 Back to School 2 (i) GRAD Programs: GRE/GMAT/LSAT/MCAT View |
November test prep & tutoring promotional strategy
As we approach the beginning of November, Test Prep & Tutoring demand will wane slightly for a week or so, resurface briefly and then, toward the beginning of December, decrease along a somewhat predictable trajectory until after winter break. The good news is that there are still plenty of people interested in test prep and tutoring at this point in the year. In fact, there are a couple of what I will call "micro-peaks" which surface at this time of year.
Although the sales cycle becomes abbreviated due to the Thanksgiving holiday, we are still at a unique moment when market forces coalesce to provide opportunity. The variables: scores back + changing SAT/ACT + high school exams + Black Friday = Late Fall Demand.
Larger companies anticipate this dynamic and will bombard the consumer base with a mix of products and offers designed to win market share ahead the January enrollment cycle (for March or April SAT/ACT). Still, it is possible to compete and maybe even grow your share over the prior year through some deliberate positioning.
The key for small test prep & tutoring companies is to recognize the playing field looks something like this to a larger firm:
- Total test prep market share for November available in November
- Key products for that group
- Important buying criteria to that group
- Total market share available for December and for January available in November
- Key products for that group
- Important buying criteria to that group
- Action step: determine promotional mix that will afford greatest share of the above.
From this point forward, the buttons and levers available to the larger companies will probably involve a segmentation + incentive enrollment strategy. Said differently, the market leaders will probably leverage a commoditization position. And let's face it--when it comes to having access to consumer buying trends and then being able to leveraging through a powerful marketing engine--big box test prep has nailed it.
But this is as good thing. How you ask? Market forces like those described above generally increase consumer awareness and grow the overall market segment. So, even though small firms may be outmatched by the big box folks, the net result is that the overall market has expanded and that means more opportunity for everyone.
All of that having been said, an increase in market size or overall demand does not automatically confer a proportionate increase to each company. But here are some ideas to help benchmark and improve over the prior year:
- Review prior year sales for a discrete time period. Use that as a basic benchmarking tool.
- Use whatever empirical data or even just your intuition to define past consumers.
- Message offerings that have the greatest appeal to that group but...
- Remember that the majority of consumers view Test Prep & Tutoring as a commodity and, as such, have begun to expect commodity-type promotional messages. The usual suspects? Early-bird SAT sign-up incentives and Academic Subject tutoring in advance of exams).
- Try it yourself: test pricing incentives and value-add messages. Remember to create urgency.
- Don't forget to promote. The last thing one should do is expend the mental energy required to come up with a grand incentive plan and then just sit by the phone. One needs to fold this approach into a marketing plan.
- Build a bridge to better practices in the future by measuring and noting the results.
Good luck!
