Increasing enrollment through loss leader promotion.
A Loss leader is any promotion that is advertised for the purpose other than to generate immediate net profit to your budget.
Simply stated,it is the idea of running a special for the purpose of publicizing your business.
This loss leader promotion can be seen in all areas of business.
Supermarkets run weekly specials to attract customers into their stores.Auto parts stores run seasonal specials to promote their outlets.The concept of a loss leader is not foreign to the business community by any stretch of the imagination.
How does this promotion concept affect your business? The idea with your book promotion or business is to run a universally attractive class at a “Loss” in order to generate a large mailing list of future customers.
For example,if your promotion is in,San Diego,then your promotion could offer a free class entitled:Welcome to San Diego.
The overwhelming response would provide the you with a sizable mailing list of future customers and promote your book and or small business as well.
There are several ingredients necessary for a successful loss leader promotion,none of which should be ignored.They are:
1.Universal appeal. The class must appeal to a general market for it to generate enough enrollments to make it worthwhile. To run “Belly Dancing” as a loss leader promotion would not be wise. The twenty or so enrollments that it would generate would not begin to make up for the expense of running the class.
A much better class would be “Million Dollar Opportunities for 2000’s or “100 ideas For Singles in San Diego.”
2.Low price. The cost of the loss leader promotion should not exceed $10,and it is best if offered for free. If the class does require a fee,it should be advertise as a material fee or a processing charge, and should not be a normal enrollment fee. To charge over $10,usually offsets the purpose of generating a sizable mailing list.
3.Low instructor fee. To make a loss leader promotion worth your while, it is best to keep the instructor fee as an absolute minimum. Stress to the instructor that he or she will receive the benefits of exposure,mailing list names,social media write-ups etc. Also,always make the terms a fixed fee payment that has been negotiated at the time the contract is signed.
To pay the instructor a percentage of enrollments will be large due to the low price of the class and its universal appeal!
4.Large facility.Make sure that you have access to a large enough facility to accommodate the high number of enrollments. This is preferable to adding a second section in that you will not have to pay the instructor for the second section and large class size is impressive to the new students,making your promotion appear very successful.
5.Sufficient catalog write-up with influential placement. Don’t write only a few lines about your special promotion and then bury it somewhere in the middle of your catalog.Spotlight the class with a cover “teaser” write sufficient copy for the class to seem appealing enough to attend,include an attractive photo,and then place the write-up in a prominent postion in the catalog so that it will not be overlooked.
6.Advertising in other publications. If you are running a free class,there are scores of other publications that will publicize it for the benefit of their readers.Send press releases to any that you can think of -newspapers,entertainment guides,s and small press publications,college papers,local welcome wagons,chambers of commerce,and even TV radio stations. Remember, for a loss leader promotion to be effective, it must generate a LARGE list of names. The only way to do this is to advertise the class to as large a market segment as possible.
7.Promotion of of this event in the class.
Make sure that the instructor reminds the students who attend the class,that the class is being made possible by the generosity of your company. Have plenty of current catalogs available for each student to receive. As long as you do not spend to much time on it,the students will not mind the plug for your company. Don’t miss this opportunity for free publicity.
8.AS Fun or as Informative a format as possible.Remember,this may be the first exposure these students/customers have with your company.Don’t let it be their last.If they enjoy the class,then they will tell others about it. Word of mouth is by far the most effective form of advertising available.Make sure that the instructor understand this also.If you need help putting on your next loss leader promotion contact hollischapmanshow business learning center.