Transcript 3 - NACAS

THE CAMPUS STORE

COMEBACK

NACAS 2014 OCTOBER 5 8 MONTRÉAL, CANADA 3/25/12 1

PRESENTERS

Jim Zaorski Jared Ceja Sara Leoni

Founder/CEO Sequoia Inc.

Director, Aux. Services Chaffey College 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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THE PERFECT STORM • Declining enrollments • Budgetary pressures • State/system affordability initiatives • General state of economy

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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% 8,40% 7,70% 7,10% On-campus store (in-store) Amazon.com

On-campus store (website) eBay/Half.com

Chegg.com

From peer/student 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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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 Ease of ordering and using online site 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 21,50% 21,90% 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?

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A BETTER SHOPPING EXPERIENCE • 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

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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 Enrollment:

14,543 FTE

Mascot:

The Panther

Founded:

1883

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CHAFFEY BOOKSTORE SINCE 2009/10 • Text sales per FTE: +14% • Text market share: + 13.5% • Non-text sales per FTE: + 143%

+143%

Rental program saves their students more than $1.1M each year versus new!

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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

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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

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Smooth Sailing

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THANK YOU

Jim Zaorski

[email protected]

Jared Ceja

[email protected]

Sara Leoni

[email protected]

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