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

Session Chair / Co-Presenter: Cheryl Darrup-Boychuck, C.I.E.O. USjournal.com, LLC cheryl@USjournal.com Co-Presenter: Kristalina Karabunarlieva Office of International Admissions University of Houston KKarabun@Central.UH.EDU.

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

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  1. Session Chair / Co-Presenter: Cheryl Darrup-Boychuck, C.I.E.O. USjournal.com, LLC cheryl@USjournal.com Co-Presenter: Kristalina Karabunarlieva Office of International Admissions University of Houston KKarabun@Central.UH.EDU Measuring Return on Investment in International RecruitmentNAFSA Region III | Austin, TX | 5 Nov 2007 Measuring ROI, 5 Nov 2007

  2. 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 Why study ROI? Why now? Measuring ROI, 5 Nov 2007

  3. 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 Studying ROI:Corporate World vs Higher Education Measuring ROI, 5 Nov 2007

  4. Estimate Admissions Yield from recruiting in different regions Yield = Number of newly-enrolled students per dollar of recruitment expenses Current Trends in Studying ROI / International Student Recruitment Measuring ROI, 5 Nov 2007

  5. 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 Studying ROI: A Domestic Perspective Measuring ROI, 5 Nov 2007

  6. Evolution from Enrollment Funnelto Admissions Cylinder Measuring ROI, 5 Nov 2007

  7. 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 Quality – Not Quantity Measuring ROI, 5 Nov 2007

  8. -- $ 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 Case Study: Agent Affiliations andOverseas Travel to South Korea Measuring ROI, 5 Nov 2007

  9. Measuring ROI, 5 Nov 2007

  10. -- 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. Engaging Agents: Initial costs must be greater than zero Measuring ROI, 5 Nov 2007

  11. 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 Quantifiably Elusive Factors in our simplistic ROI Equations Measuring ROI, 5 Nov 2007

  12. 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 Defining the Investmentsthat are designed to yield students Measuring ROI, 5 Nov 2007

  13. 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) Measuring ROI, 5 Nov 2007

  14. 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 Domestic Travel (Washington, DC): Most Effective, anecdotally Measuring ROI, 5 Nov 2007

  15. Measuring ROI, 5 Nov 2007

  16. Model -- Cost of Advertising + Student(s) Tuition + Student(s) Fees ------------------------------ Return on Investment Online Promotions: Targeting Specific Populations 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 Measuring ROI, 5 Nov 2007

  17. 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 Measuring ROI, 5 Nov 2007

  18. 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 Measuring ROI, 5 Nov 2007

  19. 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 Measuring ROI, 5 Nov 2007

  20. Multivariate Likelihood Function to Predict Customer Behavior Measuring ROI, 5 Nov 2007

  21. 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 Securing Pure Data: The Perspective of a Statistician 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. Session Chair / Co-Presenter: Cheryl Darrup-Boychuck, C.I.E.O. USjournal.com, LLC cheryl@USjournal.com Co-Presenter: Kristalina Karabunarlieva Office of International Admissions University of Houston KKarabun@Central.UH.EDU Measuring Return on Investment in International RecruitmentNAFSA Region III | Austin, TX | 5 Nov 2007 Measuring ROI, 5 Nov 2007

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