making the case for additional higher education marketing dollars

The webinar will begin shortly…

Presenter:Scott Jeffe

Moderator:Anthony Levato

Making the CaseGaining Approval for Additional Budget

to Market Online Programs

Scott JeffeDirectorAslanian Market ResearchEducationDynamics

Executive Summary

Copyright: Aslanian Market Research 2016 3

SettingOnline programs have permanently reshaped the landscape of higher education.

Colleges and universities have a tremendous opportunity, but also daunting competition.

Many institutions are still “getting up to speed” regarding what it will – in terms of marketing dollars – to be successful.

We are well past the point of “if you build it they will come.”

Much to Learn – Qualitative SurveyIn order to better understand how to successfully “make the case,” Aslanian Market Research:

Conducted qualitative, in-depth interviews with: Marketing officers Small to mid-sized Non-profit colleges One or more online programs 20 who have been successful in gaining more resources for marketing (online programs) 18 who have – to date – NOT been successful in gaining more resources

Study Goal: Identify the challenges and the successes they’ve had when seeking increased budget dollars for

effectively marketing online programs. Identify recurring areas of resistance and misunderstanding Identify strategies and tactics for overcoming that resistance and building the understanding of

decision makers.

What is a Marketing Budget?Note: For purposes of this white paper, “marketing budgets” refers to: traditional direct marketing, search engine marketing, online advertising, online paid leads, other methods of brand advertising and, in some cases, public relations or other direct expenses related to the promotion of their online programs.

This definition does not include any overhead costs, recruitment and/or marketing staff costs or other expenses that are often considered “indirect” costs of marketing college and university programs.

Key Challenges IdentifiedThe marketing officers described challenges that generally fell into three broad strategic categories:

overall institutional budget issues,

a lack of understanding about marketing among institutional leadership, and

concerns about measuring return on investment (ROI).

Making the CaseGaining Approval for Additional Budget to

Market Online Programs


By the Numbers:• NCES Fall 2014: more than 5.8 million students took at least

one online, with more than 2.85 of them enrolled exclusively in online courses.

• Online Courses: Fall 2013-2014 year over year growth was 4 percent– Private non-profits grew by 11 percent– Private for-profits grew only by 3 percent.

• Online Programs: Fall 2013-2014 year over year growth was 6 percent (an additional 157,000 students)– TAKE AWAY: Overall higher education enrollment declined by one percent (157,000

fewer students counted in Fall 2014 enrollment reporting). – TAKE AWAY: Participation in online PROGRAMS is now growing at a faster rate than in

online COURSES.

Fall Enrollment: 1990-2024 by Age (NCES)

19902000

20032004

20052006

20072008

20092010

20112012

20132014

20152019

20240

5000

10000

15000

20000

25000

21 and Under 22 to 24 25 to 29 30 to 34 35+ years

Percent Growth by Age: 2011-2024 (NCES)

2011 to 2012

2012 to 2013

2013 to 2014

2014 to 2015

2015 to 2019

2019 to 2024

-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

35+ years 30 to 34 25 to 29 22 to 24 21 and Under

Making the Case

In short, the ability to create and grow online programs will significantly impact the success of institutions of all types over the next several years – until the next demographic bubble starts to graduate from college.

Making the Case

The biggest lesson:marketing matters.

Identifying Challenges and Solutions


Identifying Challenges and Solutions

Generally, marketing officers indicated that their challenges had fallen into three broad categories:

1. overall institutional budget issues, 2. a lack of understanding about marketing among institutional

leadership, and 3. concerns about measuring ROI.

Understanding the Decision-Making

Environment


Understanding the Decision Making Environment

Gains can be made in terms of securing additional marketing dollars for online programs. But those gains require patience, diligence, and an ongoing commitment to frame both institutional needs and benefits in the language of key decision-makers.

Two fold task: 1. Identify the key decision-makers2. Identify and Anticipate the concerns they have about

increasing marketing budgets for online programs.

Understanding the Decision Making Environment

Respondents indicate that the individuals most likely to be decision-makers when it came to considering an increase in funds for marketing online programs were, in order of most likely to be involved, the:

• Chancellor, President, or Chief Executive Officer (CEO) • Provost • School or College Dean/Associate Dean • Vice President of Academic Affairs • Chief Financial Officer (CFO) • Director of Distance Learning • Faculty committees

Key Decision Maker(s) in Additional Resources

Chancello

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Provost

VP Academic A

ffairsDean

CFO

Misc. D

irecto

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VP Marketing/A

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Facu

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1

2

3

4

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Chart Title

Number of Institutions Making Case Number of Institutions That Made Case

Understanding the Decision Making Environment - ResistersResisters: Interestingly, the primary resisters to a budget increase not only included the CFO, Vice Chief Operating Officer (COO), and Vice President of Academic Affairs

but also the Vice President of Marketing/Communications and the Director of Online/Distance Learning.

Most resistant among this group was the CFO, which validates the importance of making a case in language (i.e., ROI) and evidence (i.e., measurement) that resonates with your intended audience.

Understanding the Decision Making Environment - Resisters

Chancello

r, Presid

ent

VP Academic A

ffairs

Dean

COOCFO

VP for E

nrollment

VP Mark

eting/ Communica

tions

Directo

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ance Le

arning

None0

1

2

3

4

5

6

7

Resisters


Understanding the Decision Making Environment – Resisters….WHY?

VP of Marketing/Communications and/or the head of online learning: money spent on marketing online programs will mean less can be spent on other things – other marketing or the development of other online programs.

It is important to also employ a strategy that speaks to these concerns: not a “zero-sum game, ” more marketing dollars for online shouldn’t be “taken” from other existing efforts, but rather should be IN ADDITION TO…

Understanding the Decision Making Environment - Supporters

Supporters: More than half of the respondents who have been successful in securing more marketing dollars indicated that the most supportive officials at their institutions were at the highest levels – the President or Provost.

Key take-away: where institutions have allocated additional marketing resources for online programs, it has been a leadership decision made at the highest levels, and consequently has become an institutional priority.

Chancello

r, Presid

ent

Provost

VP Academic A

ffairsDean

COO

Vice Presid

ent, Enro

llment

Online Pro

gram Directo

r

Dean of Continuing Educa

tion

VP Marking

Facu

ltyNone

0

1

2

3

4

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6

Chart Title


Influencing the Decision-Makers:

Strategies for “Getting to Yes”


Strategy 1: Budget-related Concerns…

To Overcome Budget-related Concerns, Think, Execute, and Communicate Strategically

The three most common objections to a budget increase cited by interview respondents were:

• lack of available budget dollars to work with, • current economic situation, and • a preference for keeping all funds within existing “buckets.”

Strategy 1: Budget-related Concerns

Asking for any type of budget increase is going to be a challenge, but those marketing online programs should be in a better position to do so than others for two reasons: • First, online programs have a proven track record as a growth

opportunity in higher education.

• Second, the availability of tracking metrics that establish ROI should be able to help marketing officers overcome skepticism from decision-makers when it comes to requesting budget increases.

Strategy 1: Budget-related Concerns

However, in order to make the most of these advantages, it’s important to think, execute and communicate strategically. Consider the following actions:

• Use the language of data-driven decision-making. • Shift the discussion from minimal increases in existing budget

allocations to “budgeting by objective.” • Under-promise, over-deliver. • Test, evaluate results and make data-driven decisions.

Strategy 1: Budget-related ConcernsInterview respondents who achieved positive results also suggested these additional proven approaches:

• “Meet with department heads annually and write marketing plans that include a detailed marketing budget for each program. Send those plans up your chain of command with the imprint of not only your office, but also the academic departments and then implement.”

• “Present low- , middle- and high-end scenarios to your decision makers. Give them options to consider in tough times. Think of it as a business case. How would someone at Microsoft present the funding of a new idea?”

• “Conduct your own competitive research and publish the results to key stakeholders. Your dean may be supportive, but if everyone is being asked to do more with less, you need to make a strong case for any increase.”

• “Develop a marketing budget that reflects the actual costs and is accompanied by a detailed plan that describes each activity and how its success will be measured.”

Strategy 2: Lack of Marketing Savvy

To Overcome a Lack of Marketing Savvy, Frame Your Case in Business Language

The most common resistance points among decision-makers unconvinced about the importance of marketing to the success of online programs included:

• didn’t see the value, • didn’t like performance of paid leads, • valued traditional media more than new, • hadn’t seen results, because they were new to marketing programs, and • didn’t understand the benefits.

How to successfully address these objections? By stating their case clearly, concisely and in the language that resonated best with their target audience.


Think about your value proposition:

how is your budget increase going to help your key decision-maker meet his or her goals?

Since this is going to be different for each decision-maker based on his or her role within your institution, it may be necessary to prepare multiple “value statements” when you’re working with multiple decision-makers.

Strategy 2: Lack of Marketing Savvy, Decision-makers

Chancellor or President: If the decision-maker is the Chancellor or President, this individual is responsible for its overall success.

Your budget request might point out how an increased investment in marketing the school’s online programs will enable the school to gain competitive advantage in the most dynamic growth sector of higher education, a success factor that will resonate with board members, donors and alumni as well as potential students.

Strategy 2: Lack of Marketing Savvy, Decision-makersVice President of Academic Affairs: If the decision-maker is the Vice President of Academic Affairs he or she is most concerned about advancing the academic quality and experience.

Your case should focus on how increasing marketing dollars is the quickest route proving that online programs are viable, successful and credible, thereby encouraging “on the fence” faculty to embrace this alternative format.

ALSO: Every online enrollment helps meet institutional goals that do NOT have to be met by digging deeper in the traditional student pool.

Strategy 2: Lack of Marketing Savvy, Decision-makers

CFO: Consider showing how online programs enable the institution to expand enrollments without the additional costs of also building (or otherwise finding) more classroom space.

Growing online programs through expanded, targeted marketing efforts will result in increased revenue with a higher ROI – always a strong argument to make to the CFO.

ALSO: The CFO is likely to be the most receptive to hard “dollars and cents” ROI data. Prepare, know your numbers, and make your case.

Strategy 2: Lack of Marketing Savvy - Frame Your Case in Business Language

Some potentially helpful language to include when communicating (right from people who have been successful):

• Online learning is STILL the fastest growing segment of the higher education sector.

• It’s an investment in a proven opportunity. • In a market space as competitive as online education, failing to invest marketing

dollars will result in lost market share at best, failure at worst. • Failure to invest marketing dollars in the school’s online programs will

compromise their ability to succeed. • Marketing online programs may be the most effective way to reach

nontraditional learners, the higher education growth sector. • You have to spend money to make money.


Here’s what Marketing Directors say about their most effective tactics for making a case to those unconvinced:

• “Compare similar institutions and their success stories, including enrollment and revenue growth based on specific advertising strategies. Always include institutions that you know leaders care about”

• “Show detailed online higher education trends to leadership regularly: the best performing institutions are spending money on online advertising and making it a greater percent of their budgets.”

• “Have senior management take an online course; they will become instant advocates because this will convince many of the quality and content.”

• “Institute regular meetings with faculty and leadership of all of the programs that you are marketing. Make them stakeholders in the success of your efforts. It is too easy for academics to blame “staff” for programs not being as successful.

Strategy 3: ROI ConcernsTo Overcome Resistance Based on ROI Concerns, Identify, Track, and Report Success Metrics

One of the most important ways to make a convincing case for an increased budget to market online programs is by having the numbers to back it up.

“You can’t manage what you can’t measure” is a basic business truism, and one that informs many budget decisions.

Strategy 3: ROI Concerns

Reflecting the concern about measuring ROI, the two most common objections cited by key decision-makers to marketing officers seeking budget increases were:

• couldn’t see the connection between media spend and enrollments, and

• unsure how to measure success.

…The largest proportion of respondents who had not yet successfully made their case for an increased budget had no formal metrics in place to measure the success of their efforts.


Instead, by using the following tactics you can effectively use metrics to make your case for increased marketing dollars for online programs.

• Consistently track key metrics. • Determine the ROI of various marketing approaches• Report regularly on results.


Respondents recommended the following tactics that had helped them overcome ROI measurement issues:

• Record and show enrollment increases related to each marketing effort, demonstrate their ROI, and benchmark your successes against your competitors any way you can.”

• “Utilize the data you have available to make the case for a shift in how marketing dollars are allocated, as well as how new dollars could be invested in your online portfolio.”

• “Use web analytics to document the success of every campaign you conduct. Show your web analytics data to leadership to make your case in quantifiable and relatively easy to understand ways. If you don’t have analytics set up, that should be your first, essential step.”

Strategy 3: ROI Concerns• “Give a stronger focus to showing the success of specific programs being marketed, as

opposed to just showing general results. This allows success to be shared with others, and fosters buy-in with people who otherwise might feel that they are not a part of the process.”

• “Demonstrate how growth in enrollments is related to the money spent on marketing.”

• “Conduct small test runs of prospective leads, assess their quality and then make your case based on real evidence.”

• “Meticulously track all performance and total credit hours of each program you are marketing and use that data to benchmark your success.”

• “Show your conversion rates—over and over and over again – to anyone who is in a decision-making capacity.”

Making Your Case: The Best Defense is a Good Offense



Whether it’s battle tactics, football scoring or overcoming resistance of key stakeholders to dedicating additional, targeted funds to marketing online programs, the best defense really is a good offense.

As you outline your strategy for convincing key stakeholders to invest in their institution’s success, consider the following additional approaches mentioned by interview participants to keep your momentum going. • Find advocates such as program heads or faculty leaders to help make your

case. • Be ready for opportunity. • Always be laying the groundwork.

Conclusion



To help those who are still working to gain buy-in for more funds to market their online programs, interview respondents who’ve managed to secure additional funding have also shared how they’ve overcome resistance to their requests for increasing dollars spent in marketing online programs. As described previously, their strategies can be broadly described as:

• For budget issues - think, execute and communicate strategically • For lack of marketing savvy - frame your case in business language • For ROI concerns - track and report success metrics

Questions?

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