November 30, 2009 | Category: Success Stories | Tags: Small Business Success Stories

Everyone who has been to college remembers the high price of textbooks. On one hand, there is no way to get an education without the required reading; on the other hand, few people believe that a small bound stack of paper could possibly be worth four hundred dollars. Editions are changed every few years just to deplete the used textbook market and keep prices high. In the midst of this expense and waste, a group of college boys came up with a great idea.

Chegg, the brainchild of two college students, was originally designed to function as a campus-only version of Craigslist. However, the owners noticed that most of the ads were for textbooks. Before long, the website was a textbook only site that allowed rentals of the most popular texts. This was the niche that would lead the company to success.

Once limited to one college campus, Chegg now rents to students all over the nation at a small fraction of the price needed to buy the same textbooks. Their marketing is mindful of the special needs of their niche. For instance, they recently gave away breakfast burritos at USC and have been known to hand out free coffee in downtown Los Angeles.

Students who have used Chegg quickly buy into the concept and promote the idea to their classmates and friends. In a recent promotion, satisfied customers dressed up as large yellow chickens to be the website’s mascot. This kind of loyalty can buoy a business through the hardest times.

Chegg also has begun to embrace the environmental side of their business. Renting a textbook rather than buying one saves trees, a fact that college students are acutely aware of. This has prompted Chegg to use a more environmental approach to their business, now beginning a pilot program in which a tree will be planted for every textbook rented from the website.

The key to Chegg’s success is that they are effectively solving a very emotional problem for starving students all over the nation. For students who cannot afford their books, procuring them can be an upsetting and even bankrupting process. Offering a one stop shop with books for rent at a fraction of the price cuts back on a lot of unnecessary angst and creates brand loyalty. Students see Chegg as a friend and are willing to put in energy promoting that friend.

Another key has been the nontraditional marketing. Modern college students have been bombarded with marketing images since they were infants and are less susceptible to traditional advertising. By handing out food and beverages while spreading the word in a good natured, low pressure way, this company has set themselves apart from the millions of companies who are seen as dishonest and greedy. Instead, Chegg is a friendly presence that offers a solution to a common problem for a fraction of the price. This has been, and will continue to be, the reason for this company’s enormous success.