How to Compete in a Saturated Market

Colleges have traditionally enjoyed a comfortable position in the market for prospective students. It is hard to recall a time in which the demand for a college degree did not outpace higher ed’s capacity to fulfill it. For generation after generation, having a college degree has been regarded as an essential part of getting ahead. As trusted nonprofit organizations that were perceived as critical to achieving economic advancement, higher education was largely insulated from market forces until only the last decade or so.

Now, there seems to be more colleges than the market can bear.

According to BusinessDictionary.com, market saturation is defined as:

1. The point at which a market is no longer generating new demand for a firm’s products due to competition, decreased need, obsolescence, or some other factor.
2. The measure of the extent of a product’s sales volume relative to the number of total potential customers.

With increases in competition — especially through online education — the higher ed market has become saturated. What’s more, rapidly changing technology has rebuilt the way prospective students research college opportunities. On top of that, skyrocketing tuition costs and declining numbers of high school graduates are causing one-hundred-year-old colleges to wonder if they will survive the next five years.

Perhaps most challenging is that higher ed has not traditionally seen itself as a product or business. Having enjoyed a measure of insulation from market forces, most colleges have few mechanisms in place to handle
the sharp increase in competition.

Differentiation is key
The good news is that many organizations have survived a saturated market and much can be learned from them. One of the greatest fears we hear from our acquaintances in higher ed is that they don’t want to let go of their school’s values or traditions. In fact, there is no need. What survivors of saturated markets say is that holding onto their organization’s values is what made them stronger. A college’s mission and values are what helps to differentiate itself in the marketplace. The more differentiated your school, the stronger its appeal to prospective students who share those values.

Another way a college can succeed in a saturated market is by creating distinct and high-quality programming. “Quality” can be an ambiguous word, so it’s important to define exactly how that should be measured. Traditionally, quality programming has been tied to the prestige of a college’s faculty. While that is still important, today’s students tend to define quality in terms of learner experience.

Prioritize learner-friendly course design
As colleges attempt to embrace online learning, there’s a lot of course content that is not user friendly. No longer can colleges encourage students to tough it out through subpar courses because students now have more options and the cost of switching schools is low. What’s more, with skyrocketing tuition costs, students expect more. Some quality attributes sought by students include learner-friendly course design, flexible scheduling, and the convenience of online tools that help with student functions such as applications and registration.

Consider unmet needs
Another way that colleges can stand out in a saturated market is to cater to a specific subset of prospective students. The number of adult learners is increasing. Many are interested in certificate programs. Others are hoping to transfer from a community college to a four-year college. Many nontraditional students work full-time or are parents to young children. Consider what your college might have to offer these groups. What unmet needs do they have and how can your school help?

Talk to prospects on their terms
Those who have succeeded in saturated markets will tell you that it’s important to go where your audiences are. A lot of colleges continue to use direct mail in enrollment campaigns because it’s what they know. But consider the power of Facebook. The platform allows schools to reach niche audiences. It allows prospective students to see what campus life is like in the eyes of current students.

In an October 2016 Entrepreneur.com article on how to succeed in saturated markets “writer Richard Agu states, “People do not always trust brands. They trust people like them, people they admire and third-party experts.”^[1]

Facebook offers the potential for a direct connection between the students you seek and people like them who are engaged in your school. Why not experiment with Facebook advertising? By starting with even small attempts, your staff is certain to learn. Even a small presence is better than none.

What better way to show prospective students that there are people at your college like them than by demonstrating through your school’s website that your school is digitally savvy? Today’s prospective students experience the world through digital interfaces. They gravitate toward sites that offer intuitive, efficient functionality. A 15-second experience with your school’s website via mobile device is the new “image that speaks a thousand words” in that it sets the tone for how the user will view your school from that point on. The logic is that if it’s easy to access your college’s site from a mobile phone, then it may be easy and pleasant to be a student at your college.

Enhance your value offerings
Survivors of saturated markets advise offering greater value to your target audience. Colleges can do this by offering programs that are distinctly different. Try offering programs in modes that are convenient, either via flexible scheduling or online courses. (Warning: Students especially demand quality in online courses.)

To a large degree, higher education institutions offer very similar products and promise very similar outcomes. But as the Entrepreneur article reiterates, colleges and universities can differentiate themselves by focusing on quality experiences: “You will always discover that the differentiating factor between (market winners) and prior businesses in the industry is not what they are doing, it’s how they are doing it.”

Harness data
Collegis sees potential for helping institutions enhance “how they are doing it” by improving student experience through the strategic capture of data during the enrollment process. For instance, data can be used to identify decreasing student engagement. With that information, staff can reach out during critical times. As an example, colleges that have reached out to students who have not logged into online learning platforms as regularly as usual find they have improved retention.

Be exceptional at what makes you different
In an article titled “Four Ways to Outdo Your Competitors,” Mashable writer Nellie Akalp states, “Your product and service may be similar in many aspects to that of the competition, except for a few defining factors — and those are the key to everything. You should be good (or great) at all the basics, and then put your energy and focus on being exceptional at what makes you different.”^[2]

[1] https://www.entrepreneur.com/article/282198

[2] http://mashable.com/2012/04/14/business-beat-competitors/#JSzGrn.q7Eqi