I've been teaching this format since 1997 and after being extremely hard-nosed as a new instructor (regimented form corrections...never varying from what my certifications said), I've come to realise that general instructions work to a certain extent. I try to meet all my participants, which can be difficult when you teach classes that have 34 participants, but I will make a point to talk with some of the people that have very obvious form issues.
The best way, as others have mentioned, is to just suggest that they would feel better, or stronger, or more in-control if they just did "this" (and I make the suggestion). Often, that's all it takes. Still, some participants that I've had for over a decade persist in their bad form. I shrug it off. It works for them...isn't causing them pain and doesn't hold them back in their personal fitness regime (which often means that they use my class as an aerobics class, not a cycling training class). My facilities have hired me to do a fitness class. If it was supposed to be a cycling training class it would be booked as such.
So...even though I'm a cyclist, when I'm doing my classes I know that many of my participants rarely get on a bike. They aren't worried if their toes are pointed down, or if they're even using a pedal stroke that helps them to be more efficient. They want to get a workout and burn calories. I do that and also provide a training arena for the cyclists that take my class. The trick is to do it in such a way that the non-cyclists enjoy the ride. That's the magic.
It's taken me a long time and a few different certifications and a whole lot more education to get me there.
P.S. I'm also a personal trainer that has had to learn what motivates people to get to their individual potential. That has probably been the best tool in my toolbox.
Vertically challenged, but expanding my horizons.