I’m accustomed to auto insurance ads on TV. I’m used to auto insurance ads showing up in the mailbox in the form of junk mail. However, I’m never seen a sales pitch for auto insurance come from the Office of the Vice President for Institutional Advancement from an accredited university; in this case, the University of Maryland Baltimore County.
Yesterday, I got a letter from a Vice President of my old school asking me to switch from GEICO to Liberty Mutual. Sheldon Caplis wrote me a nice bulk mail piece giving me a basic to-do: call Liberty Mutual to save on auto insurance. Since starting my business, I’ve become adept and experienced in developing direct mail campaigns for garnering improved business results. This was a classic direct mail letter that included all the features: personal story, service action, strong post script, didactic language, and credible outcomes.
What the h*^$ is my school doing pushing auto insurance? Are they an academic instutition or a mob shop front to negotiate large discounts? I can understand the intent, but let Liberty Mutual send out the letter, and not have it come from an officer of the school.
This is not to say that I haven’t been taking advantage of the arrangement. Since graduating college ten years ago (yikes!) I’ve been given a discount through GECIO for my involvement in the UMBC alumni association. That’s a tidy, little perk for having spent thousands of dollars to collaborate with Ben, Weed, et al in an on-campus apartment designed to throw parties, play music and meet girls, the outcome of which took the form of a college diploma. I appreciate the eventual savings on auto insurance.
But let the offers come from the insurance companies. Don’t let the offers come from the school. I hope the professors aren’t starting off classes each day asking kids if they’ve seen how much they can save on their auto insurance…
It’s a tricky situation… I
It’s a tricky situation… I happen to own a credit card that’s associated with William & Mary, my old Alma Mater, so I know that my school has associated itself with at least one for-profit institution in the past.
On the other hand, I also know that one-time VA governor Mr. Gilmore pretty much raped the education budget in this beautiful state, leaving all state institutions virtually penniless. I should point out that VA hosts four well-known colleges/universites: the University of VA, the College of William & Mary, James Madison University, and Virginia Tech. At least three of these were, at the time I was attending college, in the top 10% of colleges in the Princeton Review. Both UVA and W&M were above the 95th percentile.
And by the time I left W&M… a college with over 400 years of a strong academic tradition, I might add, it was practically bankrupt.
The ideal of the sanctity of Academia, letting no taint of capitalism enter the hallowed halls of learning, is nice. But the money’s got to come from somewhere. If we don’t want our academic institutions to ally themselves with corporations, then we should provide more government funding. Which would, of course, mean more taxes.
Not saying pure state-funded education is the best option, but if it’s not, then recognize they’ve got to pay for the textbooks however they can.
Not The Lead Role
Rowan,
The point of my rant wasn’t that schools shouldn’t be allied with corporations, but that schools should not be taking a lead role in direct marketing for those corporations.
There are all kinds of corporate affiliations with universities. Banks fight to be the only ATM branch provider on campus. Retailers like e-Follet fight to be the sole on-campus bookstore manager. Sodexo wants to be the food service vendor for all campus eateries. This isn’t the problem.
It becomes a problem for me when schools turn around and become the lead marketing agents for external brands. If UMBC had sent a letter outlining available options for discounted services, as a benefit for alumni, then I’m copasetic. When UMBC sends me an ‘act now, call today’ letter, then it crosses the line.
I recognize the financial benefit of these deals. Schools get a royalty payment for each student that signs up for a discounted insurance plan. Schools get a kickback for each textbook sold in the store. This is obvious. Yet, when I see schools succumb to the constant search for the alternative revenue source it becomes evident that they are working themselves out of their core service market because their core service market is not economically viable. When $24,000 a year for tuition does not yield profitability are schools to remain in the black by negotiating deals for auto insurance?
-“Before we begin, I would like to announce that today’s lecture has been brought to you by Liberty Mutual.” -“Hey! That was the latest release from Sludge Death Spider only heard here on your cafeteria radio network. Before we get to the music, did you know that the juicy Burger King burger you’re eating is available 24 hours a day?” -“Welcome to your dorm room, fitted for comfort by Marriott.”
The place that taught me economics and art history is sending me a letter asking me to ‘act now, call today!’ for improved auto insurance.
Life Insurance
As if it couldn’t get worse, yesterday I got a letter from UMBC asking me to sign up for a special life insurance offer.
Endorsed Mailings And Why They Do It
What happened is very common today in our marketplace. Direct marketers know that you will open a letter coming from an authority person or place of business. For most businesses this is half the battle… getting you the end user to open the advertisement. Do I think that using schools is wrong. YES! Not only did they disrespect your trust they obviously do not keep your records or information private and are willing to sell their supposedly private information for money.