Centre for School Marketing

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HOW TO INCREASE SCHOOL FEES WITHOUT LOSING PARENTS.

If you need to charge more for your service, these tips will help you increase your school fees and still keep parents happy.

The cost of maintenance and engaging qualified teachers is on the increase. There is also pressure from unbudgeted expenses that MUST be taken care of.

Are you holding back on raising your fees because you’re afraid parents may defect to other schools around?

This is a real risk, but there are ways to go about it without losing parents to other schools.

The following steps will guide you in keeping your parents happy and loyal.

PLAN AHEAD
Before raising your fees, make sure you have considered not only your current costs but also any cost increases that are likely to happen in the next few terms.

You won’t want to go through a huge struggle to raise fees, only to find out months later you need to do it all over again.

TIME IT RIGHT
The best time to raise your fees is when you’re sure parents are satisfied with your service.

If you’re planning an increase in fees, be serious about proving your worth in the months before you do it.

NEVER take such action when there are issues or crisis that parents are well aware of.

ADD EXTRAS
Parents are far more likely to accept higher fees if they’re getting something extra in the bargain.

Consider what you could throw in with your current service that would cost you little or nothing but would have higher perceived value to the parents.

BE READY FOR A BACKLASH
You can’t make all your parents happy, and when you raise fees, you’re bound to upset some of them. Be prepared to explain why you’re increasing your fees.

Higher running costs and better service are typically the only reasons parents want to hear.

If you have a quality reputation and record, then you can emphasize that the increase has been carefully thought through and it is only being taken to ensure continued quality

If you have a spotty record with parents, then you should stress how the increase will allow you to begin to address some of the issues in question by allowing you to improve the overall quality of service they have been receiving.

It is very important to make sure all promises are backed up with a commitment to follow through.

USE ACTIVE LISTENING
When you’re discussing with any parent try to summarise back what the parent has told you. Keep your statement short and simple.

When dealing with a difficult parent, you must choose your words carefully because whatever you say cannot be taken back.

The types of words you use will determine how well you will get along with difficult parents. Not only do you need the right words , you need to create an experience that parents perceive as valuable.

Do not make use of harsh or rude words no matter how upset you are.
When you’re having the discussion be sure to show empathy for the parents, but be very firm in what you’re saying.

If parents sense any hesitation from you, they will likely try to exploit it in the form of a concession from you.
Also share steps your school has taken in an attempt to avoid the increase in fees.

This may include ways you’ve already cut costs or how the increase is the only way to maintain the quality and service that parents expect.

Another point you can emphasize is the time lag between this increase and the previous one.

FIND ONE POINT OF AGREEMENT.
If a parent’s complain is valid, acknowledge it. Always smile. Never wear a frown look when dealing with parents.

You must make sure you’re always smiling because this will go a long way to convince the parents that you are willing to hear them out.

Do not allow a difficult parent push you into a sad mood because this will only worsen the situation.

No matter how aggressive a parent becomes, it is very important to keep calm and remain polite and professional.

Provide information about why something is not possible, but always have a solution that might help to meet their needs.

When you break the news of increase in fees, always put it in terms of the value they will get. Sell productivity and fewer headaches to them.

Your teachers can be incredibly helpful during this process. They spend some of their time with parents and know what really drives value. Use their insight.

REPAIR THE RELATIONSHIP
Compliment the parent. Tell a joke. Offer a refund or that the complaint will be looked into by the management.

Do whatever it takes to make sure the parent is happy at the end of the conversation. Make them your best friend.

Though it may ben tedious task getting along with a difficult parent, you must bear it in mind that a difficult parent is an opportunity to get another parent that will last.

If a difficult parent discovers that you are very friendly, they will always be willing to recommend your school to friends and family.

Warren Buffett said, “pricing power defines your business. If you can’t raise prices, you’re in trouble”

page: Centre for School Marketing

“Marketing isn’t a battle of products, it’s a battle of perceptions”.

5 WAYS TO KEEP PARENTS FROM DEFECTING TO OTHER SCHOOLS.

It is painful to see a parent leave you, only to run to the arms of your competitor.

It hurts.

Competition is unpleasant, especially when you're the one losing. The fact is, that's life. If you run a school, you're going to face competition, somehow.

The question is, how do you deal with the competition?

There are many options ranging from illegal to downright malicious. The best approach is to hold on tight to your current parents. They are the reason you're in business.

Defection of good parents will cost you dearly. You lose base profit as well as profits from incremental payments, profits from reduced operating expenses, profit from referrals.

When a good parent leaves, you will need at least three new ones to replace the revenue stream.

The following steps will revolutionize your approach to parent loyalty, turning parents defection to things of the past.

We all lose at some point; it’s a fact of life. Your competitor may have a better offering or your service may have let you down. That’s not to say you have to stand idly and wave them goodbye, you have to understand why this is happening and identify what changes can be made to prevent it.

Obviously, an effective parent retention strategy will translate into profits.

You should consider taking the following actions to avoid parents’ churn:

KNOW YOUR PARENTS

You should know your parents even if it’s in admission form only. Just like you know your best friend. Sort of. Know their names, occupation, phone numbers, WhatsApp numbers and any other thing that may affect your marketing process.

When a parent leaves, find out why they left. Most schools spend time reacting to problems than preventing them.

The first most important way to prevent parent defection is to identify and define each problem from the parent’s point of view.

ANALYSE WHY YOU LOST THE PARENT.

The key to avoiding defection is to focus on the root causes. Parents defect for these reasons:

• The need for your service has ceased.
• Your service has failed to satisfy their needs in some way.
• Parents feel your lack of concern.
• Parents feel intimidated or ignored.

When a parent defects to another school, she'll tell 8 – 10 people about their negative experience with your school.

Pay close attention to your parents. Be willing to hear accurately and integrate their feedback into your school operations.

The chances are, a quick conversation will provide you many insights into what you need to do to ensure it doesn’t happen next time.

The key thing here is to listen.

The reasons will allow you to analyse any trends at the end of the term and focus on any area which needs improving.

KNOW YOUR COMPETITORS

Do you know where your departing parents are going? Don’t make assumptions. Find out.

Your first work is to discover which of the other schools the parent prefers and why he prefers it.

Finding out who your parent is switching to shouldn’t be hard. Just ask them.

Have a look and see what your competitors are doing. This is an easy way to review your place in the market and to troubleshoot what you’re offering parents and prospects.

Understanding parents' motivation can be tricky. They may say better fees but it is up to you to really understand the deeper reasons for their action.

Do some spying on your competitors in its most inoffensive form. Spying is nothing more than looking at the competitor’s adverts on billboard, flex, SAV, fliers, newsletters, website and page to see what they're up to.

Spying is nothing more than examining and compiling publicly available information. The objective is to understand your competitor.

BEAT YOUR USP INTO THEIR HEADS.

Your Unique Selling Point is what makes your school unique. It’s the reason why your service is different. The difference then, is what makes your parents prefer you more than other schools.

Your USP is the very reason why your parents decided to enrol with you in the first place. That’s not all, the reason why parents stay with you is also your USP.

Greg Ciotti describes this as standing for something.

If you don’t have anything to stand for then, why would your parents stand for you.

Who would want to leave a school that has a USP? Stand for your USP and keep it pulsing behind every marketing decision.

That’s the kind of BOLD-FACE that makes retention possible.

INCENTIVIZE THEM

This is simply rewarding your parents in some ways. Give them a gift. It could be during school event like graduation ceremony or end of the year party.

Make it legitimate and desirable. You can organise Couple’s Night for parents.

Incentivization can be very powerful.
The technique is effective because it is built on the principle of reciprocity.

This is based on the idea that giving something to someone motivates them to return the favour.

The fact is, parents' expectations originate from wishes and wants as much as actual needs. This explains why parents' satisfaction does not guarantee parents' loyalty. You may respond adequately to a parent's service need but fail to understand their expectations and desires.

Experts claim if you want to keep parents, give them “good, great, super, dynamic, overwhelming, unbelievable, unsurpassed, outstanding, incomparable, make them say WOW” service.

If you’re in school business, you know the value of taking care of parents. It’s really easy to say on paper, just “BE BETTER”

SCHOOL MARKETING: 6 THINGS YOU MUST DO WHEN A PROSPECT MAKES ENQUIRY.

Prospects want to know how the service you render in your school is specifically going to help them and their specific situation. Prospects also want to know that you care about them more than just paying money into your school account. They want you to care about their needs and not just about taking their money. This tailored sales experience is what turns visits into happy parents who are promoters of your school.

Here are six ways to not only advise your prospects, but also delight them throughout the discussion and lay the foundation for immediate enrollment.

1. DO NOT KEEP A PROSPECT WAITING FOR TOO LONG.
Nobody likes to be ignored. You'll want to impress your new customer and appreciate them for considering your school in the first place. The best way to do this is to value their time. Warm reception is key in meeting a prospect. Recognition lowers people’s defenses. It makes them open up more than they would have said giving you the opportunity to become friends.

2. MAKE THE PROSPECT’S BRAIN LIGHT UP INSTANTLY.
When it comes to convincing more parents who make inquiries at your school into taking the decision to enroll their children, it all boils down to how well you understand the prospect’s mind and what they want from your school.

We are different individuals, but in some cases, for instance, our brains are prone to respond in a very similar manner, and understanding these common elements in the human mind can help you find more ways to ethically move more parents towards saying “Yes!” to your school.

Our brains love few things more than immediate stimulation. When a parent visits your school to make enquiry, you have just few minutes to convince the new customer that your school is the best choice to enroll her child.

At this point, the parent is on the verge of enrolling her child in your school, she will be greatly influenced by how quickly she can receive her desired outcome.

More than a few Magnetic Resonance Imaging (MRI) studies, including a ni****ne addiction, have shown that our brain frontal cortex is highly active when we think about “waiting” for something.

On the other hand, our mid-brain is the one that lights up when we think about receiving something right away (that is the one you want to fire up!).

Words like “instant”, “immediately”, or even just “fast” are the best ways to fire the switch on that mid-brain activity that makes us so anxious to buy.

Researchers have noted that the key to these words is that they allow us to envision our problem being solved right away; whatever pain point we are seeking to fix by buying becomes more enticing if we know we won’t have to wait very long.
Our brains love “instant gratification” and light up when thinking about eliminating pain points instantly. Let parents know that they will be rewarded quickly and they will be more likely to enroll their children as soon as possible.

3. CHOOSE YOUR WORDS.
Research from Carnegie Mellon University, reveals that even a single word can affect conversions.
Researchers changed the description of an overnight shipping charge on a free DVD trial offer from “a $5 fee” to “a small $5 fee” and increased the response rate among customers by 20 percent!

Has the word “small” ever felt so big? A single added word increasing conversions by that amount. Choice of words can mean a lot in making visitors become friends and of course happy customers.
In a school setting, you can choose words like:
‘Easy’
‘Fast’
‘Conveniently’
‘Immediately’
‘Instantly’

4. SUGGEST WAYS TO ACHIEVE PARENTS’ GOALS.
Create a customized approach that connects your prospect’s goals and the child’s challenges to what your school is offering. Show exactly how parents will benefit from the service your school renders.

To create a customized approach:

a. Clearly outline/ explain parents’ unique challenges. This also sets you up to uniquely position your school as the solution.

Include pros and cons of different solution options. Equip yourself with solutions to academic/ social challenges that affect students generally.

b. Use the same language your prospect (parent) uses. For example, if a new parent refers to her child as “my boy” use that same language.

c. Explain to your prospect the resources that are available in your school to them after becoming a customer.

5. MAKE HELPFUL RECOMMENDATIONS THAT DO NOT 100% RELATE TO WHAT YOUR SCHOOL OFFER.
If you find an unnoticed detail that is contributing to the child’s challenges, suggest a quick win for these challenges that parents can implement without your school. These are all small details that add up in building trust with a prospect.

6. STAND FOR SOMETHING.
In school business, meaningful connections are important to your success. It is a great thing if you are looking to achieve a kind of addiction for your school brand.

The thing is, you don’t need a physical enemy, you need to be against a belief or an idea. You will in no way find your school’s true voice without something to stand against. This doesn’t have to be another school, but in order to get your ideal customers to your side, you need to be against some ideas, belief, or perception, the way PEPSI was against “small bottle” COKE in their ads. People naturally like other people who know what they are doing and know it well too.