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Measuring ROI, 31 May 2007 1

Return on Investment in International Recruitment: A

Qualitative Study

NAFSA Conference | Minneapolis | 31 May 2007

Session Chair / Co-Presenter: Richard Yam, International Student Advisor

University of Massachusetts – Amherst [email protected]

Co-Presenters: Cheryl Darrup-Boychuck, C.I.E.O.

USjournal.com, [email protected]

Ted McKown, Director of International Admissions

Kent State University, [email protected]


Why study ROI? Why now?

The challenges posed by the events of 9/11 changed the world, and international recruitment as we know it.

The 9/11 Effect:• Declining number of international students• Slowing enrollment• Perspectives of visa policy


Crisis in Chinese

危 = danger機 = opportunity


International Student Enrollment Trends,1955 through 2006



GAO Report, January 2007(Government Accountability

Office)

Global Competitiveness: Implications for the Nation’s Higher Education

System

Sample Recommendations:• Collecting qualitative data that could provide valuable context for quantitative data. • Developing uniform, consensus-based social and economic indicators of U.S. higher education’s competitiveness.


Limited Research Available in Measuring Return on

Investment• NAFSA: International Enrollment Management Survey (Jan ‘07)• ACE: Measuring Internationalization Survey (‘01, ‘03)• Noel–Levitz:

• National Enrollment Management Study (‘04)• Cost of Recruiting Report (‘05)

• Reza, Corriveau, Gogerty, Blanchford, and Yam:

• International Recruitment Effectiveness Survey (‘06), presented in Montreal


Highlights of the 2006 Study: A Quantitative Approach

Most Effective Recruiting Activities:1. Merit Scholarships2. International Brochures3. Interviews4. Articulation Agreements5. Express Mail of Acceptance Letters6. Independent Travel (Fall)7. Small Group / Tour Travel (Fall)8. Information Sessions


NACAC Admission Trends Survey, 2005

Please provide the “total admission budget” dollar amount from which we will determine average costs based on your responses to questions.

a. Number of completed applications ___

b. Number of full-time first year, degree seeking students ___

c. Number of full-time first year, degree-seeking students who enrolled ___


NACAC Admission TrendsSurvey 2005 (continued)

Which of the following were included in the calculation of your institution’s “total admission budget”?

___ Admission staff salaries___ Admission staff benefits___ Staff travel expenses for recruitment___ Expenses for participation in college fairs

and other recruitment events___ Publication expenses___ Payments made to third party contractors for

admission or recruitment services___ Institutional financial aid ___ Other (advertising, supplies, postage…)


Studying ROI: A Domestic Perspective

NACAC Admission Trends Survey, 2005

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

$2,167 = Private institutions

$1,753 = Overall average

$667 = Public institutions


NACAC Admissions Trends, 2005based on Campus Selectivity


NACAC Admissions Trends, 2005


Current State of Studying International Recruitment / ROI

Measurement Myopia

• U.S. News and World Report Controversy

• Administrators demand numerical justification for recruitment expenses

• Corporatization of U.S. higher education:

Dean of Admission -->V.P. of Enrollment

Management


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


Current Trends in Studying ROI / International Student

Recruitment

Estimate Admissions Yield

from recruiting in different

countries or regions

Yield = Number of newly-enrolled students

per dollar of recruitment expenses


Evolution from Enrollment Funnelto Admissions Cylinder


Securing Pure Data: The Perspective of a Statistician

• Survey the prospective students,to eliminate any bias of the recruiters

• Linear Regression: Predict a dependent variable (likelihood of enrolling) based on several independent variables, such as the different types of recruitment

• Topic for a Thesis?


Multivariate Likelihood Function to Predict Customer Behavior


Design of the 2007 Qualitative Study on Measuring

ROI

• In-depth Interviews -- 1 to 1-1/2 hours each• Interview Topics -- Plans, implementation, evaluation• Sampling -- Open Doors, successful or challenging institutions, availability


The 2007 Study: Comments from a colleague who declined to

participate

I find it tough to justify putting other projects aside to be involved in this one… Frankly, you may find that people who have 2 to 3 hours to devote to this may not be the most effective recruiters. As such, your sample (and study) may be at risk…


Profile of 19 Participating Schools:

A Diverse Representation in the U.S.

• 2 Specialized Institutions • 3 Language Institutes• 2 Community Colleges• 2 Baccalaureate Institutions • 3 Masters Institutions• 5 Doctoral / Research Institutions• 2 Boarding / Prep Schools


Geographic Representation of18 Participating Schools


Profile of 21 Individual Participants

• 322 total years in international education• Average of 15 years in the industry• 11 male and 10 female participants• 14 Directors or Vice Presidents

- Institutional Advancement- Enrollment Management

• 3 Associate Directors• 3 Marketing Coordinators or Recruiters• 1 International Student Advisor


Profile of 21 Individual Participants:

Years in International Education

0 5 10 15 20 25 30 35 40


Results of the 2007 Study: Attitudes toward ROI

a. Realistic / Pragmatic: Know howQuantifiable / Tangible: Count inquiries, applications, deposits, enrollments, attrition, retention, graduation, alumni

b. Philosophical: Know whyBig Picture / Intangible: Value judgments in determining how and where to invest, based on institution’s mission of internationalization


Results of the 2007 ROI Study: Defining Return on Investment

Types of Investment: • Infrastructure / Staffing• Travel (Domestic and Overseas)• Financial Aid / Scholarships• Long-term Prospects• Agents / Commission-based Options• Online / Print Promotions• Postage / Mailing Lists• Special Scenarios / Emerging Markets• Targeted Yield Activities


Types of Investment: Infrastructure / Staffing

Responsibility for International Recruitment• Enrollment Management• International Student Services• International Affairs / Programs• Other Support Offices

Holistic approaches throughout the infrastructure seem more effective, when recruitment is integrated to cultivate the student’s entire experience.


Types of Investment: Travel (Overseas and Domestic)

Overseas Travel• Group Tours / Large Public Events• Small Tours / Targeted Private Events• Individual / One-on-One Visits

Domestic Travel• Embassy Visits (generated highest ROI for one of our participants)• Conferences / Agent Workshops


Types of Investment: Financial Aid / Scholarships

Most colleagues have limited funds to disburse, so they’re getting more creative: • $50 in tuition reduction for referrals• Special Pricing, i.e., fees are waived if MBA students pay tuition in advance• Re-packaging existing programs: A price tag of $19,985. looks better than $20,015.• Work more closely with grad schools on assistantships for international students


Types of Investment: Long-Term Prospects

Projects that don’t pay off immediately, sometimes due to cultural issues• Articulation agreements • “Twinning”• Joint Degree Programs• Sister Schools• Overseas Campuses

“We’re establishing a pipeline for supplying students over several years.”


Types of Investment: Agents / Commission-based

Options • Very little middle-ground: Love / Hate• Agent-only access via .edu domains • Private language schools: More likely to engage agents than public institutions• Institutions that are more transparent (i.e., fewer layers of bureaucracy) seemed better equipped to use agents • The initial cost of engaging agents must be greater than zero (i.e., preparing for and maintaining a successful relationship)


Types of Investment: Online / Print Promotions

Interviewer: How did you find out about us? Student: In a magazine. Interviewer: Which one? In the one that cost me $100 or the one that cost $1,000?Conclusion: Difficult to track accurately----------------------------------------------------Technology allows for better tracking -- One participant is hiring a Director of Electronic Marketing, specifically for international student recruitment


Types of Investment: Postage / Mailing Lists

• Express Mail I-20 / Letters of Acceptance• Few purchased names and addresses• Few mentioned sending brochures to -- EducationUSA Advising Centers -- U.S. Embassies and Consular Offices -- International High Schools -- American Schools Overseas


Types of Investment: Special Scenarios / Emerging

Markets • Smaller, private schools seemed more willing to experiment in emerging markets; diversity was one of their primary goals• Language schools seemed more interested in the numbers of students recruited, rather than diversity, so they tend to stick with the top sending countries • Other successful recruitment plans take advantage of unique situations that percolate via global involvement from the campus’ academic departments


Types of Investment: Other Targeted Yield Activities

• Connect prospects and / or parents with campus-related people with common interests (language, home country, major) -- Phone calls / Skype -- eCorrespondence (eMail, chat, blog…)• Hosting the influencers on campus -- Coordinated campus tours -- Various summer camps• Engage Alumni Networks / Receptions• Plan to “Respond on Demand”


Characteristics of Successful International Recruitment

Programs• Institutional Commitment / Mission• Organizational Infrastructure• Travel (Overseas and Domestic)• Emphasize both Recruiting and Yield

Activities to complement each other• Emphasize Long-term Prospects• Financial Aid / Merit Scholarship /

Pricing• Use Agents Prudently• Explore Emerging Markets• Determine Quality and Quantity Returns


Recommendations for Future Studies

• Concentrate on Specific Subsets:• Language Schools• Graduate Schools (MBA, etc.)• International Student Athletes

• Conduct Industry-Wide Surveys:• Cost-to-Recruit Survey• Factors to Enroll

• Interview Prospective Students• Develop a Linear Regression Model


Where do we go from here?There’s no magic formula (yet).

Continue the ROI conversation via NAFSA’s Marketing / Recruiting Network:

• Go to http://www.nafsa.org/ • Click Knowledge Community Networks and Resources on the left• Click Recruitment, Admissions, and Preparation on the left • Click Marketing and Recruiting on the left • Click Discussion Forums on the left • Click Measuring ROI and contribute!


Return on Investment in International Recruitment: A

Qualitative Study

NAFSA Conference | Minneapolis | 31 May 2007

Session Chair / Co-Presenter: Richard Yam, International Student Advisor

University of Massachusetts – Amherst [email protected]

Co-Presenters: Cheryl Darrup-Boychuck, C.I.E.O.

USjournal.com, [email protected]

Ted McKown, Director of International Admissions

Kent State University, [email protected]