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Engaging first time independent education buyers and the ones that can but won’t : Hints and tips on maximising recruitment from an untapped market

Claire Blizard – Managing Director MTM

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Who are MTM and what have we been up to???We know over 650 variables on every household within the UK. This

allows MTM to understand market sizes with unrivalled accuracy and target marketing messages for schools at street level.

One of our greatest strengths is the wealth of sector specific data at our fingertips.

MTM is powered by knowledge.We also invest in our own ongoing research to keep our team up to

date with market developments.

Our data allows us to benchmark findings against your local and national competitors.

We are the only market research agency in the independent schools sector with our own in-house research team. We do not

outsource our work or use a bureau service.

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Objectives

1. To make you aware of the marketing challenges faced by EVERY school regardless of size and market position.

2. To draw attention to MTM’s “The Missing Millions” research and outline the key findings.

3. To examine the findings regarding non-buyers and what key implications this has on your marketing strategy.

4. To identify the barriers that are stopping the recruitment of non buyers and first time buyers.

5. To showcase what interventions are currently being utilised throughout the sector to tap into new markets.

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Our “Missing Million Research”

“The Missing Million” is an investigation into the attitudes of non buyers of independent education.

The research was conducted amongst households with an annual income of £50k + and containing children aged between 0 – 18 years.

Well-known fact – 7% of all school age children are in independent education.

93% who may or may not be able to afford independent education. ISC “Survey of New Parents”, 16% income less than £50k MTM fee survey – 21% gross annual household income £50K –

£60K

MTM assumed £50k – £60k is the minimum threshold for affording independent education.

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The Missing Million – Who, What, When and Why?Independent research commissioned by MTM to attempt to understand why the UK independent education sector has failed to grow its available market or increase it’s penetration.

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Why are there 1.5 million affluent households in the UK who choose not to send their children to an independent

school…. and how does your school access this potential

untapped market?

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Who are typical buyers?

% of all postcodes Group Name Description

11% A City Prosperity High status city dwellers living in central locations and pursuing careers with high rewards.

35% B Prestige Positions Established families in large detached homes living upmarket lifestyles - often in managerial/ senior positions with high assets and investments.

22% C Country Living Well-off owners in rural locations enjoying the benefits of country life.

4% D Rural Reality Householders living in inexpensive homes in village communities.

UK average= 100

These four socio demographic consumer groups account for an estimated 70% of the sectors pupils

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Lifestyle Priorities – the ‘big four’

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School Priorities – Practical as well as academicReasons for choosing eldest child’s current school – non-buyers top 10

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Support for the existence of independent schools

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Do not support independent schools by income

*£80K+

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How much do non-buyers know about our sector?Around 13% of respondents in the sample knew nothing of

independent schools and whilst almost half of these parents came from the lowest income bands, almost a quarter are living in £80k +

households!

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How much do non-buyers know about our sector?The perceived benefits of an independent education

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Considered an independent school in the past.Have you ever considered an independent school?

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Decision making – Research stage

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Decision making – Visit StageReasons why those who considered did not visit

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Decision making – Visit StageReasons why visitors did not enrol

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Barriers – what is putting people off independent education?

The dominant reason why an independent education was not chosen is satisfaction with local state schools – this was the case for both positively and negatively inclined parents.

The child’s opinion counts – wanting to stay with friends and wanting to go to the local state school are really important to the parents who participated in our survey.

Money is a concern when it could be used on other things, such as other experiences for children although a third of parents stated confidently that they could afford the fees. Two thirds therefore were much less confident in relation to cost.

Only a third felt that independent schools offered value for money. Around a quarter did not think they were right for their child or that

their child might not fit in.

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So what actually are the key marketing implications?

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Actively market against your “no fee” competition

Compete with good local state schools - begin actively marketing against local state schools. Often independent marketers focus only on other independent school competitors.

Do your research - Particularly on local state schools- visit/ what are they up to? Where are they investing?

Emphasise your differences - What are your USPs compared to what others offer.

Target activity just outside catchment areas not everyone gets the school they want, parents might be disappointed because they have missed out on a good state school.

Ensure you send out key messages about the value of independent education.

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Develop a feeder school strategy

Nurseries, playgroups and local state primaries – visit and invite staff and parents to the school. Establish a working relationship and common links.

Plan events - showcase facilities that the “fee free” competitors just don’t have. Invite schools to specific workshops or competitions.

Share facilities – get people through that front gate. This is not confined to primaries. Utilising the facilities for external events as well as potential for letting the facilities which benefit the school by generating additional income, but more importantly increasing foot fall and external awareness.

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Targeted PR

Don’t reinforce typical stereotypes - move away from reinforcing traditional stereotypes. Use broad appeal.

Around a quarter of the Missing Million do not think that independent schools are right for their child or that their child might not fit in - encourage the opportunity for taster days and design the day to suit the individual.

Use stories about children from less traditional buying backgrounds - who have achieved in highly aspirational areas (studying medicine for example)

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Address perceptions of cost

Focus on what the money will buy them - quality of teaching, small classes, individual attention and high staffing ratios.

Shout loudly that school fees pay themselves back in a number of ways – better results, better university places, broad network social skills and lasting skills such as independence and application which can improve life chances.

Be transparent about costs (INCLUDING EXTRAS!) – parents need the accurate costs. All inclusive is a good option.

Provide alternative consumer finance options - Try to make the package appealing

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Interact with the children

Use quotes from current pupils – focus on those who have successfully formed new friendships and who are happy.

Be more visible and familiar – with the local community, engage in activities, charitable events and offer use of the school facilities

More targeted scholarship and bursary activities - particularly for children from less traditional buying backgrounds. A pupil on scholarship from a local primary can create interest from other parents who may be able to pay the fees.

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Turn word of mouth up to the max! Maintaining high levels of satisfaction with provision and exceeding

expectations is the job of everyone in a school – the brand on the outside is only as strong as the brand on the inside.

Do everything you can to market your school internally. Good internal marketing aids pupil retention.

Utilise all your staff, they influence external perception. Engaging staff in the marketing process is crucial. They must realise their impact on the marketing, communication and promotion of the school brand.

Recognise the right talkers – passion for your school, credibility amongst their peers, connections at the school and in the community.

Get them early - new parents can be the best resource to reach out to their previous school or previous school community.

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What’s your digital reputation?

Monitor your own website. (e.g. Google Analytics)

Ensure the messages in the prospective parents section (if you have one!) are appropriate to the broadest range of families.

Is there anyone in your school who is responsible for regularly

monitoring your school’s digital reputation?

Tell your school’s story on social media - it’s another way of getting them through the school gate.

Make navigation convenient for new visitors.

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Love your data!

Record names and details of all visitors during open days so that each one can be followed up.

Optimise your admissions processes so that no lead is left to go cold.

Develop a procedure and a checklist to record every child’s abilities, aptitudes and interests and the parents’ concerns - the checklist can also help in the anticipation of possible barriers to purchase. Even if the parent is no longer interested in the school, it is invaluable to be able to find out why.

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Aim High! Convert All Visitors to Buyers Audit the offering – long term processes my need tweaking.

Consider a mystery shopper.

Assess whether pupil guides are the best way. Consider using staff or friends of the school.

Send a “what to expect on your visit” pack prior to any tours etc.

Don’t forget feedback from your visitors. Do not assume you know.

Help your teachers – INSET training on their role.

Showcase your facilities

Develop tailored tours – move away from a ‘one size fits all’ approach.

Make visitors feel special.

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How do we encourage considerers to visit The dominant reasons why these families do not proceed

are Cost of fees Happy with the state alternative

How do we address this? Cost – be transparent about your fees and ensure that

at enquiry stage parents are aware of all costs, possible payment schemes and potential bursary and scholarship options. Ensure this information is easily accessible on the website and other information.

Effective marketing against the local state schools. Increase community involvement and awareness. Pitch materials in the right voice so you do not put off “first time “buyers. Remember they have preconceived ideas of independent education, do not reinforce them.

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Turning Non-Buyers into BuyersMarketing theory states that it is usually more cost effective

to retain existing buyers than to recruit new ones;

Parents that have already progressed towards the top of the buying chain should be easier to persuade than those that have not or barely begun the process;

The most significant loss of parents occurs at the top of the chain, between visiting and buying, so this must be addressed.

Furthermore, the visiting process, as already highlighted, is not necessarily having a positive impact on the future intentions of non-buyers, so fixing this should have both an immediate and an ongoing effect;

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MTM research has proven that individual schools marketing messages are not necessarily

penetrating 100% of their local market.

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FACT:There are affluent non-buyers and first time

buyers out there.

If you want to catch them, don’t just do what you have always done, be creative. Know your potential customers and

make the options attractive by presenting them appropriately so they are not inadvertently put off.

Buyers and non buyers want the same for their children. Changing perceptions and preconceived ideas about

independent education should be our priority.

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