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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 Education Officer USjournal.com, LLC [email protected]. Brief History of International Student Recruitment. - PowerPoint PPT Presentation
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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
Measuring ROI in International Recruitment | [email protected]
““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
Measuring ROI in International Recruitment | [email protected]
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.)
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
Why Measure ROI?Why Measure ROI?
• Justify expenses
• Compete with domestic admissions
• Compare results with peer institutions
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
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”
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
Marketing Cost per Marketing Cost per StudentStudent
Initiative MCPS
Online Promotion$119.50
Measuring ROI in International Recruitment | [email protected]
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
St = 4 students enrolled
MCPS = $3,450 per student / 4 years
Measuring ROI in International Recruitment | [email protected]
Marketing Cost per Marketing Cost per StudentStudent
Initiative MCPS
Online Promotion $ 119.50Agent $ 862.50
Measuring ROI in International Recruitment | [email protected]
Marketing Cost per Student:Marketing Cost per Student:Domestic TravelDomestic Travel
MCPS = Emt / St
Emt = $1,200 in one year
St = 20 students enrolled
MCPS = $60 per student
Measuring ROI in International Recruitment | [email protected]
Marketing Cost per Marketing Cost per StudentStudent
Initiative MCPS
Online Promotion $ 119.50Agent $ 862.50Domestic Travel $ 60.00
Measuring ROI in International Recruitment | [email protected]
Measuring ROI in International Recruitment | [email protected]
Marketing Cost per Marketing Cost per StudentStudent
$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
Measuring ROI in International Recruitment | [email protected]
Marketing Cost per Marketing Cost per StudentStudent
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
Measuring ROI in International Recruitment | [email protected]
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.
Measuring ROI in International Recruitment | [email protected]
““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
Measuring ROI in International Recruitment | [email protected]
Measuring ROI in International Recruitment | [email protected]
Online InquiriesOnline Inquiriesand the Impact on ROIand the Impact on ROI
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
Measuring ROI in International Recruitment | [email protected]
Measuring ROI in International Recruitment | [email protected]
Sample of Key Phrases for Sample of Key Phrases for Google Pay-per-ClickGoogle Pay-per-Click
Measuring ROI in International Recruitment | [email protected]
Results in Italian for Results in Italian for Google Pay-per-ClickGoogle Pay-per-Click
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
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.)
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
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/
Measuring ROI in International Recruitment | [email protected]
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?
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
Quantifiable DataQuantifiable DataRelated to Return on Related to Return on
InvestmentInvestment
• Retention Rate
• Churn Rate
• New Student Gains
• Student Losses
Measuring ROI in International Recruitment | [email protected]
Market GrowthMarket Growth
Gm = SI / SL
Gm = % market Growth
SI = Student increase this year
SL = Student increase last year
Measuring ROI in International Recruitment | [email protected]
Revenue ContributionRevenue Contribution
Rmi = Ri / ΣRt
Rmi = Revenue contribution for “i”
Ri = Revenue from segment “i”
ΣRt = Revenue from all segments
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
Comparative ExercisesComparative 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 | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
Multivariate Likelihood Multivariate Likelihood Function Function
to Predict Customer Behaviorto Predict Customer Behavior
Measuring ROI in International Recruitment | [email protected]
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
Measuring ROI in International Recruitment | [email protected]
Internationalisering in het HO 72
Internationalisering in het HO 73
Internationalisering in het HO 74
Internationalisering in het HO 75
Internationalisering in het HO 76
Internationalisering in het HO 77
Internationalisering in het HO 78
Internationalisering in het HO 79
Internationalisering in het HO 80
Internationalisering in het HO 81
Internationalisering in het HO 82
Next StepsNext 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 = 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
Innovative Educators Webinar, 6 May 2009
Cheryl Darrup-BoychuckChief International Education Officer
USjournal.com, [email protected]