Smart Marketing in a Recession Current Practices and Ideas for Marketing for DETC-Member Institutions Presented April 7, 2009, at the 83rd Annual Conference

Smart Marketing in a Recession

Current Practices and Ideas for Marketing for DETC-Member Institutions

Presented April 7, 2009, at the 83rd Annual Conference of the

Distance Education and Training Council

By Ron Gregory, President,

© 2009

Outline of Presentation

Results and Comments from Second Survey on Marketing Practices of DETC Institutions

Recession marketing practices and ideas

Best practices in various media and channels

Testing ideas and practices

New media and where they stand for DETC use

Examples of ideas and best practices at work

© 2009

Current Marketing Practices –Findings from Survey

Among all respondents: 20 inquiry-seeking media types used in 2008

• Average used: 7.5 per respondent• Up from 6.4 per respondent in 2007

Top six media, listed in order of usage:1. Website

2. Student and alumni referrals

3. Magazines and other print media

4. Trades shows and conferences

5. SEM and CPC ads on Internet

6. Internet CPI and CPE sources

© 2009

Current Marketing Practices – Findings from Survey

100%

85%

67%

58%

45%42% 42%

39% 39%36%

30%24%

21%18%

12%9% 9%

6%3%

64%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Per

cent

of R

espo

nden

ts

Inquiry-Seeking Media Used by Respondents

© 2009


Comments on Media Usage:Somewhat less usage of key Internet media,

SEM and CPI/CPE sources than prior yearPrint Media, Catalogs, Direct Mail, Email,

and FSIs/Co-ops all dropped in usageSome media, not specifically included last

year, were used by a healthy percentage of respondents:

• Referrals – 85%• Trade Shows – 64%• Newsletters – 42%• PR, Press Releases – 39%• F-to-F Sales – 36%• Social Media – 30%

© 2009


Comments on Media Efficiency: Most important metrics used to judge

media efficiency:1. Conversion Rate

2. Cost per Inquiry (4th last year)

3. Cost per Enrollment (2nd last year)

4. Revenue per Enrollment (3rd last year)

As in last year’s survey, very few respondents considered profit-oriented metrics as having much importance

© 2009


4.24.0

3.5

2.6 2.6

2.01.7

38%

25%

6%

13%

0%

6%

13%

0.0

1.0

2.0

3.0

4.0

5.0

ConversionRate

CPI CPE Revenueper Enroll

Return onAdv

Revenueper Inquiry

Return onMkt

Ave

rage

Ran

k (In

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ale)

0%

5%

10%

15%

20%

25%

30%

35%

40%

Perc

ent o

f Res

pond

ents

Avg. Efficiency Ranking Top Efficiency Metric

Ranking of Efficiency Metrics

© 2009


6.1

4.0

2.82.3 2.3 2.1

1.8 1.7 1.7 1.6 1.6 1.51.2

1.00.7

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2.0

3.0

4.0

5.0

6.0

7.0

*Limited Data

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)

Rankings of Inquiry-Seeking Media,

Using Respondents’ Most Important Efficiency Metric

© 2009


6.1

4.0

2.8

2.3 2.32.1

1.8 1.7 1.7 1.6 1.6 1.51.2

1.0

0.70.4

2.7

1.5

2.72.8

3.3

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4.0

5.0

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* Limited Data

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Efficiency Amt. Spent

Rankings of Inquiry-Seeking Media,Efficiency Compared to Spending

© 2009

Current Marketing Practices – Findings from SurveyInquiry-Seeking Media Comments

Not enough spent on Website and Student Referrals, given their efficiency ratings Website received same critique last year Opportunities exist to capitalize on the effectiveness

of student and alumni referrals Radio had too little data to generalize the high

efficiency shown

Too much spent on Print Media, Internet CPI & CPE, Direct Mail, and Email, given their efficiency Print Media received same critique last year Last year, Email wasn’t used much, but relatively

efficient – maybe it was employed more in 2008 Internet CPM (banners) could be too inefficient for

some schools

© 2009

Current Marketing Practices – Findings from SurveyInquiry-Seeking Media Comments – Cont’d

As last year, Search Engine Marketing efficiency ranked just behind Website, but spending ranked a distance 2nd to Internet CPI & CPE Could be caused by struggle to optimize websites,

or by difficulties in SEM strategy or execution

Internet CPI & CPE ranked highest in spending, but tied for 6th in efficiency Last year, CPI & CPE was also highest in spend, but

5th in efficiency – not much has changed here

Better strategy, qualifications, and tracking usually needed to improve this important source

© 2009


6.1

4.0

2.8

2.3 2.32.1

1.8 1.7 1.7 1.6 1.6 1.51.2

1.00.7

0.4

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2.7 2.8

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0.7

17.9

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0.0

12.2

2.5

20.5

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14.3

35.2

10.3

20.5

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No.

of T

ests

Con

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Efficiency Amt. Spent Tests Conducted

© 2009


Not enough testing being conducted for several media, given their efficiency and/or spending levels, including:

• Website• Internet CPI & CPE• Internet CPM• Email to Cold Lists• Student Referrals

Lots of testing in Print Media and SEM• Print Media testing may be an attempt to keep

this historically reliable medium working• SEM testing levels may reflect frustration with

competitiveness of medium, or lack of clear strategy or execution

© 2009


Inquiry-Seeking Media Dropped Due to Inefficiency

14%

9% 9% 9%

5% 5% 5% 5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Per

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© 2009


Inquiry-Seeking Media dropped due to inefficiency:

14% dropped Internet CPI & CPE

9% dropped Print, Direct Mail, and TV

5% dropped Internet CPM, Social Media, Radio, and Trade Shows

Similar media dropped in last year’s survey, plus Internet SEM and FSIs

© 2009


5.0

3.6

2.92.6 2.6 2.5

2.2 2.0 1.9 1.91.5

1.20.9

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Conversion Channels, Ranked by Enrollments Received

© 2009


Top Conversion Channels, by enrollments received:1. Website2. Internet CPE3. Referrals4. Direct Mail 5. *Internet CPM6. *Face-to-Face Sales7. Magazines, Print8. Email9. *Internet SEM10.*Outbound Calls

*Tied

© 2009


5.0

3.6

2.92.6 2.6 2.5

2.2 2.0 1.9 1.91.5

1.20.9

0.7

3.3

4.5

1.4

3.4

2.1

2.6

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3.4

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Enrolls Received Amount Spent

Conversion Channels -- Ranked by Enrolls Received and Amount Spent

© 2009


Conversion Channel comments:Given the resulting enrolls, too much spent

on: Magazines, Internet SEM, Outbound Calls, and to some extent, Trade Shows, Social Media, and Internet CPE

Not enough spent on Website, Referrals, and to some extent, PR and Press Releases

Not much data on testing, but it appears that too little testing was done for high-spending channels, including Internet CPE, Magazines, Direct Mail, and Outbound Calls

© 2009


19.0%

9.5% 9.5% 9.5%

14.3%

33.3%

4.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

IndependentChannels with

SequenceControl

IndependentChannels withTiming Control

LinkedChannels with

SequenceControl

LinkedChannels withTiming Control

Method NotSpecified

No MethodUsed

Used Only 1Channel

Per

cen

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esp

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ts

Methods Used to Coordinate Messages Between Channels

© 2009


Conversion Channel coordination: Half of respondents used some method for

coordinating messages to inquiries between channels

A third used no method for coordinating messages between channels

Most-used method of message delivery: coordinated sequence between independently driven channels

About 20% have their channels programmatically linked in their system

About 30% controlled the sequence of messages, while 20% controlled the timing of messages

© 2009


21.1%

26.3%

52.6%

Increase from Normal Change

Decrease from Normal Change

No Difference from Normal

Change in Marketing Budget for Inquiry-Seeking Media

5.7%

4.9%

-1.4%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2007 to 2008 2008 to 2009 Due to Economy

Percentage Change in Budget

© 2009


Seasonality of Spending for Inquiry-Generating Media(Removing Summer-Season Schools)

5.3

2.32.0

1.51.2

1.9 1.91.3

1.61.2

1.5 1.5

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1.0

2.0

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4.0

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© 2009


Seasonality – Top Spending Months for inquiry-seeking media, in order:

1. January

2. February

3. March

4. June

5. July

6. September

Tied

© 2009


-10%-12%

-15%

-7%

3%0% 0%

-10%-12%

-15%

-7%

-3%-5%

-10%

$-

$29.00$30.83

$33.50

$13.33

$16.25

$12.50

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Doctoral Master's Bachelor's Associates Certificate High School Elementary,Jr. High

Per

cen

t of R

esp

on

den

ts

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

Note: Doctoral CPI data too limited

Co

st p

er In

qu

iry

Change in CPI, 2005 to 2008

Change in CPE, 2005 to 2008

CPI in 2008

CPIs in 2008 and

Changes in CPI & CPE, 2005-2008

© 2009


Estimated Cost per Inquiry by Program Type:

Associates slightly higher than Master’s and Bachelor’s CPIs – all in $29-$34 range

• Last year, Master’s and Bachelor’s were highest, mostly in $50-$75 range

High School, Certificate, and Elementary/Jr. High mostly in $12-$16 range

• Note much change from prior year

© 2009


Estimated Change in CPIs and CPEs, 2005-2008:

Surprisingly, most CPIs and CPEs went down over this 3-year period

• In prior year, most went up by single digits, except Doctoral programs (CPI up 20%, CPE up 25%)

CPIs for Certificate, High School, and Elementary/Jr. High were flat to slightly up

Other CPIs decreased, range of 7% to 15%

CPEs all decreased in range of 3% to 15%

© 2009


11%

22%

26%28%

0%

25%

5%

17%

5%

33%

16%

0%

16%

11%

16%

0%

26%

19%

16%

33%

37%

6% 5%

19%

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0%

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25%26%

0%

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16%

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21%

6% 5%

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26%

6%

591

297329 345

577

392

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Website Design SEO Planning Tests New Markets Product Devel. Retention Mkt.

Per

cent

of R

espo

nden

ts

0

100

200

300

400

500

600

700

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Ave

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rs

0 to 50

51 to 125

126 to 250

251 to 500

501 to 750

751 to 1000

Over 1000

Est. of Avg.Value

Estimated Man Hours Spent in 2008 on Marketing Activities

© 2009


Estimated man hours spent on various marketing activities in 2008:

1. Website Development – 591

2. Product Development – 577

3. Retention Marketing – 392

4. Developing New Markets – 345

5. Planning Tests – 329

6. Search Engine Optimization – 297

SEO and Planning Tests could use more time and attention

Website Development better than prior year, but could still use additional attention

© 2009

Best Marketing Practices and Ideas

Recession-period marketing strategy generally means lower budgets and/or more careful use of marketing dollars

Balance of presentation focuses on low-cost techniques and ideas in critical areas:Search Engine MarketingEmail MarketingTesting Website DevelopmentNew Media

© 2009

Best Practices and Ideas for Search Engine Marketing

Consider outsourcing SEM and SEO to a search agency Learn the tricks to smart bidding or go outside to an

agency that you monitor closely

Let agency work on SEO with your web team to generate more “free” inquiries

Make sure of what agency is doing and get a weekly report on results

Automated bidding needs human oversight

Determine how to credit other media for inquiries received on website

© 2009


Refresh keywords used for biddingMethod for doing it yourself very

inexpensively in white paper from Tableau Software

Keep list trim to avoid spreading budget too thin

Determine top keywords for revenue, margin, and conversion, then budget more for these terms

Separate keywords into top, average, and low performers

Pause the consistently low performers

© 2009


Protect your brand name and branded termsBid on them constantly with fairly high

budgetsDon’t let CPI vendors (affiliates) bid on your

brand termsDETC members shouldn’t be bidding on each

others’ namesFile trademarks with search enginesTest Google Content Network and others like

it with contextual ads

© 2009


Improve conversion track and landing pagesMatch SEM ads to landing pages in content

and look, to increase conversion Include pertinent info and links on landing

pagesAdd alternate choices for programs, coursesSpice up with pics, color, and videoGive option for email or newsletter sign-upTest keys variables and changes, tracking

results

© 2009

Best Practices and Ideas for Conversion Marketing

Low-cost ideas for improving conversion:Constantly improve and update website

• The front door to your school MUST look great!

Change copy to speak to tough economic times and fast-to-complete programs

Determine high-value inquirers and spend more to convert them than low-value ones

Synchronize messages better between various conversion channels

Test new offers and changing the order of current offers

© 2009

Best Practices and Ideas for Conversion Marketing – Email

One of the best and least expensive channelsPlanning and research can improve results

• Review past results for insights, including key metrics, content, tests, website analytics, timing

• Make plans to expand your email list, test new creative and personalization, and improve tracking

Design and layout are critical and require an experienced email designer

• Website design standards not as effective or even usable in email design (such as style sheets)

• Best looking email not always most read/effective• Test key variables, such as graphics, link

placement and number, and subject lines

© 2009


Personalization • Use first name in salutation• Tailor content specifically to the course

or program of interest

Segmentation• Vary copy and graphics to target those

usually interested in chosen course• Email more and better offers to the best-

converting inquiries, based on segmentation

• Vary subsequent emails based on response or non-response to first emails

© 2009


Web Analytics• Track how the average click-thru

navigates and responds on website for each email

Timing• Send first email within minutes of

submission• Deliver four to six additional emails over

next several weeks • Test timing for best intervals

© 2009


Guard your reputation with best practices

• Observe all CAN-SPAM rules• Unsubscribe bounces and requests fast• Cultivate a “white-hat” status• Collect as much info as you can for

segmentation• Use a unique ISP from which to launch• Deliver on any promises made in sign-up

process• Send correction emails if you make an error

© 2009


Content Include toll-free number and lots of links to your site:

• “More info on course”

• “Enroll now”

• Add links to download course descriptions, catalog, applications, etc.

• Add links to interesting videos, student testimonials

Test many variables, including:• Subject line

• “From” line

• Creative and layout

• Urgency

• Offers

• Timing and sequence

© 2009

Best Practices for Conducting Tests

TEST, TEST, TEST

Budget for testing – don’t leave it to chance

When feasible, pre-test ideas with informal surveys to eliminate losers up front

Test only what you can actually roll out

Do it all right – give each test its best shot

Speed path to success with simultaneous, multivariate testing

© 2009

Best Practices for Conducting Tests

Run the numbers prior to testing, to determine what a success requires

Don’t forget to allow for seasonality

Cut your losses and roll out winners fast

Back-test rollouts to validate their success

Creative tests usually have less impact than offers, tuition amounts, deadlines, incentives, and payment amounts

© 2009

Best Practices for Website Development

Develop an extremely friendly site – test usability during development, not afterwards Don’t make them think or work

Keep site up-to-date Update content and graphics often

Upgrade functions constantly

Add student-community participation and sharing features

Publish plenty of info about each program

Make tuition costs available for shoppers If you offer higher-priced programs, lay out the

benefits to justify tuition costs

© 2009

Best Practices for Website Development

Make it very easy to inquire, enroll, email, and call

Explain how your online instruction works

Emphasize accreditations and organizations to which you belong

Make testimonials and success stories easy to see (and hear with video!)

Don’t put student- and alumni-oriented content on pages seen by prospects

© 2009

Using Newer Online Media for Schools

Social Networks – Not a good selling medium – “tell,” don’t “sell” – spend in and advance other media first

Podcasts – For course outline, career outlook, etc. Not strong for conversion, but builds reputation

Blogs – Not a strong converting medium, but adds to the conversation

Chat, Newsletters – Smart to increase interactivity and keep inquirers and students in touch with school

Chat Rooms, Forums – Especially important for students in today’s Web 2.0 environment

Mobile Marketing – Up and coming medium – could be ready for prime time in next year or two

© 2009

Thank you!

Any Questions?

Documents

Smart Marketing in a Recession Current Practices and Ideas for Marketing for DETC-Member Institutions Presented April 7, 2009, at the 83rd Annual Conference