Test Prep & Tutoring Business Integration Strategy

Test Prep & Tutoring ProfessionalsJanuary 2015 Industry Update
	Are you integrating? During 2014, TPP fielded a fair number of questions about business integration. I suspect the coming SAT Redesign has a some companies brainstorming. While the partnership between CB and Khan Academy will culminate in a free P/SAT prep platform and this will be a challenge to test prep providers, a better understanding is warranted.   This institutional partnership is a form of  vertical integration. Vertical integration was made famous by Andrew Carnegie and Carnegie Steel. Carnegie Steel used backward integration to control elements of the production process. This form of integration is not exclusive to big business nor is it the only form of integration.  Horizontal integration involves developing (or acquiring firms with) like products in order to gain economies of scale. Horizontal integration seems particularly well suited for test prep & tutoring firms. There are a number of fields related to test prep & tutoring.  The usual suspects include:  publishing, content creation, admissions advising, and study skills. More recently there seems to be an uptick in learning differences and cognitive training as well. I've found that most firms at least dabble in one of the above.  If there is something your company does well that is NOT directly related to tutoring or test prep delivery, it may be time to explore developing that area as a revenue driver.  Stick to things that could be easily re-purposed and that are complementary to your existing product mix. For example, if you write your own material, consider expanding into publishing, or apps, or flashcards;  or, if you have developed an excellent study-skills platform, consider specializing in that area. You could also consider a more deliberate partnership with corollary partners such as cognitive specialists or learning difference counselors. The possibilities are numerous  but the main point is that most companies have internal processes & products which, if strategically integrated and leveraged, could help them diversify, increase revenue, and adapt to a changing business environment.   To learn more about this or other strategies, set up a *free consultation here.   *Be sure to select at least 3 alternative times/days.		Upcoming Workshops    Administration II:  Basics of Budgeting February 5, 26                                3 openings                FREE Human Resources I:  Tutor Recruitment February 4, 19                                3 openings                FREE Growing your tutoring business February 12                                    4 openings                FREE March SAT/ACT Strategy          3 opening                  FREE February 11 Open Positions-January New Client Coordinator  Educational Connections  - Washington DC Area January 5, 2014 Program Director Jobs for the Future - Oakland, California - Dec 16, 2014 Save job • Share • Delete Senior Program Manager Jobs for the Future - Oakland, California - Dec 16, 2014 Save job • Share • Delete Research Assistant Jobs for the Future - Boston, MA 02110 - Dec 15, 2014 Save job • Share • Delete Director, Work-based Learning Jobs for the Future - Oakland, California - Dec 15, 2014 Save job • Share • Delete Program Manager Jobs for the Future - Oakland, California - Dec 15, 2014 Save job • Share • Delete Assistant Dean, School of Management, Executive MBA Boston University - Greater Boston Area - Dec 15, 2014 Save job • Share • Delete Site Manager EF International Language Centers - Cambridge-8 Education Street - Dec 11, 2014 Save job • Share • Delete Project Director - Boston Academic Strategy TNTP - Boston, MA - Dec 10, 2014 Save job • Share • Delete College Representative FIDM - Greater Boston Area - Dec 9, 2014 Save job • Share • Delete Associate Director of Pre-College Programs and Director of SPARK Brown University - Providence, Rhode Island Area - Dec 15, 2014 Save job • Share • Delete Forward to a Friend Follow on Twitter Friend on Facebook Unsubscribe Update Subscription Preferences View Email In Browser
	Copyright © 2015 Test Prep Professionals All rights reserved. This month's newsletter for your review. Warmly, Kevin Test Prep Professionals 150 Woburn Street Andover, MA 01810 USA

Black Friday and Beyond:  Strategic Positioning for Test Prep & Tutoring in Late November

Adding Grad Programs: GRE/GMAT/LSAT/MCAT

December SAT/ACT marketing strategy

Growing your tutoring business in the first year

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November  2014 Blog Preparing for Black Friday www.testprepprofessionals.com

TEST PREP & TUTORING PROFESSIONALS SAT scores from the November 8th administration will be released starting next week which, as luck would have it, is also Thanksgiving week.  While the beginning of the week may be subdued in terms of inbound phone volume, make no mistake; potential clients will be in the habit of web-shopping because of a fairly normalized consumer sales cycle.  Although this sales cycle is more traditionally related to retailers and holiday shopping,  Test Prep & Tutoring sales also tend to peak as well.  That having been said, Black Friday may be hit or miss for Test Prep & Tutoring consumer traffic--BUT-- the Monday and Tuesday after Thanksgiving are usually quite busy. To take full advantage of this opportunity, it will be helpful to prepare.  Here are some basics worth reviewing with your team: 1.  Have a singular and impactful message.  Whether you are using price incentives, value-adds, or new product announcements, limit the scope of your sales messaging to a singular message of choice. 2.  Have a short team meeting during which this message is discussed and be sure folks fully understand how to discuss and implement the promotion or message of choice. 3.  Review and update sales sheets (product descriptions, pricing, pricing if there is an incentive, limitations to any incentives, and sales scripts if you have them etc.). 4.  Consider developing a quick FAQ for team members taking in-bound calls 5.  Double check class offerings &  tutor availability through January.  Many people will be looking ahead and you will want to have inventory to meet the demand! 6.  Extend the discussion to all tutors and teachers in order to maximize network outreach.  This can be done pretty efficiently through a bullet-pointed email. 7.  Document any and all information from web forms or inbound callers who don't enroll.  These folks could be prospects for a future class or offer. 8.  Consider sending an email on either the Monday or Tuesday after Thanksgiving 9.  Don't forget your current clients--they deserve to be rewarded as much as or maybe event more than new clients. 10.  If you are not in the habit of "goaling,"  try to set an enrollment goal using comparitive dates from the prior year.  For example, if the Monday after Thanksgiving in 2013 your enrolled 3 students, try goaling at 5 or 6 this year.  Extend that logic forward as appropriate. Hope it helps.   Happy Holidays! Kevin

November test prep promotion and pricing strategy

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December SAT/ACT marketing strategy View

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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!

Fall 2014 Tutoring & Test Prep Strategy | Event Calendar

Fall 2014 Tutoring & Test Prep Strategy  |  Event Calendar

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October  2014 Newsletter SAT/ACT Test Prep & Tutoring Strategy www.testprepprofessionals.com

FALL  STRATEGY  II With the confluence of  ACT, PSAT, and SAT test dates in October, combined with the fact that SAT Subject Tests are offered, and with impending changes to both the ACT and the SAT scheduled in the near future, test prep & tutoring concerns should be averaging about 15-25% more in gross revenue vs. prior year.  That is, unless this increase demand has been better anticipated by others.  Unfortunately, when the circumstances I have mentioned align, hyper-competition can ensue. Bigger companies diversify offerings to take advantage of heretofore un-leveraged products...think SAT regular, SAT short course,  and  something like:  SAT 1600 (and then multiply x2 to add online companion products).     Fast followers will match the bigger concerns--not so much with inspired strategy but with duplicate market messaging and hastily prepared product extensions.   And let's not forget that Khan Academy has begun  "democratizing" test prep. So the largest two or three companies combined with whatever large regional player exists in your geography will likely fight it out for the surplus share resulting this Fall.    As a result, even with an increased in total share available, it may be difficult for small or medium sized companies to carve out the revenue increases mentioned above. Many folks will be satisfied with increases vs. last year and, lets face it, most are so inundated at the moment, that gauging relative improvement vs. potential improvement will fall low on the list of things to do.  The good news is?  Performance can be measured in hindsight.  The better news is that there is still a great opportunity more fully leverage opportunity without getting too far afield from delivering one's service.  Here are some tips for this particular Fall: 1.  Know your strengths and define what you are good at and stay committed to those ideals BUT keep an open mind about diversifying products to match dynamic demand.  2.  Know your competition's strengths - visit web pages, view product lines.  This is just good business.  3.  Determine how to best leverage your product mix, pricing strategy, people, and promotional efforts and frequently ask yourself if you are doing so.  4.  Examine your lead - funnel ( this will help you empirically assess demand ).  You may be able to benefit by ramping up high yield,  low time-involved activities over the next four weeks.  If you have not, add a "chat feature" to your website, every inquiry is a potential client (we use OLARK...its free). 5.  Remember that consumer needs are extremely dynamic --particularly as the test dates draw nearer.  For example, two weeks prior to a test date is an ideal time for short courses, or small group single-subject tutoring (Math is pretty popular) etc.  Updating a Facebook page, email list, and current clients with a highly specialized product that matches consumer needs, costs very little and can teach one quite a bit about product diversification.  I kept things short because I know most folks reading this are probably tutoring from morning to night at this point in the cycle.  Feel free to visit our call to learn more about what has  been written here. www.testprepprofessionals.com. Warm regards, Kevin www.testprepprofessionals.com 617.285.4036