Session Chair / Co-Presenter: Cheryl Darrup-Boychuck, C.I.E.O. USjournal, LLC

Measuring ROI, 5 Nov 2007 1

Measuring Return on Investment in International Recruitment

NAFSA Region III | Austin, TX | 5 Nov 2007

Session Chair / Co-Presenter: Cheryl Darrup-Boychuck, C.I.E.O.

USjournal.com, [email protected]

Co-Presenter: Kristalina Karabunarlieva

Office of International AdmissionsUniversity of Houston

[email protected]


Why study ROI? Why now?

An argument based on improving our “trade balance” might go farther than one based on the importance of developing global citizens. (I can't believe I really said that after 30 years of preaching the latter. Gasp.)

-- NAFSA’s Marketing and Recruiting Network Forum, 23

July 2007


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 regions

Yield = Number of newly-enrolled students

per dollar of recruitment expenses


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


Evolution from Enrollment Funnel

to Admissions Cylinder


Quality – Not Quantity

At my first agent-organized presentation in Busan, ten students showed up… What a waste… Within a month, however, four of those students enrolled, with each one spending about three years at our campus.

-- NAFSA’s Marketing and Recruiting Network Forum, 29

June 2007


Case Study: Agent Affiliations and

Overseas Travel to South Korea

-- $ 1,500.= Agent Workshop, Domestic Flight-- $ 0. = Word-of-Mouth Referral-- $ 3,000.= 2 Flights (Chicago to Busan)-- $ 1,500.= Hotel and Meals (6 nights, Busan)-- $ 3,000.= 2 Events, Equipment Fees-- $ 1,200.= Flat Fee to Agent + $ 16,100.= Student 1 Tuition (2 full years) + $ 31,740.= Students 2, 3, 4 Tuition ------------------------------------------------------------------ $ 37,640. = Return on Investment



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.


Quantifiably Elusive Factors in our simplistic ROI Equations

• Internal Review / Campus Evaluation• The Prestige Factor• Word-of-Mouth Referrals• Research into External Markets• Follow-up Mechanisms • Staff Time• Foreign-born Faculty Members (+,--) • Currency Fluctuations • Cost of educating that student


Defining the Investmentsthat are designed to yield

students

Types of Investment: • 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


Domestic Travel(Washington, DC)

• Embassy Visits • Visits to Sponsored Program Agencies

-- Cost of Developing a Relationship

-- Discount on Tuition or Fees+ Student(s) Tuition + Student(s) Fees

--------------------------------------------------------

Return on Investment


Domestic Travel (Washington, DC):

Most Effective, anecdotally

• 20 Students from Saudi Arabia • Enrolled in English Language Program

-- $ 1,200. = Flight + Hotel -- $ 0. = Discount on Tuition or Fees+ $135,980. = 20 * $6,799. Tuition + $ 7,000. = 20 * $3,500. Fees / 10%--------------------------------------------------------- $141,780. = 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


Targeting Specific Populations:Recruiting Olympic Athletes

• Factors for Success• Recruitment Tools • ROI for the university as a whole:

• Money from Donors• Profit from Games / Events• Prestige Factor

Expenses and revenue often fall outside of International Admissions


Exploring NegativeReturn on Investment

• Faculty Recruitment• Promises, promises…

• Extension Programs• The challenges of reaching out to new

territories

• Articulation Agreements• “Flawless transition” from a Chinese

school

• Twin Programs


In Conclusion: Where do we go from here?

• Break-Even Analysis• Concentrate on Specific Subsets:

• Language Schools• Graduate Schools (MBA, etc.)• International Student Athletes• Full-Scholarship Opportunities• Local Non-Resident Populations

• Interview Prospective Students• Develop a Linear Regression Model


Multivariate Likelihood Function to Predict Customer Behavior


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

• Shortcomings of Linear Regression


Continue the Conversation viaNAFSA’s Marketing / Recruiting

Network

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


Measuring Return on Investment in International Recruitment

NAFSA Region III | Austin, TX | 5 Nov 2007

Session Chair / Co-Presenter: Cheryl Darrup-Boychuck, C.I.E.O.

USjournal.com, [email protected]

Co-Presenter: Kristalina Karabunarlieva

Office of International AdmissionsUniversity of Houston

[email protected]

Documents

Session Chair / Co-Presenter: Cheryl Darrup-Boychuck, C.I.E.O. USjournal, LLC