Challenges EdTech Businesses Face and Solutions to Them

Over the last decade, education technology has evolved quickly. It’s no wonder that the industry grew in 2020, with worldwide lockdowns undermining traditional face-to-face methods of teaching and learning.

It has helped renovate and regenerate an extremely traditional and reserved industry. There is no shortage of potential in this market, but starting and expanding an EdTech business can be difficult.

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Here are just 8 main challenges and solutions to them:

  • Standing out in a highly competitive market

To differentiate your business, you must provide a unique value proposition. When starting your company’s journey, you can focus on a particular specialty to narrow down your target audience. This might focus on a teaching style, such as videos versus games, or a specific topic area, such as a math learning platform or driving theory test software.

  •  Partnering up with a relatively traditional industry 

A great place to start is to concentrate on demonstrating your product’s impact on learning (and teaching). Get the data out there and boast about the measurable achievements you’ve achieved – or are on your way to achieving. Provide testimonials and case studies to back up your claims.

  • Keeping up with the evolving tech industry

This can be accomplished by monitoring news updates from sources such as Education Technology or researching some of the top EdTech influencers in 2023. Find them on social media or set your Google Alerts for news to your email.

  • Building a robust go-to-market strategy


  • Identifying your target audience
  • Making your product market-ready
  • Setting up the appropriate price
  • Obtaining and retaining clients.

Ensure you know everything about building and implementing a fantastic go-to-market plan, including a great template to complete your approach.

  • Choosing the right revenue model 

Choosing the correct revenue model is part of your edtech software development strategy, but it is especially crucial for those in the EdTech business owing to the widespread issue of slow monetization. Your revenue model of choice has a direct influence on your acquisition, conversion, and retention rates, thus it is critical to your company’s development and success.

  • Fill the communication gap

The truth is, whereas an entrepreneur could know how to develop a wonderful product, a lack of information about the product’s target customer will get it nowhere. To properly improve your product’s and team’s capacity to recruit and retain consumers, you must differentiate between these diverse audiences and listen to what they have to say.

  • Improving user activation and usage

There are various things you can do to increase user activation and usage. From daily challenges and recognizing daily practice streaks (Duolingo got the memo), to frequent product updates and exceptional customer communications, you may spark your users’ curiosity, remind them of your product’s worth, and ultimately enhance their engagement.

  • Handling worries about data security and collection 

By overcoming these common challenges, you will see your EdTech company rise not just in the competitive e-learning industry but also in the SaaS market in general. But remember that we’re not talking about a single move here. Each of these nine areas should be evaluated repeatedly, beginning before your product enters the market and continuing to grow, expand, and improve over time.

  • Managing retention rates

Does it fulfill the requirements and expectations of the customers? Is it divided into levels that cover basic, intermediate, and advanced content? Can users choose their own learning path? Do you offer excellent customer service and help with any issues or concerns?

There is also the issue of how involuntary churn affects retention. This churn occurs when your subscribers’ payments do not go through, and their accounts are automatically canceled. This is frequently because the credit card connected with the account has expired or has hit its spending limit.

All of the above have an influence on your retention rate. Therefore, examine each question while creating your solution.

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