A TOUGH MARKETPLACE

Prospective Parents

More Choices And Less Money

I

was fortunate to enjoy an independent school education from the age of 3 to 18 in an excellent single-sex girls’ school in the Isle of Man in the seventies and eighties. I am something of a rarity in having attended the same institution for my entire school career. It is almost unheard of today, as we see families switching between the independent and maintained sectors in response to financial and market forces beyond our control.

State choices

With the rise in primary school performance and strong grammar school and academy results, there is a discernible shift amongst those who might have historically been characterised as the ‘traditional independent school parent’ towards state schools without any sense of seeing the option as second best. In addition, there is an increasing trend towards parents making decisions about which stages in a school career offer the most ‘value’ if they cannot afford the full 14 or so years’ worth of eyewatering fees, particularly in the current economic downturn with financial pressures facing families on so many fronts.

In this regard, sixth forms appear to be benefiting, being seen as the tickets to top universities and highly paid employment opportunities, and therefore worth two years of financial sacrifices. The Private Education Policy Forum records that 17% of children are in independent education in the sixth form compared with 5% at primary age and 8% at secondary age. Research by RSAcademics and Mungo Dunnett Associates also indicates that transfer from the state sector at 16+ is an increasingly likely option for parents keen to keep overall costs affordable.

Affordability

Affordability is indeed an ongoing concern for the sector. According to the ISC, member schools are currently charging parents an average of £37,032 a year for boarding students and £20,832 a year for day pupils. Schools are very aware of the economic pressures and this year the average fee increase was recorded as 3%, the second lowest rise since 2000. Yet despite the noted increase in financial support, rising 4.8% year-on-year to nearly £1.2 billion, it is increasingly unlikely that – bar the very few at the top of the earnings pyramid – the next generation will be able to even consider a complete independent school education for their children.

Financial tax breaks and house price rises have, to an extent, supported the sector in recent years. Current parents have benefited from tax efficiencies for grandparents wishing to contribute to their grandchild’s education. They have been able to release equity or remortgage to pay for their child’s education. The next generation won’t be so fortunate.

It is worth noting that there are 1,388 ISC member schools, yet the majority have fewer than 300 pupils and a typical size is between 100 and 125. This statistic informs the financial pressures many schools are under in terms of running costs, with the huge energy price increases. The recent teachers’ pension scheme changes have put further stress on schools’ bottom lines, while the spectre of VAT on fees and the removal of tax reliefs hangs over the sector given the prospect of a Labour government.

Impact on admissions

How has this changing landscape affected admissions, marketing and communications? The new fluidity of parental decision-making has certainly created more uncertainty for schools and has made budgeting more difficult. Consequently, marketing and communications jobs have become more complicated and pressurised and the admissions role more complex. Prep and junior schools, have been affected perhaps more than senior schools so far as the latter tend to have more fixed entry points and recognised stages for entrance tests. Preps are no longer seeing pupils only join in the traditional September, but also at the start of the spring and summer terms, and sometimes even mid-term. Spaces become available as children come and go and in this more uncertain market all schools have had to become much more flexible in their approach to recruitment and their associated marketing.

London market

The exception to this challenging picture is arguably the London market, where fierce competition for places in both prep and senior schools shows little sign of a slowdown as demand outstrips supply by a considerable margin. Conglomerates are forming with school groups run by corporates – and they seem to be thriving. The international demographic of the capital has only increased the demand, and with a British education still highly sought after across the globe, anyone involved in marketing in London schools is working in a very different world to the rest of the country and most can afford to be highly selective.

Pressure is building on established boarding schools beyond the capital with the London senior schools themselves starting to offer boarding options and junior schools, which traditionally acted as feeders, opening up senior options themselves.

...years of financial sacrifices

Adjust and adapt

There are numerous ways in which school marketers have had to adjust and adapt to the way that parents are now viewing the purchase of an independent education. Here I will mention two developments which I feel are particularly significant.

Digital marketing

In the past 20 years, the advance of digital marketing has increased pressure on marketing and communications teams as it has opened up prospective families’ eyes to a wider range of schooling options than hitherto and therefore increased the competitive nature of the industry. In particular, information about fees and bursaries is much more readily available on school websites, with parents easily able to compare prices. Armed with this information, they are much more overt about negotiating fees and ‘discounts’. In the past, parents would have discussed money privately with the bursar, but now they often raise it with admissions staff at the enquiry stage: a clear demonstration of how parents are increasingly viewing education as buyers.

Yet the internet has also brought with it many benefits for marketers who have been able to harness its power to satisfy the new generation of information-hungry customers. Schools have been able to tailor their offering through their websites with sections for the different elements of school life, thereby illustrating the increasing number of potential entry points. F

Engaging and interactive

A prep school website will now typically have its website split into sections, allowing parents to see the benefits of investing at each stage of school life, and within each stage, thereby demonstrating the associated merits in a much more engaging and interactive way. At senior level, you will typically see sections tailored to boarding and/or day school life, a lower school curriculum and something separate for the Sixth Form. The copy in these sections will be written in different styles to appeal to the different age groups..

Digital offers far more dynamic marketing opportunities than were previously available through a print prospectus. Making use of a website, social media, online directories and review websites secures schools a much broader reach, showcasing the many benefits of an independent education and the positive pupil outcomes.

School marketers should see digital as their friend and make full use of all the opportunities it offers to appeal to the new, varied customer base seeking independent education at whichever stage they feel they can afford it

Parental involvement

A second sea change is the development of schools into more overt communities, welcoming parental involvement and actively encouraging it. This has resulted in school marketers creating more opportunities for parents to be involved and organising more events to make them feel welcome, even before they have joined the school. Gone are the days of parents ‘letting the school get on with the job and only occasionally going along to an event run by the parent association. Simply seeing a child at exeats and half terms, in the case of boarding schools, or never setting foot over the school threshold aside from a drop off or pick up, in the case of day schools, are things of

Today’s buyers want to be part of their children’s lives and see communication as part of the overall value they are getting for parting with their hard-earned £1,000s. Many may be new to independent education, and will be making significant sacrifices to give their child this opportunity. They will, quite rightly, expect to be welcomed and to feel part of school life. Some also see it as a chance to develop new friendships or even as a career networking opportunity. School marketers have had to embrace this and encourage collaboration between the school and prospective parents from the very early admissions stages.

Schools now offer a wide range of events for prospective families even before they have registered for a place and during the admissions process there are invitations to get to know the school better. Nurseries are hosting toddler groups while prospective sixth formers at boarding schools might be offered taster nights. Parents are invited to pastoral talks, careers information evenings and to music concerts.

Strategic moves

We are seeing significant strategic moves in the face of market forces which are reflective of changes in the customer buying process. It would be very easy to spend a large part of each working week worrying about what might be round the corner and what the next customer shift might be. But we must remember that while parents’ choices in the 2020s may be increasingly unpredictable, fundamentally they just want the best possible education for their child. And, equally, schools want children who will thrive within them.

My recommendation is to embrace the changing customer needs but stay true to your school’s values and ethos, for ultimately those are the characteristics which will set you apart and attract the families who want the particular style of education you offer. Without a clear identity, a school simply won’t appeal to the increasingly selective customer in an increasingly tough marketplace. Despite the changes in customer perceptions and expectations, the winds of economic change and the turbulent political times in which we live, our ultimate aim is to give each child the best possible chance of happy and fulfilling schooldays. ●

PHILIPPA SCUDDS is Director of Marketing and Communications at Canford School (www.canford.com) and an Independent Schools Marketing Consultant (www.cathcomms.co.uk).

“allmanhall