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, LLC [email protected]Co-Presenter: Kristalina Karabunarlieva Office of International Admissions University of Houston [email protected]
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Measuring ROI, 5 Nov 20071 Measuring Return on Investment in International Recruitment NAFSA Region III | Austin, TX | 5 Nov 2007 Session Chair / Co-Presenter:
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Measuring ROI, 5 Nov 2007 1
Measuring Return on Investment in International Recruitment
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
Measuring ROI, 5 Nov 2007 3
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
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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
Measuring ROI, 5 Nov 2007 5
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
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Evolution from Enrollment Funnel
to Admissions Cylinder
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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
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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
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Measuring ROI, 5 Nov 2007 10
Engaging Agents: Initial costs must be greater than zero
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
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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
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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
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Multivariate Likelihood Function to Predict Customer Behavior
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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
Measuring ROI, 5 Nov 2007 22
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 ROI, 5 Nov 2007 23
Measuring Return on Investment in International Recruitment