Marketing non credit programs

Marketing Non -Credit Programs: Strategies

UPCEA Marketing SeminarLas Vegas, NV

Marketing Non -Credit Programs: Strategies to Stand Out From the Crowd

November 17, 2011

Samantha Goldstein Eduventures

Elissa HendersonThe University of South Florida

Eduventures is the Industry Leader in Collaborative Research and Consulting for Higher Education

• Growing programs and markets

The Continuing and Professional Education Learning Collaborative (CPE-LC) focuses on common challenges in:

� Eduventures was founded in 1993

� Headquartered in Boston, MA

© 2011 Eduventures, Inc. 2

• Improving marketing and recruitment

• Mastering online and hybrid delivery

• Streamlining operations and organizational design

� Sole focus on higher education

� Provide analysis and consulting to the higher education community through six distinct Learning Collaboratives and our Consulting Services division

� Eduventures Learning Collaboratives currently serve a membership of over 300 higher education institutions

To Inform This Presentation, We Leveraged Diverse R esources, Including:

• Eduventures’ 2010-2011 Consumer Preferences survey– A total of 52 Eduventures member institutions (58% public, 36% private, and 6% for-

profit) participated in this research study– The survey yielded a total 20,435 individuals qualified to complete the full survey– Non-credit current and prospective students: n=1,637 (8% of total respondents)

•Eduventures’ 2010 Collaborative Report, “Non-Credit Education: A Neglected


•Eduventures’ 2010 Collaborative Report, “Non-Credit Education: A Neglected Solution to the Obama Administration’s 2020 Goal?”

– Data from the National Center for Education Statistics– Interviews with 20 four-year institutions

•Eduventures’ in-progress database of 100 institutions’ non-credit certificate programs

• Custom research reports commissioned by Eduventures’ clients

This Presentation Will Focus On:

• Why is now the time to re-evaluate your non-credit marketing?

• What is the current non-credit program landscape?

• The characteristics of non-credit students, including the demographic profiles and marketing preferences of students categorized by motivation


• Comments from the University of South Florida

• Non-credit marketing best practices and strategies








External Factors Are Driving Renewed Attention to N on-Credit’s Opportunities and Challenges

The Higher Education System• Increasing undergraduate and graduate for-credit enrollments are positive, but degrees are

lengthy, less adaptable, and costly

Public Policy Goals• The Obama Administration and the Lumina Foundation’s goals to increase participation and

attainment in higher education are laudable but prioritize degrees as the solution• Non-credit programming offers many advantages compared to for-credit in its ability to respond


• Non-credit programming offers many advantages compared to for-credit in its ability to respond quickly to economic conditions, student demands, and professional development needs

Confusing Nomenclature • The name “non-credit” is vague as it calls attention to what it is not, signaling a clear branding

challenge• The definition and status of non-credit varies across continuing education departments

• Increased demand for professional development programs has resulted in a shift away from youth and senior-oriented programs towards career-oriented non-credit programs

Tensions Between Non-Credit’s Purpose as a Revenue Generator Versus a Mission Aligner May Result in Muddled Marketing M essaging

Increase Revenue

Uphold Mission

Non-Credit’s Role


programs

• Tensions between mission and revenue may result in challenges, including:

– Prioritizing marketing spend and attention on revenue-generating or mission-aligning programs

– Justifying non-credit marketing decisions based on revenue or mission alignment

• Mass marketing non-credit programs (particularly those offered online) may be tempting, but could result in a low ROI

– 51.5% of prospective non-credit students (n=458) anticipate enrolling in a traditional, on-ground program (compared to 24.3% [n=1,133] of credit-seeking students)

– Only 15.0% (n=133) of prospective non-credit students anticipate enrolling in a

To Grow Revenues and Broaden Their Reach, Instituti ons Are Exploring the Mass Marketing of Non-Credit, Often With Mixed Results

Online Delivery

Experimentation


credit students anticipate enrolling in a 100% online program (compared to 35.4% [n=1,653] of credit-seeking students)

• Regional or niche programs, particularly in a hybrid format, may be a more effective way to compete against online delivery

• While third-party vendors may provide an entrance into the online and national markets, units need to retain ownership of messaging and ensure brand integrity

Pressure to Find New

Markets

Experimentation in Mass

Marketing

Vendor Partnerships May Catapult Non-Credit Program s Online and Into New Markets, But Could Result in a Loss of Marketi ng Ownership

Win Revenue, Enrollments,

Market Visibility, Online Presence

Lose Ownership of Programs and

Marketing Messages

Third-party vendors can be both

competition and strategic partners for four-year institutions


• Through our analysis of 49 institutions’ non-credit certificate programs, Eduventuresdiscovered that institutions that partner with third-parties to offer online programs often relinquish ownership of programmatic marketing messages

• Units may consider whether there is an opportunity to work more closely with third-party providers and partners to take a more active role in marketing programs

• Additionally, units may consider particular strategies within its own marketing to clearly assert ownership and involvement in non-credit programs while simultaneously redirecting students to a third-party website








c. 20.4m

c. 35m

c. 50m

30,000,000

40,000,000

50,000,000

60,000,000

The Formal Postsecondary Education University, Age 18+ Estimated Scale (12 month headcount-2009)

In the Formal Postsecondary Universe, the Non-Credit Market Is Significantly Larger Than the For-Credit Market, 82% Versus 18%

Type Market Share

For-Credit 18%Other Non-credit

(NC)66%

Higher Education Non-credit (NC)

16%

© 2011 Eduventures, Inc.

c. 0.8m c. 1m c. 1.5m c. 1.5m c. 3.6mc. 8m c. 11m

c. 20.4m

0

10,000,000

20,000,000

11Sources: IPEDS, NCES and Eduventures analysis

Non-credit (NC)

Consumer Preferences Data Reveals the Prevalence of Third-Party Providers in the Non-Credit Arena

62.2%

Community group

Free instructional courses/videos online

Professional association

Employer

Over the past year, have you participated in educat ion and training provided by any of the following?


17.8%

11.2%

20.3%

0% 20% 40% 60% 80%

Sports organizations

Language training company

IT training company

Arts and crafts organizations

Religious organization

Community group

Professional Personal

Eduventures’ Growing Database of Non-Credit Certifi cates at 49+ Institutions Lends Additional Insight Into the Non- Credit Landscape

• Ultimately, the database will contain a comprehensive list and categorization of non-credit certificates at 100 colleges and universities, in addition to profiling certificates offered by highly visible third-party providers

• Of the 49 institutions initially profiled in the current database:– Eduventures has identified 1,288 non-credit certificate programs, resulting in an

average distribution of 26 non-credit certificates per institution


average distribution of 26 non-credit certificates per institution– 52% of identified certificates are offered 100% on-ground while 40% of identified

non-credit certificates are offered 100% online by an institution (not by a third-party provider)

• Less than 1% of profiled non-credit certificates are offered in a hybrid format, despite indications from 24.1% of prospective non-credit students that they are interested in enrolling in hybrid and/or blended programs

– The most visible non-credit certificate offerings are in the following disciplines• Business (30%)• Computer and information science (13%)• Health professions (11%)

13






• Reaction from the University of South Florida


Students’ Categorization of Non-Credit Motivations Reveals a Mixture of Personal Enrichment and Professional Development

Mix of both personal interest and professional

development

Professional development(e.g., career

advancement, improving job performance)

Personal interest (e.g., learning

something new, expanding

talents, promoting

personal growth,


performance) personal growth, exploring a

subject)n n n

Non-credit course or certificates (i.e., not for

academic credit)688 397 552

15

Are we oversimplifying by only considering student motivations in two camps: personal and professional ?

The Non-Credit Population Tends to Be Over 40 and M aking $78,500 Per Year; Mixed Motivations Are Often a Bridge Between Professional Development and Personal Interest

PopulationEstimated Average

AgeEstimated Average

Income

Professional development 42.2 $78,791


Mix of both personal interest and professional

development45.3 $79,409

Personal interest 55.1 $81,957

Credit-Seeking Students 36.9 $65,839

16

In Print Media, the Initial Visibility-Raising Loca tions for Non-Credit Programs Appear to Somewhat Reflect Age Differences

34.5%

34.4%

56.0%

Articles in Media

Email

Brochures/Flyers

Course Catalog (Online)

Which of the following sources created or raised yo ur awareness of schools offering courses or certificates of interes t to you?


3.3%

20.4%

15.9%

34.4%

0% 10% 20% 30% 40% 50% 60%

Newspaper Advertisements

Published Rankings

Online Directory Site

Professional Association

School Web Sites

Course Catalog (Print)

Articles in Media

Mix Personal Professional

• Is online advertising prioritized over print advertising in your professional development marketing plan?

The Awareness-Raising Influence of Word-of-Mouth Al so Appears Somewhat Aligned with Respondents’ Age and Employme nt Status

14.4%34.1%

Conversation with current or former students

Conversation with family or friends

Conversation with co-workers

Which of the following sources created or raised yo ur awareness of schools offering courses or certificates of interes t to you?


0% 10% 20% 30% 40%

Conversation with financial aid advisor

Conversation with professor

Conversation with enrollment advisor/ academic advisor

Conversation with manager at work

students

Mix Personal Professional18

• As older Americans begin to increasingly work past retirement, is ignoring personal interest marketing at the workplace a mistake?

Affordable

Personal- Engaging

- Small interactive classes- Quality

- Inspiring

The Top 10 Most-PreferredMarketing Terms for Non-Credit Programs Vary Slightly Based on Student Motivation

Universal Regardless

of Motivation


AffordableFlexible Scheduling

Adult EducationAcademic Excellence

ConvenientHigh-Quality Faculty

Professional- Accelerated

- Working professionals- Real World

Mix- Accelerated

- Quality- Working

Professionals

19

Motivation

Student OutcomesDemanding

Personal- Financing / Financial Aid

- 100% Online- Hybrid/Blended

- Professional Confidence

The 10 Least-PreferredTerms Indicate That Non-Credit Students Are Not Particularly Drawn to Terms Related to Outcomes, Prestiege, and Rigor

Universal Regardless

of Motivation


DemandingValues-Based

IntensiveElite

Fast-Paced

Professional- Full-time

Faculty- Inspiring

- Research-Based

Mix- Full-time Faculty

- No Entrance Exams

- Professional Confidence

- Research-based

20

Motivation

Cross-Selling Opportunities for Currently-Enrolled Students Abound; 80%+ of Non-Credit Students Report Planning to Enro ll in More Courses

26.9%

43.0%

6.0%

78.4%

27.2%

35.1%

Degree program

Non-credit course or certificates

After completing your current course, certificate, or program, which of the following, if any, do you anticipate enrolling in n ext?


1.1%

9.4%

15.5%

26.9%

0.8%

3.1%

10.2%

2.6%

18.4%

11.8%

27.2%

0% 50% 100% 150% 200%

Credit certificate

None

Individual credit courses

Degree program

Mix Personal Professional








Comments from USF

• Interested in noncredit marketing data– Assessment of noncredit programs – Comparison with other CE units– Direction and challenges

• Comments on marketing strategies


• Comments on marketing strategies– Programs and student profile– Organizational challenges– New marketing direction

• Challenges/Trends

Overview of USF Non-Credit Programs

• Professional and Workforce Development – Business Training (15 certificates – traditional, and some niche)– Certification Preparation Training (8 exam prep)– Computer Skills– Online – thru third-party vendor


• Special Interest– Foreign Languages– Photography– Gemology– Test Preparation

• OLLI-Senior Programs - personal enrichment

Non-Credit Student Profile - about 4,000 participan ts a year

• PWD Demographics– Age 25-54; income $30- $99K– Zips in northern portion of county surrounding Main Campus– Vary by programs – higher end certificates– 4,053 enrollments


• OLLI programs – Personal Enrichment– Age 55+– Location based (multiple locations with partners/sponsors– 3722 enrollments (1,300 members)

• Differences between Professional and Personal Development– Possible crossover

Internal and External Factors leading USF to Re-Ass ess Non-Credit Portfolio

• Reorganization– Parent organization– Noncredit division

• State/University Policy


• Economy

These factors played into our marketing strategies …

Current Structure of Marketing Team

• Decentralized staffing– Separate production and management staff for credit and noncredit– 3.0 FTEs marketing/production

• Creation Marketing Workgroup (9 members)


– Representation from units – help leverage resources; coordinate collaborative marketing, and review marketing expenditures

– Relatively new working team; implemented beginning of fiscal year

27

Recent Non-Credit Marketing Efforts

• New noncredit program development process– Teams involving all noncredit staff to review new program ideas– Successful as a team-builder and for generating new ideas

• Efforts of the Marketing Team to co-market credit and noncredit– Effort to work collaboratively, leverage resources and unify the message


– Effort to work collaboratively, leverage resources and unify the message– Coordinate marketing efforts for credit and noncredit– Provide consistent visual identify– Create unifying message or voice

28

Marketing Outcomes

• In a relative short period of time:– Hosted UC Open House

– set stage for co-marketing credit and noncredit

– Developing unifying


– Developing unifying messages, advertising and web presence

• Education Without Limits

• USF Bull

29

UC Brand Ad –


UC Program Ad – Online Learning


Marketing Team



• Why is now is the time to re-evaluate your non-credit marketing?






External and Internal Strategic Partnerships Have B een the Keys to Success for Many Units Offering Non-Credit

Best Practices: Develop Strategic Partners

• External Partnerships: Units may seek mutually beneficial partnerships with third-party vendors, corporations, professional associations and other higher education institutions to improve marketing quality and reach

• Internal Partnerships: Units may consider partnering with internal academic and


• Internal Partnerships: Units may consider partnering with internal academic and administrative units to facilitate marketing outreach and manage spend. Identifying successful internal partners may entail:

– Discovering which units at your institution understand the non-credit value proposition and would be willing to enter into a partnership

– Prioritizing and educating resistant units on the benefits of non-credit and cross-marketing opportunities

– Lobbying for more visibility of non-credit offerings through program and institutional collateral

Best Practices: Facilitate Complementary Relationshi ps

• Credit/Non-Credit Differentiation: Units should be able to justify why they are offering a program as non-credit rather than for-credit, and articulate the differences between the two if a program is offered in both categories

Potential Complementary Relationships Between For-C redit and Non-Credit Are Often Overlooked, But Could Lead to Mark eting Success


• Packaging Courses as Certificates: Units experiencing success in non-credit professional development point to the packaging of non-credit classes as certificate programs

– Units may need to work cross-departmentally to assemble diverse non-credit courses into certificate programs

35

Best Practices: Re-Evaluate Operational Structures• An institution’s marketing structure may affect how effectively non-credit programs

are packaged and sold to prospective students

Re-evaluating Operational Marketing Structures May Result in Previously Untapped Efficiencies

Advantages Disadvantages

Com

bine

d S

truc

ture

- Courses can be offered as either non-credit or for-credit. In turn, a lower price point for non-credit allows for marketing to

- The lack of non-credit portfolio consistency


Com

bine

d S

truc

ture point for non-credit allows for marketing to

additional audiences- Shared marketing resources (especially when leveraging alumni from for-credit offerings)

from year-to-year may result in challenges in tracking marketing spend and finding marketing efficiencies

Sep

arat

e S

truc

ture - Greater autonomy allows units to craft

marketing collateral quickly and independently

- Marketing efforts may be duplicated without strong intra-departmental communication- Limited access to broader institutional resources, including additional marketing capabilities and CRM systems

Effective Marketing Has Helped Niche, Regional Prog rams Become Sustainable Revenue Generators

Best Practices: Understand Regional Needs

• Industry-Alignment: Units should ensure that their professional development programs align with local industry growth trends to help meet the needs of their region

– Obtaining information via your state’s Department of Labor will help inform program development

– Market research may also assist your unit in understanding local and regional workforce


– Market research may also assist your unit in understanding local and regional workforce demands

• Understand Your Demographic: Interviewed units attribute the prosperity of personal enrichment programs to targeted marketing towards affluent population segments in their regions, which they have targeted for marketing through ZIP code and regional analysis

• Know Your Competition: Identifying other regional providers, analyzing their program portfolio, and dissecting their marketing messaging can assist your unit in ensuring differentiation in marketing and programs

Program Assessment May Result in Stronger Program O wnership and More Individualized Marketing Messaging

Best Practices: Identify Potential Opportunities to Bring Outsourced Programs Into Internal Portfolio

• Identify Strengths: Units may engage in a self-study to identify institutional capacities for additional non-credit programming and where outsourced programs may align well with internal capacities


• Consider Integration: After a self-study, institutions may decide whether existing partnerships still make sense or whether integrating some outsourced programs into the unit’s internally portfolio would be beneficial

• Ensure Differentiation: Regardless of whether an institution decides to claim an externally-hosted program or continue working with a third-party provider, it should play an active role in crafting marketing messaging and designing market outreach

• Why is now the time to re-evaluate your non-credit marketing?– Unprecedented internal and external attention on your units, particularly related to your role

as a revenue generator and as a mission aligner

• What is the current non-credit program landscape?– HUGE! 82% of estimated enrollments in 2010 were in non-credit programs, but the majority

of these enrollments were within programs offered by third-parties, not higher education

• What are non-credit students like?– Demographically, older (40+) and wealthier ($78,500+) than degree seeking students


– Demographically, older (40+) and wealthier ($78,500+) than degree seeking students– Motivations to take non-credit are aligned with age; marketing programs that appeal to

mixed motivation students may encourage long-term non-credit involvement

• Non-credit marketing best practices and strategies– Be clear about what non-credit means and why it is a good choice for students– Identify internal and external partners who are willing to work with you– Understand your regional market – Think about restructuring and what it could mean for your marketing team– Re-evaluate partnerships to ensure they enrich your marketing efforts and brand– Assess whether outsourced programs should be integrated into your internal portfolio

• For more information or to request a copy of this report, please contact:

Samantha GoldsteinResearch AnalystEduventures, Inc.101 Federal Street, 12th FloorBoston, MA [email protected]

Thank you!


[email protected]: @samanthag_ev

Elissa HendersonAssistant Director, Continuing EducationDirector, Marketing University CollegeUniversity of South Florida 4202 East Fowler Avenue, NEC116Tampa, Florida [email protected]

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