PS&L Blog

Freezing tuition fees: at first glance, it seems to make sense. For prospects, it eases the budgeting fears of families of incoming students by guaranteeing that their tuition fees will remain the same during their four years at college. In return colleges have a retention tool. Students feel more like they are “in contractual partnership” and the penalties for leaving the school are that their tuition fees for their next college are not guaranteed.

But scratch the surface a little and you might find that the negatives may actually outnumber the positives for both students and schools. And more importantly, freezing fees is only a Band-Aid that actually conceals a bigger problem. More on that later.

Inconclusive
We recently conducted a study to determine the value of freezing tuition. What we discovered was that guaranteeing fixed tuition for four years did not do much for the intended goals of this program. It did not actually increase enrollment, nor did it improve retention rates. Granted, for some it was a deciding factor in attending that school, but for most it would not have altered their decision to enroll.

I can see how one could conclude that if it appealed to some and detracted from none, then why not have it? In this competitive environment where enrollment is counted one admission at a time, every tool that works, even for a few, is worth it – especially if it’s not costing the college additional money.

And there’s the rub. Does freezing tuition cost the school more money than not freezing? What’s the ROI?

For many colleges and universities, freezing tuition is actually an administrative nightmare. It increases the number of variables exponentially, and that opens the doors for mistakes and misunderstandings.

Let’s face it. Freezing tuition is not being done so that colleges can leave money on the table. Each year a new contract is offered, and that frozen fee is determined based on four years. Chances are, freshman tuition fees for a frozen tuition plan are probably higher than they would be if the fees were not frozen. If we are being honest about it, it’s a marketing gimmick.

However, it is NOT a marketing plan. For some there is the assumption that if you make the announcement, they will come. If that were the case, then everyone would do it. And if everyone did, then you are back to square one – no differentiation.

It’s Value, Not Fixed Budget
Freezing tuition doesn’t address the real issue that prospects ask time and again: What is the true value of a higher education degree? The pressure on colleges and universities is making a case that the cost of tuition is worth it. Will a degree from X College mean a higher paying job than a degree from Y College? This often calls for colleges to take a closer look at themselves, to assess what resonates and what doesn’t, to find out if their “story” connects with prospective students.

There is no substitute for developing a comprehensive and integrated marketing program that differentiates your school from others, one that demonstrates the value of enrolling. And part of this program needs to incorporate a bit of sensitivity to the cost of higher education. You may determine that freezing tuition, with all of its pros and cons, is a good way to address this, but make it a part of a bigger program rather than making it the only program.

The topic of VALUE was a common theme at last week’s 2012 AMA Symposium for the Marketing of Higher Education.   The cost of a college education continues to be under a microscope.  Government, the press and, of course, students and families have a serious lack of trust in the value of a college degree.  Because the outcomes following a degree cannot be guaranteed, for many the higher education investment is perceived as an expensive gamble.

For all of us involved in higher education this issue is a public relations and marketing problem, but for every problem there is a solution.  Here are five takeaways that I brought back from the conference, and along with each one I offer a practical solution.

1.  The college’s brand must have corresponding quality to justify the price.

Solution: Remember Marketing 101

Just like any other product+price+position, consumers have to be comfortable with what they are spending and what they are getting. Value is important to consumers.

2. College Presidents need to be sold on the importance of brand and understand the gap between how their brand is perceived vs. how they think it is perceived.

Solution: Conduct market research

Don’t rely on your hunches.  Invest in formal market research to understand the position of your college in the marketplace and then develop a strategic marketing and communication plan to improve.

3.  The difference between sticker price and net price needs to be communicated more effectively and more often.

Solution: Make communicating price and cost a top priority

If you hide the cost, or publish inconsistent language about the cost, or if staff members have different ways of explaining price and cost, you will loose trust and your institutional value will be misperceived.

4.  Communicate what graduates are actually doing instead of just listing their job and title.  Connect the value of what they gained as a student in relation to what they know how to do now.

Solution: Job placement statistics and alumni stories are in demand these days 

These stories provide authentic and believable cases that people can relate to and will help prove your value proposition.

5.  Technology is important. Prospective students, especially the traditional ones, spend most of their time on their mobile devices and the internet.  It is important for them to know if their experience at your college will challenge them and meet their desire for the technology they are used to.

Solution: Market your college as a contemporary learning environment.

Begin by making sure your website is awesome because this is how students are looking for you. A mobile website will soon be as pervasive as regular websites – so it should be awesome too.

Solving the problem of VALUE is hard work, but it could be very rewarding for those who are successful in proving the worth of a higher education degree.

If you have any ideas about improving the value proposition in higher ed or are looking for solutions for communicating cost vs. value within your marketing plan– get in touch.

As higher education marketers we hate the summer melt just as much as you do.

No matter what is spent on advertising, viewbooks, search lists, and the like, it will not impact the number of enrollees who change their mind and decide to go to another college in June, July and August. Take your pick of reasons: fickleness, aggressive competition, finances. If you don’t have a relationship with your students and if you have not vetted these issues earlier in the recruiting cycle, you will face “melted” enrollment results.

We recently presented two webinar sessions titled “How to Put the Freeze on Summer Melt.” Judging from the attendance and level of interaction, this is a hot topic.  During the presentations we polled the audience about their melt rates.  Here are the results from the audience members who responded to the poll:

Poll question:  For enrollment in the fall of 2011, did your summer melt:

Clearly from this snap shot, summer melt is an issue that could become more of a problem in years to come.

During the question and answer session an attendee inquired, “What is the ‘acceptable’ summer melt rate?”  This is a complicated question.  I would like to say ZERO, but of course this is not realistic.   Melt may be measured differently and there are many factors to review, but however you measure it – a decrease in summer melt rate is ideal.

The son of someone I recently met is enrolled to start this fall at a college with selective admissions.  Through stories relayed to me about this student, I predict there will be problems that will interfere with his follow-through this summer. (I hope I am wrong) As an outsider and a consultant it is easy for me to see the warning signs in this case, but how does an admissions team detect problems and take action?  Melt is why it is so important for admissions counselors to have relationship selling skills; to know their students and be aware of the warning signs. Counselors won’t know of problems unless they purposefully look for them and ask the right questions.

Reducing summer melt is not one of those problems you can erase from behind your computer screen. It calls for a strong enrollment management strategy coupled with astute relationship selling skills.

If you would like to view our on-demand webinar presentation “How to Put the Freeze on Summer Melt” contact me at 412-904-3133 or janet@psandl.com

Despite reports of demise, the viewbook is not dead

For those of you who believe what they read in higher ed publications that “print is dead”, well, that’s just not true. This may be case in other industries, but when it comes to recruiting students for colleges and universities, the good old viewbook is very much alive and relevant.

For the past few weeks, as we read these articles about the death of print, what we were experiencing with our higher education clients was different. So in the spring of 2012, we conducted an online survey of colleges and universities to get a picture of the effectiveness of print communications in the admissions and enrollment process.

Invitations were sent via email to 3,350 admissions, enrollment and marketing/ communications professionals. Our findings told us print marketing is very much alive and a highly desirable part of communications to both prospective undergraduates and their parents.

• Viewbooks are still being used at the majority of colleges and universities. Half of the colleges we surveyed have also inquired into their effectiveness. And most heard positive responses from both students and parents regarding receiving print communications through the mail. These students and parents said that they enjoyed receiving them, even if they felt bombarded with mail from colleges.

• The large viewbook with 14 or more pages is still most widely used. Just over ¼ of the respondents said they had a small 8-12 page viewbook. While it seems most colleges have a printed viewbook, the majority also have an online version of the book as well. Along with the viewbook, most colleges are pushing out 6 to 15 pieces to their traditional undergraduate prospects.

• There is a direct and beneficial connection between print and online marketing. The call to action in the majority of the print publications gets prospective students to utilize the college’s website. A small percentage are trying to get students to call the college, or visit the college campus. Almost no colleges are using these print communications to drive social media.

• Colleges for the most part send print communications to high school juniors, and continue this through the enrollment process. There are several colleges that start as early as high school sophomores, but very few who start the communication sequence with high school freshman or seniors.

• For the most part budgets for electronic means of communications have either increased or stayed the same. Very few colleges reported that their budgets decreased. With the exception of the viewbook, many of the smaller print communications could be delivered effectively electronically, especially general information postcards.

• More than half of respondents said they were either increasing their print budgets or keeping them the same. However, there appears to be a trend that electronic marketing is cannibalizing print budgets. About one third of respondents said they were cutting their print budgets while a third said they were increasing their electronic means of communications. This is due to the fact that with the exception of the viewbook, colleges believe that many of the smaller print communications can be delivered effectively electronically, especially replacing those general information postcards.)

Not only are the viewbook and print communications still viable, they are a key part of an integrated communications sequence. The fact is electronic communications reach prospective students differently. Even though they can be stored, their appeal is that they are primarily immediate. Print, and in particular viewbooks, has a longer shelf life. What our research has found is electronics has not replaced the tactile gratification that comes from getting mail or the depth that it brings to the communications. Even if they only look at the pictures, you still have a captive audience and a well-composed picture often tells a far more evocative and compelling story than a series of emails.

If you’re interested in getting the details, be sure to download a copy of our full survey report. http://www.psandl.com/download_resources.php

It still surprises me a little when traditional undergraduate recruiting teams bristle at the word “sales”. It surprises me a lot when adult and part-time graduate recruiting teams bristle at the word.

As a person who was raised in the Admissions hey-day of the 1980’s when all we had to do was open the doors, put on a smile, counsel prospects through the admissions process, and not say anything damaging to get an enrollment, the title “admissions counselor” was appropriate. In today’s competitive climate, decreasing markets, and aggressive advertising campaigns, “counseling” a student through the process is more of a luxury.

In this past year, as I have worked with numerous colleges’ sales and recruitment teams, I have come across some interesting information about sales and the prospect.

•  Brand is really important in the minds of your prospect
• Anyone who tells you that convenience is not a factor, (a big factor for most), is not telling you how they really feel
•  People are driven by fear, pain, advancement, peer pressure, and urgency
• Even if they don’t say it out loud they are comparing your product to others

Sales people, or recruiters who are effective in their roles know and practice some common behaviors.

•  Focus: it doesn’t matter what you want, it’s all about them
•  listen and learn what the prospect needs, wants and values
•  know your competition as well as you know your own product
•  when you tell them what you want them to know, you come across as pushy
•  Focus: it doesn’t matter what you want, it’s all about them

All the good sales technique literature out there reminds the recruiters that the ability to be able to learn what the prospect wants, and help the prospect to see that your product can meet those needs, is not only helpful but also highly persuasive. When a recruiter tells me that they want to be helpful, its actually means is that with a little tweaking of their approach, they can also be a better recruiter.

Recruiting is sales, just with a more palatable name.