measuring return on investment in international student recruitment

Measuring Measuring Return on Investment Return on Investment

in International in International Student RecruitmentStudent Recruitment

Innovative Educators Webinar, 6 May 2009

Cheryl Darrup-BoychuckOwner and Chief International Education Officer

USjournal.com, [email protected]

Brief History of International Brief History of International Student RecruitmentStudent Recruitment

Then: No need for metricsHow can you possibly measure the value of international students on campus, with dollar signs?

Now: Show me the numbersDeans of Admission have morphed into Vice Presidents of Enrollment Management

Soon: More “stealth applicants”Increasingly, your first contact with a prospective student is their online application.

Measuring ROI in International Recruitment | [email protected]

““International Enrollment International Enrollment Management”Management”

Nurture Connections with• Domestic Admissions• Particular Academic Departments• Alumni and Development Office• Current International Students• Senior International Officers

Identify Recruitment Strategy• Target particular countries and language markets• Incentives for countries not currently represented


““International Enrollment International Enrollment Management”Management”

Resource Management• Manage limited resources• Define metrics and collect data • Analyze the costs and benefits of specific initiatives• Measure Return on Investment

Deliberate and Intentional Approach• Integrated effort to maximize impact


11stst Poll: Poll: Gauging Current ClimateGauging Current Climate

At what stage do you consider your campus, with regard to ROI?

• Advanced (We’ve defined our metrics; we just want to see what peer institutions are doing.)

• Medium (We measure a few initiatives, but have no coordinated plan to evaluate the results.)

• Elementary (We’re struggling with where to begin measuring Return on Investment.)


External Factors Shaping External Factors Shaping International EducationInternational Education

Growth Industry• By 2025, demand will double to 200 million

seats in global higher education• Growth in emerging economies• Proliferation of alternative structures• Higher Education = Globally-traded

Commodity• Price competition will intensify


Studying ROI:Studying ROI:Corporate World vs Higher Corporate World vs Higher

EducationEducation

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


Studying ROI:Studying ROI:Corporate World vs Higher Corporate World vs Higher

EducationEducation

Business WorldFeedback from market forces

Non-Profit Organizations Driven by missions, not markets

“Delivering on the Promise of Non-Profits”Harvard Business Review, December 2008


Reasons for ReluctanceReasons for Reluctance• Inertia; it’s never been done • Fear of revealing weaknesses • Intense focus on immediate results, without regard to the future• “International” marketing is de-centralized on many campuses• Differences with domestic recruitment


Why Measure ROI?Why Measure ROI?

• Justify expenses

• Compete with domestic admissions

• Compare results with peer institutions


ROI in its Simplest FormROI in its Simplest Form

-- Cost of Recruitment+ Tuition and Fees Generated----------------------------------------- Return on Investment

Online Promotions: Online Promotions: Targeting Specific PopulationsTargeting 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


Marketing Cost per Marketing Cost per StudentStudent

MCPS = Emt / St

Emt = Total marketing expense in

time period “t”

St = Total students enrolled in

time period “t”


Marketing Cost per Student:Marketing Cost per Student:Online PromotionOnline Promotion

MCPS = Emt / St

Emt = $1,195 for an annual campaign

St = 10 students enrolled

MCPS = $119.50 per student



Initiative MCPS

Online Promotion$119.50


Engaging Agents: Initial costs Engaging Agents: Initial costs mustmust be greater than zero 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 in International Recruitment | [email protected]

Marketing Cost per Student:Marketing Cost per Student:Engaging AgentsEngaging Agents

MCPS = Emt / St

Emt = $13,800 over four years


MCPS = $3,450 per student / 4 years



Initiative MCPS

Online Promotion $ 119.50Agent $ 862.50


Marketing Cost per Student:Marketing Cost per Student:Domestic TravelDomestic Travel

MCPS = Emt / St

Emt = $1,200 in one year


MCPS = $60 per student



Initiative MCPS

Online Promotion $ 119.50Agent $ 862.50Domestic Travel $ 60.00




$119.50

$862.50

$60.00

$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

$900.00

$1,000.00

Online Promotion Agents Domestic Travel



and Revenue per Studentand Revenue per Student

$119.50

$3,195.50

$862.50

$8,510.00

$60.00

$7,089.00

$0.00

$1,000.00

$2,000.00

$3,000.00

$4,000.00

$5,000.00

$6,000.00

$7,000.00

$8,000.00

$9,000.00

Online Promotion Agents Domestic Travel

MCPS Revenue per Student

Cost to Recruit one Cost to Recruit one International Student vs one International Student vs one

Domestic StudentDomestic Student

MCPSi = Emt / St

MCPSd = Emt / St

Emt = Total marketing expense in

time period “t”St = Total students enrolled in

time period “t”Measuring ROI in International Recruitment | [email protected]

Cost to Recruit one Cost to Recruit one International Student vs one International Student vs one

Domestic StudentDomestic Student

10%

Measuring ROI by Student Measuring ROI by Student TypeType


2008 NACAC 2008 NACAC Admission Trends SurveyAdmission Trends Survey

Average cost per enrolled student, based on domestic recruitment

$2,895 = Private institutions

$2,366 = Overall average

$1,002 = Public institutions

DomesticDomestic Admissions Yield Admissions Yield

Cost

Applicant $ 578.

Admitted $ 836.

Enrolled $2,366.


““Stealth” ApplicantsStealth” Applicants

Students applying without prior contact

Introduced into database as “applicant”

Traditional enrollment funnel dissolving

Accept lack of complete control of your institutional message

Online InquiriesOnline Inquiriesand the Impact on ROIand the Impact on ROI


Targeted Online Targeted Online CampaignsCampaigns

By GeographyWithin a 20-mile radius of any metro area

By Key Words and Key PhrasesIn targeted languages

By Device Manufacturers and CapabilitiesOnly target iPhones, for example


Sample of Key Phrases for Sample of Key Phrases for Google Pay-per-ClickGoogle Pay-per-Click


Results in Italian for Results in Italian for Google Pay-per-ClickGoogle Pay-per-Click


Sample of Statistics:Sample of Statistics:Google Pay-per-ClickGoogle Pay-per-Click

Cost per LeadCost per Lead

CPL = TAC / TLG$3.25 = $101 / 31 leads

CPL = Cost per Lead

TAC = Total Advertising Cost

TLG = Total Leads Generated


22ndnd Poll: Poll: Precision Marketing Precision Marketing

TechniquesTechniques

What types of campaigns are you using to generate initial inquiries?

• Pay-per-Click Campaigns (primarily hosted by major search engines)

• Mobile Marketing (via handheld devices)• Directory-type Ads (StudyUSA, Hobsons,

USjournal.com, others)• We don’t pay for leads (Students just find

us organically online, or by word-of-mouth.)


Precision Marketing Precision Marketing FactorsFactors

• Internal Analysis• Domestic Admissions’ ROI Equations• Academic Strengths• Availability of Scholarships for Diversity

• Economic Realities• Online Language Populations

Next Step: • Study the habits of target demographic


Know ThyselfKnow Thyself

S.W.O.T. Analysis • Strengths • Weaknesses• Opportunities• Threats

Clearly Define Objectives• By citizenship or by geography• By language market• By academic program


Economic RealitiesEconomic Realities

Government-Sponsored Scholarships• Iraq (500 students this year, eventually 10,000)

• http://www.nytimes.com/2009/03/22/world/middleeast/22kurds.html

• United Arab Emirates• Abu Dhabi Investment Authority• [email protected]

• Malaysia• Public Service Department• http://www.jpa.gov.my/


Precision Marketing | Chair: [email protected]

Mobile MarketingMobile Marketing• 4.1 billion mobile subscriptions

worldwide• Up from one billion in 2002

• Europe• Subscriptions exceed population by 11%

• Developed World• Shared devices

• More than 90% of the global population now has access to mobile phone technology

• How does your .edu domain look on the small screen?


Full Screen VersionFull Screen VersionUSjournal.comUSjournal.com

USAcademics.comUSAcademics.com

Case StudyCase Study

Mobile Marketing in Indonesia• Landing Page: USAcademics.com • Campaign ran from 26 Feb to 7 Mar 2009 (10 days)• Apple, Blackberry, Nokia, Palm Devices • 4,244,567 impressions• 10,152 clicks (0.24% click-through rate)• 4 cents per click = $406.08 • 148 actual inquiries • $406.08 / 148 = $2.74 per lead


In the rush to measure… In the rush to measure…

… … any figures will do.any figures will do.

Cost of annual campaign = $6,696.

Number of inquiries = 933So, $6,696 / 933 = $7.18 per inquiry

?

Not accurate.Measuring ROI in International Recruitment | [email protected]

Various CPL Models Various CPL Models

One company (based in India) One company (based in India) charges $20 / qualified leadcharges $20 / qualified lead

How do you define “qualified”?How do you define “qualified”?

Pre-paid postage examplePre-paid postage example


Outbound vs InboundOutbound vs InboundMarketingMarketing

Outbound • Cold Calling• Unsolicited eMail• Junk Mail• T.V. Advertising

Inbound• Social Media• Blogging• Search Engine

Placements

Inbound Marketers = 61% lower cost-per-lead (CPL)

Smart PowerSmart Power

Hard Power + Soft Power

• Use data as political currency • Simplify the argument• Create catchy visual representations


Quantifiable DataQuantifiable DataRelated to Return on Related to Return on

InvestmentInvestment

• Retention Rate

• Churn Rate

• New Student Gains

• Student Losses


Market GrowthMarket Growth

Gm = SI / SL

Gm = % market Growth

SI = Student increase this year

SL = Student increase last year


Revenue ContributionRevenue Contribution

Rmi = Ri / ΣRt

Rmi = Revenue contribution for “i”

Ri = Revenue from segment “i”

ΣRt = Revenue from all segments


Broader ROI Metrics, Broader ROI Metrics, based on audience based on audience

considerationsconsiderations

Australia’s Access EconomicsInternational Student

Contributions • $1 spent = $1.91 into economy• 120,000 jobs in 2007-08• $13.7 billion in 2007-08

Learning Boom Amid Economic Gloom The Australian, 1 April 2009


Comparative ExercisesComparative Exercises

Applicants from Campaign A versus

Applicants from Campaign B

Appropriate for Extenuating Circumstances• Student Visa Variables• Severe Currency Fluctuations


Quantifiably ElusiveQuantifiably Elusive Factors Factors in our simplistic ROI Equations in our simplistic ROI Equations

• The Prestige Factor / Name Recognition• Word-of-Mouth Referrals• Diversity Factors• Follow-up Mechanisms • Staff Time• Foreign-born Faculty Members (+,--) • Cost of educating that student

Murketing, rather than MarketingMeasuring ROI in International Recruitment | [email protected]

Complexity TheoryComplexity Theory

1. Large numbers of interacting elements

2. Minor changes can produce disproportionately major consequences

3. The whole is greater than the sum of its parts; solutions cannot be imposed

4. Evolution is irreversible5. Hindsight does not lead to foresight


Multivariate Likelihood Multivariate Likelihood Function Function

to Predict Customer Behaviorto Predict Customer Behavior


Defining theDefining the Investments Investmentsthat are designed to yield that are designed to yield

students students • 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


Internationalisering in het HO 72

Next StepsNext Steps


• Collaborate with Domestic Admissions

Define consistent parameters

• Recognize the complexity of international student recruitment, along with its quantifiably elusive factors• Compare initial investment with revenue generated from that initiative• MCPS = Emt / St

• CPL = TAC / TLG

Better ROI MetricsBetter ROI Metrics

• Decide which metrics are appropriate, and include specific parameters for each

• Establish long-term policies for tracking and reporting

• Always be prepared to present your data, but insist on annual meetings with those who hold the purse strings

Measuring Measuring Return on Investment Return on Investment

in International in International Student RecruitmentStudent Recruitment


Cheryl Darrup-BoychuckChief International Education Officer

USjournal.com, [email protected]

measuring return on investment in international student recruitment

Documents

international recruitment

chief international

prospective student

concept of measuring

particular campus

higher education

intl education

particular focus