Measuring Return on Investment in International Student Recruitment

transcript

Measuring Measuring Return on Investment Return on Investment

in International in International Student RecruitmentStudent Recruitment

Cheryl Darrup-BoychuckOwner and Chief International Education Officer

USjournal.com, LLCcheryl@USjournal.com

Measuring ROI in International Recruitment | cheryl@USjournal.com

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.

““Stealth” ApplicantsStealth” ApplicantsStudents applying without prior contactIntroduced into database as “applicant”Traditional enrollment funnel dissolvingAccept lack of complete control of your institutional message Measuring ROI in International Recruitment | cheryl@USjournal.com

““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

ROI Metrics potentiate IEM

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

Simple ROI FormulaSimple ROI Formula-- Cost of Recruitment+ Tuition and Fees Generated-----------------------------------------Return on Investment

Marketing Cost per Marketing Cost per StudentStudent

MCPSi = Emt / St

MCPSd = Emt / St

Emt = Total marketing expense intime period “t”

St = Total students enrolled in time period “t”

NACAC Admission Trends NACAC Admission Trends SurveySurvey

Average cost per enrolled student, based on domestic recruitment (2008)

$2,895 = Private institutions

$2,366 = Overall average

$1,002 = Public institutions

DomesticDomestic Admissions Yield Admissions Yield

Applicant $ 578.

Admitted $ 836.

Enrolled $2,366.

Cost per LeadCost per LeadCPL = TAC / TLG

CPL = Cost per Lead

TAC = Total Advertising Cost

TLG = Total Leads Generated

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 | cheryl@USjournal.com

Market GrowthMarket GrowthGm = SI / SL

Gm = % market Growth

SI = Student increase this year

SL = Student increase last year

Revenue ContributionRevenue ContributionRmi = Ri / ΣRt

Rmi = Revenue contribution for “i”

Ri = Revenue from segment “i”

ΣRt = Revenue from all segmentsMeasuring ROI in International Recruitment | cheryl@USjournal.com

Multivariate Likelihood Multivariate Likelihood Function Function

to Predict Customer Behaviorto Predict Customer Behavior

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 / TLGMeasuring ROI in International Recruitment | cheryl@USjournal.com

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-BoychuckOwner and Chief International Education Officer

USjournal.com, LLCcheryl@USjournal.com

Measuring Return on Investment in International Student Recruitment

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