Building a 529 Plan Website

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Building a 529 Plan Website

• College Savings Plan Network
• Monday May 5, 2003
• Florida

• Ralph Constantino
• Chief Executive Officer
• Schoolhouse Capital

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Kasina study ranks Schoolhouse Capital, top 529
Plan web solutions March, 2003 Pyxis Consulting
elects Schoolhouse Capital as best 529 Plan
website January, 2002 Smart Money elects The
Education Plan as 529 favorite November, 2002
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Overview

• The purpose of this presentation is to share
  Schoolhouse Capitals experiences in conceiving,
  building and managing its 529 Plan website. To
  achieve that goal the presentation will focus on
  the following topics
• Business Rational
• Website Construction
• Goals, Features and Functionalities
• Lessons Learned
• Looking Forward

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Building a 529 Plan Website/Business Rational

• 2000 A defining moment for 529 College Savings
  Plans
• Few competitors
• Retail/Advisor models blurred
• Putnam/Alliance define the Advisor Model
• Mimics the mutual fund industry
• Schoolhouse Capital
• Establishes new standards for no-load 529
  products
• Multi-manager platform
• Higher degree of investment flexibility
• Paperless On-Line Enrollment
• Increased emphasis on the web for
  Marketing, Education and Sales

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Building A 529 Plan Website/Business Rational

• Unique Business Needs to be met
• End to end solution
• Create a new market presence
• Establish a virtual sales force
• Position for alternative retail sales channels
• Worksite
• Voluntary Benefits Platform
• Web Based Distribution Opportunities (Yahoo)
• Key Advantage ability to leverage State Streets
  401 (k) Education and Communication competencies

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Building a 529 Plan Website/Web Construction

• Building New vs. Amending Existing Web
  Infrastructure
• Anticipate future needs
• Discipline, Discipline, Discipline

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Building a 529 Plan Website/Goals, Features and
Functions

• Three Primary Goals
• Marketing
• Initial Sales (Enrollment)
• Recurrent Sales (Increasing Participation)

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Building a 529 Plan Website/Goals, Features and
Functions
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Building a 529 Plan Website/Goals, Features and
Functions

• Marketing
• Web-based marketing is flexible, efficient and
  can reach diverse audiences and market segments
• Focus on Why Save Charts, Activities and
  Comparisons
• Consider online promotions Scholarship Drawings
• Activities What does your Alma Mater Cost?
• Product usage marketing Give the Gift of
  Education
• Tips Tip of the Month/Tips for Targeted
  Audiences
• Third party investment information and/or
  articles
• Self Promote Third Party Ratings A Smart Money
  Favorite

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Building a 529 Plan Website/Goals, Features and
Functions

• Initial Sales/Enrollment
• Take the Education Plan Challenge
• College Search Engine
• Level 1 High level figure
• Level 2 Detailed analysis/all in costs
• Integrated Education Planner
• Incorporates College Search Data
• Fuels Online Enrollment Application
• Online, Signature less Enrollment
• Tracks via employer code
• Provides for online or paper confirms and
  statements, and online account access

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Building a 529 Plan Website/Goals, Features and
Functions

• Recurrent Sales/Increased Participation
• On-line account access
• Ongoing dialog
• Enhance education and understanding
• Promote key features not critical at time of
  enrolment
• Investment changes
• Use of tools
• Promote programs/affinity groups/rebate programs
• Friends and Family expanding the market via
  referrals

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Building a 529 Plan Website/Lessons Learned

• Web is very expensive
• Integration/consistency with collateral critical
• Need to balance daily modifications with long
  term strategy
• Avoid the tail wagging the dog
• Potential to save money on proliferation of
  documents prospectus, fact sheets, plan legal
  documents
• Keeping expectations moderate only one part of
  a system still an early stage sales tool

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Building a 529 Plan Website/Looking Forward

• Web will continue to grow in importance
• Increasingly sophisticated tools
• Web comfort will elevate its importance as the
  primary source of information
• Improved service model via on-line chats with
  call center service representatives
• Potential for message boards
• Inferior web presence will be a huge negative

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Thank you