Gragg advertising marketing to generate quality leads

This document is a confidential communication from Gragg Advertising. The material contained herein and the intellectual property it represents are for your consideration only and remain the property of Gragg Advertising. This document may not be quoted, published, copied, divulged to others, disseminated, or stored in or distributed over an information retrieval system without the prior written consent of Gragg Advertising. Copyright © 2009 Gragg Advertising. All rights reserved. Marketing to Generate Quality Leads April 23, 2010

Overview
Generating Leads Today
Statistics of Generating Leads and Conversions
Lead Enhancement Services
Admissions Strategies to Convert Quality Leads
Converting the Student
Retention
Gragg Advertising © 2010

Generating Leads Today

Reality of Today
In the past year, we have seen an abundance of leads from all sources.
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. *
Saturation of lead providers have increased quantity but have diluted quality and conversion rates.
Most schools are focusing on “paid for” lead channels.
Non-media leads have slowly faded
Unemployment rates have increased and in turn, enrollments with Career Schools have also increased.
*2010 Gragg 50 Campus Study

Unemployment Trends US Dept of Labor Statistic 2000-2009

Back into the Classroom from 2000-2008 US Dept of Labor Statistic 2000-2009

Lead Volume from 2005 - 2009
Lead volume sample from career schools from 2005 - 2009
+91% +37% +27% - 12%

Lead Enhancement Services

Average Conversion Rates Source: Gragg Advertising 50 school study 2010 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%

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
Full Media Mix Strategy
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
Interactive Clients Only (does not include Interactive from Full Service Clients)
SEM = 2%
PPL = 1%
Overall Total = 2%
All Interactive Clients
SEM = 2%
PPL = 2%
Website 6%
Email = 4%
Overall Total = 3%
* 2009 Gragg Advertising Client Study

Why a Full Media Mix Strategy is Important
“ Cone of influence is broader”
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.
Outpace competition in terms of consumer reach.

Direct Mail 2009 Conversion Rate: 7.68% - 3 year trending has remained steady

Non Media/Other G E A B C D F 2009 Conversion Rate: 40.12% - 3 year trending is on the rise

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

Email 2009 Conversion Rate: 6% - 3 year trending has fluctuated since 2008

Website 2009 Conversion Rate: 6% - 3 year has fluctuated

Pay Per Lead E A B C D F G I H 2009 Conversion Rate: 2.11% - 3 year trending has remained steady

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

Yellow Pages 2009 Conversion Rate: 16% - 3 year trending has remained steady

Our Position
Quality leads will decrease in 2011 and 2012.
Overall, leads will increase in volume.
Unemployment has stabilized.
Housing starts were up as of March ‘10.
Key indicator of economic times
New jobs have stabilized but still remain low.

Some Important Questions for your School
Why do some lead channels work and others don’t?
How do you convert leads in a changing market?
How can you determine which mediums will generate the best quality leads?
How do you optimize lead conversion?

Creating Efficiency with Technology
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™
Track your efforts!
Dedicated phone lines
Unique URLs (track residual volume)
Down drops from websites to clarify lead source

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

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.

The Cost to Acquire a Student
Cost Per Start is decreasing due to lead saturation.
Pay Per Lead driving Cost Per Start down.
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
Corporate school groups expect 20- 35% growth.
There is a limited population.
Cost Per Start will start to rise due to the changing market.

Managing the Change
Manage leads based on quality not quantity through analysis and lead metrics
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
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?
Mandating PDRs and PDLs
Decide a monthly or weekly goal

The Changing Impact on Admissions
After surveying admissions teams, we found that:
The target market is growing by 3% annually.
We are seeing increase in lead volume of 20% per market.
Prospects are contacting more schools
Admissions Representatives are frustrated with “chasing leads.”
Averaging 35-40 leads per week
25 Internet leads per week
10-15 other leads
Lead inundation 4% vs. 12% conversion
It takes 3 internet leads over 1 TV lead to equal conversion
Reps are having difficulty managing the residual weekly volume .
Impact
Reps stop generating PDR’s
Reps stop generating referrals
Attention to individual leads decrease

Managing the Change in Admissions
Current Model
3 Reps X 40 leads/week=120 leads
120 leads X 9% conversion to start= 11 starts/week
Possible New Model
6 reps X 20 leads/week = 120 leads
120 leads X 12% conversion to start = 14.5 starts/week
3.5 starts/week X 50 weeks = 175 more starts
175 starts X $15,000 = $2,625,000
Investment for additional reps $120,000
Net gain $2,505,000

Optimal Referral and PDL Strategy
Set weekly referral goals for each Admissions Representative.
Three to five referrals per week is standard for most successful programs.
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.

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.

Retention

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

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

Identify at-risk learners before they start.
Establish a collaborative student support plan using a team-centered approach.
Understand the timeframe in which we must identify the at-risk.
Employ various groupings found to provide support for the at-risk.
Have an adult-friendly student services department.
Develop a strong faculty model that includes the right level of training and ongoing support for our instructors.
You Can Affect Your Retention Rates

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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Gragg advertising marketing to generate quality leads

by gragg1advertising on Apr 28, 2010

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