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13/25/12
THE CAMPUS STORE COMEBACK
NACAS 2014 OCTOBER 5-8 MONTRÉAL, CANADA
23/25/122
PRESENTERS
Sara LeoniJared Ceja
CEORafter, Inc.
Jim Zaorski
Director, Aux. ServicesChaffey College
Founder/CEOSequoia Inc.
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STATE OF THE INDUSTRY
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The Perfect Stormfor College Stores
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• Declining enrollments
• Budgetary pressures
• State/system affordability initiatives
• General state of economy
THE PERFECT STORM
EN
RO
LLM
EN
TS
BU
DG
ETS
AFF
OR
DA
BIL
ITY
EC
ON
OM
Y
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• eTailers cherry-picked profitable titles
• Sophisticated ecommerce systems
• Customer Acquisition + Relationship
Management (CRM)
• Advanced pricing & inventory systems
COMPETITION: ONLINE SELLERS
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67% of students purchased textbooks from an on-campus store (in-store)
OnCampus RESEARCH SAYS:
On-ca
mpu
s sto
re (i
n-stor
e)
Amaz
on.com
On-ca
mpu
s sto
re (w
ebsit
e)
eBay
/Half.c
om
Chegg
.com
From
pee
r/stu
dent
66.80%
48.40%
24.80%
8.40% 7.70% 7.10%
Q: Where did you purchase your required course materials for the current
fall term
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CHARTING THE COURSE
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% of students that purchased exclusively from one retailer
OnCampus RESEARCH SAYS:
On-Campus Store (in-store or website)36.6%
Amazon16.1%
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Top factors that influenced purchase location
PRICE AND USED BOOKS IMPACT PURCHASE LOCATION
Price
Ability to purchase used textbooks
Speed of receiving textbooks
Confidence in obtaining correct book for the course
Convenience of store location
Availability of course materials before the first day of class
Ability to order online
Ease of ordering and using online site
Ability to sell textbooks back
57.50%
39.50%
31.40%
29.45%
28.10%
24.30%
23.50%
21.90%
21.50%
Q: What were the top factors that influenced where you purchased required course materials this fall term?
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• Elastic pricing (digital shelf tags)
• More options (new, used, print on demand, digital, rental)
• “Progressive” price comparison
• Communicate with shoppers in the store via their smart phone
• Reward frequent shoppers
• Capture and analyze customer data to drive more sales
A BETTER SHOPPING EXPERIENCE
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• Integrated shopping carts (one cart, many sources)
• Customer Relationship Management (CRM) modules
• Digital Shelf Tags
• iBeacon
TECHNOLOGY SOLUTIONS
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A SUCCESSFUL RESPONSE
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Public community college known as the leader in affordable education
• Rancho Cucamonga, CA
• Enrollment: 14,543 FTE
• Mascot: The Panther
• Founded: 1883
CHAFFEY COLLEGE
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• Text sales per FTE: +14%
• Text market share: + 13.5%
• Non-text sales per FTE: + 143%
Rental program saves their students more than
$1.1M each year versus new!
CHAFFEY BOOKSTORE SINCE 2009/10
+143%
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• Aggressive rentals
– Partnering for success
– Rentals “changed everything”
– The new normal
• Competitive versus consistent
RENTALS
RENT
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• Traditional pricing model
• How “dynamic pricing” works
• Competing while still maintaining
overall margins
• Digital shelf tags
DYNAMIC PRICING
$
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• Rapid prices changes– Emerging deals
• Maximize rentals– Add new titles
• Improve communication– Students always get
accurate information• Save trees• Save time
DIGITAL SHELF TAGS
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• Alternate Course Materials Sourcing
– Purchasing/repurchasing rentals
– Marketplace sourcing
• A Word about “Digital Books”
SOURCING
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• Nothing to hide
• Best prices for our students
• Same prices as going direct
• Only way the campus gets funds from on-line sales
TRANSPARENCY
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• GM growth driven by specialized supplies, Box Office
services, gifts, and apparel
• Earn loyalty with text and leverage it for other growth
THE SECONDARY IMPACT
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OTHER PROGRAMS
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• The new normal does not happen overnight
– Engage your team, the campus, and especially students
• Financial impact
– Sales will shift categories
– Short-term bumps will be experienced for long-term gains
– Get in front of things with communication
• Flexibility is crucial
– Staff that struggle with change will struggle with this
THINGS TO WATCH
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MAKING IT WORK
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Students
Stewardship
Campus Involvement
THREE KEYS TO SUCCESS
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• Offer value
– “Competitive” pricing
– Excellent service
• Emphasize strategic advantages
– Local services and convenience
• Invest in technology
– It is what students expect
– It is what your store needs
TO WIN YOU HAVE TO DELIVER AGAINST YOUR STUDENTS’ NEEDS
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• Understanding key drivers & benchmarks
• Maximizing the value of resources & inventory
– ROI focus
• Leveraging relationships
– Listening to your student staff
– Partnering for success
• Uncharted waters
• Address blindspots
YOU HAVE TO RELENTLESSLY MANAGE THE NUMBERS
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• Listening
– Input sessions
– Surveys, social media
– Student & Faculty senate
– Employees
• Administrative involvement
• Woven into the fabric of the campus community
CREATE ADVOCATES FOR YOUR BUSINESS VIA CAMPUS INVOLVEMENT
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Smooth Sailing
