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Marketing to Generate Quality Leads

April 23, 2010

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Overview

1. Generating Leads Today– Statistics of Generating Leads and Conversions

2. Lead Enhancement Services3. Admissions Strategies to Convert Quality Leads4. Converting the Student5. Retention

Gragg Advertising © 2010

Generating Leads Today

Reality of Today

1. In the past year, we have seen an abundance of leads from all sources.

2. The Internet makes it easy to shop for schools.– On average, people inquire to 5-7 schools today versus only

3-4 two years ago. *

3. Saturation of lead providers have increased quantity but have diluted quality and conversion rates.

4. Most schools are focusing on “paid for” lead channels. – Non-media leads have slowly faded

5. Unemployment rates have increased and in turn, enrollments with Career Schools have also increased.

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*2010 Gragg 50 Campus Study

Unemployment Trends

5US Dept of Labor Statistic 2000-2009

Back into the Classroom from 2000-2008

6US Dept of Labor Statistic 2000-2009

Lead Volume from 2005 - 2009

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Lead volume sample from career schools from 2005 - 2009

+91%

+37%

+27%

- 12%

Lead Enhancement Services

Average Conversion Rates

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Medium 2007 2008 2009

DM 7.62% 7.54% 7.68%

Non-media 12.63% 18.97% 40.12%

PDL/PDR 20%  19.4% 19%

PPL 4.37% 2.95%  2.11%

Print 3.68% 8.60% 3.20%

SEM 2.4% 2.33% 2.23% 

TV 12.06% 11.68% 11.75%

Website 5.56% 8.87% 6%

Source: Gragg Advertising 50 school study 2010

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Lead Volume by Medium and Conversion Rates

Source: Gragg Advertising 50 school study 2010

   

Lead Volume by

%Conversion

Ratios

Lead Volume by

%Conversion

Ratios

DM   9.6% 10.2% 3.2% 7.68%

Non media 4.4% 15.1% 6.8% 40.12%

PDL   29% 20% 19% 19%

PPL   14.5% 3.6% 34% 2.11%

Print   5.2% 10% 1.7% 3.2%

SEM   9% 12.9% 2.3% 2.23 %

TV   8% 13.4% 9% 11.75%

Website   12.2% 17% 16% 6%

Yellow Pages 1% 19.7% 1.5% 16%

High School 7.5% 3.2% 6.5% 8%

2006 2009

Overall Conversion Rates for 2009

1. Full Media Mix Strategy

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TV = 11.75%Print = 3.2%Inserts = 5%SEM= 2.23%PPL= 3%Website= 11.91%Email = 4%Direct Mail = 7.68%

Total Traditional Media = 8%Total Interactive Media = 4%Total Media = 5%Total Non-Media = 40%Overall Total = 8%

Overall Conversion Rates for 2009

2. Interactive Clients Only (does not include Interactive from Full Service Clients)– SEM = 2%

– PPL = 1%

– Overall Total = 2%

3. All Interactive Clients– SEM = 2%

– PPL = 2%

– Website 6%

– Email = 4%

– Overall Total = 3%* 2009 Gragg Advertising

Client Study

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Why a Full Media Mix Strategy is Important

1. “Cone of influence is broader”

2. Brand and image grow in the market place– Increases market share for your organization

– Frequency builds consumer confidence, which leads to more exposure, more conversions and greater consumer confidence.

3. Outpace competition in terms of consumer reach.

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Direct Mail

142009 Conversion Rate: 7.68% - 3 year trending has remained steady

Non Media/Other

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G

E

A

B

C

D

F

2009 Conversion Rate: 40.12% - 3 year trending is on the rise

Print

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2009 Conversion Rate: 3.2% - 3 year trending has been consistent

Email

172009 Conversion Rate: 6% - 3 year trending has fluctuated since 2008

Website

182009 Conversion Rate: 6% - 3 year has fluctuated

Pay Per Lead

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E

AB

CD

F

G

I

H

2009 Conversion Rate: 2.11% - 3 year trending has remained steady

Television

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2009 Conversion Rate: 6% - 3 year trending has remained steady.

Yellow Pages

212009 Conversion Rate: 16% - 3 year trending has remained steady

Our Position

1. Quality leads will decrease in 2011 and 2012.

2. Overall, leads will increase in volume.

3. Unemployment has stabilized.

4. Housing starts were up as of March ‘10.– Key indicator of economic times

5. New jobs have stabilized but still remain low.

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Some Important Questions for your School

1. Why do some lead channels work and others don’t?

2. How do you convert leads in a changing market?

3. How can you determine which mediums will generate the best quality leads?

4. How do you optimize lead conversion?

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Creating Efficiency with Technology

1. Improve your admissions conversions with:– Call Auditing Management

– Lead Aggregation technologies• De-duping

• “Lead return” management by campus

• Appending leads

– Web Chat

– Call Centers

– Internet2Phone™

2. Track your efforts!– Dedicated phone lines

– Unique URLs (track residual volume)

– Down drops from websites to clarify lead source24

Quality Control

How Quality Produces Results– Just a few examples:

• Admissions Process Auditing

• Call Auditing Management– On average, 30% of incoming leads are lost due to

mishandling that could be prevented with proper training.

• Web Chat– In a 2009 Case Study, a Gragg Advertising client who

utilized Web Chat scheduled an average of 29 appointments a week with this feature and had a nearly 50% show rate.

• Ongoing prospect contact strategy– Email Marketing/Texting re-circulating lead campaigns

• Internet2Phone™

• Lead Qualification

• Appending

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Admission Strategies to Convert Quality Leads

Remember:

To some degree, quality of a lead is impacted today on how Admissions manages the lead and how the lead is

processed rather than the source itself.

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The Cost to Acquire a Student

1. Cost Per Start is decreasing due to lead saturation.

– Pay Per Lead driving Cost Per Start down.

2. Career Schools are willing to pay more for a Cost Per Start.

– Average Cost Per Start – 50 schools

• $1,125 per student

• Highest $2,500

• Advertising costs only

3. Corporate school groups expect 20- 35% growth.

4. There is a limited population.

5. Cost Per Start will start to rise due to the changing market.

Managing the Change

1. Manage leads based on quality not quantity through analysis and lead metrics

2. Focus on being the first call– The Admissions Department should be returning a prospects

lead submission within 5 minutes

– Internet2Phone/direct connect opportunities/Web Chat can lead into phone opportunities.

– Call Centers

3. Adjusting the amount of leads an admissions rep can handle– How many leads can an admissions rep handle and still

generate PDL’s and referrals?

– How many Admissions Representatives do you need based upon this new calculation?

4. Mandating PDRs and PDLs – Decide a monthly or weekly goal

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The Changing Impact on Admissions

After surveying admissions teams, we found that:1. The target market is growing by 3% annually.

– We are seeing increase in lead volume of 20% per market.– Prospects are contacting more schools

2. Admissions Representatives are frustrated with “chasing leads.” – Averaging 35-40 leads per week

• 25 Internet leads per week • 10-15 other leads

3. Lead inundation 4% vs. 12% conversion– It takes 3 internet leads over 1 TV lead to equal conversion

4. Reps are having difficulty managing the residual weekly volume .

5. Impact– Reps stop generating PDR’s– Reps stop generating referrals– Attention to individual leads decrease

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Managing the Change in Admissions

1. Current Model– 3 Reps X 40 leads/week=120 leads

– 120 leads X 9% conversion to start= 11 starts/week

2. Possible New Model– 6 reps X 20 leads/week = 120 leads

– 120 leads X 12% conversion to start = 14.5 starts/week

3. 3.5 starts/week X 50 weeks = 175 more starts– 175 starts X $15,000 = $2,625,000

4. Investment for additional reps $120,000

5. Net gain $2,505,000

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Optimal Referral and PDL Strategy

1. Set weekly referral goals for each Admissions Representative.

2. Three to five referrals per week is standard for most successful programs.

3. A strong referral program will increase admission conversion numbers as well as student retention – This will be your most valuable source when media lead

flow decreases.

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Impact on PDLs and PDRs

Current Model

3 Reps X 1 PDR/PDL week = 3 PDL/PDR a week

3 X 20% conversion = 1/2 start a week.

Possible New Model

6 reps X 3 PDR/PDL week = 18 PDR/PDL week

18 X 20% conversion = 3.5 starts per week

Net Result

3 starts/week X 50 weeks = 150 more starts

150 starts X $15,000 = $2,250,000

Total additional revenue from increased Admissions team and increased PDR/PDL required = $4,755,000

Converting the Student

Understanding the Student

The same four things that are obstacles for potential students are also their motivators.

– Self Esteem

– Money

– Time

– Failure

By understanding these factors and finding ways to relate to the students, you can become a more successful Admissions Representative.

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Retention

Finish with Retention

1. After putting together a quality marketing program, continuous training of your Admissions staff, creating beneficial programs and nurturing a positive campus environment, retention should be at the forefront of your mind.

2. Retention practices are the best way to ensure quality students graduate from your program.

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Retention

1. 67% of high school students have enrolled into a 2-4 year institution immediately after high school.

2. Age of students who enroll in Certificate programs:– 8.2 % 19 years old

– 13.1% 20-23 years old

– 25.6% 24-29 years old

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SOURCE: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS), Spring 2008 and Spring 2009

Retention Rate for Two-Year Schools

The Imagine America Foundation did a recent study on retention rate of two-year institutions on the percentage of students who returned to the classroom the following year:•Career Colleges 72%

•Public School 57%

•Private, nonprofit 68%

The study also found that two-year career colleges had the highest graduation rate at 59 percent.*

•Public two-year institutions 23 percent

•Private two-year schools 55 percent.*

* Imagine American Foundation, 2009

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You Can Affect Your Retention Rates

1. Identify at-risk learners before they start.

2. Establish a collaborative student support plan using a team-centered approach.

3. Understand the timeframe in which we must identify the at-risk.

4. Employ various groupings found to provide support for the at-risk.

5. Have an adult-friendly student services department.

6. Develop a strong faculty model that includes the right level of training and ongoing support for our instructors.

Thank you!

Questions and Answers

Join Us before CCA!

Join us for our presentation,

“Good to Great Admissions!”

on June 4, 2010 at

12:30 p.m. E.D.T

Don’t forget! You can download the PDF and Audio from this presentation at www.graggadv.com/webinars/!

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Get in the Mix!

1. Follow Gragg Advertising on Twitter at

www.twitter.com/gowithgragg

2. Become a fan of Gragg Advertising on Facebook!

3. Join Gragg Advertising and other career school professionals at www.SchoolBlender.com after this to discuss today’s presentation!– Free and Easy to Sign Up

– Exclusive site for the School Sector