Our revenue has grown 1100% in five years between 2013 and 2018. We also have an exceptionally high repurchase rate. In Finland, the Customer Lifetime Value (CLV) of our web subscribers is 105 euros, with the CLV of mobile users approaching the same level. According to our customer research, 98% of high school seniors and 96% of other users recommend WordDive, and recommendation-based sales form a significant amount of our total sales.
Our strategy is to concentrate on markets that spend a significant amount of money on digital language learning. Our main growth markets in 2019 are Sweden and Germany. Next, we plan to expand to selected European markets with either one of the largest digital language learning markets, China or the USA, as the ultimate goal.
The growth of the field is driven by the ability to speak English, which is one of WordDive’s special strengths. The importance of speaking English may be hard to see in developed Western countries if one already has a good command of English, but in many areas such as Russia, Latin America or China, the ability to speak fluent English can easily double one’s salary and essentially accelerate career development in every other way as well.
In autumn 2017, we developed a prototype of an AI-based innovation that can help the learner to speak English in only a few dozen hours. With the aid of artificial intelligence, we can detect individual articulation errors and give each user personalised instructions for correcting them. We released a beta version of the AI-assisted pronunciation feature in March 2019, and estimate to reach commercial quality by the end of the year.
With this innovation, WordDive is the first mover on the digital language learning market capable of providing a turnkey language skills solution. Our next goal is to accelerate the growth by decreasing the cost of user acquisition to a rapidly scalable level.
At the moment, there are plenty of applications on the market for learning vocabulary and basic grammar. The number and popularity of these applications shows how great the need for digital language learning is. However, WordDive’s new, AI-based solution takes digital language learning to a whole new level. It will quickly give the user the ability to speak in a foreign language in different work, studying and everyday life situations.
Based on the prototype and the beta version of the new oral skills learning feature, the following skills in English are estimated to be gained in approximately 75 hours:
- Vocabulary and grammar, 45 hours (existing app)
- Fluent articulation, 30 hours (Speak with AI)
We believe that personalised teaching of speaking skills will give WordDive a significant advantage on the global digital language learning market. The essential thing is to be successful on the most competitive markets such as Germany, because in the long run, the forerunners on those markets are likely in the long run to take over the markets in the rest of the world as well.
WordDive is a scalable, fully digital service, which means that as revenue increases, a larger percentage of income can be used for customer acquisition. This, if successful, will further accelerate growth. Our primary means of customer acquisition is paid advertising, which can be scaled rapidly when it is found to be profitable.
During the last two years, we have been investing systematically in developing our in-house marketing know-how. This enables competitive customer acquisition in Europe and in the USA mostly without third party assistance. In China, however, our plan is to launch with a local partner.