Language schools have a significant impact on the development of the economy in almost every country. Surprised? We have known for a long time that learning a language brings enormous benefits. It benefits not only learners but also countries where the language education industry is flourishing. This is great news for language school owners. But the question is, does your school take full advantage of this market?
So let’s take a comprehensive approach and in the first part of the article, let’s look at what the market for English schools in the world looks like. And in the second part, we will tell you how to take advantage of this market and make schools profitable. Here we go!
We cannot hide the fact that we are living in a very dynamic time. The changes we are witnessing are increasingly making us reflect on what the future will be and what we can expect in the language education industry. When it comes to the most popular language, the English language always leads the way. Stationary English courses still account for more than half of the market. Therefore, in today’s article, we will refer to the analysis of the market of schools that have this language in their offer.
Global English language learning market
English has become the most widely used language of commerce in the last two decades. As a result, knowledge of this language is the key to success in your professional career. It is therefore estimated that the individual customer will be the fastest-growing segment among potential students.
According to the latest report of the English Language Learning Market, forecasts predict that by 2029 the market will be worth 69.62 billion dollars.
Growth has been driven by the growing importance of English in business and professional areas, the low cost of English learning applications, and increasing investment in start-ups and small businesses.
You can check the level of English proficiency in your country with help of the English Proficiency Index (country-specific index of English proficiency).
The current EF EPI rating can be found by clicking on the link below:
Trends
In 2022, the hybrid learning sector represents the largest share of the English language learning market. As for the fastest-growing age group of students, the biggest increase will be in the age range of 18-20 years.
According to the World Economic Forum, the number of online students is currently above the pre-pandemic level. In 2016, approximately 21 million people registered to take Coursera online courses. Over the next two years, this figure increased by about 7 million annually. The transition to remote work during the COVID-19 pandemic resulted in another significant increase in new registrations, which increased to over 71 million in 2020 and 92 million in 2021.
English has become a global business language around the world to the extent that it is also the standard official language in some industries such as maritime and air transport. In aviation, this status was strengthened in 2008 when the International Civil Aviation Organization introduced specific language requirements. All employees are required to perform regular tests to confirm their language skills. This is to improve communication and promote safety rules during flight.
Who knows, maybe this is another niche to fill in the market for language schools. 😉
Why is it that, as the market grows, enrollment in some schools is falling? To increase enrollment and thus the school’s profitability, it is necessary to focus on the indicators that affect it. And if you increase each of these indicators by about 10% per year, you can double the income of a school with 100 students!
Key Business Performance Indicators
1. Customer retention rate
Absolute number one. It’s much easier to keep a student than to get a new one. The objective of each school should be to increase retention by a minimum of 10% year on year. If your students are mostly children, the easiest way to increase the indicator will be to focus on communicating with parents. Efficient communication is crucial to how a school is perceived by a parent. A happy parent will be the best ambassador for your courses!
83% of consumers say they fully or to some extent trust lip-to-mouth recommendations from family, colleagues, and acquaintances about products and services, making them the highest-rated source of credibility.
2. Traffic
That is the number of potential customers who will see your website, advertising, or social media account or hear about it from a satisfied customer. Nowadays, the best way is to mark your presence on social media, such as FB advertising, activity on science groups, or neighborhood groups.
3. Profit margin per student
It will help you to analyze the profitability of the course. The profitability analysis will show you which areas of activity bring the most benefits and which ones need to be changed. For some, the obvious but constant price comparison between language schools does not allow me to skip this point 😉 If you are looking for a solution tailored to the needs of language schools, then the „Reports” module in LangLion will help you to quickly create company data sheets, among others the profitability of the group and sales report.
You have no idea how to increase the margin and you have resistance to raising the price list? How about a boutique business model for your school? This may be, for example, the annual sale of a limited number of places for highly specialized and expensive language courses that will attract a niche customer willing to pay for an offer that meets his/her specific expectations.
4. New enrollments
I will not dwell on that too much. Proper marketing, focus on the positive image of the school, recommendations of satisfied students, no holds barred. Just remember not to compete with the price, it never ends well.
5. Diversified Offer
Consider not only offering different levels of education but also specialist courses, given the current global trends. It can be Business English for employees of international companies, but also language courses for people who need to learn a language in a specialized industry.
6. Opt-in queries
Your website does not have to earn prizes in rankings, but the content and layout of the website should be designed to motivate visitors to submit a query about learning in your school. Looking for inspiration? More about this topic we wrote HERE.
As you can see, the market for language schools is doing well and the forecasts for the coming years look promising. It is up to you to take action now to prepare you for the coming years. Remember that if you have doubts about what actions your school needs, we will gladly advise you in this regard. For free consultations, you can make an appointment by clicking HERE.