiatives often falter, leading to higher dropout rates and reduced learner engagement. As Laiz explains, “Employees will always prioritise what the company is telling them to prioritise. Companies that follow the best practices we recommend have 70 percent higher engagement than those that don't.”

Strategies to Get Leadership Buy-In

1. Align Learning Goals with Business Objectives: One of the most effective ways to secure leadership buy-in is by aligning the language program's goals with the company's broader business objectives. Demonstrating how language training can contribute to strategic goals, such as improving customer service or expanding into new markets, can make a compelling case for leadership support.  One example given relating to aligning the language program with Diversity, Equity, and Inclusion (DEI) initiatives highlights their value in attracting diverse talent and fostering an inclusive workplace.
2. Use Data to Demonstrate Value:Presenting clear data on how language training improves performance and retention demonstrates tangible benefits. For example, Voxy uses data analysis to build benchmarks and provide realistic overviews of expected outcomes, helping to set and communicate clear goals to leadership.
3. Consistent and Regular Communication: Regular and consistent communication with leadership about the progress and impact of learning programs is vital. This includes celebrating both small wins and significant achievements to keep leadership informed and engaged. Regular updates reinforce the importance of the program and maintain its visibility within the organisation.

Offer Flexible Scheduling

Often busy learners struggle to fit language learning in their schedules. Being rigid can create a binary situation where a learner is yes or no to a class.

Blending synchronous and asynchronous learning helps maintain learning habits during busy periods. Providing scheduling flexibility helps learners manage their time better and reduces stress, making it particularly beneficial for professionals with unpredictable schedules.

Be Proactive With Client & Learner Support

As mentioned above, tracking key teacher quality and learner satisfaction metrics is crucial, but adopting a proactive approach is even more important. We observed that all top-tier corporate language training companies had a customer success team devoted to this task. A key task for these teams is reaching out to clients or students who appear to be disengaging.

A good example of this approach is EnGen. EnGen’s strategy includes three main touchpoints throughout the learner journey:

• Initial Touchpoint: Focuses on getting started and accessing relevant content.
• Mid-Point Check-In: Involves checking in on the learner's progress and refining their goals and plans as needed. It was noted in the research that once learners have built their initial habit, the chances of completing their course or program is significantly higher.
• Final Touchpoint: Ensures learners stay motivated and continue to make progress towards their long-term goals.

This proactive approach helps maintain engagement and supports learners throughout their journey. 

Experiment with Extrinsic Rewards

While intrinsic motivation is crucial, extrinsic incentives like badges, certificates and bonuses can also be effective. These tangible rewards provide learners with a sense of accomplishment and recognition, which helps maintain their motivation.

Other examples of extrinsic rewards include:

• Financial rewards: Monetary incentives or vouchers for completing milestones can motivate learners and provide a tangible benefit for their efforts.
• Recognition and awards: Programs such as "Learner of the Month" can boost morale and encourage continued effort through public recognition. This is particularly effective in B2B settings where peer recognition is highly motivating.
• Engaging challenges:  Periodic challenges aligned with significant dates, such as New Year's resolutions or inter-department competitions, can maximise participation and engagement.

Communities for Learners

Creating a community for learners offers numerous benefits. This social aspect not only boosts motivation but also fosters long-term commitment. Laiz Maiochi from Voxy emphasized the promising potential of building such communities: “We are building a community. We are supporting our customers by creating a space where learners can exchange and practice. We are also focused on collecting evidence that this initiative works.”

What Will You Do Next?

In the first part of this white paper, we discussed the learner journey and identified the most common reasons for learners dropping out of language courses.

In the second section, we examined key metrics that provide the insights needed to prevent and mitigate causes of churn.

Finally, we unpacked several successful strategies to boost student retention; shared by the more than a dozen language companies who contributed to the research. This included the importance of aligning expectations early and the correlation between student retention and teacher retention. 

For corporate language training companies, we discussed the importance of understanding your target group and what initiatives you could implement to support your corporate customers. 

Now, it’s up to you to analyse your organisation and  take action.

For exclusive benchmarks on student/client retention or to discuss how LearnCube can help you understand and reduce student dropout rates, please contact Wilim and I at info@learncube.com.