China-based online English education provider Whales English Elite Education recently announces that the company has achieved its positive unit economics(UE), reaching 15%. The number of paying students increased by 220% year-on-year, and the monthly revenue in September exceeded 150 million yuan.
In mid-July 2019, the company officially changed its name from “Whales English” to “Whales English Elite Education”, marking its business will focus more on competency-based English education for learners aged 3 to 18.
Amid the chill capital market of the children English education sector, the company got considerable revenue in 2019 with a five-fold increase, benefiting from the traffic flows brought by renewals and word-of-mouth marketing strategies.
Due to the epidemic, online education users have skyrocketed, and the cost of customer acquisition has been continuously rising. But Whale English revealed that the company had maintained the cost of around 2,000 yuan, which is about one-fourth to one-fifth of the whole industry. As of now, its renewal rate maintains around 80%, and more than 70% of its new students come to Whale English from the referral.