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B2C Update

B2C Update. Setting the stage for B2C. We want to grow faster than we are growing today. Setting the stage for B2C. Positive signals suggested market potential in direct to consumer. Chapman continuation sales 30-40% Redlands student choice sales 11-15%. Setting the stage for B2C.

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B2C Update

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  1. B2C Update

  2. Setting the stage for B2C • We want to grow faster than we are growing today

  3. Setting the stage for B2C Positive signals suggested market potential in direct to consumer • Chapman continuation sales 30-40% • Redlands student choice sales 11-15%

  4. Setting the stage for B2C Market segmentation study supported this potential • On average, 11% extremely likely to purchase coaching • At $90/month price point, 14% extremely likely to purchase coaching

  5. Setting the stage for B2C Conservative market sizing suggested each of two products was $50 million addressable market • We will do a more in depth market sizing with an expert consultant in early Q3

  6. Setting the stage for B2C Interviews and focus groups gave us deeper insight into attitudes toward InsideTrack Coaching as a consumer product Overall positive feedback – but confusion about value prop of freshman transition was a concern, as was remote nature of coaching for college admissions product. Over the next quarter we will continue this work.

  7. Market and product strategy: options “Current Core ” “License Model” “Channel Model” “Direct Marketing & Non School Partners” “Catalyst +”

  8. Decision – assess B2C; acquire 400+ customers “Adult * “Traditional - University Partner Model **” “License Model” -Traditional private “Traditional - Direct Marketing & Non School Partners **” “Catalyst +” *Adaptive coaching model **B:C channel focus will fluctuate based on seasonality

  9. Goals of our market tests • Gather evidence to address: • What size business could we grow B2C into? • With which marketing channel and sales strategy? • With which product / packaging / pricing / positioning? • What CPA can we attain (short and medium term)? • What investment would it require over what timeline? • PLUS: • Is the timing right for InsideTrack to invest more here NOW?

  10. B2C marketing tests this year: benchmark results, hone messages, packaging and pricing April 1 January 1 June 1 September 1 Freshmen Transition Coaching College Admissions Coaching primary focus College Coaching secondary focus Two phases of direct-to-student marketing tests

  11. Light test over the summer focused on freshman transition product • Marketing Strategy • Product • InsideTrack Membership: • Regular meetings with your College Expert • Our kit of 45+ tools and assessments • Access to our exclusive online tool • Price • Free college planning session • $94 / month, recurring charge • Place • Online: Learn more, purchase • Email: Learn more • Direct mail: Learn more • Phone: Purchase, learn more, receive service • Promotion • Facebook, Google • Email and direct mail to lists purchased from large public universities • Email and direct mail to affluent families • Friends and family • Parent leads from Zinch • Student leads from Alloy

  12. Key learnings from summer guide future testing • Marketing • Product • Not urgent need or well understood product • Price • Perceived value bigger barrier than cost • Place • Figuring out how to reach parents is key • Promotion • Need to enable for word of mouth / referral • Alignment with trusted brand • Sales • Need inside sales leadership to maximize opportunity • Are Coaches right fit for selling?

  13. To answer key questions, we are currently planning a tactical as well as research-based focus • Tactical + light research • We plan to focus here • Tactical • More sophisticated / multi-channel marketing tests • Stronger sales leadership and sales support • Light research • More in-depth market sizing • Additional parent focus groups • Interview parents/students who have purchased • Moderate investment in a consultant to outline business plan and deepen our insight into the opportunity and costs • Research-based only • In depth focus groups of parents for both products • Deep segmentation studies of parents for both products • Significant investment in a strategic business consultant to\deepen our insight into the opportunity • Research + large partnerships • Per above, plus pursue large, deep partnership opportunities such as Kaplan, Princeton Review, employee benefit programs, etc.

  14. A deeper and more sophisticated strategy for college admissions: target parents nationally and regionally, utilize network marketing, leverage trusted brands and generate word-of-mouth • National • Reach parents through trusted brands; leverage technology to demonstrate value; encourage WOM • Lead gen with trusted brands that have significant parent audiences (Zinch, FastWeb, etc.) • SEM, SEO • Banner advertising • Social media PR • Refer a friend • Regional • Reach parents through multiple marketing messages / touch points and encourage WOM • PR • Purchase targeted lists (direct mail, email) • Parent workshops with localized marketing • Test prep marketing partnerships • Network marketing test

  15. Our summer conversion funnel demonstrates the importance of starting with strong parent leads Left voice-mail 35% 35% 27% Improving sales process will improve conversion. But even if doubled, our conversion number would only be 7%. Conclusion: we are focused on getting leads that are more likely to purchase. May be easier for a product that is more well-understood. 19%

  16. Online lead conversion strategy requires low CPL ($25) and stretch conversion goals (12.5%)

  17. Partnership / network marketing / ground strategy = longer lead time, larger investment to set up

  18. B2C strategy for Q3 and Q4 Our plan is to take two quarters to better assess ability to meet CPL and conversion rate targets for online strategy

  19. B2C strategy for Q3 and Q4 While laying groundwork for larger partnership opportunities, ground and network marketing

  20. B2C strategy for Q3 and Q4 If online tests demonstrate that stretch targets are unlikely to be met at this stage in brand awareness, we will shift investment to partnership, ground and network marketing in Q4.

  21. What would success from FY11 tests look like? • Our goal is to understand: • Which product / packaging / pricing / positioning has greatest velocity? • More about best channels for lead acquisition and best sales approach for closing leads • What CPA can we attain (short and medium term)? • Could this business be built without a large brand marketing investment? • Best case scenario: • Optimized CPA for high volume sales • Based on different lead gen tactics and lead sources • CPA in $250-$300 range that could be optimized later to $100 • From lead sources that can be high volume

  22. PR efforts targeted at social media and parenting publications • National and regional publications • Pitched Chicago Tribune last week; favorable response and willingness to pitch our story to other editors • Regional parenting magazine publication: expected to run in February in Austin Family, Georgia Family, Houston Family • Pitching Family Circle Magazine for an April column on college prep as seniors are opening acceptance letters • Pitching NYT “The Choice” blog in January • Social media • Facebook updates and Twitter feeds to demonstrate depth to bloggers • The Old Schoolhouse - Confirmed product review. 90-100,000 parents. • SingleDad Blog – actively working w/them on a "Parenting Advice" article. • Connecting Women – blog talk radio with audience of 5,000 moms to host interview in February • Silicon Valley Moms (now merged with Technorati Women), pitching on a national article with a focus on the college essay.

  23. Launched improved landing page and product website – and adding live chat and phone tracking • SEM campaign focused on high-quality parent leads interested in college admissions coaching • Parent/student funnels + ability to trial instantly • Offer page integrated w/rest of site • Marketo, Sales Force, Google Analytics, SEM more tightly integrated

  24. Successful workshop for 16 parents held at East Bay high school. 3 purchased coaching. Tactics to draw attendance: direct mail, door hangers, event postings, local parent communities, Craigslist

  25. Product Roadmap Q2 Progress

  26. University MarketingBoard of Directors, December 2010

  27. We are executing on our plan • Last Spring, we outlined a laser-focused top target strategy for FY11 to ensure that we would focus on: • A few large prospects • Weighted toward the adult market

  28. Our strategy is yielding results – we are close to closing large, marquee clients in each segment

  29. We are executing on our plan • We are: • Weighted toward large, adult-serving prospects in the pipeline • Realizing strong awareness in our top target list • We are not: • Spinning our wheels by having lots of conversations with small traditional prospects that like to talk but not buy

  30. Top targets engage with the brand regularly • FY 11 marketing campaigns have reached all 236 Top Targets • 231 TT schools have visited the website (88 visited within the quarter) • 1200+ individuals from 125 TTs have read our newsletter (500+ from 115 schools within the quarter) • 440+ individuals from 140+ TT schools opened/clicked campaign emails (180+ from 85+ schools within the quarter) • 60+ attended InsideTrack events (26+ within the quarter) • 62 TT schools had senior admins participate in 1:1 meetings with our sales team

  31. High touch approach drives deals to closure Strategy sessions & role plays Inside/field sales partnerships Tailored Marketing Secret Shopping Influencer engagement Detailed data gathering Advisory board outreach Executive outreach Targeted emails VIP Events

  32. Indicators of interest help prioritize outreach

  33. Formalizing our “Leadership Dinner Series” A dinner event for higher education leaders Engage in collegial conversation on issues of critical importance to university and student success Share best practices with a group of 6 to 12 senior administrators and thought leaders Discover unique insights from InsideTrack’s proprietary research Enjoy fine dining in a private room at a local restaurant DC – New York – Chicago – San Francisco – Boston - Philadelphia

  34. Leveraging “secret shopper” results Sales Opportunities Interest in our results is getting us in the door and attracting people to our dinners 1:1 Meetings Group Discussions Speaking Opportunities Using the data as the basis for live event and webinar presentations UPCEA (Adult & Professional) APSCU (Private Sector) Sales Tools Creating a summary report to pitch for publication and slides for Sales and Client presentations Article/Report Slides

  35. New tools overcome “We could do this in-house”

  36. PR program provides “air cover” Focused Messaging Inserting ourselves into the national debate on college completion and leveraging special interest opportunities Top Level – Graduation Crisis SF, PDX, Regulation, Military Media Training Ensuring all of our spokespeople are on-message and effective handle the press Key Executives Coaches, Students, Advisors Outreach Washington Post, Chicago Tribune, Chronicle of Higher Ed, Inside Higher Ed Popular Press Trade Press

  37. List penetration is resulting in fewer new opps 2011 Actual/Forecast/Plan:

  38. Appendix

  39. Adding sales tools for adult-focused programs Video montage featuring Angela Duckworth, Muriel Oaks, Nick Allen, Saskia Knight, Gary Brahm Coaching calls from Brandman, DeVry, Excelsior, Westwood

  40. Most of PS opportunity is in pipeline already • Breakdown of PS targets • 32 Targets (2000+ 4yr degree students) • 14 currently in pipeline • 2 on ice • 1 closed • 15 available to target Largest programs (APOL, APEI, EDMC, CEC ESI, etc.) already in pipeline

  41. Online programs key to near-term AP growth • Breakdown of AP targets • 86 Targets (1800+ 4yr degree students) • 20 currently in pipeline • 7 on ice • 2 closed • 57 available to target Some large online opportunities remain

  42. Traditional market has highest number of available targets • Breakdown of TR targets • 103 Targets (largest public & private) • 18 currently in pipeline • 1 on ice • 84 available to target Gaining traction with free pilot for a number of universities.Strategy and list may need to be revisited in January.

  43. Marketing and Lead Gen deals – will test a range of partners • College Search / College Apps/ Scholarships • For example: • Zinch • Groupon type buying partnerships – in process • The Choice NYT blog • USNews • FastWeb • Peterson’s • Unigo • ConnectEDU • University Parent • Parent audiences • For example: • GreatSchools • Education.com • Parenting blogs

  44. We are poised to initiate partner marketing deals – approaching Kaplan and Princeton Review now • College tours / College info sessions • College info session coordinators or college tour planners offer InsideTrack Coaching with sign up or a free trial to participants • In conversation with Slingshot • Reaching out to ecampus tours, CE tours, collegevisits.com • Test prep / tutoring • Leverage on the ground presence of test prep or tutoring centers to co-market college admissions coaching • Bundle college admissions coaching or intro coaching session in with online purchase of test prep • Bundle InsideTrack Coaching in with online purchase of tutoring • In discussions with Kaplan, Revolution Prep, Grockit, PrepME • Reaching out to Princeton Review

  45. Local event marketing strategy could be modeled after Kaplan test prep local marketing • One junior marketer, solely focused on local event marketing, relationship building with schools and universities • With a low annual budget – most of the investment to get attendees is through established communication channels and groups • 19 monthly sign ups from events would reach a target $300 CPA; 37 monthly sign ups would get us to $150 CPA

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