THE CAMPUS STORE
COMEBACK NACAS 2014 OCTOBER 5-8 MONTRÉAL, CANADA
3/25/12
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PRESENTERS
Jim Zaorski
Founder/CEO Sequoia Inc.
Jared Ceja
Director, Aux. Services Chaffey College
Sara Leoni
CEO Rafter, Inc.
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STATE OF THE INDUSTRY
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The Perfect Storm for College Stores
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• General state of economy
ECONOMY
• State/system affordability initiatives
AFFORDABILITY
• Budgetary pressures
BUDGETS
• Declining enrollments
ENROLLMENTS
THE PERFECT STORM
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COMPETITION: ONLINE SELLERS
• eTailers cherry-picked profitable titles • Sophisticated ecommerce systems • Customer Acquisition + Relationship
Management (CRM) • Advanced pricing & inventory systems
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OnCampus RESEARCH SAYS:
67% of students purchased textbooks from an on-campus store (in-store)
66.80%
48.40%
24.80%
On-campus store (in-store)
Amazon.com
On-campus store (website)
8.40%
7.70%
7.10%
eBay/Half.com
Chegg.com
From peer/student
Q: Where did you purchase your required course materials for the current fall term 3/25/12
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CHARTING THE COURSE
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OnCampus RESEARCH SAYS:
% of students that purchased exclusively from one retailer
On-Campus Store (in-store or website) 36.6%
Amazon 16.1%
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PRICE AND USED BOOKS IMPACT PURCHASE LOCATION Top factors that influenced purchase location
Ability to sell textbooks back
21.50%
Ease of ordering and using online site
21.90%
Ability to order online Availability of course materials before the first day of… Convenience of store location Confidence in obtaining correct book for the course
Speed of receiving textbooks Ability to purchase used textbooks Price
23.50% 24.30% 28.10% 29.45% 31.40% 39.50% 57.50%
Q: What were the top factors that influenced where you purchased required course materials this fall term? 3/25/12
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A BETTER SHOPPING EXPERIENCE •
Elastic pricing (digital shelf tags)
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More options (new, used, print on demand, digital, rental)
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“Progressive” price comparison
•
Communicate with shoppers in the store via their smart phone
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Reward frequent shoppers
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Capture and analyze customer data to drive more sales 3/25/12
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TECHNOLOGY SOLUTIONS
•
Integrated shopping carts (one cart, many sources)
•
Customer Relationship Management (CRM) modules
•
Digital Shelf Tags
•
iBeacon
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A SUCCESSFUL RESPONSE
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CHAFFEY COLLEGE
Public community college known as the leader in affordable education •
Rancho Cucamonga, CA
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Enrollment: 14,543 FTE
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Mascot: The Panther
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Founded: 1883
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CHAFFEY BOOKSTORE SINCE 2009/10
• Text sales per FTE: +14% • Text market share: + 13.5%
+143%
• Non-text sales per FTE: + 143%
Rental program saves their students more than $1.1M each year versus new! 3/25/12
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RENTALS
• Aggressive rentals – Partnering for success – Rentals “changed everything”
– The new normal • Competitive versus consistent
RENT
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DYNAMIC PRICING
• Traditional pricing model • How “dynamic pricing” works • Competing while still maintaining overall margins
$
• Digital shelf tags
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DIGITAL SHELF TAGS
• Rapid prices changes – Emerging deals • Maximize rentals – Add new titles • Improve communication – Students always get accurate information • Save trees • Save time
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SOURCING
• Alternate Course Materials Sourcing – Purchasing/repurchasing rentals – Marketplace sourcing
• A Word about “Digital Books”
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TRANSPARENCY
• Nothing to hide • Best prices for our students • Same prices as going direct • Only way the campus gets funds from on-line sales
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THE SECONDARY IMPACT
• GM growth driven by specialized supplies, Box Office services, gifts, and apparel • Earn loyalty with text and leverage it for other growth
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OTHER PROGRAMS
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THINGS TO WATCH
• 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
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MAKING IT WORK
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THREE KEYS TO SUCCESS
Students Stewardship Campus Involvement
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TO WIN YOU HAVE TO DELIVER AGAINST YOUR STUDENTS’ NEEDS • 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 3/25/12
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YOU HAVE TO RELENTLESSLY MANAGE THE NUMBERS • 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
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CREATE ADVOCATES FOR YOUR BUSINESS VIA CAMPUS INVOLVEMENT
• Listening – Input sessions – Surveys, social media – Student & Faculty senate – Employees • Administrative involvement
• Woven into the fabric of the campus community 3/25/12
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Smooth Sailing
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THANK YOU Jim Zaorski
Sara Leoni
[email protected]
[email protected]
Jared Ceja
[email protected]
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