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Measuring Return on Investment in International Student Recruitment Innovative Educators Webinar, 6 May 2009 Cheryl Darrup-Boychuck Owner and Chief International.

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Presentation on theme: "Measuring Return on Investment in International Student Recruitment Innovative Educators Webinar, 6 May 2009 Cheryl Darrup-Boychuck Owner and Chief International."— Presentation transcript:

1 Measuring Return on Investment in International Student Recruitment Innovative Educators Webinar, 6 May 2009 Cheryl Darrup-Boychuck Owner and Chief International Education Officer USjournal.com, LLC

2 Brief History of International Student Recruitment Then: No need for metrics How can you possibly measure the value of international students on campus, with dollar signs? Now: Show me the numbers Deans 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 |

3 International Enrollment 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 Measuring ROI in International Recruitment |

4 International Enrollment 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 Measuring ROI in International Recruitment |

5 1 st Poll: Gauging Current Climate At what stage do you consider your campus, with regard to ROI? Advanced (Weve 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 (Were struggling with where to begin measuring Return on Investment.) Measuring ROI in International Recruitment |

6 External Factors Shaping International 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 Measuring ROI in International Recruitment |

7 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 in International Recruitment |

8 Studying ROI: Corporate World vs Higher Education Business World Feedback from market forces Non-Profit Organizations Driven by missions, not markets Delivering on the Promise of Non-Profits Harvard Business Review, December 2008 Measuring ROI in International Recruitment |

9 Reasons for Reluctance Inertia; its 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 Measuring ROI in International Recruitment |

10 Why Measure ROI? Justify expenses Compete with domestic admissions Compare results with peer institutions Measuring ROI in International Recruitment |

11 ROI in its Simplest Form -- Cost of Recruitment + Tuition and Fees Generated Return on Investment

12 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 = 1 st student $ 15,380 = 5 students $ 31,955 = 10 students Measuring ROI in International Recruitment |

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14 Marketing Cost per Student MCPS = E mt / S t E mt = Total marketing expense in time period t S t = Total students enrolled in time period t Measuring ROI in International Recruitment |

15 Marketing Cost per Student: Online Promotion MCPS = E mt / S t E mt = $1,195 for an annual campaign S t = 10 students enrolled MCPS = $ per student Measuring ROI in International Recruitment |

16 Marketing Cost per Student Initiative MCPS Online Promotion$ Measuring ROI in International Recruitment |

17 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 in International Recruitment |

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19 Marketing Cost per Student: Engaging Agents MCPS = E mt / S t E mt = $13,800 over four years S t = 4 students enrolled MCPS = $3,450 per student / 4 years Measuring ROI in International Recruitment |

20 Marketing Cost per Student Initiative MCPS Online Promotion$ Agent$ Measuring ROI in International Recruitment |

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22 Marketing Cost per Student: Domestic Travel MCPS = E mt / S t E mt = $1,200 in one year S t = 20 students enrolled MCPS = $60 per student Measuring ROI in International Recruitment |

23 Marketing Cost per Student Initiative MCPS Online Promotion$ Agent$ Domestic Travel$ Measuring ROI in International Recruitment |

24 Marketing Cost per Student

25 Measuring ROI in International Recruitment | Marketing Cost per Student and Revenue per Student

26 Cost to Recruit one International Student vs one Domestic Student MCPS i = E mt / S t MCPS d = E mt / S t E mt = Total marketing expense in time period t S t = Total students enrolled in time period t Measuring ROI in International Recruitment |

27 Cost to Recruit one International Student vs one Domestic Student 10%

28 Measuring ROI by Student Type Measuring ROI in International Recruitment |

29 2008 NACAC Admission Trends Survey Average cost per enrolled student, based on domestic recruitment $2,895 = Private institutions $2,366 = Overall average $1,002 = Public institutions

30 Domestic Admissions Yield Cost Applicant $ 578. Admitted$ 836. Enrolled$2,366. Measuring ROI in International Recruitment |

31 Stealth Applicants Students applying without prior contact Introduced into database as applicant Traditional enrollment funnel dissolving Accept lack of complete control of your institutional message

32 Measuring ROI in International Recruitment |

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34 Online Inquiries and the Impact on ROI Measuring ROI in International Recruitment |

35 Targeted Online Campaigns By Geography Within a 20-mile radius of any metro area By Key Words and Key Phrases In targeted languages By Device Manufacturers and Capabilities Only target iPhones, for example Measuring ROI in International Recruitment |

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39 Sample of Key Phrases for Google Pay-per-Click Measuring ROI in International Recruitment |

40 Results in Italian for Google Pay-per-Click

41 Measuring ROI in International Recruitment | Sample of Statistics: Google Pay-per-Click

42 Cost per Lead CPL = TAC / TLG $3.25 = $101 / 31 leads CPL = Cost per Lead TAC = Total Advertising Cost TLG = Total Leads Generated Measuring ROI in International Recruitment |

43 2 nd Poll: Precision Marketing Techniques 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 dont pay for leads (Students just find us organically online, or by word-of-mouth.) Measuring ROI in International Recruitment |

44 Precision Marketing Factors 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 Measuring ROI in International Recruitment |

45 Know Thyself S.W.O.T. Analysis Strengths Weaknesses Opportunities Threats Clearly Define Objectives By citizenship or by geography By language market By academic program Measuring ROI in International Recruitment |

46 Economic Realities Government-Sponsored Scholarships Iraq (500 students this year, eventually 10,000) United Arab Emirates Abu Dhabi Investment Authority Malaysia Public Service Department Measuring ROI in International Recruitment |

47 Precision Marketing | Chair:

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51 Mobile 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? Measuring ROI in International Recruitment |

52 Full Screen Version USjournal.com

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55 USAcademics.com

56 Case 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 = $ actual inquiries $ / 148 = $2.74 per lead Measuring ROI in International Recruitment |

57 In the rush to measure… … any figures will do. Cost of annual campaign= $6,696. Number of inquiries= 933 So, $6,696 / 933 = $7.18 per inquiry ? Not accurate. Measuring ROI in International Recruitment |

58 Various CPL Models One company (based in India) charges $20 / qualified lead How do you define qualified? Pre-paid postage example Measuring ROI in International Recruitment |

59 Outbound vs Inbound Marketing Outbound Cold Calling Unsolicited Junk Mail T.V. Advertising Inbound Social Media Blogging Search Engine Placements Inbound Marketers = 61% lower cost-per-lead (CPL)

60 Smart Power Hard Power + Soft Power Use data as political currency Simplify the argument Create catchy visual representations Measuring ROI in International Recruitment |

61 Quantifiable Data Related to Return on Investment Retention Rate Churn Rate New Student Gains Student Losses Measuring ROI in International Recruitment |

62 Market Growth G m = S I / S L G m = % market Growth S I = Student increase this year S L = Student increase last year Measuring ROI in International Recruitment |

63 Revenue Contribution R mi = R i / ΣR t R mi = Revenue contribution for i R i = Revenue from segment i ΣR t = Revenue from all segments Measuring ROI in International Recruitment |

64 Broader ROI Metrics, based on audience considerations Australias Access Economics International Student Contributions $1 spent = $1.91 into economy 120,000 jobs in $13.7 billion in Learning Boom Amid Economic Gloom The Australian, 1 April 2009 Measuring ROI in International Recruitment |

65 Comparative Exercises Applicants from Campaign A versus Applicants from Campaign B Appropriate for Extenuating Circumstances Student Visa Variables Severe Currency Fluctuations Measuring ROI in International Recruitment |

66 Quantifiably Elusive Factors 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 Marketing Measuring ROI in International Recruitment |

67 Complexity Theory Large numbers of interacting elements Minor changes can produce disproportionately major consequences The whole is greater than the sum of its parts; solutions cannot be imposed Evolution is irreversible Hindsight does not lead to foresight Measuring ROI in International Recruitment |

68 Multivariate Likelihood Function to Predict Customer Behavior Measuring ROI in International Recruitment |

69 Defining the Investments that are designed to yield 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 Measuring ROI in International Recruitment |

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84 Next Steps Innovative Educators Webinar, 6 May 2009 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 = E mt / S t CPL = TAC / TLG

85 Better 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

86 Measuring Return on Investment in International Student Recruitment Innovative Educators Webinar, 6 May 2009 Cheryl Darrup-Boychuck Chief International Education Officer USjournal.com, LLC


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