Enrollment Management High Level

Are You Treating Full-Pay Families Differently in the Admission Process?

Leave a Comment / Blog, Customer-centric, Enrollment Management High Level, Marketing, Recruitment / Claude

In the realm of K-12 private school enrollment management, the question of whether to treat full-pay families differently from aided families is both crucial and complex. Both groups deserve excellent treatment, but the strategies and attention given to each might need to differ to address their unique expectations and needs. Full-pay families, who can choose freely and have higher expectations, might require a tailored approach to justify their significant financial investment. Here, we explore several business cases where customers with greater financial means receive different treatment, illustrating how schools can adopt similar strategies. Business Case Studies Automotive Showrooms: Mercedes vs. Used Car Lots Mercedes Showroom Experience: When visiting a Mercedes-Benz showroom, potential buyers are often greeted with a luxurious environment. From personalized service to high-end amenities like gourmet coffee, plush seating, and detailed vehicle walkthroughs, the experience is crafted to match the premium nature of the product. The objective is to make customers feel the exclusivity and high value of their purchase. Used Car Lot Experience: In contrast, used car lots for brands like Ford or Toyota focus on efficiency and practicality. The environment is straightforward, aimed at providing reliable vehicles at an affordable price. The bells and whistles of a high-end showroom are absent, reflecting the different expectations and budget considerations of their customer base. Retail: Saks Fifth Avenue vs. Walmart Saks Fifth Avenue: At Saks, customers experience personalized shopping assistance, upscale store environments, and exclusive events. The store aims to create a sense of prestige and personalized attention, catering to those who expect and can afford a premium shopping experience. Walmart: Walmart, on the other hand, focuses on cost-efficiency and convenience. The shopping experience is designed to be quick and affordable, aligning with the needs and expectations of a cost-conscious consumer base. Air Travel: First Class vs. Economy Class First Class: Airlines offer vastly different experiences for first-class passengers, including priority boarding, spacious seating, gourmet meals, and personalized service. The intent is to provide an exceptional level of comfort and exclusivity that justifies the higher price. Economy Class: Economy class is more utilitarian, focusing on affordability and essential services. The experience is standardized to accommodate a larger number of passengers, meeting the basic needs of travel efficiently. Implications for Enrollment Management and Marketing in Private Schools Rationales going the additional mile The truth is that if you had the resources to treat everyone the same, you probably would. Unfortunately, most admission offices don’t have enough resources to give everyone the same amount of attention. Yet you can’t afford not to provide additional attention to your most needed segment – full-pay families. Schools that have 5 or more full-pay applicant to each space, probably won’t do the additional touchpoints. Are you one of those? If not, you have to accommodate the target market. Also, you will get a competitive advantage when you up the attention for this group and win over your competitors. Understanding Motivations To effectively market to full-pay families, schools must deeply understand why these families are willing to forego free public school options where they probably pay a considerable amount of taxes to that school district. Key motivations often include: Superior Educational Outcomes: Full-pay families seek evidence of exceptional academic results and college placement records. Holistic Development: These families value comprehensive development opportunities, including extracurricular activities, leadership programs, and arts education. Community and Networking: The social environment and networking opportunities provided by the school can be a significant draw. Tailored Marketing Strategies Based on these motivations, schools can develop tailored marketing strategies for full-pay families: Personalized Tours: Offer tours that are specifically designed for full-pay families, highlighting aspects of the school that align with their expectations and interests. Exclusive Information Sessions: Conduct special information sessions that provide in-depth insights into the school’s offerings, catering to the high expectations of full-pay families. One-on-One Meetings: Arrange private meetings with school leaders to discuss the unique value the school can offer their child. Phone Calling: Reach out to these families with personalized phone calls. Have conversations about their specific needs and connect them with faculty who can address their interests. Creating a high-touch experience makes full-pay families feel valued and appreciated. I have been accommodating full-pay families differently for decades. You might ask, “What if someone finds out?” Only twice have aided families asked why they weren’t invited to an event after finding out their classmates received invitations. I immediately invited them to the event. No harm, no foul. Conclusion Treating full-pay families differently in the admission process doesn’t mean compromising on the core values of equity and inclusion, nor does it mean neglecting other families. It involves recognizing and addressing the unique needs and expectations of full-pay families to secure the necessary revenue for the school’s sustainability. By drawing lessons from various business sectors, private schools can craft strategies that cater to full-pay families while maintaining their commitment to providing an excellent education for all students.

Are You Treating Full-Pay Families Differently in the Admission Process? Read More »

Are Parents Worry About Value or Price?

Leave a Comment / Blog, Customer-centric, Enrollment Management High Level / Claude

Why should schools worry about value first and cost second? Let me paint you a picture. My wife was exploring music camps for our son. She was adamant that our budget was capped at $2,500 because, with other children to consider, we needed to be prudent. She found three options: a five-day program for $2,500, which she rated as good; a three-day overnight camp for $3,000, rated very good; and a 30-day overnight camp for $5,000, rated excellent. Given our budget, I expected that the five-day program was the right decision. “These are fine,” I said, “but I guess he will be going to the five-day program.” She looked at me, unwavering, and said, “No, I think we should send him to the 30-day program.” Stunned, I asked, “Where are we going to get the other $2,500?” She gave me a disapproving look, and our son went to the 30-day camp. It’s incredible how consumers can adjust their budgets when they perceive significant value. The Sticker Shock Private school tuition has been climbing steadily. The average increase for the 2023-24 academic year was around 6-7%. According to www.boardingschoolreview.com, the average tuition was $56,875 in 2023-24. National Association of Independent Schools (NAIS) writes that the middle range annual cost of private day school was $29,653 in 22-23. These figures can make even the most determined parents hesitate. But here’s the twist: Despite the daunting costs, many families still choose to invest heavily in their children’s education. Why? Because they perceive a value that far surpasses the initial sticker shock. Moreover, there are enough such families with the financial means to fill our schools. The Value Proposition When considering an expensive education, parents often look beyond the immediate costs. They weigh the potential benefits—the superior academic programs, the extensive extracurricular activities, the small class sizes, the unique opportunities for personal growth and the BRAND. Among these reasons, is why my wife was willing to go outside of a stated budget and pay twice as much. Communicating Value So, how do you communicate this value? First, you need to understand what parents value. It’s hard to communicate value well if you don’t know what value the parents are seeking. Once you understand them, you can showcase the relevant, unique programs and outcomes that distinguish your school. Let’s break it down. You have success stories of alumni, impressive college acceptance rates, and specialized programs that create a compelling narrative about your school’s offerings. You know you love to talk about how important the process of providing your education experience is. Are you explaining it well to the layperson? These are powerful tools, but don’t underestimate the naivete of a parent or student when you introduce these unique positions. If parents knew everything about education, they wouldn’t need to rely on teachers. They would just tell you what to do. Oh, some try to do that anyway, but they are a minority. Often, we haven’t explained the benefits of what we do clearly enough. Adapting to Financial Trends Adapting to financial trends is crucial for schools to thrive. This means schools must continuously evolve to meet changing economic realities. One key area of focus is enhancing academic programs. By continually improving academic standards and providing cutting-edge knowledge and skills, schools can ensure they remain competitive and offer the best education possible. Another essential aspect is strengthening community engagement. Building a supportive community that involves parents, alumni, organizations, and 3rd party sites, not only enhances the perceived value of the school but also fosters a sense of belonging and loyalty. This sense of community can be a significant factor in a family’s decision to invest in a particular school. Finally, investing in facilities and technology is vital. By keeping facilities and technology up-to-date, schools ensure that students have access to the best possible learning environment. Modern, well-equipped facilities can make a substantial difference in the quality of education and the overall experience for students, making the investment in education more worthwhile for families. Furthermore, it’s harder to get parents to look seriously at your education when there is peeling paint and stained rugs on their tour. Conclusion The rising cost of tuition may seem like a barrier, but for families who perceive significant value, it’s a worthwhile investment. Enrollment management professionals and heads of schools must focus on demonstrating this value effectively. By understanding the consumer, emphasizing unique programs and maintaining clear, informative communications, schools can ensure they attract and retain students who see their education as a valuable investment. In the end, value trumps price almost every time. And for schools that master this message, the future looks bright. Join a Future Event – Sponsored by EMforSchools.com, AISAP, and Strategenius Enrollment Management Professionals of Color Summit

Are Parents Worry About Value or Price? Read More »

7 Summer Strategies for Advancing Your Enrollment Management Work

Leave a Comment / Blog, Customer-centric, Enrollment Management High Level, Faculty, Marketing, Recruitment / Claude

Summer might traditionally be seen as the slowest time for schools, but for Enrollment Management Professionals, it’s a crucial period for laying the groundwork for the upcoming academic year. Even if your school is still busy in the summer trying to bring in more applications, you should still fit in a couple of these ideas to enhance your admission program and progress your marketing and recruitment efforts. Let’s dive into the strategies that can make a difference: 1. Data Analysis and Reporting Picture this: it’s a warm summer day, and you’re diving deep into your enrollment data from the previous year. OK, maybe that isn’t how you want to picture yourself on a warm summer day. However, this is your chance to analyze application trends, yield rates, retention numbers, and attrition data. Don’t overlook the full-pay family data. If you’re one of those schools that can lump these numbers together with the aided group, that’s great. But for the majority who can’t afford to ignore this, you’ll find that separating full-pay students can reveal unexpected insights. Comprehensive reporting on these findings can inform your strategic planning and targeted recruitment efforts. 2. Enhancing Marketing Strategies Summer is the perfect time to breathe new life into your marketing materials. Review and refresh your school’s website, brochures, and social media profiles. Highlight unique programs, recent achievements, and student testimonials. Are you addressing the problems, needs, and desires of your prospective families effectively? Refine your messaging to make sure it’s consistent across all platforms, helping them believe that your school can deliver on its promise. 3. Community Engagement and Relationship Building Building strong relationships with feeder schools, community organizations, and local influencers can significantly impact enrollment numbers. Yes, people are on vacation, and some schools close for the summer. But why not entice them with lunch at your school or a guest speaker who can address their challenges? New partnerships lead to increased referrals and a stronger community presence. 4. Professional Development Take advantage of the slower summer pace to attend workshops, webinars, and conferences. Stay updated on the latest trends and best practices in the field. Organizations like the Association of Independent School Admission Professions (AISAP), Independent School Management (ISM), and the Enrollment Management Association (EMA) offer a wealth of programs. Networking with peers and learning from industry leaders can provide new insights and innovative approaches to enrollment management. 5. Planning Open Houses and Tours With the busy school year behind you, summer is the perfect time to plan and organize open houses and tours. These events are critical for showcasing your school’s facilities, culture, and academic programs. Think about what you can do differently this time to increase the value of these programs, particularly when all your competitors are doing open houses and tours too. Ensuring these events are well-organized and engaging can leave a lasting impression on prospective families. 6. Reviewing and Updating Admissions Processes Take a close look at your admissions process to identify any bottlenecks or areas for improvement. Are the questions in your application serving you well? Are there onerous ones for families that aren’t necessary? Is your evaluation matrix working for you? Are you getting consistency among the readers? Simplifying application procedures, enhancing communication with applicants, and ensuring a smooth and welcoming experience can boost applicant satisfaction and conversion rates. 7. Collaborating with Faculty and Staff Engage with faculty and staff to gather feedback on the enrollment process and discuss ways to improve it. Collaboration can lead to new ideas and a more cohesive approach to welcoming new students and families into the school community. So, what’s the real takeaway? It’s about transforming the “slow” summer months into a powerhouse of productivity and preparation. When you focus on these seven strategies—data analysis, marketing enhancements, community engagement, professional development, meticulous planning of open houses, refining admissions processes, and faculty collaboration—you’re not just preparing; you’re setting the stage for unparalleled success.

7 Summer Strategies for Advancing Your Enrollment Management Work Read More »

Trustees, Do You Know the Net Tuition Revenue Warning Signs?

Enrollment Management High Level, Uncategorized / Claude

I have collected a list of 13 warning signs that trustees need to have in their knowledge toolbox about the strength of their enrollment strength and net tuition revenues. Do these signals show an impending financial problem for your school? Although I have not done my research on the top reasons for school closings, including small colleges, I would suspect that there were signs of deteriorating net tuition revenues. I would also venture to say that someone was asleep-at-the-wheel. I would suggest that when a financial problem appears, neither the leadership nor the culture of the school can adapt to a new and viable business model. These signs are not in any order, and one or two alone may not show a problem. However, they may reflect future deteriorating conditions. Ask the question, “Can the school sustain a viable financial position with the current net tuition revenue projections?” Below are 13 warning signs: Someone in the leadership says, “If we had more financial aid, we could bring in more great students.” Thoughts: This could be a very positive statement. However, it could be a warning sign that the effort toward successful recruiting of full-pay families is not meeting expectations. The net tuition is shrinking, but the enrollment isn’t shrinking. Thoughts: This might imply that you are getting less and less income per student. If this isn’t a planned occurrence, you could find yourself with insufficient income in just a few years. The number of full-pay applicants is shrinking–domestic or international. Thoughts: This is the death touch; it’s the most obvious and it can be a singular red flag for an impending financial problem. When the full-pay applicant number decreases, the quality of the pool is more likely to decrease, which will affect the quality of the program and create a snowball effect. You’re a boarding school, and 30% or more of your students are from one particular country. Thoughts: It’s not likely that a boarding school in the United States is in a strong position if 30% of its boarding population is from any one country other than the United States. This high number affects compositional strength, which affects the quality of the student body. Enrolling these students is probably an income-generating strategy when the full-pay domestic market is not there. This strategy requires an exit protocol to go along with it. Day schools can get caught in the large increase of international students from one country, too. Only the business office understands the need for net tuition revenue. Thoughts: When the community doesn’t understand the need for net tuition revenue–particularly at the various levels of leadership throughout the school – it makes it difficult to solve the weakening net tuition revenue problems. The employees will know when facilities aren’t getting painted, furniture isn’t being repaired, and the composition of the student body is adversely changing. It’s best to keep an interested community. Why? Increasing revenues is going to require a community effort, not just one office. The admissions office is bringing in 20% of your revenue after the start of school. Thoughts: Schools that need over a year to bring in their population for the next year are struggling already. There are so many problems on different fronts from composition to the hiring of faculty and program implementation. It’s a very strong signal of financial wariness. Your attrition is above 15%. Thoughts: Replacing 100% of your graduating class each year can be challenging for many schools. However, the need to replace the attrition of 15% of the students compounds the problem. Is it because the quality of education is less than what is acceptable to the applicants or parents? Your brand is losing its position from this pernicious word of mouth. With a weakening brand and having to matriculate a high percentage of your student body each year, the school is likely already in financial trouble. Your fundraising dollars are flat or going down. Thoughts: There could be a lot of reasons, but among them would be enrollment issues. The educational experience does not exceed expectations. No one is talking about the importance of full-pay families in your trustee’s meetings. Thoughts: All trustees should have a conversation about the full-pay families who inevitably keep the school going. Tracking the full-pay numbers for admission and advancement purposes should be a relatively regular report of interest to trustees. The discount rate is rising, and the non-tuition revenues (mostly fund-raising) are not rising faster. Thoughts: For most schools to be in a financially sustainable position, both the discount rate and the non-tuition revenue should rise at the same time. This usually means that the net tuition revenues are increasing, and the delta isn’t being covered by other funding sources. There is a reason to take notice. Customer satisfaction seems to be flat or moving downward. Thoughts: Schools can overlook the feelings of the customer. However, I think it is bad business, even in a strong market. I don’t think the customer is always right, but I think they are right many times, and schools need to be paying attention to the consumer who is shelling out all of this money for a discretionary experience. Trustees should look at the satisfaction data and ask for it. If you are told that there aren’t enough full-pay families to recruit, Thoughts: Once they make this declaration, you are in financial trouble. Now it’s time to call people together and determine how you are going to change that tune. “Can’t” is not a sustainable solution to the net tuition revenue challenges. Surely, it’s not only an admission office problem. Carney O’Brien, a former admissions colleague and former head of school at Washington Montessori School, describes this final signal as “funding out of fear.”This is when a school uses merit money to get a full-pay family at a discount. Thoughts: When the full-pay family says that they would like more money, the school gives it to them, because of the fear of losing them. When you

Trustees, Do You Know the Net Tuition Revenue Warning Signs? Read More »

Are You Treating Full-Pay Families Differently in the Admission Process?

Are Parents Worry About Value or Price?

7 Summer Strategies for Advancing Your Enrollment Management Work

Trustees, Do You Know the Net Tuition Revenue Warning Signs?

EM:for Schools

ENROLLMENT MANAGEMENT FOR SCHOOLS