Education Lead Generation and Distribution Industry Update

Higher Education Lead Generation is one of the major verticals in leadgen industry. There are several large, established companies involved in education leadgen business. Since this vertical is matured, several new entrants are coming into the market. The industry which started with catering to the requirements of traditional schools and colleges has now expanded into the online schools and universities.

With the recession in the economy and squeeze on student loan availability coupled with increase in tuition fees has led to significant growth in the online education industry. The lead volume requirement has gone up significantly because of focus in this segment by several universities.

In the education leadgen practice, content is the king. Unlike in other verticals, where lead companies focus on small websites and per per click (PPC) strategies, education lead generation businesses build significant amount of web content in order to attract the potential student community. While this is certainly a barrier to the easy entry into the education marketplace, the same fact serves as an attractive niche if you can build and generate useful content to attract student traffic.

Generally, the education leads are distributed to the schools in real time. Hence using a robust lead distribution and delivery system is a basic requirement. Also, most of the leads are delivered as dedicated, exclusive leads, though there is some market for shared leads.

Of late, there is a lot of buzz in the education lead generation industry. Quite a few M&A activities are also rumored and / or reported. It is reported last month that All Star Directories is in the market. All Star Directories is a Seattle based company which helps educational institutions attract students in a dozen disciplines, from engineering and business to culinary arts and psychology. Founded in 2001 by former Microsoft manager Mike Mathieu, All Star Directories met with early success through its lead generation model first designed to pass on qualified candidates to nursing schools. By 2005, the company was profitable and had annual sales of $15 million. Later on it was sold to Austin Ventures. The company says more than 5,000 schools use its lead generation service, including Johns Hopkins, Columbia University, University of Phoenix and DeVry.

In another development recently, EducationDynamics, higher education’s leading marketing services company, announced the acquisition of Education Connection, a valuable resource that helps prospective students find colleges that are ideally suited for their academic and career interests. EducationDynamics acquired Education Connection from Kaplan which is a subsidiary of The Washington Post Company. The acquisition of Education Connection marks an expanded student prospecting portfolio held by EducationDynamics, which also includes several high-visibility websites such as eLearners.com, EarnMyDegree.com, GradSchools.com, StudyAbroad.com, and more than 50 special interest microsites. The company also offers a full suite of web-based solutions for higher education institutions proven to drive enrollment growth and increase student retention.

Western Governors University marketing director announced that she is noticing a surge in online education and they are ramping up online lead generation and conversion efforts.

When speaking about Lead Conversion, a recent survey pointed out that over 30% of the prospects do not receive a call from the school! If the prospects are not contacted within a few minutes, the chances of further follow-up and conversion is very remote.

This is another area of opportunity for small businesses entering into education leadgen vertical. If you can provide additional support to the schools by way of immediate telephone follow-up, that will serve as a value addition. However, engaging generic call center or agents will not help in lead conversion; in fact, you might lose prospects if the agents are not professionally trained. The team has to be a dedicated, fully trained team with a long term perspective.

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