Helping a Language School Fix Its LTV Problem

0:00Unternehmer/Gast Alex, so um I sell a program, a language program that teaches Chinese Americans who can't speak Chinese Chinese. And one of the biggest struggles I have is basically >> Sorry, I was just like >> [laughter] >> routing into that. Okay, got it. >> Yeah, yeah. So, Chinese Americans who can't speak Chinese Chinese. And so, one of the things I struggle with is cuz you say like you what you got to sell the vacation, right? And the vacation is fluency in Chinese. >> Yeah, your grandmother will stop hitting you, yeah. >> Exactly, yeah. But then from there, if if I say, "Okay, like join our program, you'll get fluent in Chinese." How do I get additional LTV from that person when I promised them fluency already? Aren't they going to be like, "Oh, like why do I need this extra thing when you said I get fluent from the program itself?"

0:36>> Yeah, so there's there's there's Okay. Couple things. So, number one is fundamentally you have an education issue, which is just that all education businesses, the reason that college you graduate is that you learn. And so, this is why there's a lot of issue with creating long-term enterprise value in education companies unless you can demonstrate that there's like always new people that are coming in every year, which colleges do have apparently they >> keep making humans. So, like we're they're they're they're they're okay. Um but a couple different Let me just get So, that's the thing one.

1:06Alex Um beyond that, I would think about it in terms of uh not cuz you always sell the vacation. It's so we're going to get to Maui, but you can get there in a rowboat, you can get there in a helicopter, you can get there in a private jet with champagne on the way and your luggage packed. So, what you're actually selling is the other variables. So, you're selling that they're going to get fluent. Okay, cool. That's the dream outcome. But how am I going to get How hard is it going to be? How fast is it going to be? How likely is it to occur? And so, there's the other things that you sell in addition to or for different levels of service associated with learning Chinese for Chinese people who are American who don't know Chinese, right? Um so, that's in terms of in terms of service levels. In terms of um upsells beyond that because you have Ch- Chinese is the thing and then you have all your wrappers around speed, likelihood, ease, whatever.

1:52Um then you have like, "Well, what other types of Chinese would someone like to learn?" When I say that, I mean, um do they just want to learn conversational with their grandmother or do they also want to know business Chinese? Do they want to know negotiation Chinese? Do they want Cuz there's just like in English, there's there's all these sub Like if you want to learn marketing, there's all this language they have to learn. And so it's normal to have sub segments that you'd have to learn more language uh more vocabulary. >> So then, would you say that the answer is to almost like diminish diminish niche-ification then? Cuz

2:20>> You don't change the vacation. We're going to Maui. >> Okay. >> You're going to learn Chinese. >> But then once you're in Maui >> Which is how hard you want it to be and how long do you want it to take? >> But then once you're in Maui, is it like, "Oh, now you can go to like Honolulu?" >> Sure, it's another island. Yeah. >> Which is But then isn't isn't fluency like Honolulu and Maui together? I guess it's kind of hard. >> right now there's most people in this room are not fluent in advertising. Like yesterday a bunch of you were like, "Oh, these are words that I have not heard before."

2:48So again, it's it's not are they or not they, it's a how how how fluent are they and in what in what silo? Like legal English is another language. So you know what I'm saying? Like >> You you I am pushing back Like they're fluent in this silo and then you just say, "Also, do you want to be fluent in this silo?" And they're like, "Oh my god, I didn't know." It's like, "Well, I got you 101." That's why they have 201 and 301 and 401, right? Or sec like business Chinese. You know You know what I'm going with this? >> Mhm. Okay. >> Yeah.

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