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