How to use data to find scalable product-market fit – and get a $750M acquisition in 5 years

Trilogy scaled from 0 to $100m revenue in 4 years. Here’s the golden metric that made it possible

29 Apr 2022

Ahmed Haque was Chief Product Officer at Emeritus, the Mumbai-based company that has raised more than $1bn. He was one of the first instructors with Trilogy, and later its Chief Academic Officer. Here, he explains how Trilogy defined their magic, measured it and built a culture of responsiveness as they scaled from 0 to $100m revenue in 4 years.

This interview was part of a series called Product-Market Fit Academy, run by Emerge in conjunction with our Venture Partner community – operators who have founded and led the biggest businesses in our market, including Duolingo, Udemy, Beamery, HiBob, WalkMe and OpenAI, representing a combined $1tn in market cap.

Here is what founders will get out of this conversation with Ahmed:

  • Started by defining the optimal learner experience to arrive at the metrics that matter
  • Introduced a systematic way of relentless surveying to measure product-market fit
  • Discovered a ‘golden metric’ that was a leading indicator of student satisfaction to quickly make improvements
  • Created a culture that responded to insights and enabled them to rapidly scale the business

* * *

“They hated our program, they hated the curriculum, they weren’t showing signs of learning, they were asking for refunds… They were sending letters. Depressing letters. Threatening letters,” remembers Ahmed. “Students were beyond angry.”

He is describing the moment when Trilogy scaled from one bootcamp to two. His own students were happy, they were showing signs of incredible progress and even those students with little or no background in technology were making leaps in their careers.

But his colleague’s students felt far from it. Their concerns were coming in non-stop. “You might be thinking that it’s just one classroom,” he adds. “But at that point it was 50% of our active classes. Imagine if it was 50% of 1,000 classrooms.”

It’s now that he delivers one of the realities that people often forget about product-market fit in the early stages:

“You haven’t achieved product-market fit if you have a service that can’t scale. It’s not a ‘product’ until it has the potential to scale.”

Trilogy is a workforce accelerator that partners with universities to help companies bridge the digital skills gap. The company was birthed from observing two macro trends that were playing out back in 2015, both of them spawning successful companies:

  1. A rising cottage industry of coding bootcamps (e.g. General Assembly, Dev Bootcamp, Hack Reactor)
  2. A growing acceptance of Online Program Management (OPM) and university partnerships (e.g. 2U, Keypath, Embanet)

Shortly after this moment of reckoning that Ahmed pointed to, Trilogy did find the ‘secret sauce’ to scaling their business. In three-and-a-half short years, they partnered with more than 50 institutions and taught more than 40,000 students. In 2019, they were acquired by 2U, the largest OPM, for $750m.

So, how did they go from a service that didn’t scale to a product where thousands of students were saying things like: “It was probably one of the greatest and most empowering experiences of my life”?

The answer was measurement. And magic.

Define the magic

“The starting point in any metrics conversation has to be in defining what matters,” says Ahmed.

“Great products deliver ‘magical’ experiences that far transcend the normal expected assumptions. The key question you need to consider is, at your very best, what makes your product truly magical?”

For Trilogy, he says, it boiled down to three things:

  1. A deep and sincere empathy for their students’ goals and struggles, company-wide
  2. A high baseline for the learning experience, which means understanding the makeup of an excellent teacher
  3. A high baseline for the curriculum, which must be built to engage and paced to encourage students while also minimising the cognitive load on instructional teams.

“Every staff member was taught to have an empathy-first mindset for students,” says Ahmed. “It wasn’t enough to simply teach students. We saw our role as creating a bridge between where students were in life and where they wanted to be. We felt the need to fully own the responsibility of creating this path. And to praise students for taking the leap.”

They also established a tight process for identifying which instructors would be truly phenomenal in the classroom: those with a strong technical backgrounds; those with high EQ and compassion; strong communicators with high energy who had a history of voluntary service and were “humble beyond measure”.

Finally, they created a curriculum with ‘pre-baked’ activities and speaking points that established a high degree of energy, engagement and confidence so that regardless of the instructor they knew the baseline would be positive. “We even scripted in the jokes”, remembers Ahmed. “We had jokes used in every classroom that would get laughs every time.” This was their ‘fail-proof’ curriculum.

The curriculum established a pace that would keep students in a state of confidence-building without leading to boredom or disengagement.

“We defined the elements of the experience that need to be productised,” explains Ahmed. “We established the recipe for scalable success.” And once you have the magic defined, you can start to measure and track how well you are executing against that recipe.

Things to apply:

  • Define what makes the experience you’re delivering magical
  • Find ways that allow you to repeat it in a ‘fail proof’ way at scale

Relentlessly survey

“Early on we realised that we could understand if we were creating our target experience by tripling down on performance and perception monitoring,” explains Ahmed. “We were working with adults and adults know if they are getting a good experience or a terrible experience.”

They created a set of KPIs that they expected to see at a class- and student-level based on student sentiment. “I got a lot of push back that sentiment was a bad predictor. But I think it’s underestimated in education. You are not going to learn if you’re not having a good experience. If you don’t feel supported, if your instructor’s not clear, it doesn’t matter what assessment methods you come up with: you will lose steam.”

They set about delivering simple surveys every week that asked students to give them a window into how they were feeling.

“Nothing was complicated, we just used Google Forms,” says Ahmed. “We mandated completion of these surveys and stuck to our original formula. We didn’t have fancy systems but we did the work which helped establish the practice inside the company. In two and a half years, we had more than 3 million data points.”

Things to apply:

  • Define a set of simple KPIs that map to your recipe
  • Find a way to systematically measure them regularly and consistently
  • Don’t over complicate it – simple tools are enough!

Respond to the data

What was the end result of all of this nauseating data collection work? 

“From our office in New York we could pinpoint how every class in our ecosystem was performing. We knew which students were unhappy – and why,” say Ahmed.

“Because we tracked it weekly and mandated it, we could see the sentiment in individual classes and students, and how that changed over time. So if we said we were going to make a change, we would know within two weeks if that change was constructive or not.”

This had lots of positive benefits. For example, they tracked pace. Because the curriculum was the same in all of their universities, they could look at the data and reliably see where students were struggling, knowing the data was statistically significant. “This meant that we could see we had a problem in week 3 and then direct our curriculum efforts to revise those specific pieces of content.”

Things to apply:

  • Use the data you collect to drive your team’s activity and identify interventions where you can make improvements
  • Ensure that you are collecting data regularly enough to be able to quickly identify whether changes are an improvement

The golden metric

They started to look for correlations that might enable them to predict the end-of-course Net Promoter Score (NPS) – their most important but lagging metric. Through this process, they identified that the secret to student satisfaction was ‘feeling supported’. This became their ‘golden metric’.

“Because we knew from the data that a low support score was indicative of the end-of-course NPS, we could dial in on this metric,” says Ahmed. At the time it was a little over 6% and their goal was to bring it under 5%.

They introduced supplemental video content, more than 120 videos designed to help with self-guided learning. They created a centralised tutoring service to provide 1:1 and group support. And through these initiatives and others, they steadily brought the low support metric down, to below 2% by the time they were acquired. “We didn’t know that this was possible – we thought that 5% would probably be the floor,” says Ahmed.

“You need to have a point of view. It might change but you need to have that. And don’t allow the data to be ignored: you need to direct the organisation to respond to it,” he says. “It was this system that allowed us to scale rapidly within the very visible university context with very little blowback.”

“If you are setting out to improve education and you want to know that you’re actually improving the status quo, it’s the only way to give you the conviction that it’s actually happening.”

Things to apply:

  • Look for correlations between your lagging ‘North star’ metric and tangible things that you can make improvements to more rapidly
  • Once you have identified something that is indicative, use this to target teams to rapidly introduce improvements and measure the impact.

About Emerge

Emerge is a global pre-seed fund backed by 100+ of the world’s best human capital development operators. Our vision is to unlock human potential – by being a catalytic partner for early-stage founders, providing first-cheque financial support, ongoing expertise and access to a community who have ‘been there and built it’ with unrivalled market-specific know-how.

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