marketing private...as of oct. 2015, ~22 million millennials were parents, with 9,000 babies born to...
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Marketing Private
Schools
Know Your Market
A New Educational Landscape
Demographic changes affecting student population and
parents
New school options for families
Economic factors affecting families
Demographic Changes Impacting Schools
Sharply diminished growth and rapid
aging of white population
Rapid growth of “new minorities”:
Hispanics, Asians, and multiracial
populations
New generation of parents: Millennials
Secularism increasing
Becoming a White Minority Country
85%
79%
73%
64%
58%
55%
51%
7%
9%
11%
12%
13%
14%
14%
4%
4%
5%
5%
4%
4%
5%
7%
10%
16%
20%
22%
25%
3%
4%
5%
6%
85+
65-74
50-64
35-49
18-35
5-17
Under 5
Whites Blacks Asians Hispanics Other RaceSource:2010 U.S. Census
Population Composition by Age and Race, 2010
Percentage of U.S. Children Ages 0-17 by Race and EthnicitySelective Years and Projections
Immigration Isn’t Driving Hispanic Population Growth
10
The Rise of Asians
11
Percentage of the Population Who Follow a Major Faith Tradition
The New Parents: Millennials
Born: 1981-1997. Size: 75.4 Million The oldest are 36 years old. They make up ~31% of the population,
and just over a third (34%) of the U.S. workforce.
They will likely make up ¾ of the income-earning population by 2025.
As of Oct. 2015, ~22 million Millennials were parents, with 9,000 babies born to this generation every day.
Economic Changes Impacting Millennial Parents
Saddled with Student Debt
Feeling Lasting Effects of Sluggish Economy
Delaying Home Ownership
Delaying/Opting out of Having Families
Learning (the Hard Way) the Value of Saving and Financial Planning
Reliant on Parents
Financial Decisions by Gen X and Millennial Parents
Financial Assistance to Grandchildren
Source: Grandparents Investing in Grandchildren, MetLife, 2012
Private Schools Facing More Competition
Charter schools
Homeschooling
For-profit schools
Online schools
K-12 vs. K-16?
Source: National Alliance for Public Charter Schools
In 2013-2014, there were 6,440 charter schools serving more than 2.5 million students The number of schools increased by 118% since 2003-2004 And the number of students increased by 218% during the same period.
Competitors: Charter Schools in the USA
Sources: National Center for Education Statistics
1.7%
2.2%
2.9%
3.4%
0%
1%
2%
3%
4%
1999 2003 2007 2012
Percent of Students Who Are Homeschooled
Competitors: Homeschooling in the USA
Less physical plant Centralized administrative services Lower tuition More flexibility Fully leverage technology For-profit investments No reliance on today’s educational models
For-profit Schools
Competitors: Online Education
Sarah E. Goode STEM Academy
Competitors: Corporate America?
Competitors: College and Universities
Diagnose the Root
Cause of Your
Enrollment Changes
Actual and Projected Private School Enrollment
Are tuitions too high? (Price issue) Are our school not delivering what parents
want/need for their children? (Product/school value issue)
Are parents not aware of private schools? (Marketing issue)
A combination of these reasons?
Reasons Behind Enrollment Changes
Is This A Price Issue?
Conduct a Branding & Tuition Elasticity Study• To find out what is most important when parents are choosing a
school
• To gather data on how your school is perceived and what differentiates your school from others
• To identify the programs that are most valuable to parents.
• To understand how changes in tuition impact your market share and net tuition revenue
• To find the price threshold at which families balk
School ABCCompetitor
ACompetitor
BCompetitor
CCompetitor D
Competitor E
(110) (22*) (35*) (24*) (18*) (20*)
Cares about its students 94% 64% 63% 58% 61% 55%
Has a warm and friendly atmosphere
90% 55% 60% 29% 50% 35%
Provides a well-rounded education 85% 68% 49% 71% 67% 60%
Is well established 84% 77% 77% 100% 67% 85%
Has dedicated and high quality teachers
81% 59% 54% 75% 56% 65%
Has strong ethics 81% 68% 51% 29% 50% 40%
Focuses on building students with strong morals, ethics and values
79% 77% 51% 38% 56% 45%
Has a solid reputation 79% 77% 60% 88% 67% 80%
Is innovative 78% 50% 54% 58% 44% 55%
Provides an environment of achievement
76% 64% 49% 79% 61% 65%
Example: Perceptions of Competitive Brands Among Prospective Parents
Source: NAIS Study
61%
39%32%
24%
Cost Location Children at Different Schools Cannot AccommodateChild's Needs
Source: CAPE Study
Some Barriers in Considering Schools
Sample: Reasons Child Doesn’t Attend School ABC
25%
25%
19%
17%
11%
8%
6%
3%
3%
3%
0%
0%
0%
50%
Curriculum/academic standards didn't meet my expectations
Not a K-12 school
Didn't feel the school could address my child's learning style
Location was too far from home
Not a good value for the money
Too expensive
Didn't feel my child would be successful academically
Didn't receive enough financial aid
Didn't have extracurricular activities of interest to my child
Not a single-sex school
Child didn't feel comfortable in the environment
Curriculum was too rigorous
Does not have a solid reputation
Other
19% 19%
16%
8%7% 7%
4%3%
2% 2%
$0 $1 to$2,499
$2,500 to$4,999
$5,000 to$7,499
$7,500 to$9,999
$10,000 to$12,499
$12,500 to$14,999
$15,000 to$17,499
$17,500 to$20,000
More than$20,000
Maximum Tuition Target Parents Are Willing to Pay for Private School Education
Source: CAPE Study
Maximum Tuition Parents Are Willing to Pay for Private Education
Perceptions of Total Annual Financial Commitment
0%
20%
40%
60%
80%
100%
$1,000 $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000
Total Financial Commitment per School Year
Cheap Expensive Too expensive Too cheap
Going Price:
$11,000
Point of marginal expensiveness:
<$14,000Point of marginal
cheapness: >$8,000
Action Steps for Independent Schools
Explore Ways to Make Your School More Affordable
• Outsourcing• Sharing services/operating consortia• Cross-enrollment• Technology/unbundling• Alternatives sources of income• Right-sizing
Is It a Product/School Value Issue?
Determine Parent Perceptions on Your School• To identify areas for improvement• To have data that can be included in your marketing and
admission materials
Measure Student Outcomes and Experience• To assess how well your school is educating students and
gather data on individual student progress• To show to your constituents your value add• To understand the experience of students at your school
Words That Describe the “Feel” for Each Type of School
Private Catholic Private Christian Other Religious Private Nonreligious PrivateSpiritually centered Spiritually centered Respectful Challenging
Respectful Respectful Professional Focused on my child’s futureOrderly Reflects my family’s values Spiritually centered Respectful
Top Three Word Associations by School Type
Lowest Three Word Associations by School Type
Private Catholic Private Christian Other Religious Private Nonreligious PrivateFun Elite Elite Reflects my family’s values
Imaginative Competitive Lets kids be kids Lets kids be kidsLets kids be kids Lets kids be kids Fun Fun
35
Source: CAPE Study
22% 21%
16% 15%
8%6% 5% 4% 3%
PublicSchool
ChristianSchool
CatholicSchool
NonreligiousPrivate
CharterSchool
Homeschool MagnetSchool
OtherReligiousPrivate
OnlineSchool
School Preference – All Parents
36
Source: CAPE Study
37%
33%
30%
30%
27%
21%
20%
19%
17%
15%
Practical life skills
Wisdom (ability to apply knowledge)
Leadership skills and abilities
Strong principles and values
Increased Opportunities in life
Fulfilling career
Love for God and people
Financial Success
Good relationships
Independence from parents
Top Goals for Education – All Parents
37
Source: CAPE Study
Action Steps to Show Your School Value
Use Assessments on Student Outcomes:
Measures of Academic Progress (K-12): computerized adaptive test that identifies skills and concepts students have learned and helps to diagnose their instructional needs in math, reading, language, and science. Helps teachers provide individualized learning strategies for their students.
College and Work Readiness Assessment (6-12): measures student performance on critical-thinking, problem solving, scientific and quantitative reasoning, critical reading and evaluation, and critiquing an argument, in addition to writing mechanics and effectiveness. Measures a school’s contribution to the development of these competencies.
Middle Grade Survey of Student Engagement (5-8)/High School Survey of Student Engagement (9-12): investigates the attitudes, perceptions and beliefs of students about their school work, the school learning environment, and their interaction with the school community.
OECD Test for Schools: based on the Programme for International Student Assessment or “PISA Exam” measures reading, math, and science knowledge and skills of 15-year-olds, as well as key competencies such as critical thinking and problem-solving. Provides information on how an individual school is performing in comparison to international peers and the nation as a whole.
Action Steps to Show Your School Value (Cont’d)
Is It a Product/School Value Issue?
Conduct a Parent Satisfaction Survey and an Alumni Survey
• To find out what programs and services are most important to parents
• To assess how parents perceive your school is performing on those programs and services that are most important to them
• To understand the experience of alumni at your school
• To assess the performance of your individual programs and services
• To identify the programs and services that need to be revamp, eliminated, or created
Sample Questions – NAIS Parent Satisfaction SurveyOf the factors below, how important is each with regard to your child's experience at our school?
Very Important
Important Somewhat Important
Of Little Importance
Unimportant Not Applicable
Athletic programExtracurricular drama, music, and arts programsOther extracurricular clubs and activities
Individual psychological or social counseling for my childSchool safetyAcademic resources (e.g., books, technology)
How satisfied are you with the way our school is delivering these services?
Very Satisfied
Satisfied Somewhat Satisfied
Dissatisfied Very Dissatisfied
Not Applicable
Athletic programExtracurricular drama, music, and arts programsOther extracurricular clubs and activities
Individual psychological or social counseling for my childSchool safetyAcademic resources (e.g., books, technology)
Sample Questions – NAIS Alumni SurveyHow well did our school prepare
you in the following areas?Very Well Well Somewhat
WellNot Too
WellNot Well at
AllNot
Applicable
Being creative and innovativeBeing open-mindedEmpathizing with othersAppreciating and/or participating in the artsPracticing sports and/or exercising regularly
When considering other students at your current college/university classes how would you rank your abilities in comparison?
Well Above Average
Above Average
Average Below Average
Well Below Average
Overall academic ability
Study/Organizational skills
Analytical skills
Writing ability
Technology skills
Is It an Awareness/Marketing Issue?
• Assess parent familiarity with different types of schools in your area, including your school and its competitors.
• Determine key issues when parents select a school for their children.
• Determine the main sources of information used by parents when learning about school options.
• Identify the type of parents you are attracting to determine the messages that will resonate with them.
7% 7% 9% 10% 13% 14% 17%
69%
NonreligiousPrivate
OtherReligiousPrivate
Online Magnet Charter PrivateChristian
Catholic Public
Parents Who Rated Their Familiarity an 8, 9, or 10 on a 10-Point Scale
Source: CAPE Study
Percentage of Parents Very Familiar with School Types
Overall Important Factors in Choosing Schools
90%
89%
80%
79%
78%
76%
72%
71%
70%
68%
Safe environment
Teachers who really care abouttheir students
Academic excellence
Affordable
Accessible teachers
Prepares my child for college
Ethical values
Focus on the whole person
Individual attention
Disciplined environment
Important Factors in Choosing Schools Less Important Factors
45
54%
53%
52%
52%
51%
48%
44%
43%
35%
34%
Up-to-date facilities
Smaller class sizes
School community that aligns withmy personal beliefs and values
Higher test scores
Extracurricular activities
Community involvement
Schedule that is convenient forparents
Athletic programs
Ethnically diverse studentpopulation
Student from a variety of economicbackgrounds
Source: CAPE Study
Sources of Information - Example
76%
41%
36%
33%
5%
5%
4%
83%
35%
33%
35%
2%
4%
6%
86%
36%
31%
28%
3%
8%
9%
School visits
Friends, family, neighbors
Parents of current students at the school
The school’s website
Printed brochures and information from theschool
School consultant
Other
Current Parents (n=169)
Prospective Parents (n=110)
Accepted but Declined Parents (n=36*)
Overall Ratings of School Type
46%
32% 30%25%
21% 20% 18%14%
Public PrivateChristian
Catholic Charter Magnet NonreligiousPrivate
OtherReligiousPrivate
Online
Parents Who Were Familiar with the School Type Who Rated It 8, 9, or 10 on a 10-point Scale of Quality
47
Source: CAPE Study
48
School Type TotalMillennials
(18-32)Gen-Xers
(33-51)Boomers/Elders
(52 plus)Public School 46% 45% 48% 43%
Charter 25% 33% 26% 18%
Magnet 21% 26% 22% 16%
Online 14% 22% 15% 7%
Private Christian 32% 41% 33% 26%
Private Catholic 30% 33% 30% 29%
Nonreligious Private 20% 23% 21% 16%
Other Religious Private 18% 19% 19% 14%Source: CAPE Study
Overall Ratings of School Type by Parent Generation
Action Steps for Independent Schools
Conduct a Parents Segmentation
• To find out parent motivations when selecting a school.
• To understand the type of parents that you are attracting and assess if they are a good match with your school’s mission.
• To identify the type of messages that resonate with each type of parent.
Types of High-Income Parents
NAIS Parent Segmentation Descriptions
Challenge Seeker (Parent Who Push: 10%) are focused on ensuring their child gets a high quality education with a challenging curriculum at a reasonable cost.
Success-Driven Parents (28%) want to provide an education that will help their kids get into a top-tier college and be successful in life.
Character-Building Parents (17%) want more than just superior academics; they want their child to develop a strong moral character.
Right Fit Parents (Special Kid’s Parents: 26%) search for a school that can address their child’s unique learning or behavior issues.
Public School Proponents (19%) are committed to public schools, and do not inherently believe in the quality of a private school education.
Add context to get meaning
Use multiple data sources
Discuss, probe, iterate
Tell the stories
General Tips for Using Data in Your Marketing Efforts
Final Thoughts
1. Our Market: The market is changing. Our constituency is changing. Do you know how it’s affecting your school? Can you afford not to adapt?
2. Our Value: At the end of the day, schools will need to be compelling and not just distinctive. How do you articulate the difference your school makes to your students?
3. Our Model: We have an expensive business model. Can you afford not to rethink your model and strategy?
