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					     Measuring
Return on Investment
  in International
Student Recruitment


       Cheryl Darrup-Boychuck
Owner and Chief International Education Officer
            USjournal.com, LLC
           cheryl@USjournal.com




                 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 | cheryl@USjournal.com
       “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 | cheryl@USjournal.com
        “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 | cheryl@USjournal.com
                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 | cheryl@USjournal.com
        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 | cheryl@USjournal.com
                  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 | cheryl@USjournal.com
                  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 | cheryl@USjournal.com
       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 de-
   centralized on many campuses
   • Differences with domestic
   recruitment

Measuring ROI in International Recruitment | cheryl@USjournal.com
           Why Measure ROI?
• Justify expenses

• Compete with domestic
admissions

• Compare results with peer
institutions


Measuring ROI in International Recruitment | cheryl@USjournal.com
ROI in its Simplest Form
-- Cost of Recruitment
+ Tuition and Fees Generated
-----------------------------------------
   Return on Investment
          Online Promotions:
     Targeting Specific Populations
Model                            ESL Program
-- Cost of Advertising           -- $ 1,195 / year
+ Student(s) Tuition             + $ 2,850 / 10-wk session
+ Student(s) Fees                + $ 465 Student Fees
------------------------------   ----------------------------------
Return on Investment                $ 2,120 = 1st student

                                   $ 15,380 = 5 students

                                   $ 31,955 = 10 students


Measuring ROI in International Recruitment | cheryl@USjournal.com
  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 | cheryl@USjournal.com
     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 | cheryl@USjournal.com
  Marketing Cost per Student
Initiative                               MCPS
Online Promotion                         $119.50




Measuring ROI in International Recruitment | cheryl@USjournal.com
     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 | cheryl@USjournal.com
     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 | cheryl@USjournal.com
  Marketing Cost per Student
Initiative                               MCPS
Online Promotion                         $ 119.50
Agent                                    $ 862.50




Measuring ROI in International Recruitment | cheryl@USjournal.com
     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 | cheryl@USjournal.com
  Marketing Cost per Student
Initiative                               MCPS
Online Promotion                         $ 119.50
Agent                                    $ 862.50
Domestic Travel                          $ 60.00




Measuring ROI in International Recruitment | cheryl@USjournal.com
   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 | cheryl@USjournal.com
  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
                       $3,195.50
  $4,000.00
  $3,000.00
                                   $862.50
  $2,000.00                                                $60.00
                $119.50
  $1,000.00
     $0.00
              Online Promotion        Agents             Domestic Travel

                            MCPS   Revenue per Student


Measuring ROI in International Recruitment | cheryl@USjournal.com
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 | cheryl@USjournal.com
Cost to Recruit one International
Student vs one Domestic Student




    10%
Measuring ROI by Student Type




Measuring ROI in International Recruitment | cheryl@USjournal.com
           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 | cheryl@USjournal.com
     “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 | cheryl@USjournal.com
Measuring ROI in International Recruitment | cheryl@USjournal.com
            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 | cheryl@USjournal.com
  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 | cheryl@USjournal.com
Measuring ROI in International Recruitment | cheryl@USjournal.com
Measuring ROI in International Recruitment | cheryl@USjournal.com
       Sample of Key Phrases for
         Google Pay-per-Click




Measuring ROI in International Recruitment | cheryl@USjournal.com
Results in Italian for
Google Pay-per-Click
            Sample of Statistics:
            Google Pay-per-Click




Measuring ROI in International Recruitment | cheryl@USjournal.com
                 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 | cheryl@USjournal.com
            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 | cheryl@USjournal.com
 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 | cheryl@USjournal.com
                 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 | cheryl@USjournal.com
             Economic 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
   • rbm.sc@adia.ae


• Malaysia
   • Public Service Department
   • http://www.jpa.gov.my/


Measuring ROI in International Recruitment | cheryl@USjournal.com
Precision Marketing   |   Chair: cheryl@USjournal.com
             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 | cheryl@USjournal.com
Full Screen Version
  USjournal.com
USAcademics.com
                    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 = $406.08
•   148 actual inquiries
•   $406.08 / 148 = $2.74 per lead




Measuring ROI in International Recruitment | cheryl@USjournal.com
      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 | cheryl@USjournal.com
          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 | cheryl@USjournal.com
       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
•   Use data as political currency
•   Simplify the argument
•   Create catchy visual representations




Measuring ROI in International Recruitment | cheryl@USjournal.com
        Quantifiable Data
 Related to Return on Investment
• Retention Rate

• Churn Rate

• New Student Gains

• Student Losses


Measuring ROI in International Recruitment | cheryl@USjournal.com
               Market Growth
                    Gm = SI / SL
Gm = % market Growth

SI = Student increase this year

SL = Student increase last year


Measuring ROI in International Recruitment | cheryl@USjournal.com
        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 | cheryl@USjournal.com
      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 | cheryl@USjournal.com
       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 | cheryl@USjournal.com
     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 | cheryl@USjournal.com
            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 | cheryl@USjournal.com
  Multivariate Likelihood Function
   to Predict Customer Behavior




Measuring ROI in International Recruitment | cheryl@USjournal.com
      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 | cheryl@USjournal.com
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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
         cheryl@USjournal.com




              Innovative Educators Webinar, 6 May 2009

				
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