Once you have shielded yourself and your staff from the media, four things carry a school through a scary economy. Turn every student into a raving fan, hold or raise your prices with more value added, increase your marketing budget and effort, and spend more on training rather than less.
Key Takeaways
- The first defense, covered in the December 2008 column, is protecting yourself and your staff from the media and the Mediocre Majority.
- Every student you enroll should become a raving fan, an instant convert and an evangelist for your school.
- Apple keeps setting sales records while competitors suffer, because loyal buyers pay $2,500 for what they want instead of $800 for what would do the job.
- Keep your prices where they are or raise them with much higher value added. This industry does not work on volume.
- Increase your marketing budget and your marketing effort. Cutting marketing when customers are harder to get is backwards.
- Increase your training budget: more seminars, more books, more reading on marketing, service, administration and teaching methodology.
The First Method: Protect Your Team From the Media
In my December 2008 column, I stated that the first way to thrive in a scary economy is to protect yourself and your staff from the influence of media and of the “Mediocre Majority.”
This month, I recommend four additional methods.
Raging Thunder Lizard Evangelists
The first is “Raging Thunder lizard Evangelists.” What is that you may ask?
Well, the first thing you must do to insure that you thrive is to turn every student that you enroll into a RAVING Fan. I borrowed the term above from Guy Kawasaki who was in the first Macintosh development team with Steve Jobs and has written a number of books on the subject of marketing and business start-ups.
If you want to really grasp the subject, then I’d recommend that you read his books and a couple of others, The Culting of Brands and Customer Satisfaction Is Worthless…
If you wish to thrive, not just survive; then you must make sure that your students are thrilled with you and your school. Make sure they immediately become huge fans. That they are instant “converts” and become evangelists for you.
Why Apple Thrives While Others Suffer
You can look at many different products and brands.
While many (Dell™ included) suffer in the current environment, Apple™ continues to hit records sales numbers and stockpile ridiculous amounts of cash. Why does Apple thrive, while others suffer?
Well, a personal example. I need a new laptop, for a variety of reasons. Mostly, I’ve used a MacBook Pro, but some software we use for NAPMA only works on a PC. Now, I’m in a quandary. A perfectly reasonable solution is the Dell laptop that I saw at Best Buy™. It was around $800, and will do everything I need. My other alternative is a new MacBook Pro, which is $2,500. Now, I am probably not comparing apples to apples (no pun intended), but which am I more likely to do?
Spend $800 for a tool that will fix my problems or $2,500 for what I really want?
Well, I’m sure you already know the answer!
There’s a car commercial running on TV that compares a Hyundai with a BMW. I’m sure the ad works for some. Who doesn’t it work for? Anyone who has actually owned a BMW!
The reality is, although they may compare favorably for a lower price, few BMW loyalists will jump ship for the savings!
So, the first thing you must do is to make sure that your students are all “Raging Thunder Lizard Evangelists.”
Keep Your Prices and Add Value
Third, keep your prices where they are or raise them, with much higher value added. Now’s not the time to “try to make it up in volume”; our industry just doesn’t work that way. You must really focus on high value from each student. Some students and parents may be looking to cut back on their budgets. You must be so good and so anchored into their worlds that it’s just not an issue that you’ll be on the list of cuts.
Increase Your Marketing Budget and Effort
Fourth, increase your marketing budget AND increase your marketing efforts. Now’s not the time to be cheap with your marketing. Expand your efforts and expand your budget to attract new students.
Stupid businesses cut back on marketing when it’s more difficult to obtain new customers. That’s backwards. Others find their marketing and training budgets easy places to cut expenses. Don’t think that way.
Increase Your Training Budget
Finally, increase your training budget. Go to more seminars. Buy more books. Read more about marketing, service, administration and teaching methodology. Now is the time to invest more in you and your staff. Don’t cut back.
Frequently Asked Questions
What is a Raging Thunder Lizard Evangelist?
It is a term borrowed from Guy Kawasaki, who was on the first Macintosh development team with Steve Jobs. Applied to a school, it means every student you enroll becomes a raving fan, an instant convert and an evangelist for you.
Should I discount tuition to keep students during a downturn?
No. Keep your prices where they are or raise them with much higher value added. Our industry does not work on making it up in volume, so focus on delivering high value to each student instead.
Why not cut marketing spending when revenue is tight?
Because it is backwards. Businesses cut marketing exactly when new customers are hardest to obtain. Expand both your marketing effort and your marketing budget instead.
What does the Apple comparison have to do with my school?
Apple keeps setting sales records while competitors suffer because loyal buyers will pay $2,500 for what they want rather than $800 for something that would do the job. Loyalty like that, built into your student body, is what protects a school in a scary economy.
Is training worth the money when the economy is bad?
It is exactly when the money should be spent. Go to more seminars, buy more books, and read more about marketing, service, administration and teaching methodology rather than cutting back.
