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Measuring ROI, 5 Nov 2007 1
Measuring Return on Investment in International Recruitment
NAFSA Region III | Austin, TX | 5 Nov 2007
Session Chair / Co-Presenter: Cheryl Darrup-Boychuck, C.I.E.O.
USjournal.com, LLCcheryl@USjournal.com
Co-Presenter: Kristalina Karabunarlieva
Office of International AdmissionsUniversity of Houston
KKarabun@Central.UH.EDU
Measuring ROI, 5 Nov 2007 2
Why study ROI? Why now?
An argument based on improving our “trade balance” might go farther than one based on the importance of developing global citizens. (I can't believe I really said that after 30 years of preaching the latter. Gasp.)
-- NAFSA’s Marketing and Recruiting Network Forum, 23
July 2007
Measuring ROI, 5 Nov 2007 3
Studying ROI:Corporate World vs Higher
Education
Initial Investment vs Subsequent Profits
Recruiting Expenses vs Profits, where Profits = Tuition
– Cost of Instruction+ Expected Donations
Flaw: Tuition < Cost of Instruction, so Profits are usually negative
Measuring ROI, 5 Nov 2007 4
Current Trends in Studying ROI / International Student
Recruitment
Estimate Admissions Yield
from recruiting in different regions
Yield = Number of newly-enrolled students
per dollar of recruitment expenses
Measuring ROI, 5 Nov 2007 5
Studying ROI: A Domestic Perspective
NACAC Admission Trends Survey, 2005(Average cost per enrolled student,
based on domestic recruitment)
$2,167 = Private institutions
$1,753 = Overall average
$ 667 = Public institutions
Measuring ROI, 5 Nov 2007 6
Evolution from Enrollment Funnel
to Admissions Cylinder
Measuring ROI, 5 Nov 2007 7
Quality – Not Quantity
At my first agent-organized presentation in Busan, ten students showed up… What a waste… Within a month, however, four of those students enrolled, with each one spending about three years at our campus.
-- NAFSA’s Marketing and Recruiting Network Forum, 29
June 2007
Measuring ROI, 5 Nov 2007 8
Case Study: Agent Affiliations and
Overseas Travel to South Korea
-- $ 1,500.= Agent Workshop, Domestic Flight-- $ 0. = Word-of-Mouth Referral-- $ 3,000.= 2 Flights (Chicago to Busan)-- $ 1,500.= Hotel and Meals (6 nights, Busan)-- $ 3,000.= 2 Events, Equipment Fees-- $ 1,200.= Flat Fee to Agent + $ 16,100.= Student 1 Tuition (2 full years) + $ 31,740.= Students 2, 3, 4 Tuition ------------------------------------------------------------------ $ 37,640. = Return on Investment
Measuring ROI, 5 Nov 2007 9
Measuring ROI, 5 Nov 2007 10
Engaging Agents: Initial costs must be greater than zero
-- Cost of Developing a Relationship
-- Commissions Paid+ Student(s) Tuition + Student(s) Fees
---------------------------------------------------------
Return on Investment
Skipping the relationship part may result in very negative
consequences.
Measuring ROI, 5 Nov 2007 11
Quantifiably Elusive Factors in our simplistic ROI Equations
• Internal Review / Campus Evaluation• The Prestige Factor• Word-of-Mouth Referrals• Research into External Markets• Follow-up Mechanisms • Staff Time• Foreign-born Faculty Members (+,--) • Currency Fluctuations • Cost of educating that student
Measuring ROI, 5 Nov 2007 12
Defining the Investmentsthat are designed to yield
students
Types of Investment: • Travel (Domestic and Overseas)• Agents / Commission-based Options• Online / Print Promotions• Purchasing Mailing Lists (≈30¢ / name)• Financial Aid / Scholarships• Staff Focus on Current Students / Alum • Special Scenarios / Emerging Markets• Long-term Prospects
Measuring ROI, 5 Nov 2007 13
Domestic Travel(Washington, DC)
• Embassy Visits • Visits to Sponsored Program Agencies
-- Cost of Developing a Relationship
-- Discount on Tuition or Fees+ Student(s) Tuition + Student(s) Fees
--------------------------------------------------------
Return on Investment
Measuring ROI, 5 Nov 2007 14
Domestic Travel (Washington, DC):
Most Effective, anecdotally
• 20 Students from Saudi Arabia • Enrolled in English Language Program
-- $ 1,200. = Flight + Hotel -- $ 0. = Discount on Tuition or Fees+ $135,980. = 20 * $6,799. Tuition + $ 7,000. = 20 * $3,500. Fees / 10%--------------------------------------------------------- $141,780. = Return on Investment
Measuring ROI, 5 Nov 2007 15
Measuring ROI, 5 Nov 2007 16
Online Promotions: Targeting Specific Populations
Model-- Cost of Advertising + Student(s) Tuition + Student(s) Fees ------------------------------Return on Investment
ESL Program-- $ 1,195 / year+ $ 2,850 / 10-wk session + $ 465 Student Fees ---------------------------------- $ 2,120 = 1st student
$ 15,380 = 5 students
$ 31,955 = 10 students
Measuring ROI, 5 Nov 2007 17
Targeting Specific Populations:Recruiting Olympic Athletes
• Factors for Success• Recruitment Tools • ROI for the university as a whole:
• Money from Donors• Profit from Games / Events• Prestige Factor
Expenses and revenue often fall outside of International Admissions
Measuring ROI, 5 Nov 2007 18
Exploring NegativeReturn on Investment
• Faculty Recruitment• Promises, promises…
• Extension Programs• The challenges of reaching out to new
territories
• Articulation Agreements• “Flawless transition” from a Chinese
school
• Twin Programs
Measuring ROI, 5 Nov 2007 19
In Conclusion: Where do we go from here?
• Break-Even Analysis• Concentrate on Specific Subsets:
• Language Schools• Graduate Schools (MBA, etc.)• International Student Athletes• Full-Scholarship Opportunities• Local Non-Resident Populations
• Interview Prospective Students• Develop a Linear Regression Model
Measuring ROI, 5 Nov 2007 20
Multivariate Likelihood Function to Predict Customer Behavior
Measuring ROI, 5 Nov 2007 21
Securing Pure Data: The Perspective of a Statistician
• Survey the prospective students,to eliminate any bias of the recruiters
• Linear Regression: Predict a dependent variable (likelihood of enrolling) based on several independent variables, such as the different types of recruitment
• Shortcomings of Linear Regression
Measuring ROI, 5 Nov 2007 22
Continue the Conversation viaNAFSA’s Marketing / Recruiting
Network
• Go to http://www.nafsa.org/ • Click Knowledge Community Networks and Resources • Click Recruitment, Admissions, and Preparation • Click Marketing and Recruiting • Click Discussion Forums • Click Measuring ROI and contribute!
Measuring ROI, 5 Nov 2007 23
Measuring Return on Investment in International Recruitment
NAFSA Region III | Austin, TX | 5 Nov 2007
Session Chair / Co-Presenter: Cheryl Darrup-Boychuck, C.I.E.O.
USjournal.com, LLCcheryl@USjournal.com
Co-Presenter: Kristalina Karabunarlieva
Office of International AdmissionsUniversity of Houston
KKarabun@Central.UH.EDU
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