Reflections from the B-52s

It's been a week since the B-52's played in Boston and believe me, I needed it. Let me reflect on marketing musings of that weekend.

• Customer service. I left my coat in a taxi from the airport to my hotel. Didn't realize it until the next morning. The cabbie left messages at three hotels where he dropped off folks that might claim it. I called the number and he was there in 20-minutes to deliver it. Result to the cabbie: He got 20 bucks and took me to my next appointment. Relevance to education: Customer service is important to everyone, but it can be differentiated (Call me or send me a note and we can talk about it).
  
• Nostalgia. I remember the B-52s from twenty years ago. There's a trend, especially with the music industry, to go back to one's formative times. Relevance to education: Marketing is strategic. Once the strategy is mapped out, marketing toward the target market's key benefit or emotion has greater impact than feature-based marketing.
  
• Target marketing, niches, technology and word-of-mouth. That's a lot to cover in a paragraph. After what turned out to be a great concert (they sounded as good as they did twenty years ago), we got the munchies. My friend Steve decided to drive to Chinatown. On the drive from the New House of Blues near Fenway, I fired up the Blackberry and found Shabu Zen, a Japanese hot pot restaurant with great reviews online. We headed in that direction. Upon reaching there, we saw simple signage. I asked a few folks coming out, "How's the food in there?" After receiving a positive response, we walked in and found the place packed (although we were probably the oldest people in the joint) slurping on soup and dipping raw meat into steaming broth. Relevance to education: Choose your market and own it. Don't fall into the university trap of marketing to the "universe" despite the fact that it is in your name "University of XYZ." As Shabu Zen proved, it can be successful by owning the niche, using technology and having happy customers that tell others.

As I wrap up this posting (with Rock Lobster playing on my Blackberry for inspiration), I had an epiphany ... not only did Shabu Zen do it, but so did the B-52's. They mastered their niche and have longstanding repeat customers. As college and university marketers, I don't need to say more ... you get it. So instead, I leave you with the thought of being bold but being strategic (and holistic) about your marketing ... otherwise, you'll be living in your own Private Idaho.

Don't Always Listen to C-Level Execs ... or Your Deans?

I am not telling you to defy your dean and getting yourself fired. I am telling you to challenge and inform leadership. E-marketer just released a report issued by Heidrick and Struggles stating that the biggest marketing challenge of C-level (for those of you that do not know what C-level, it is "chief") executives is new customer acquisition. While I don't necessarily disagree, I do find it a bit surprising. There are many studies over the past few months which these same C-level executives state that they won't be increasing marketing budgets. So where do these know-it-alls think that new customers are coming from? Do they realize that the competition is also most likely ramping up their efforts? It's a zero-sum game unless the marketers or C-level execs come up with something different ... and hopefully it's strategic and not trickery.

My guess is that they are a bit disconnected to reality and look at things from the mountaintop ... possibly in similar to fashion to what deans might see. Without further disrespect to deans, marketers need to help deans and others within the organization that they need to take care of their own houses first ... their own customers and that if they want new customers, then it's about converting prospects higher.

As I've mentioned in earlier posts, higher education is extremely inefficient in prospect management and conversion. Address this first before you chase a new marketing avenue. The ROI will be higher. While I often recommend to my colleagues in academia to listen to business and industry, this time I am not. Convert higher from within before you chase the moving car.

Hey marketers ... break your own internal systems to find the holes in conversion. Shop yourself or have others do so. Do it credibly and cautiously, but do it somehow. You're probably chasing more possibly customers away than what a crazy new business effort might do. Did I tell you about the academic dean that got advice from a person sitting next to him on the airplane? No? Well, he came back with a great new business marketing idea and derailed the marketing department for six months. Marketer -- stand up for yourself, but do so in an informed point of view ... just don't get yourself fired.

Sign of the Times, Coke Pushes for "Value-Based" Marketing Compensation

I've had writer's block for a few weeks ... trying to find some societal thread to marketing continuing education, but in a way that would not necessarily repeat the same themes of the past. Something finally hit me over the head today, as I was reading my online version of Advertising Age. Today, AdAge reported that the Coca Cola Company is moving to a "value-based" compensation model for those marketing and advertising firms working with the company. This means that if you don't produce, they're probably out or they won't make much. If they do produce, the article suggests that the agency can make a 30% profit margin.

What the article also emphasizes is "value over effort." This is my link to continuing education marketing. All too often, college and university continuing education units put a great deal of emphasis on design and brochure creation and not enough on strategy and customer-centricity. Academia has allowed many of its marketers to react to advertising needs, repeat media purchases because "we've always done it this way," and not report the hard data and metrics of success. What is also lacking is the prioritized return on investment of the institution's many marketing efforts ... which one works better, which one reaches more and converts more and which one requires less effort to produce (while producing a reasonable or strong return).

What Coca Cola is doing is measuring and rewarding based on accountability. Gone should be the days of "we can't measure it because it is part of the branding initiative" at the continuing education unit. Gone should be "it is too hard to measure" or "we know it works well because students tell us." So what can universities and colleges do?

• Challenge their customer relationship management and enrollment systems. Our systems should be able to track a person as they come in, leave or become stalled.
• Have a strategic competency in your marketing staff or be building one.
• Review the process where inquiries come in. This shouldn't be a black hole. They either call, leave electronic data or walk in. We should be able to capture it.
• Sit in the seat of the prospect/customer. We secret shop the intake process for many of our clients. Might be a good idea for you to do the same.
• Build a marketing culture that is based on science and not the back of a cocktail napkin regarding a "good marketing idea." Strategy starts on science.

While you as an educational professional might be saying "This is soda that we are talking about. This isn't relevant to education." It is relevant, as one of the best marketers in the world is changing its culture. It isn't just about selling soft drinks. It is about asking our marketers for metrics, measures and accountability. It's about asking for more science and discipline and not just creative ability (while it is important, it is just part of the puzzle). Coke is it ... we should follow suit.

Urban Legend on Adults Returning to College

Ok, are you sick of reading emails on "Recession Strategies" or receiving discounts called "Your Economic Stimulus Discount?" I am. What also seems to be overkill is the belief that with this economic situation, that adults are going to enroll in masses to complete or seek their degrees. Continuing education is supposed to benefit from times like these ... don't buy it! Times are different and history doesn't necessarily always repeat itself. Until someone produces some hard data that adults will return to college in masses, consider it a myth of the past and not for the future. Let me offer up why we are in a different situation:

• We happen to be in a war right now ... which makes economic factors for the nation different, as well as with individual attitudes and perspectives, as compared to the recession in early 2000's and in the 80's.
• While we had a recession in the early 2000's, we as individuals, as corporations and as a nation also were not carrying anything close to the level of debt we are currently carrying. Much of this recession was caused by a loss in manufacturing jobs and the dot-com bubble burst.
• For education, we have greater competition. Ten years ago, we had different avenues for revenues and differentiation ... we could offer distance education courses. We had a magic bullet if we needed it. Also, our universities as a whole were more financially stable.

For this recession, there's not a lot of extra money floating anywhere. In the recession of the 2000's, colleges and universities could find it. If it wasn't coming from the companies, it came from the individuals. The same held true for the recession of the 80's. Not today though. Both wells have run dry.

So, what's my point or how can I help. My earlier threads point to fixing the internal house and CRM. My presentation at UCEA this week pleads to colleges and universities to focus on better marketing and operations and not to chase the gadgets. Social networking, such as Facebook, mySpace, Twitter and blogging are great, but will they generate new enrollments? For the most part "no."

You need to focus your marketing on areas of strength. You need to do a better job at closing the deal with inquirers ... stop putting your least trained people on the other end of the telephone call and don't push them back to the web if they have questions.

Download my latest presentation at UCEA. Also, keep an eye out for my next whitepaper that further addresses the needs and expectations of marketing managers with their deans and vice versa.

UCEA, the Celtics and Marketing in a Tight Economy

Well, I couldn't resist ... just got back from the Celtics game. I am attending the UCEA conference in Boston and couldn't resist tying in what turned out to be the best basketball game that I've ever been to with marketing continuing education. It may be a stretch and it may not be fully coherent, as the Magic Hat #9 may be talking. Here's the linkage ...

This is not about the co-promotion strategy of Dunkin Donuts and the Celtics, as you see it all over place, nor is it about cross-selling memorabilia with the experience ... although I almost bought a green foam finger. It is about marketing in tight economy. You've got to create value and the experience for consumers to spend on an experience. I must admit, when I bought the tickets to the game, I wasn't sure whether it would be a good experience for my guests, who were my past clients and prospects.

Can you say double overtime, come from behind victory by the Celtics? My guests had a great time ... we high fived, danced to Ferris Bueller music and tried to get on the Jumbotron. The end result was an emotional bonding with my guests through what turned out to be experiential marketing. Everytime they see the Celtics, they will remember the game. Hopefully, they will remember me when they need marketing assistance or consultation.

Without risk, there cannot be reward. My risk ... buying the tickets on my dime (not the company's as it might be perceived as excessive), inviting folks, guiding them to the game, committing to dialogue and friendship and then following up after.

Continuing education marketers need to look at whether they are centered on product or the end benefit to the adult learner seeking the degree. This isn't necessarily about your product and the degree that you offer, but what you can do for their lives. This means that you have to connect with them through advertising (not marketing), you need to welcome them and you need to show them the vision so they remember you when it comes to making a decision. In my travels, many colleges and universities don't have all these elements in alignment ... they address advertising, but fail to create experience. They create brand strategies that have a short-term effect. Customer relationship management and giving a proper greeting is lacking for many.

While the Celtics are a marketing machine, we can learn from them. The experience today was rare, but all the strategic planning better prepared them for a positive outcome. For continuing education marketers, it isn't about spending more on advertising, but fixing things internally with little additional cost so you can create a better experience. ... a double overtime come from behind win.

Ramblings Related to AIG

While I just posted a blog entry yesterday, I couldn't resist doing another given the AIG situation. What troubles me most is that while AIG is getting big stimulus money and doling out the bonuses, one would think that AIG's brand is taking a huge hit ... much more than what the bonus money is worth. It's a PR nightmare spun out of control. If you are like me, you're watching this with disgust. Just think about the companies and individuals that will NOT consider AIG for their insurance, investments or financial planning needs. This will have ill effects for years if not decades. The lifetime value of a customer lost in this case or the hope or ease of new customer acquisition could be eye-popping. I'd also take a wild stab that given the financial condition of AIG, that this PR nightmare does nothing to stabilize the company, but makes it worse. You can't turn your back on $30B but how much will AIG lose as a result of this.

According to the Associated Press, AIG rewarded more than 70 employees with more than a million dollars in bonuses, saying it needed to do so to retain key employees. Eleven are no longer with the company but will receive their bonuses.

Message to education: Protect the brand. Have a plan. Don't invest in program development that you can't sustain long-term. Fulfillment and customer service are part of brand management. Hire good people. Retain and train them. Hold them, as well as yourself, to accountability and performance metrics. Don't reward bad behavior ... especially with a million bucks. :)

Changing Media ... The End of an Era: Newspapers?

A sad note ... the Seattle Post-Intelligencer prints its last edition today. After a century and a half of operations, the newspaper ends a long history of service. Times change. Young people don't read newspapers and many older or middle-agers have conditioned themselves to read online. It's tough to imagine losing out on a great social pattern ... picking up the paper, pouring a cup of coffee and starting the day. Reading on the Blackberry has its place, but doesn't seem to be as fun ... also, the newspaper can't easily fall in the toilet.

I remember the day when I first identified that newspapers were on the way out ... Friday, May 17, 2002 on the Penn State Wilkes-Barre campus to a room full of a hundred business people. The jaws dropped. Just seven years later, the first major sign of it happened with a number of papers closing its doors in 2009.

Implication to marketers and continuing education? It's the continuing evolution of marketing skill sets for both marketers and deans. Download my recent whitepaper on "The Expectations of Marketing from Continuing Education Leadership" for more discussion on this. Deans need to make sure they know current and future marketing trends and marketers need to understand how new and existing tools connect to the marketplace and the institution's offerings. Marketers can't rely on skills built on the 80's and 90's. In the 80's, I learned the 4Ps of marketing and market research. In the 90's, I learned marketing strategy, advertising, media buying, geographic information systems, distance learning, websites, database marketing and public relations. In the 2000's, I learned about CRM, search engine optimization, electronic public relations and enrollment management. Marketers need to continue to feed themselves ... proactively. Continuing education marketers and leaders need to continue their own education and they need to be aggressive about it. Things happen quick, just ask the Seattle community, as they've lost one of their gems.

True Brand Strategy for Continuing and Professional Education

Every time I open my email box or an industry magazine, I get an announcement for "Recession Proof Strategies for ..." conference, workshop, whitepaper or webinar. Without diving into negative message or strategy, I wanted to contribute in some way, shape or form to the education field or discussion. Here are my thoughts and some items I anticipate needing to address in the near future regarding how the recession impacts higher education:

• High end brands: So, if you've been at the top of your segment, such as a University of Maryland, UMass or Penn State regarding distance education or Harvard, Yale or NYU regarding academics or higher cost private institutions such as Wesleyan, Babson or Middlebury, then your recession strategy might be creating more value. During challenging economic times, history shows that consumers are less likely to buy homes, cars or make luxury purchases. The fix-it-yourself market tends to thrive and people hold on to previously acquired high end items longer. While one can argue that education is different, it still shares the realm of a complex or information-dependent purchase. Therefore, to survive or thrive, one needs to combat the notion of deep discounting with the creation of value. It might be about saying what the return on investment is with a premier degree, as opposed to a degree from a state university ... or saying the message louder. Bag the feel-good, pretty "image" campaigns (i.e. I saw one premier brand university advertise passively the message of convenience, when in today's economy, that message needs to be translated more directly into dollars and cents for the student) in favor of the benefit message. Short answer: You need to say it better and louder with a potential message of great quality but with a long term return on investment.
• Middle end brands: Seize the moment. While I can appreciate the budget crisis you are in, now is the time to invest if possible. Invest into market share by attacking the high-end brands with better value and return on investment. Short answer: You need to seize the day, but in a strategic manner that can gain market share. Time to hit the big guys below the belt with some smart spending creating a message of good quality and great value.
• Lower end brands or new entrants to the marketplace: Inhabit where the middle end brands are leaving and where the high ends are failing. Given the economic changes, distance education is becoming more acceptable not only to the consumer, but also to the business professional. While the manager once would not allow his or her employees distance education, he or she might now accept it. In addition to this, lower or newer brands can also be quick and nimble ... beating out traditional, larger and slower institutions to the punch. Some community colleges have shown their ability to respond faster to workforce development initiatives. Many online universities are marketing a stronger message of work continuance to the busy individual while completing the degree. Short answer: Acceptable quality, but at a great price. Why waste your money over-paying for middle or higher end brands? It's almost the generic soup or over-the-counter medicine approach ... same product, but less obvious brand.

Depending on where your college or university is, now is NOT the time to over-think, over-process or get caught in committee work. It's time to have a strategy, a plan and to move swiftly (although not stupidly). I believe I have succeeded in avoiding negativity around the recession message! Now is the time for action.

More on Marketing Metrics, Buyer Beware!

Everybody’s a marketer. In a room full of Ph.D.s, as well as even the assistant of the assistant who’s brother’s cousin is a marketer, the continuing education marketer is often faced with a disadvantage as everyone becomes a marketer. The true marketer needs to have at least one or two things others do not have. One is exceptional, visible talent and experiences while another is a track record of success. If these are not obvious to the crowd of critics, the next best thing is to have data … performance metrics. Of course, it would be great to have all the above, as well as a Ph.D.

Metrics are the great equalizer, however, if you don’t have the knowledge on how to use them or derive them, then they can be dangerous and discrediting. At the 2009 UCEA Management and Marketing Seminars, I just made a big stink for metrics, return on investment (ROI), customer relationship management (CRM), dashboards and marketing scorecards. However, I didn’t offer up a warning.

Not all marketers are created equal. An inexperienced, undertrained marketer using metrics for leverage is like a med student performing surgery. Reporting and deriving metrics requires some level of skill or training. If done incorrectly, it could result in a marketing unit or director being discredited. Reporting metrics with skill can shift the power back toward marketing … when a marketing director needs the benefit of doubt or needs to take an occasional risk, having a little bit of power might help a new initiative or marketing effort. Marketer beware, a little bit of power can kill you … or can move you miles ahead.

UCEA 2009 Management and Marketing Seminars

I just returned from the UCEA Management and Marketing Seminars. Below are some of my presentations. Enjoy. My takeaways:

• For those who went to the management seminar on enrollment management ... kudos to you, as you care about probably one of the top three issues or opportunities for continuing education marketing or revenues. In this economy, we're not going to spend more money on marketing. We are going to get smarter about how we do things. We are going to become more efficient. What better way than putting the science back into marketing. Creativity and design will only get you so far ... you'll still wander around not knowing whether it worked or not unless you actually quantitatively and consistently measure.
• Thank you Tim Copeland of SunGard Higher Education for some outstanding sessions and from Stephanie Platteter of the University of Minnesota and Nora Lewis of the University of Pennsylvania for putting theory and strategy of enrollment management to work. Also, thank you to the University Continuing Education Association and Kay Kohl for putting this back on the radar screen.
• On the marketing side, I presented a new whitepaper on the what continuing education deans and directors think of their marketing function. I thought it was challenging as did others. The solution is a two-way street. Deans need to better understand marketing, but marketers need to help them get there. Marketers do need to get better at reporting ROI, develop strategic marketing skills and stay up on e-marketing tools if they aren't already doing so. Deans will be faced with immense pressure, so if you are a marketer planning to do the same ole' same ole', you're going to have some challenges in front of you.

Overall, it was a good conference. Good takeaways from some of the keynotes and concurrent sessions, but a lot of good discussion with other vendors, especially my friends at Destiny Solutions, Intelliworks and SunGard. While I came from academia and Penn State, I can't say how valuable external parties can be. Not that I am biased, but there's a lot of great value from vendors that truly care and desire partnerships (as opposed to the ones who just take your money and run). Having worked at Penn State and as a consultant to other colleges and universities, there's a lot of value from some outsourcing relationships ... although the shoe has to fit.