Lessons from Recent Enrollment Management Research and Implications for Christian Colleges

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1 Lessons from Recent Enrollment Management Research and Implications for Christian Colleges Kevin Crockett President/CEO and Principal Noel-Levitz All material in this presentation, including text and images, is the property of Noel-Levitz, Inc. Permission is required to reproduce information.

2 In times of rapid change, experience could be your worst enemy. J. Paul Getty

3 Four qualities of winning leaders Ideas: They have clear ideas of what it takes to win in their marketplace and how the organization should operate Values: The leaders and their organizations have strong values that everyone understands and lives up to Energy: Leaders are not only highly energetic people themselves, they actively work to create positive emotional energy in others Edge: They are willing to make tough decisions and they encourage and reward others who do the same From: Tichy and Cohen, The Leadership Engine

4 Four broad topics in 45 minutes!

5 College Choice and Communication Channels

6 A few reminders on college choice

7 What is the highest academic degree that you intend to obtain? Are you marketing graduate school outcomes and accelerated graduate degrees? 45% 42.4% 40% 35% 30% 25% 20% 22.1% 18.2% 15% 10% 5% 0% 0.8% 0.1% 0.5% None Vocational Certificate A.A. B.A., B.S. M.A., M.S. Ph.D. or Ed.D. 9.8% M.D., D.O., D.D.S., D.V.M. 4.5% J.D. 0.3% 1.3% B.D. or M.DIV. Other The American Freshman: National Norms for Fall 2009 Cooperative Institutional Research Program, Higher Education Research Institute, UCLA Reprinted with permission. This material may not be posted, published, or distributed without permission from UCLA.

8 And that desire for graduate education extends into the sophomore year 2010 Noel Levitz Sophomore Survey

9 Top reasons noted as very important in influencing a student s decision to attend this particular college 70% 60% 63.6% It is all about academic quality, outcomes, and cost 56.5% 50% 40% 39.3% 34.6% 41.4% 44.7% 41.6% 30% 20% 10% 0% Good academic reputation Grads get good jobs Good reputation for social activities Grads admission into top grad programs Visit to campus Offered financial assistance Cost of attending this college The American Freshman: National Norms for Fall 2009 Cooperative Institutional Research Program, Higher Education Research Institute, UCLA Reprinted with permission. This material may not be posted, published, or distributed without permission from UCLA.

10 CCCU Market Research Project

11 A sneak preview of our 2011 E-expectations Research

12 2011 E-expectations preview! 1089 high school seniors from across the U.S. 517 parents (pared with half of the students surveyed) Surveys completed by telephone interview February 2011

13 Chose the option that best reflects your attitude about college and university Web sites Students If I do not find what I need on the school s Web site, I will probably drop it from my list. (17%) A bad experience on a school s site may have some negative effect on my perception of the school. (47%) The school s Web site is not really an important resource for me. (36%) Parents If I do not find what I need on the school s Web site, I will probably drop it from my list. (16%) A bad experience on a school s site may have some negative effect on my perception of the school. (57%) The school s Web site is not really an important resource for me. (26%)

14 What is the first link you will look for on a school Web site? Students 38% Academic programs 24% Enrollment/adm. Info. 8% Cost 7% Scholarships 7% Other 7% Student life info. 5% Financial aid Parents 42% Academic programs 21% Enrollment/adm. Info. 13% Cost 10% Financial aid 6% Student life info. 5% Other

15 Cell phone ownership/use Students 82% own a cell phone 14% look at college sites on their mobile device 81% send/receive text messages 8% have exchanged texts with an admissions representative

16 What about their social media habits? Students 80.3% have an account 30.2% access many times/day 33.1% access once/day 22.4% access a few times/week 26.9% have viewed a college or university Facebook page 14.6% have posted comments or asked questions. 52.7% said that comments from current students about what is happening on campus are the most appealing. 29% said their experiences had a mostly positive influence (none said it had a negative influence); 65.1% said it had no influence at all. 74% would join a private social media group, like Facebook Parents 48.3% have an account 16.5% access many times/day 37.3% access once/day 30.1% access once/week 12.4% have viewed a college/university Facebook page 25.8% have posted comments or asked questions. 32.3% said that general announcements about events, news and programs were most appealing. 38.7% said their experiences had a mostly positive influence (6.5% said mostly negative); 35.5% said it had no influence at all.

17 What about their social media habits? Students 27.3% have gone to YouTube or other video sites to look at schools on their list 47.8% said most interesting videos are about student life Parents 16.8% have gone to YouTube or other video sites to look at schools on their list 43% said most interesting videos are about academic programs, classes or faculty

18 Calculator Tool Use Students 36% have used a cost calculator Influence on perception of school? 25% Yes, mostly positive 8% Yes, mostly negative 22% Both pos. and neg. 50% No influence at all 28% have used a scholarship calculator Influence on perception of school? 47% Yes, mostly positive 3% Yes, mostly neg. 0% Both pos. and neg. 51% No influence at all Why have you not used a calculator yet? 50% Have not seen one 46% Not interested in this info. 5% Parents are doing it Parents 26% have used a cost calculator Influence on perception of school? 24% Yes, mostly positive 7% Yes, mostly neg. 15% Both pos. and neg. 54% No influence at all 20% have used a scholarship calculator Influence on perception of school? 49% Yes, mostly positive 3% Yes, mostly neg. 20% Both pos. and neg. 28% No influence at all Why have you not used a calculator yet? 67% Have not seen one 30% Not interested in this info..05% Student paying for school

19 What portions of a net cost calculator do students/parents use? % Completing a Scholarship Estimate % Completing a Full Estimate % Requesting w/results % Requesting Follow-up Contact 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 81% 39% 9% 2% % Taking this Action Based on Noel-Levitz published True Cost Calculators

20 Use Students 86% use 93% give schools an address 96% give an address for an account they check at least once/week When? 26% Right away 26% When they ask 44% Completing application 3% After accepted.06% Never What messages are most helpful? 36% General info. 32% Deadline reminders 22% Details about my status 9% Campus life/student act. Parents 80% use 81% give schools an address 31% always identify themselves as a parent 44% identify themselves as a parent if they can do so on the online form 24% present themselves as their student When? 31% Right away 21% When they ask 46% Completing application 5% After accepted.06% Never What messages are most helpful? 36% Deadline reminders 32% General info. 24% Details about student 10% Campus life/student act.

21 Key takeaways from the preceding data It is all about academic quality, outcomes and cost Market your graduate school outcomes Recognize that students utilize multiple communication channels Build a presence on social networking sites, especially down funnel but recognize it is still a modestly used communications channel

22 Key takeaways from the preceding data Aggressively collect and utilize for both students and parents and give parents a place to sign-up for e- communications Make certain your net cost calculator has a scholarship calculator front-end Remember, it is all about permission marketing

23 Economic Issues

24 Impact of the Economic Crisis 46% report that the current economic crisis has caused them to reconsider the schools to which they apply or may attend (up from 34% last year) Avoiding private school options 26% (11%) Commuting instead of living on campus 25% (13%) Working while going to school 25% (21%) Attending a community or technical college 19% (21%) Vo tech instead of traditional 4% (2%) Part time attendance instead of full time 1% (7%) Not attending college at all 1% (2%) Noel-Levitz, Inc. E-expectations Report: Focusing Your E-recruitment Efforts to Meet the Expectations of College-Bound Students

25 I have financial problems that are very distracting 50% 40% 30% 20% 10% 38% 40% 38% 25% 26% 27% Firstgeneration students Non-firstgeneration students 0% *First-generation college students make up nearly 25% of the CCCU inquiry pool 2010 Noel-Levitz, Inc National Freshman Attitudes Report

26 And about half of second year students at private colleges report financing concerns 2010 Noel Levitz Sophomore Survey

27 CCCU Market Research Project

28 CCCU Market Research Project

29 40% Discount Expectation CCCU Market Research Project

30 CCCU Market Research Project

31 Average overall discount rates are rising after a decade of stability 40% 38% 36% 34% 32% 32.3% 32.8% 33.3% 33.7% 33.5% 33.4% 33.1% 33.0% 34.1% 36.1% 37.3% 30% 28% 26% 24% Noel Levitz, Inc Discounting Report

32 Average net revenue per student (tuition, fees, room, and board) $22,000 $20,000 $18,000 $16,000 $14,000 $15,640 $14,954 $13,690 $14,199 $18,187 $17,445 $16,670 $20,292 $19,660 $19,649 $19,338 $12,000 $10, Noel Levitz, Inc Discounting Report

33 Comparative 2010 data by institution type 2011 Noel Levitz, Inc Discounting Report

34 There were a couple of causes for the discount rate jump that started in Noel Levitz, Inc Discounting Report

35 And the need trend continued for fall 2010 (2010 versus 2009) 2011 Noel Levitz, Inc Discounting Report

36 But the academic ability trend did not (2010 versus 2009) 2011 Noel Levitz, Inc Discounting Report

37 Average tuition, fee, room and board charges in constant 2010 dollars, to (enrollment weighted, 2-year schools are tuition and fees only) Private 4-yr. Public 4-yr. Public 2-yr. $35,000 $30,000 $25,000 $22,530 $28,059 $36,993 $20,000 $15,000 $10,000 $5,000 $0 $14,747 $16,140 $10,647 $8,483 $6,725 $1,031 $1,515 $2,072 $2, Trends in College Pricing, The College Board. Reproduced with permission.

38 Distribution of college loans over the past decade Subsidized Stafford Loans Unsubsidized Stafford Loans Parent PLUS Loans Nonfederal Loans $120 $100 $80 $60 $40 $20 $ Trends in Student Aid, The College Board. Reproduced with permission.

39 The strategic financial aid matrix Academic Tier I Academic Tier II Willingness To Pay Academic Tier III Academic Tier IV Academic Tier V Ability To Pay E NE E NE E NE E NE E NE Very High Need Cell 1 Cell 2 Cell 3 Cell 4 Cell 5 Need Level 5 Cell 6 Cell 7 Cell 8 Cell 9 Cell 10 Need Level 4 Cell 11 Cell 12 Cell 13 Cell 14 Cell 15 Need Level 3 Cell 16 Cell 17 Cell 18 Cell 19 Cell 20 Need Level 2 Cell 21 Cell 22 Cell 23 Cell 24 Cell 25 Low Need Cell 26 Cell 27 Cell 28 Cell 29 Cell 30 Merit Aid Only Cell 31 Cell 32 Cell 33 Cell 34 Cell 35 Full Pay Cell 36 Cell 37 Cell 38 Cell 39 Cell 40 Premier Academic Cell 41 Cell 42 Cell 43 Cell 44 Cell 45 Special Talent Cell 46 Cell 47 Cell 48 Cell 49 Cell 50 Employee Benefit Cell 51 Cell 52 Cell 53 Cell 54 Cell 55

40 Key takeaways from the preceding data and any questions you may have Make certain your institution has a pricing and aid strategy Moderate your price increases Revise your multi-year assumptions around increases in enrollment-related operating revenue Focus on recapturing the average student if you have lost them Get creative in devising financing strategies for students (including debt acquisition and management) Strengthen your in-year tracking of student price response behavior Sharpen your financial aid analytics

41 Marketing and Recruitment Benchmarks

42 Our latest enrollment funnel benchmarks are now available https://www.noellevitz.com/nr/rdonlyres/c7b31cd5 57D6 48DE AFF3 34E2D90E17CE/0/2010AdmissionsFunnelReport.pdf

43 Among first year students at four year private institutions, yield rates are declining and conversion rates are rising 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 9% 36% 36% 35% 35% 33% 10% 12% 13% 14% 13% 31% 13% 29% 15% 29% 15% Four year private institutions Inquiry to application (conversion) Admit to enroll (yield) 2010, Noel Levitz, Inc Admissions Funnel Benchmarks for 4 Year Institutions

44 More than thirty percent of applications are now the initial point of contact 2010, Noel Levitz, Inc Admissions Funnel Benchmarks for 4 Year Institutions

45 And application type impacts yield at private institutions 2010, Noel Levitz, Inc Admissions Funnel Benchmarks for 4 Year Institutions

46 National benchmarks by geographic market

47 National benchmarks

48 The median cost to recruit a student at a 4-year private is $2,143 Source: 2009 Noel Levitz Cost of Recruiting Report

49 The median number of recruited students per FTE outreach personnel is 63 Source: 2009 Noel Levitz Cost of Recruiting Report

50 What about student satisfaction?

51 Challenges are defined as above the mid-point in importance and in the bottom 25 percent in student satisfaction

52 Before looking at the challenges, remember there are 3 ways to respond 1. Changing perceptions with information 2. Easy, immediate response items 3. Longer term, strategic items

53 CCCU Challenges 2009 Content of courses within major is valuable Tuition paid is worthwhile investment Able to register for classes with few conflicts Adequate financial aid is available Good variety of courses provided Security staff respond quickly in emergencies Living conditions in the residence halls are comfortable

54 CCCU Challenges 2009, continued Faculty provide timely feedback about student progress Financial aid awards announced in time to be helpful in college planning Financial aid counselors are helpful Adequate selection of food available in the cafeteria Student disciplinary procedures are fair Freedom of expression is protected on campus

55 Discussion and Questions

56 Management and leadership Management Planning Organizing Directing Controlling Problem-solving Leadership Develops a vision Formulates supporting strategies Forms a coalition of relevant people Empowers people to achieve

57 Management and leadership Management Keeps the current system operating Works through hierarchy and systems Is about coping with complexity Leadership Produces useful change, especially nonincremental change Works through people and culture Is about coping with change

58 The relationship between leadership, management, shortterm results, and successful transformation Leadership Weak Moderate Strong Transformation succeeds for a while, but fails after shortterm results become erratic Transformation goes nowhere All highly successful transformation efforts combine strong leadership and management Short term results are possible, long term change is rarely achieved Weak Moderate Strong Management

59 "Leadership is a potent combination of strategy and character. But if you must be without one, be without the strategy." Norman Schwarzkopf

60 Four qualities of winning leaders Ideas: They have clear ideas of what it takes to win in their marketplace and how the organization should operate Values: The leaders and their organizations have strong values that everyone understands and lives up to Energy: Leaders are not only highly energetic people themselves, they actively work to create positive emotional energy in others Edge: They are willing to make tough decisions and they encourage and reward others who do the same From: Tichy and Cohen, The Leadership Engine

61

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