Transcript Precision Marketing - Study in the USA at US Universities

Measuring
Return on Investment
in International
Student Recruitment
Cheryl Darrup-Boychuck
Owner and Chief International Education Officer
USjournal.com, LLC
[email protected]
Innovative Educators Webinar, 6 May 2009
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 | [email protected]
“International Enrollment
Management”
Nurture Connections with
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Domestic Admissions
Particular Academic Departments
Alumni and Development Office
Current International Students
Senior International Officers
Identify Recruitment Strategy
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Target particular countries and language markets
Incentives for countries not currently represented
Measuring ROI in International Recruitment | [email protected]
“International Enrollment
Management”
Resource Management
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Manage limited resources
Define metrics and collect data
Analyze the costs and benefits of specific initiatives
Measure Return on Investment
Deliberate and Intentional Approach
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Integrated effort to maximize impact
Measuring ROI in International Recruitment | [email protected]
1st Poll:
Gauging 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
International Education
Growth Industry
• By 2025, demand will double to 200 million seats
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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:
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 | [email protected]
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 | [email protected]
Reasons 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 decentralized on many campuses
• Differences with domestic
recruitment
Measuring ROI in International Recruitment | [email protected]
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 Form
-- Cost of Recruitment
+ Tuition and Fees Generated
----------------------------------------Return on Investment
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 = 1st student
$ 15,380 = 5 students
$ 31,955 = 10 students
Measuring ROI in International Recruitment | [email protected]
Marketing Cost per Student
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:
Online 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 Student
Initiative
MCPS
Online Promotion
$119.50
Measuring ROI in International Recruitment | [email protected]
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 | [email protected]
Marketing Cost per Student:
Engaging 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 Student
Initiative
MCPS
Online Promotion
Agent
$ 119.50
$ 862.50
Measuring ROI in International Recruitment | [email protected]
Marketing Cost per Student:
Domestic 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 Student
Initiative
MCPS
Online Promotion
Agent
Domestic Travel
$ 119.50
$ 862.50
$ 60.00
Measuring ROI in International Recruitment | [email protected]
Marketing Cost per Student
$1,000.00
$862.50
$900.00
$800.00
$700.00
$600.00
$500.00
$400.00
$300.00
$200.00
$119.50
$60.00
$100.00
$0.00
Online Promotion
Agents
Domestic Travel
Measuring ROI in International Recruitment | [email protected]
Marketing Cost per Student
and Revenue per Student
$8,510.00
$9,000.00
$7,089.00
$8,000.00
$7,000.00
$6,000.00
$5,000.00
$4,000.00
$3,195.50
$3,000.00
$2,000.00
$862.50
$60.00
$119.50
$1,000.00
$0.00
Online Promotion
MCPS
Agents
Domestic Travel
Revenue per Student
Measuring ROI in International Recruitment | [email protected]
Cost to Recruit one International
Student vs one Domestic 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 International
Student vs one Domestic Student
10%
Measuring ROI by Student Type
Measuring ROI in International Recruitment | [email protected]
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
Domestic Admissions Yield
Cost
Applicant
$ 578.
Admitted
$ 836.
Enrolled
$2,366.
Measuring ROI in International Recruitment | [email protected]
“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
Measuring ROI in International Recruitment | [email protected]
Measuring ROI in International Recruitment | [email protected]
Online Inquiries
and the Impact on ROI
The Digital Divide
2009 World Population = 6.7 billion
24%
People without Internet
Connectivity
People with Internet
Connectivity
76%
Measuring ROI in International Recruitment | [email protected]
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 | [email protected]
Measuring ROI in International Recruitment | [email protected]
Measuring ROI in International Recruitment | [email protected]
Sample of Key Phrases for
Google Pay-per-Click
Measuring ROI in International Recruitment | [email protected]
Results in Italian for
Google Pay-per-Click
Sample of Statistics:
Google Pay-per-Click
Measuring ROI in International Recruitment | [email protected]
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 | [email protected]
2nd 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 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 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 | [email protected]
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 | [email protected]
Economic Realities
Government-Sponsored Scholarships
• Iraq (500 students this year, eventually 10,000)
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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 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 Version
USjournal.com
USAcademics.com
Case Study
Mobile Marketing in Indonesia
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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…
… 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 | [email protected]
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 | [email protected]
Outbound vs Inbound
Marketing
Outbound
Inbound
• Cold Calling
• Social Media
• Unsolicited eMail
• Blogging
• Junk Mail
• Search Engine
• T.V. Advertising
Placements
Inbound Marketers =
61% lower cost-per-lead (CPL)
Smart Power
Hard Power
+ Soft Power
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Use data as political currency
Simplify the argument
Create catchy visual representations
Measuring ROI in International Recruitment | [email protected]
Quantifiable Data
Related to Return on Investment
• Retention Rate
• Churn Rate
• New Student Gains
• Student Losses
Measuring ROI in International Recruitment | [email protected]
Market 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 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,
based on audience considerations
Australia’s Access Economics
International 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 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 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 | [email protected]
Complexity 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 irreversible
5. Hindsight does not lead to foresight
Measuring ROI in International Recruitment | [email protected]
Multivariate Likelihood Function
to Predict Customer Behavior
Measuring ROI in International Recruitment | [email protected]
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 | [email protected]
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Next 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 / TLG
Innovative Educators Webinar, 6 May 2009
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
Measuring
Return on Investment
in International
Student Recruitment
Cheryl Darrup-Boychuck
Chief International Education Officer
USjournal.com, LLC
[email protected]
Innovative Educators Webinar, 6 May 2009