issue 18 v4

mtm SCHOOL MATTERS ISSUE 18

JANUARY 2015

01 mtmconsulting ltd. Portland House, 43 High Street, Southwold, IP18 6AB

TEL: 01502 722787 FAX: 01502 722305 www.mtmconsulting.co.uk

Page 3:

Could a MYSTERY SHOP

be your ‘cabbie’s guide’?

If you would like to receive a digital version of School

Matters please let us know.

Email: [email protected]

Fees: ‘Schools should help

parents spread the burden’ Exclusive: JUSTIN URQUHART STEWART, Head of Corporate Development at Seven Investment Management, talks to Dick Davison for

mtmconsulting’s School Matters.

The most intelligent and insightful advice for independent schools

In this

issue:

A s independent school fees get more expensive,

schools are going to have to take the initiative in finding ways to help parents pay fees, according to the

UK’s best-known financial pundit.

Justin Urquhart Stewart, one of the most recognisable and trusted

market commentators in print and broadcast media, believes that

schools should find trusted financial partners to offer parents sav-

ings and investment packages which will help spread the cost of

education over ten years or more.

In an exclusive interview for mtmconsulting, he said: “One of the

great strengths of the British independent schools is that they are

and see that can help you pay the fees over the

next ten or 20 years.”

And it would not just be for parents. The liberalisa-

tion of pension funds means that grandparents will

be free to make use of their funds in ways which are

appropriate to them and their families.

Page 4:

Five New Year RESEARCH

resolutions

Page 5:

GRAPHICS: To see is to

discover

Page 6:

mtmconsulting’s next

INSIGHT event

► Continued on page 2

We wish all our readers a very happy and prosperous New Year.

mtmCONSULTING strategy for education

British – that’s why so many people world-

wide want to send their children here. But it

is increasingly difficult for British parents to

be able to afford what wealthy overseas par-

ents can have.

“I would urge schools to find other creative

ways of financing school fees.” Urquhart

Stewart, who was the keynote speaker at

mtmconsulting’s autumn strategy conference

last term, added: “Schools should be looking

to partner with people who can design

schemes for them so that parents, having

seen what the fees are can see straightaway

that there’s a programme which you can join

Justin Urquhart Stewart

02 mtmconsulting ltd, Portland House, 43 High Street, Southwold, IP18 6AB


ISSUE 18 mtm SCHOOL MATTERS

“A lot of grandparents are very happy to help. I

was the beneficiary myself of a family trust from

grandparents which paid for my education. A lot

of those old systems have been dropped or been

forgotten about.

“So what schools need now is a good financial

planning company to be able to co-ordinate that

and make sure that money is passed across the

generations in a tax-efficient way. Pensions can

now be inherited; ISAs can be inherited as well.

Financial partnership

“These are all things which can be used but it

needs a bit of financial construction; the school

would not have to get involved in the detailed

structuring of products or anything like that.

Schools should stick to what they do best, edu-

cating people superbly, but should bring in re-

sponsible financial services bodies to try and de-

sign the products for them and make it easier for

parents to be able to afford it.”

Another area in which schools can develop their

entrepreneurialism and their contribution to their

communities simultaneously, he believes, is by

tapping into the expertise of their former pupils.

Disclosing that he contributes to a ‘business

week’ at his old school, Bryanston, in Dorset, he

said: “Partly this event is to help pupils with how

they get into business, what educational qualifi-

cations they need and so on. But it also helps to

create what is almost a local business unit which

can actually help local businesses get going and

understand what it is that makes business tick.

“That means you are participating more in the

community which increasingly schools are ex-

pected to do. Even without the headlines of the

past few weeks, you would be foolish as a school

if you were not doing that.”

International problems ahead?

Urquhart Stewart is generally more optimistic

about the general economic outlook than many

commentators but he believes there are specific

difficulties ahead for schools recruiting in certain

parts of the world.

“Despite what the prime minister said, when he

returned from the G20 summit, about flashing

lights on the dashboard, the global economy is

still growing at about 3% a year.

“China will be growing at a reasonable level,

somewhere between 5% and 8%. In South East

Asia, a lot of countries are benefiting from lower

oil prices and this is the game changer for China,

India, Taiwan, South Korea, and all of those

► Continued from page 1

countries which import a lot of commodities. The

people who suffer are the oil producers – the

Middle East, Russia, Venezuela, Nigeria – and

the commodity producers as well – Brazil, Chile,

Zambia, South Africa.”

In the medium term, this will have an effect on

overseas recruitment, he believes. “The Far East

will still be a good place for schools to market,

whereas places like Russia and Kazakhstan will

be suffering significantly and that’s going to take

some time to turn around. In the Middle East,

probably enough wealth has been created there

but even Saudi Arabia is losing on its oil produc-

tion at the moment.”

Customers of the future

Despite his general optimism, however, he says

economic recovery in the UK will be “low and

slow”. Most people still do not feel any better off

and are likely to face only slow increases in their

income and higher rather than lower taxes in the

near to mid term.

But he adds: “What is good news is what is

clearly a phenomenal growth of entrepreneurial-

ism – people setting up new businesses. It’s true

that a high proportion of these are life style busi-

nesses, nail bars and the like, but notwithstand-

ing there is still a rising number of interesting

businesses.

“For people managing the finances of schools

that may be no great comfort at the moment but

in a few years time a number of those busi-

nesses will be successful and that will be the

area you need to target. That is where the

wealth creation will be in this country and those

will be the people who will look to have their

children privately educated.”

Oil production in the Russian Arctic: falling oil prices and pressure on the rouble could mean long-term dif-ficulties in pupil recruitment.

Pic

ture

: Krichevsky



mtm SCHOOL MATTERS

The mystery shopper Jack Palfrey suggests going undercover … and ‘calling a cab’

S hopping is changing. The high street has

become a virtual (if not always virtuous) ex-

perience. The search for must-have items is now

conducted largely online. We may still have the

need to see and touch, but the problems associ-

ated with time and travel are being eliminated.

As the range of goods on offer online has in-

creased, so have the ways of selecting them.

The bane for retailers is ‘showcasing’; choosing

the wanted item in person and then resorting to

the internet for the best availability and price.

When parents search for schools, the process is

reversed. They make enquiries through local and

personal knowledge, study guides, newspaper

and magazine features and online searches.

When it comes to organising visits to schools,

however, parents are sometimes reluctant, fear-

ing to be overawed or seen as time-wasters.

So parents sometimes need a proxy. And the

schools themselves, aware of local competition,

want to be assured that they have visitor-appeal.

This is where ‘mystery shoppers’ come in, mak-

ing assessments about how prospective parents

are treated by reception, clerical and academic

staff as well as by pupils.

For more information about mystery shopping and

other research services email

[email protected]

The professional undercover operator sees

what internal reviews miss. I recently visited a

school with an imposing frontage, impressive

front desk and imperial-style hall. Some adult

visitors might be reassured by this route to the

Head’s study. Any accompanying child may well

be overwhelmed.

Experienced, relaxed, objective-assessments of

introductory experiences at schools are crucial to

their marketing. These assessments are a bit like

‘the knowledge’ acquired by London taxicab-

drivers. Information about the inside working of

schools matters.

Schools, like supermarkets, emit all kinds of

signals, explicit and implicit. Dangers occur when

retailers and educators fail to signal their aims

and would-be customers and prospective-

parents are not attracted, sometimes by too

much information - ‘paralysis by analysis’.

Let an mtm ‘mystery shopper’ be your informed

cabbie along these routes.

“Fantastically organised event full of information. Good to talk to other schools and hear their experiences”

mtmconsulting Annual Strategy Conference

The 10th anniversary mtmconsulting Annual Strategy Conference in October 2014 was a resounding success, with our widest range of delegates yet: heads, marketing managers, bursars, governors and investors. For this exciting and engaging day, we would like to thank our speakers and delegates for the stimulating debates.

Our speakers demonstrated that much has changed in the recent past in the economy and consequently in the independent edu-cation sector, leading to increased competition. Practical ways forward were discussed and delegates took away useful strategies to implement in their own schools.

This year we will be holding events to include more in-depth sessions on research, marketing, branding and strategic issues.

“Superb!!! My first, not my last”

Register your interest in future mtmconsulting events

email: [email protected]



mtm SCHOOL MATTERS

1 Know your marketplace

It is crucial that the whole leadership team knows the

school’s potential market and its capacity to continue to

recruit pupils.

mtmMandarin catch-

ment area research

can tell you how

many families in your

area are able to afford

the fees and have

school age children,

as well as where they

live. It plots your cur-

rent market penetra-

tion within each postcode sector in your catchment area.

It will help you understand how numbers of potential pu-

pils in the area will change in future, which areas you cur-

rently recruit well from, and how competitor schools might

influence parental choice of school.

T hrough the long autumn term, the list of

‘important things to do next week’ grows

ever longer, writes James Leggett,

mtmconsulting’s Project Manager.

Christmas is a welcome break: a moment to

prepare for the year ahead, and a new chance

to prioritise. Research often slips down as the

daily grind takes over.

With the impact of recession and falling af-

fordability, a core issue for many independent

schools is pupil recruitment. Now the numbers

for 2014/15 have settled and numbers for

2015/16 are becoming clearer, it’s time for an

evidence-based understanding of your school’s

position, market and parental satisfaction to

inform strategies for maintaining pupil num-

bers. Further to our recent research guide,

here are top five research tips to help you.

Five New Year

research

resolutions

4 See where you miss out

No feedback is more valuable than that from parents who

have made an enquiry, or perhaps even registered, but do

not go on enrol. Our ‘decliner’ (also called ‘non-buyer’ or

‘non-joiner’) interviews are carried out by our professional

in-house research team, not subcontracted out.

We enquire in detail to understand what they wanted of a

school, which other schools they visited, why they made

their choice and what they really thought of your school.

2 Listen to your parents

Every leadership team needs to understand why parents

chose their school, what they expect from it, how they

would describe it, how satisfied they are, whether they

would recommend it and what the priorities for improve-

ment are. Parental survey work answers these questions

through a secure and efficient online questionnaire.

Parents like to be asked for their feedback; asking for it

shows a responsive and open outlook, making parents and

pupils feel valued. Focus groups can explore key issues in

more depth and allow parents to speak candidly about

their experiences and concerns.

Promoter Detractor

“The school has a fantastic feel but we didn’t get to meet

headmaster there. We didn’t get a feel for the culture or

ethos of the school. [Competitor] made the headmaster and

staff very available and this made a real difference.”

3 See what visitors see....

Mystery shopping is a fantastic way to understand how

your school appears to visiting parents, and the impres-

sion you make on them (see page 3), with feedback and

recommendations for you to improve the way you re-

spond, from the initial phone call through to the visit and

tour.

And we can mystery shop your competitors too.........

5 Assess your school marketing

Marketing capability and resources in some schools have

not kept up with an increasingly competitive market place.

In some areas, competition is fierce from other independ-

ent providers with academies, free schools and maintained

schools upping their game. Good schools with excellent

reputations have lost market share because their market-

ing is not appropriate for current and future conditions.

Is your marketing organisation effective and efficient? Are

you targeting the right areas? Are you spending too

much? Do you know how many enquiries you need to

generate for every admission?

Every leadership team should be able to answer these

questions. Our audits take the form of a one- or two- day

visit, incorporating a tour of the school and meetings with

all marketing or admissions staff. We assess every aspect

of your marketing, including communications and tracking,

and make recommendations for the future.




C harles Joseph Minard’s 19th century map

of Napoleon’s ill-fated march on Moscow in

1812 “may well be the best statistical graphic

ever drawn” wrote Edward Tufte, Princeton pro-

fessor and pioneer in the field of data visualiza-

tion, in his acclaimed 1983 book The Visual Dis-

play of Quantitative Information. One of the rea-

sons for Tufte’s judgment was that the map cap-

tured and displayed six separate variables – an

amazing achievement of clarity and dexterity.

“Good data visualization takes the burden of

effort off the brain and puts it on the

eyes” (Niels Hoven, writing on the Tableau soft-

ware blog). Indeed, when data is well presented

it allows the brain not to have to hold reams of

information at once but instead to start exploring

issues, discovering patterns and asking why

things are as they are. When we were updating

our Mandarin pupil mapping service earlier this

year we wanted to increase the level of analysis,

primarily by capturing more than two variables

in a summary graph.

Traditionally when evaluating how a school is

doing in its marketplace we focused on two fac-

tors: how many independent school pupils in

total live in a particular area; and how many of

those pupils already attend the school. We now

also consider how far away the area is from the

school. Your market share is likely to be higher

the closer you are to the school. Convenience is

an important factor in school choice, and parents

might even have moved house to be near one.

The further away parents live, the more likely it

becomes that competing schools are closer and

that you will have a harder sell to them.

The towns, suburbs and villages in a school

catchment area are ranked from nearest to fur-

thest and arranged along the x-axis in that or-

der. Each of these places is then represented by

a column. The width of the column corresponds

to the total estimated number of independent

school pupils living there. The shading of the col-

umn is the school’s current share of that total.

There are several benefits of such an analysis.

Firstly it prompts you to consider the places

where you have particularly high or low market

shares, given their distance from the school. In

the chart below there are three thick black verti-

cal lines demarcating the places that are up to

10-, 20- and 30-minutes away from the school.

There are two places just under 10-minutes

away that this school is significantly under-

represented in. Secondly this analysis allows you

to assess which places of low share you should

pay the most attention to, given the size of their

markets. When prioritizing marketing actions it

would usually be better to focus on the wider

columns than the thinner ones. And thirdly this

analysis quantifies the potential payback of mar-

keting in different areas given that each square

is exactly proportional to the number of new pu-

pils that can be gained.

We can add other variables to such charts us-

ing colour-coding. These might be such things as

the strongest perceived competitor in each area,

whether a place is served by a school bus or its

forecast population growth over the next 10-

years. Once these charts are in the hands of

your marketers then all kinds of prioritised action

plans emerge. What’s more, each action can

have a quantifiable target of the number of new

pupils to be recruited in each place.

• For more information about how to use research to underpin your marketing strategy contact:

[email protected]

Gavin Humphries, mtmconsulting Lead Strategy Consultant , describes how graphics help to understand complex market data

Seeing is discovering

mailto:[email protected]




The INSIGHTS Series

MARKETING: HOME AND ABROAD The mtmconsulting ‘Insights’ events enable delegates to access the latest

research and ideas, and to apply them in their schools.

The next ‘Insights’ will be a practical session for Heads, Bursars, Marketing Managers, SMT members and Governors who want to develop their UK and international marketing and achieve a strategic advantage over competitors.

Tuesday 10 February 2015 at the

Cavalry & Guards Club, 127 Piccadilly, W1J 7PX

Book y

our

place N

OW

The programme includes:

Gavin Humphries, mtmconsulting Lead Strategy Consultant: New research

methods and how these underpin your strategy.

Jan Shilling, Director of Marketing and Communications, King’s Rochester:

Successfully meeting the marketing challenge for England’s second-oldest

school, surrounded by free grammar schools.

Suzanne Rowse, British Boarding Schools Workshop: Working effectively with

agents as part of a successful international marketing strategy.

"The mtm insights series are a fantastic opportunity to understand exactly what is

happening in the independent schools market and specifically, our local area. It is a

wonderful opportunity to meet likeminded individuals. With the guidance and support

from mtm we feel we have a better understanding of how to progress the business

and meet the needs of our local market".

Holly Christie, Parkhill School, Kingston upon Thames

Fee £175 plus vat

INSIGHTS are limited to about 20 delegates and usually oversubscribed, so early booking is

advised.

To book: visit our website click on ‘Insights booking’ and complete your application online, call (01502)722787 or email [email protected]

issue 18 v4

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