1. Measuring ROI, 5 Nov 20071 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 cheryl@USjournal.com Co-Presenter: Kristalina Karabunarlieva Office of International Admissions University of Houston KKarabun@Central.UH.EDU

2. Measuring ROI, 5 Nov 20072 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

3. Measuring ROI, 5 Nov 20073 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

4. Measuring ROI, 5 Nov 20074 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

5. Measuring ROI, 5 Nov 20075 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

6. Measuring ROI, 5 Nov 20076 Evolution from Enrollment Funnel to Admissions Cylinder

7. Measuring ROI, 5 Nov 20077 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

8. Measuring ROI, 5 Nov 20078 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

9. Measuring ROI, 5 Nov 20079

10. 10 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.

11. Measuring ROI, 5 Nov 200711 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

12. Measuring ROI, 5 Nov 200712 Defining the Investments that 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

13. Measuring ROI, 5 Nov 200713 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

14. Measuring ROI, 5 Nov 200714 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

15. Measuring ROI, 5 Nov 200715

16. Measuring ROI, 5 Nov 200716 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 = 1 st student $ 15,380 = 5 students $ 31,955 = 10 students

17. Measuring ROI, 5 Nov 200717 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

18. Measuring ROI, 5 Nov 200718 Exploring Negative Return 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

19. Measuring ROI, 5 Nov 200719 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

20. Measuring ROI, 5 Nov 200720 Multivariate Likelihood Function to Predict Customer Behavior

21. Measuring ROI, 5 Nov 200721 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

22. Measuring ROI, 5 Nov 200722 Continue the Conversation via NAFSA’s Marketing / Recruiting Network Go to http://www.nafsa.org/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!

23. Measuring ROI, 5 Nov 200723 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 cheryl@USjournal.com Co-Presenter: Kristalina Karabunarlieva Office of International Admissions University of Houston KKarabun@Central.UH.EDU