The case analysis brought is the marketing promotion method of an offline education and training institution , enjoy~

1. Company Profile

Our company was founded in 2006 and started out by teaching English to adults. In 2010, we began to transition to teaching English to children. It took another four years to rapidly expand from one campus to 14 directly-operated campuses covering the entire city, and seven franchised campuses in surrounding second-tier cities. At that time, the annual turnover of the directly-operated schools basically reached around 130 million yuan. However, blind expansion brought huge hidden dangers. Although the cash flow looked good, the wrong understanding of the industry - treating the cash flow as income, not calculating the cost, and blindly expanding eventually brought bad consequences.

As market competitiveness grew, product strength became weaker and weaker, revenue once shrank, and previous hidden dangers finally erupted. At that time, for a period of time, the monthly salary payment relied on borrowing money from shareholders, various credit loans, and mortgaged fixed assets to barely support the current cash flow. At that time, we calculated that including the fees for unused class hours, the company's total debt was more than 40 million.

Therefore, in 2018, unable to bear the huge cost pressure, the school had to start closing campuses one after another. In less than a year, 11 campuses were closed and franchised schools also defected one after another.

When only three campuses were left and the staff was reduced from over 600 to 100, the company learned from its mistakes and began to adjust its business model. At present, in 2020, although the company has been tortured by the epidemic, fortunately, so far, the company has not only not suffered losses, but has also had a considerable surplus.

2. Marketing and promotion model

The most essential difference between the offline education and training industry and the online education and training industry lies in the coverage range. The online education and training industry can cover the whole country or even the world without geographical restrictions. However, for the offline education and training industry, the coverage range of a campus is only 1.5 kilometers in radius from beginning to end. Some shopping malls and stores will be better, and it is expected that the radius can reach 3 kilometers. This results in the marketing methods not being as diverse as the online system. What we pursue offline is precision.

Traditional Enrollment Model

This is the traditional enrollment model, from reach-invitation-visit-experience-conversion. This entire conversion chain was very effective in the past, but as time went on, the cost of acquiring customers continued to increase, but the visit rate and conversion rate continued to decline.

In order to solve the above problems, a new way of playing has gradually evolved, namely the education exhibition of cross-industry alliances. In previous years, the so-called cross-industry cooperation usually involved institutions A and B placing flyers on each other's display stands, exchanging resources, and receiving commissions from each other. But the overall efficiency is very low, and the number of students that can be brought in a month is often only 2-3.

Later, I saw that many industries held various exhibitions, so I tried to organize an education exhibition targeting several different categories of institutions within the coverage area of ​​my organization. In the beginning, we started by setting up stalls together, and gradually modified, learned and improved. Now, one education exhibition can basically solve the enrollment targets for about two months.

Although this activity seems to have good conversion efficiency, it has five very serious problems:

1. The cost is too high; one event usually requires 8-12 classes, which is a large package;

2. The conversion cycle is very slow. It can be said that every conversion is achieved through hard work.

3. There are many free classes, but in the end, it is still about attracting traffic at low prices;

4. As there are many institutions and everyone’s conversion cycle is very slow, students’ limited time is seriously occupied. Even if they are not competitors, because of “time” reasons, everyone inadvertently turns from partners to competitors.

5. Most of the students are from the same institutions, so there is no way to bring benefits to everyone other than being a student of the other institution.

Usually for offline institutions, the three regular channels used for enrollment are telephone, Internet, and door-to-door marketing. We sorted out the use of these three channels and found that we still rely more on telephone and offline marketing, and there is not much in-depth thinking and understanding about the development of the Internet.

Now there is a very popular term in the entire education industry called OMO. In fact, in my understanding, OMO is not a form, but rather an idea. What offline organizations often do is for the purpose of "precision", and they usually integrate traffic and conversion together. Online, "openness and diversity" means that those who generate traffic are generating traffic, and those who generate conversions are generating conversions. The two things are very focused at the same time, and the production capacity of the two things can be amplified at the same time. After careful consideration, I found that the reason why traditional offline thinking needs to be precise is that, in addition to manpower, the process model is very different from the online one, and there is a lack of private traffic pool. If we have this traffic pool, no matter how much traffic comes in, it will not be wasted and can be "enclosed".

So we developed a lot of small course packages for attracting traffic, and at the same time put the attracted traffic in a private traffic pool, and tried to operate it to achieve conversion. After we got this link running, we started to solve the problem of "cross-industry education exhibition" and at the same time thought about how to further develop the use of network ports. We learned a lot of online gameplay and also created some new traffic models.

We have currently developed two activity plans. Overall, the efficiency has been greatly improved compared to before. At the same time, many problems of "cross-industry education exhibitions" have also been solved. The entire activity has also become easier from an operational perspective.

3. Product Content

4. Monetization Model

Path ①: Use traffic-generating products to attract customers to private domains, and then use private domain conversion hot-selling products to attract customers to offline stores, ultimately achieving the goal of converting core products;

Path ②: Directly attract customers to the store through popular products, and then convert them to core products;

V. About the event

Activity name: 1 yuan to unlock 1,000 yuan gift

The main purpose of the activity: to use old students to fission people around them, and at the same time, to link up with other industry organizations within a radius of 1.5 kilometers, and start fission through their old students to bring in more new traffic

Activity form:

1. Each institution invites its old students to participate in this activity;

2. Old students can get 4 classes from any institution for 1 yuan;

3. Old students can invite 2 friends to help and get 4 classes from 3 institutions respectively;

4. Old students who invite 5 friends to help can get 68 online courses taught by North American foreign teachers provided by our institution;

5. Old students who invite 8 friends to help can receive a stationery package worth RMB 100;

6. All assistance requires a payment of 1 yuan, and at the same time unlocks 4 classes from any institution for further fission;

Active links:

Links to other institutions

Our links

In fact, this activity is also a disguised referral activity.

#The effect of referral = referral sharing efficiency * referral conversion efficiency * referral sharing frequency#

1. Improve sharing motivation by satisfying material and spiritual needs

• Material needs are a large number of courses, which can be unlocked with just 1 yuan;
• Spiritual needs are altruism, telling friends that there are high-quality and discounted courses here; at the same time, solving the cumbersome problem of choosing interest classes;

2. Reduce the difficulty of sharing, mainly by simplifying the path and understanding the cost and highlighting key behaviors

• The seed students for the activity come from visiting students who have not signed contracts or old students who are still studying, and they have a certain degree of stickiness with their parents;

• The activity link is simple and convenient. After paying 1 yuan, parents only need to keep sharing posters and inviting friends.
• In terms of understanding, before the fission begins, there will be detailed lecture instructions in the group, with synchronized audio and video, and the perfect SOP will help parents to better understand;

3. Assist in pushing

• Thanks to the fact that all seed students are sticky, it is a kind of help in itself;

• The SOP design includes a link to contact by phone the next day to ensure that all parents are aware of the activity and that they have participated and are encouraged to continue inviting them;

4. Conversion efficiency

• Getting 80 lessons for 1 yuan is very attractive in itself;
• During the first fission process, parents are required to invite their friends point-to-point, so the first fission efficiency is relatively guaranteed. The second and third fissions are difficult to determine and can only rely on product strength.

Let’s break it down with AARRR

Acquisition

The most critical part of the activity is the first batch of seed students. Therefore, through point-to-point invitations from regular teachers, the overall difficulty of acquiring them is greatly reduced. At the same time, new customers are acquired through referrals from old students, so the overall difficulty of acquiring them is also greatly reduced. At the same time, this process is carried out through various institutions to form a customer matrix in the region.

Activation

New users can get courses for one yuan, and are also directed to activity groups for easy communication and secondary fission;

At the same time, new users need to add their name and mobile phone number in advance when purchasing. If the customer fails to join the group, you can contact them by phone as soon as possible to invite them to join the group.

Retention

Activity groups and teacher WeChat groups will themselves form retention

Revenue

As long as the students come to the store, they can be invited face-to-face to convert to offline full-priced classes. At the same time, there are multiple opportunities for face-to-face communication and conversion. Offline conversion itself is relatively easier than online.

Referral

All offline institutions have their own complete set of referral mechanisms

6. To be optimized

The current activity test results are quite different from the usual ones, but there are still many issues worth thinking about.

1. Online activities inevitably have the problem of wide coverage. After an activity, there are currently nearly 40% non-precise users;

2. The threshold of 8 people is too high. Many people will invite friends in their circle of friends to help in order to get gifts, which leads to inaccurate users.

3. The design of the task treasure is not reasonable enough. We plan to adjust it to 2, 4, or 5 people next time to see the final effect;

4. The personnel input cost is still relatively high, with a large number of telephone tracking and full attention. Basically, each organization needs at least one person, who needs to be fully committed during the event;

5. The requirements for executive teachers are relatively high. They need to guide all institutions throughout the process, prevent them from slacking off, and motivate all institutions to participate and execute;

6. Ultimately, the platform is not in your hands. You still need to develop a platform of your own to achieve better retention.

Author: Wild Operation Community

Source: Wild Operation Community