HE Snippet Report - Selling Well in a Buyers' Market
In the past decade the number of 18-year olds has been in decline and over the same period, mature and part-time study numbers have also dropped. It’s simple economics that fewer applicants, coupled with the decision to uncap student numbers in England since 2015, means the power has shifted to applicants – the ‘buyer’.
In the past decade the number of 18-year olds has been in decline and over the same period, mature and part-time study numbers have also dropped. It’s simple economics that fewer applicants, coupled with the decision to uncap student numbers in England since 2015, means the power has shifted to applicants – the ‘buyer’.
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SELLING<br />
WELL<br />
IN A<br />
BUYERS'<br />
MARKET<br />
Higher<br />
Education<br />
<strong>Snippet</strong> July 2019<br />
W W W . Y O U T H S I G H T , C O M
Y O U T H S I G H T S N I P P E T J U L Y 2 0 1 9<br />
Andreanne Orsier<br />
Associate Director of Insight<br />
for Higher Education,<br />
YouthSight<br />
In the past decade the number of<br />
18-year olds has been <strong>in</strong> decl<strong>in</strong>e and<br />
over the same period, mature and<br />
part-time study numbers have also<br />
dropped. It’s simple economics that<br />
fewer applicants, coupled with the<br />
decision to uncap student numbers<br />
<strong>in</strong> England s<strong>in</strong>ce 2015, means the<br />
power has shifted to applicants –<br />
the ‘buyer’.<br />
The buyers’ market has assumed<br />
various forms; Universities’<br />
market<strong>in</strong>g spend has risen dur<strong>in</strong>g<br />
that time (partly because they are<br />
compet<strong>in</strong>g harder for ad space<br />
rather than necessarily buy<strong>in</strong>g<br />
more).<br />
They have come up with more<br />
<strong>in</strong>novative campaigns, found<br />
themselves <strong>in</strong> social media spats that<br />
have been too sassy for<br />
their own good and tried out unusual<br />
gimmicks. Some have even resorted<br />
to claims that didn’t stand up to<br />
scrut<strong>in</strong>y.<br />
Beyond the market<strong>in</strong>g, the buyers’<br />
market has reshaped the admissions<br />
process. Last year there were 21.1%<br />
fewer acceptances through UCAS<br />
Extra (dropp<strong>in</strong>g to the lowest level <strong>in</strong><br />
over a decade) because universities<br />
made more offers and lower offers to<br />
secure applicants.<br />
This year, UCAS has <strong>in</strong>troduced ‘selfrelease’<br />
<strong>in</strong>to Clear<strong>in</strong>g, where students<br />
can decl<strong>in</strong>e offers they’ve achieved<br />
and eject themselves unilaterally <strong>in</strong>to<br />
Clear<strong>in</strong>g, which as UCAS describes: "it<br />
gives applicants more control".<br />
Leav<strong>in</strong>g aside the fact that, <strong>in</strong> practice,<br />
‘tak<strong>in</strong>g back control’ all too often often<br />
means be<strong>in</strong>g cut adrift. This is<br />
presented as one more gift of<br />
barga<strong>in</strong><strong>in</strong>g chips to the buyer.<br />
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Y O U T H S I G H T S N I P P E T J U L Y 2 0 1 9<br />
It won’t be a game-changer; late<br />
shopp<strong>in</strong>g for better offers has never<br />
been popular with applicants. As<br />
with Extra, Adjustment numbers fell<br />
<strong>in</strong> 2018. This is perhaps unsurpris<strong>in</strong>g<br />
for a system that <strong>in</strong>volves revisit<strong>in</strong>g<br />
a decision that for most students is<br />
hard enough to make <strong>in</strong> the first<br />
place. Choos<strong>in</strong>g aga<strong>in</strong> under time<br />
pressure is not entic<strong>in</strong>g. (Possibly,<br />
with Cambridge admitt<strong>in</strong>g through<br />
Adjustment for the first time this<br />
year, we may see a shift - But we’re<br />
not hold<strong>in</strong>g our breath.)<br />
This all suggests that just because<br />
the odds are stacked <strong>in</strong> their favour,<br />
a buyers’ market is no guarantee<br />
that buyers will shop around.<br />
Indeed, if the market<strong>in</strong>g efforts<br />
appear too desperate – particularly<br />
<strong>in</strong> Clear<strong>in</strong>g – it can make the product<br />
look, at best, like an end-of-season<br />
sale and, at worst, like a rema<strong>in</strong>ders<br />
dump-b<strong>in</strong>.<br />
(those <strong>in</strong>volv<strong>in</strong>g a stealth condition<br />
such as firm acceptance of the offer)<br />
have become, to use OfS’s words,<br />
'pressure sell<strong>in</strong>g', ie. unfair anticonsumer<br />
practice. The OfS was<br />
respond<strong>in</strong>g to Education Secretary<br />
Damian H<strong>in</strong>ds describ<strong>in</strong>g conditional<br />
unconditionals as 'simply<br />
unacceptable'.<br />
The newly published Augar Review of<br />
Post-18 Education didn’t m<strong>in</strong>ce its<br />
words: “The sector should reform its<br />
student recruitment practices.”<br />
It recommends giv<strong>in</strong>g the sector two<br />
recruitment cycles: "to put its house <strong>in</strong><br />
order", otherwise "the government<br />
should <strong>in</strong>tervene [<strong>in</strong>] the form of a<br />
contextualised m<strong>in</strong>imum entry<br />
threshold, a selective numbers cap or<br />
a comb<strong>in</strong>ation of both.”<br />
This is why we’ve seen the need to<br />
tie the buyer <strong>in</strong> early and the nearviral<br />
spread of the unconditional<br />
offer <strong>in</strong> recent years. Although, there<br />
are some good arguments for<br />
unconditional offers, the concern of<br />
many <strong>in</strong> the <strong>HE</strong> sector is that socalled<br />
‘conditional unconditionals’<br />
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Y O U T H S I G H T S N I P P E T J U L Y 2 0 1 9<br />
However, even if it’s ever<br />
implemented (and that’s a big if), the<br />
Augar Review is a long way from<br />
surrender<strong>in</strong>g the last vestiges of<br />
seller power to the applicant. It may<br />
merely make the market still more<br />
complex because it will distance the<br />
buyer further from the universities’<br />
<strong>in</strong>come. At the moment, university<br />
tuition <strong>in</strong>come is <strong>in</strong> almost direct<br />
relation to the size of its student<br />
<strong>in</strong>take. Under Augar, it will depend<br />
more on who the <strong>in</strong>take is, what they<br />
<strong>in</strong>tend to study and how.<br />
to buy will only be part of the m<strong>in</strong>dmangl<strong>in</strong>gly<br />
tangled equation,<br />
especially given that the demographic<br />
dip <strong>in</strong> 18-year olds has f<strong>in</strong>ally<br />
bottomed out.<br />
Augar proposes cutt<strong>in</strong>g tuition fees<br />
<strong>in</strong> England to £7,500 narrow<strong>in</strong>g the<br />
marg<strong>in</strong> on certa<strong>in</strong> courses (mostly<br />
arts and humanities) and topp<strong>in</strong>g up<br />
the fees for courses with higher<br />
projected average earn<strong>in</strong>g<br />
outcomes (mostly STEM and<br />
vocational courses). Top-ups on the<br />
basic fee would also relate to<br />
measures of disadvantage.<br />
Overall, an 11% real-terms fund<strong>in</strong>g<br />
cut is <strong>in</strong>tended over the next five<br />
years. Universities will need to do a<br />
complex remodell<strong>in</strong>g of the<br />
numbers on their range of courses<br />
to come up with a mix that’s<br />
susta<strong>in</strong>able. What the buyer wants<br />
Did you know?<br />
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access to a wealth of exist<strong>in</strong>g<br />
research that covers the entire<br />
applicant journey.<br />
Rema<strong>in</strong> responsive to the market<br />
with trend data, reports and<br />
workshops that will elevate your<br />
recruitment strategy.<br />
Book a demo<br />
P A G E 0 4
Y O U T H S I G H T S N I P P E T J U L Y 2 0 1 9<br />
HOW TO REMAIN COMPETITIVE<br />
So how should university market<strong>in</strong>g teams plan to face the new<br />
climate? YouthSights’ experts recommend the same all-weather<br />
solutions for responsible sell<strong>in</strong>g whatever the market br<strong>in</strong>gs:<br />
1. Understand your market<br />
Research your potential market; where they can be found and what<br />
their drivers are (YouthSight's <strong>HE</strong> Success Suite will help you ga<strong>in</strong><br />
that competitive edge).<br />
2. Shape your offer to suit their needs<br />
Def<strong>in</strong>e strategic value propositions, not gimmicks and hard sell<strong>in</strong>g.<br />
3. Stand out by be<strong>in</strong>g dist<strong>in</strong>ctive, not by be<strong>in</strong>g brash<br />
Give applicants a reason to make you a positive choice, which they<br />
will stick to because it’s what they want, not just because it’s what<br />
they can get.<br />
4. Don't be afraid of niches<br />
There will be enough students to go around and as research has<br />
shown, universities that f<strong>in</strong>d what makes them different thrive<br />
compared to those that try to compete on others' terms.<br />
5. Sell your values<br />
Buyers are loyal because they align with brand values. For<br />
example, people buy Nike products <strong>in</strong> order to just do it, not just<br />
to have a pair of tra<strong>in</strong>ers.<br />
6. Create a sense of belong<strong>in</strong>g<br />
<strong>Sell<strong>in</strong>g</strong> <strong>in</strong> a buyers' market does not stop at the po<strong>in</strong>t of purchase.<br />
Everyth<strong>in</strong>g you said <strong>in</strong> your market<strong>in</strong>g must come true for them to<br />
feel, not like a buyer after all, but a part of an academic community.
Y O U T H S I G H T S N I P P E T J U L Y 2 0 1 9<br />
WHAT IS YOUR SELLING<br />
PROPOSITION?<br />
The truth of your sell<strong>in</strong>g<br />
proposition will always be<br />
its greatest strength. And<br />
there is no better place<br />
than your Open Day to<br />
show what you stand for.<br />
YouthSight’s latest<br />
tracker, Open Day<br />
Success unpicks what<br />
'belong<strong>in</strong>g' means to your<br />
prospective students.<br />
Subscribe to Open Day Success<br />
Go to the dashboard to f<strong>in</strong>d out what 'belong<strong>in</strong>g' means<br />
to your applicants.<br />
P A G E 0 6
Y O U T H S I G H T S N I P P E T J U L Y 2 0 1 9<br />
TAKE A TOUR OF T<strong>HE</strong><br />
<strong>HE</strong> SUCCESS SUITE<br />
The <strong>HE</strong> Success Suite is a fiercely competitive<br />
market<strong>in</strong>g tool. Our unique student trackers are<br />
designed to help universities maximise student<br />
attraction and conversion - by provid<strong>in</strong>g a<br />
comprehensive understand<strong>in</strong>g of the applicant journey<br />
across the vital key areas:<br />
Open Day Success<br />
Undergraduate Success<br />
Postgraduate Success<br />
Marcomms Success<br />
P A G E 0 7
Y O U T H S I G H T S N I P P E T J U L Y 2 0 1 9<br />
Tak<strong>in</strong>g the guesswork out of your undergraduate and<br />
postgraduate market<strong>in</strong>g<br />
Tel: 020 7374 0997<br />
Email: heresearch@youthsight.com<br />
www.youthsight.com