Measuring Return on Investment in International Student Recruitment

Brief History of International Student Recruitment Then: No need for metrics How can you

“Stealth” Applicants Students applying without prior contact Introduced into database as “applicant” Traditional enrollment

“International Enrollment Management” Nurture Connections with • • • Domestic Admissions Particular Academic Departments

“International Enrollment Management” Resource Management • • Manage limited resources Define metrics and collect

Studying ROI: Corporate World vs Higher Education Initial Investment vs Subsequent Profits Recruiting Expenses

Simple ROI Formula -- Cost of Recruitment + Tuition and Fees Generated --------------------Return on

Marketing Cost per Student MCPSi = Emt / St MCPSd = Emt / St

NACAC Admission Trends Survey Average cost per enrolled student, based on domestic recruitment (2008)

Domestic Admissions Yield Cost Applicant $ 578. Admitted $ 836. Enrolled $2, 366. Measuring

Measuring ROI in International Recruitment | cheryl@USjournal. com

Cost per Lead CPL = TAC / TLG CPL = Cost per Lead TAC

Engaging Agents: Initial costs must be greater than zero -- Cost of Developing a

Market Growth Gm = S I / S L Gm = % market Growth

Revenue Contribution Rmi = Ri / ΣRt Rmi = Revenue contribution for “i” Ri

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

Next Steps • Collaborate with Domestic Admissions ü Define consistent parameters • Recognize the

Better ROI Metrics • Decide which metrics are appropriate, and include specific parameters for

Slides: 21

Download presentation

Measuring Return on Investment in International Student Recruitment Cheryl Darrup-Boychuck Owner and Chief International Education Officer USjournal. com, LLC cheryl@USjournal. com Measuring ROI in International Recruitment | cheryl@USjournal. com

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

“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

“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 ROI Metrics potentiate IEM 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

Simple ROI Formula -- Cost of Recruitment + Tuition and Fees Generated --------------------Return on Investment Measuring ROI in International Recruitment | cheryl@USjournal. com

Marketing Cost per 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

NACAC Admission Trends Survey Average cost per enrolled student, based on domestic recruitment (2008) $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

Measuring ROI in International Recruitment | cheryl@USjournal. com

Cost per Lead CPL = TAC / TLG CPL = Cost per Lead TAC = Total Advertising Cost TLG = Total Leads Generated 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

Market Growth Gm = S I / S L 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

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

Next Steps • Collaborate with Domestic Admissions ü 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 Measuring ROI in International Recruitment | cheryl@USjournal. com

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 ROI in International Recruitment | cheryl@USjournal. com