Important Information Newcomers Need to Know About the School Market

By Lynn Stimolo


Many companies and/or marketers make a smooth transition from the consumer or business-to-business markets to the school market. After all, marketing is marketing . . . right? Wrong! 

Yes, there are many similarities. And yes, many marketing principles apply to all. However, take it from one who made the transition and now helps others do the same, there are three basic and very important differences.


Timing

The consumer and B to B markets offer many opportunities for mailing. Sure, there are seasons (holidays, back-to-school, spring vs fall, etc). However, depending on the product or service, one can pretty much mail throughout the year, even monthly, with success. Not so in the school market. 

The education market is one huge bureaucracy. The vast majority of schools open in late August or early September and close in late May or June. Most school budgets roll over on July 1. These three events result in two very specific and relatively brief mailing windows.

Because most schools’ fiscal year begins in July, school personnel begin contemplating purchases for their next year’s budget in late winter and early spring. (Decisions regarding higher priced items may begin the prior year.) During this time requisitions are submitted for approval. Consequently, school marketers mail their “spring” promotions from the beginning of January until, at the very latest, the end of April.

There is no data regarding the dollar amount spent during the spring season. However, research regarding purchase decision-making activity shows that as much as 60% of buying decisions in the school market take place in the spring vs 40% in the fall. 

Purchases made in the “fall” season are usually a result of funds still available in the school’s budget. They may include items to supplement lesson plans already in place for the new school year or items to enhance the next semester. This mailing window is even smaller and usually begins in mid-August and lasts through the end of September. Of course there are exceptions to every rule, but the opportunities to mail in the school market vary only by a couple of weeks, not a few months.

The longer the approval process (high ticket items requiring several levels of review or products that require preview), the earlier in the cycle one should mail. However, don’t expect response to follow the same patterns as seen in consumer or B to B markets. Many a novice school marketer has panicked in early June wondering why so few orders have been received from that package that mailed in February. Once again, it’s due to the market’s bureaucracy.

For the most part, spring purchases are made for use in the following school year. Requisitions are submitted for approval and may require review by one or more individuals, a committee, and/or the administration. Once a requisition is approved, purchase orders are written. 

However, purchase orders are not processed until the end of the school year or over summer vacation when the new budget is available. Therefore, the majority of orders generated by spring mailings will not be received until July and August. This can make for some creative cash flow management and some sleepless nights.

Because purchases made in the fall are usually needed for the current school year, the requisition, review, and ordering process is more contracted. Orders for these mailings are received more quickly in the months of September and October. 

There are very few products or services in the school market that are exceptions to these purchasing patterns. For the most part, anyone thinking they will make up for poor planning or low revenues by mailing outside the windows will experience very disappointing results.



Testing and Tracking

Any marketer knows that increasing market share requires the testing of concepts. These include promotion format, list selection, offers, timing, and copy and design. In order to make informed judgments regarding the success or failure of a test, it is necessary to accurately read the test results against a control group. 

The consumer market offers the opportunity to obtain information about each and every customer. Almost every order can be traced to a promotion code or source key. This is all possible because, for the most part, orders are placed by the individual making the purchase. Because of this direct link to the customer, results can be tabulated and test results can be accurately recorded.

Testing and tracking is a school marketer’s nightmare. Why? Because the majority of orders are received on purchase orders originated by a school or district office. They may or may not contain the information needed to be able to track where the order originated. 

Since most orders are received via a purchase order issued by a school or district, the “ship to” name is not necessarily the person who initiated the purchase order or the person who will actually use the item. However, there are methods by which orders can be tracked in the school market with some degree of accuracy. The goal is to be able to track a statistically significant percentage of response. Then prorate that data with the untrackable results.

The best technique used to track results varies based on the nature of the test. When testing lists, the most successful technique adds a department code to the return address. Using an inkjet address process, a unique department code is assigned and printed in the return address for each list. The school business office includes this department code when addressing their purchase order and the data is captured when the order is entered. Most school marketers report tracking 30% to 60% of their response using this technique.

Offer tests are more difficult to administer. Each school building has its own demographics that influence its propensity and ability to buy. Few school marketers have been successful in selecting control and test panels that are comprised of schools with equal demographics. 

The most effective technique to accomplish demographic equality is to divide the marketplace of schools and districts in half by separating the odd from the even zip codes. This will also yield approximately equal numbers of schools and teachers. When results have been received, sales from the odd zip codes are compared to the even zip code sales to determine which test panel had better results.

One of the more reliable techniques to evaluate catalog performance is to assign item codes unique to each catalog. Companies develop prefix or suffix codes that are only visible in their sales reports and do not effect other areas such as inventory. This method also has the ability to separate sales from prior catalog promotions. The drawback to this technique is that it adds considerable expense to create test panels.

These two methods of tracking, assigning unique item codes and mailing to odd vs even zip codes, deliver the highest rates of trackable business. Other tracking methods include keying order forms, using unique post office boxes or department numbers, using pressure sensitive labels the respondent is asked to affix to the order form, and inkjet addressing directly to the order form. 



List Selection

Now for some good news. Compared to other markets, the education market includes some of the most accurate lists bar none. Why? Because of its bureaucracy. Mail order is the primary media through which teachers learn of and purchase educational products. That makes this market direct mail friendly. 

School databases are sophisticated and relatively accurate compared to other markets. Compilers are constantly contacting schools and asking for updates regarding their personnel and facilities. And schools are, for the most part, willing to share this information. However, this wealth of list information can make for some complicated list selection. 

First, school marketers must understand some general rules such as teachers in schools where customers exist tend to be more responsive than schools that don’t include customers. The more recently added names to a compiled file often respond best. And known direct mail buyers can be very responsive, especially when they are recent buyers.

There are also almost 400 outside lists or lists of mail order customers from other companies from which to choose. Some include more selection options than others. A good list broker should have experience with a variety of outside lists and can recommend those that best suit a particular situation. When using multiple list sources, it is wise to merge/purge your customer, compiled, and outside lists in order to minimize duplication when mailing. 

In addition, the school market offers the ability to profile customers in order to select those prospects that should be most responsive. Database matches to customer files and predictive models are both methods that can help marketers choose the most productive segments of the marketplace for their situation.

The school market may have its challenges when it comes to timing, testing and tracking, and list selection. But one can take comfort in the fact that everyone has the same obstacles to overcome. For many, these issues represent a barrier to entry into the school market while they protect market share for those who have mastered them.