A value proposition is an explanation of what you are getting for the money you pay for a product or service. To be successful, a business must propose a value proposition that helps them stand out from the competition. Based on the comparison with competitors, Nearpod has created a market for it's product by using the "Freemium" model to get potential customer to commit to the minimum value product. Once that has occurred, Nearpod offers premium services at a range of small costs. Without giving teachers the opportunity to see the product in action, it would be near impossible to sell the services they offer to customers because they would not have built up a relationship of trust. This trust culminates in the creation of a group of trained teachers called PioNears. PioNears are certified Nearpod experts. These highly knowledgeable users have become the apostles for Nearpod and offer thier expertise in exchange for Nearpod content.
Below is a look at the yearly cost structure for teachers, schools or whole districts. |
EVA summaryOne of the biggest hurdles Nearpod faces is convincing teachers to adopt and stick with new technology in their classroom.
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As an Education Venture Analyst, I have learned that one of the best ways to identify growth potential in an organization is to see if a company improves the classroom experience by providing teachers with the tools they need to do a better job. Nearpod has created such a tool. The question mark for future growth remains whether or not Nearpod can sustain itself on a diet of "direct to consumer" type markets by selling direct to teachers. Selling their plan to school districts is what will be the key to growth in the K-12 world. Nearpod must also focus on expanding into the higher-ed and corporate training market given the lack of competition at present. Secondly, Nearpod's CEO was recently interviewed by Edsurge, a clearing house for Ed-tech news. In this interview, CEO, Felipe Sommer, was asked about the role of virtual reality (VR) in Education. This is one of many areas that Nearpod is exploring and expanding in order to give them an edge over competitors. Nearpod launched its VR platform on February 17th of this year to Gold level ($129/year) members. Finally, Nearpod has partnered with Microsoft Sway among other large companies, and this allows it to create content that helps it stand out from the crowd. Microsoft is a great ally to have in order to stay on the cutting edge. These types of partnerships are what make teachers feel comfortable investing time and energy into learning about a new learning tool. Having teachers become PioNEars is a great example of this level of commitment. |
Although net profits are still a concept for Nearpod, this is a company with serious growth potential. As an EVA, I recommend investing in Nearpod because it has created a fan base that will stay loyal even when a small hiccup may send some company's subscribers running to a newer or shinier competitor or product. Loyalty in the edtech world is a currency that has more value than any new device, partnership, or software. Nearpod will continue to grow, thanks to its desire to evolve and its loyal base of customers.
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