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3 Agenda Item 3. Executive Director's Report AGENDA ITEM 3. EXECUTIVE DIRECTOR’S REPORT 3 Item 3. 9/24/10 ILLINOIS STUDENT ASSISTANCE COMMISSION EXECUTIVE DIRECTOR’S REPORT MARKETING AND COMMUNICATIONS College Illinois!® 529 Prepaid Tuition Program Summary Since the last Commission meeting in June the Marketing and Communications Division has undergone a change in leadership. The division has also initiated a review of prior strategy and past marketing and communications programs for efficacy and to glean insights for future efforts. Specifically, the recently retained marketing agency is preparing recommendations in conjunction with qualitative research with students, parents and grandparents. The research will validate relevance of messaging and help identify at what specific points in the sales cycle these groups are most likely to consider and purchase a prepaid tuition contract. This information will be incorporated into media strategy and form the basis for a new “micro” marketing approach and a general shift from retail communications to targeted engagement and dialogue with potential clients. Sales for College Illinois! 529 Prepaid Tuition Program contracts remain problematic and will likely not reach the target of 5,500 contacts for the program year. To remedy during the new contract year we are accelerating third-party sales agency and affinity group marketing effort. Radio and print advertising has been curtailed until after November 2 when both will resume coinciding with the strong College Illinois! 529 Prepaid Tuition Program contract sales pattern seen last November and December. Future advertising will be dependent on articulation and alignment around the new brand and marketing strategy. College Illinois! 529 Prepaid Tuition Program Sales Sales of our prepaid tuition product continue to drift downward with 572 contracts sold since the last commission meeting, representing approximately $25 million in revenue. July and August saw the lowest level of sales since the monthly pricing program went into effect. Due to the changes in the program effective November 2009, we do not have adequate historical sales information to determine if this represents seasonality or not. Regardless, it is unlikely sales will reach the targeted level of 5,500 contracts. Efforts are being made to review the structure of the sales organization with consideration given to adding a business development function to accelerate efforts with third-party sales agents. 3-1 Marketing Communications The social media strategy is under review. Currently Twitter and Facebook are utilized as another form of paid media. This approach may help explain the overall poor performance (open rates) for our emails and the minimal number of “followers” we’ve earned on social media sites. Going forward the strategy will be to engage potential clients and other stakeholders in relevant dialogues and exchanges, adding value to the interaction. eMessaging activities included 8 emails sent to over 124,000 addresses on file – both contract and non-contract holders. Open rates ranged from 12 – 18% on par or slightly below industry norms. Monitoring the opts-out will be useful evaluating relevance to recipients. More than 40,000 CollegeZone e-messages we sent resulting in over 113,000 website visits. College Illinois! 529 Prepaid Tuition Program sent approximately 41,000 e-message contributing to 26,000 web visits. There were 68 Twitter posts promoting College Illinois! 529 Prepaid Tuition Program events, pricing adjustments, photos and news. An additional 27 posts were made leading up to and promoting the ISAC presence at the Illinois State Fair. Two major print initiatives were executed during the period. The first was a presence in a Chicago Sun-Times insert targeting MBA and graduate school students. This vehicle was selected as the audience over-indexed on being married and having young children in the household – two factors believed to be important. Circulation was approximately 653,000, almost exclusively in Cook and the collar counties. The second print activity reached approximately 800,000 statewide messaging “College Savings” month. Radio stations in Chicago, Peoria and the Western Suburbs promoted College Illinois with online and on-air baseball ticket give-away promotions. Working with the IS department, an infrastructure was built to support these and future radio and online promotions. Paid radio advertising reached statewide on the following outlets. Chicagoland 93WXRT-FM Chicago Public Radio WBEZ-FM 98.7 WFMT-FM Statewide Networks Illinois Radio Network (50 outlets throughout Illinois other than Chicago) Metro Networks (Chicago and St. Louis) NPR Stations WILL Illinois Public Media, Urbana, IL WCBU Public Radio for Central Illinois, Peoria, IL WGLT Illinois State University, Normal, IL WNIJ Northern Public Radio Dekalb, IL WSIU Southern Illinois University Carbondale, IL WUIS University of Illinois at Springfield WIU Western Illinois University Macomb, IL 3-2 Communications/Media Affairs The division issued 18 press releases and made 145 media contacts (2.3 per business day) in June, July and August, resulting in 223 tracked media placements (3.5 placements per day). Additionally, the team secured and staffed 20 events to support the College Illinois! 529 Prepaid Tuition Program, ISAC and the Corps. June press coverage concentrated on MAP suspension updates as well as College Illinois! 529 Prepaid Tuition Program (graduation and Father’s Day messaging). Seven press releases were issued, including a statement regarding the passing of Senator Robert C. Byrd. Tracked media placements numbered 82 for the month. College Illinois! 529 Prepaid Tuition Program also put together five (5) events, including two library presentations and three public appearances. July messaging focused on scholarship and grant programs in addition to MAP updates and College Illinois! 529 Prepaid Tuition Program providing independence from tuition inflation as well as a purposeful parents month message. There were 86 tracked media placements during the holiday- shortened month. College Illinois! 529 Prepaid Tuition Program appeared at six (6) events involving its baseball partners, the Peoria Chiefs and Kane County Cougars, and a concourse table at Wrigley Field for the “Road to Wrigley” game, attended by nearly 20,000 people. August communications focused on providing MAP updates, back-to-school messaging, ISACorps and the Illinois State Fair in addition to addressing ShoreBank media inquiries. Although eight press releases/advisories were sent out, trackable media coverage included just 55 stories. The agency participated in nine events during the month as College Illinois! 529 Prepaid Tuition Program hosted two concourse table opportunities each for the Peoria Chiefs and Kane County Cougars in addition to doing two presentations. There was a similar presence at a Schaumburg Flyers game. The agency was had a display in the Governor’s tent at both the Illinois State Fair and DuQuoin State fair. The executive director and corps members participated in the Bud Billiken Parade fair. PROGRAM SERVICES AND OPERATIONS John R. Justice Student Loan Repayment Program The Governor's Office designated ISAC as the state's administrator of a new federal student loan repayment program entitled the John R. Justice (JRJ) Program. ISAC staff have worked throughout the summer to launch the program that is designed for attorneys working criminal cases as prosecutors and public defenders. Illinois is following a model that centralizes the administration of the program thereby allowing a consistent and standard approach statewide. With this model, applicants apply directly to the Commission and applicants who will receive funding are decided by ISAC based on the programmatic criteria set forth by the U.S. Department of Justice and developed by an Advisory Committee. The allocation for federal fiscal year 2010 is $365,309. It is anticipated that the demand for the program will exceed this funding level, therefore a formula has been designed to distribute awards to applicants with the least ability to repay their student loans within each of the five appellate districts statewide. There is an additional statewide category for prosecutors. Although the law permits an annual maximum award of $10,000, it was agreed by the Advisory Committee that the maximum annual award amount for federal FY2010 in Illinois is $4,000. 3-3 The application that individuals are using to apply to ISAC for benefits was made available on August 4, 2010 and 163 applications have been received through September 7th. The first round of awarding is scheduled to occur after September 30th. Information about the program is readily available at ISAC's Web site, collegezone.com. Outreach efforts to prosecutors and public defenders are being spearheaded by Advisory Committee members and are ongoing throughout the state. Proposed Rules Amendments for Robert C. Byrd Honors Scholarship Program and Illinois Prepaid Tuition Program Amendments to the Robert C. Byrd Honors Scholarship Program are being proposed at this time in order for changes to be in effect prior to the selection of the 2011-12 Byrd Honors scholars. The three main changes being proposed are as follows: • The component of the formula regarding class size and rank is being modified to achieve more equity when selecting scholars within each geographic district. • In another effort to achieve equity, if not already selected as a scholar, a student who ranks first in his/her class and has a perfect GPA and standardized
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