Effective Strategies for Recruiting Millennial Students. Royall & Company June 24, 2015

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1 Effective Strategies for Recruiting Millennial Students Royall & Company June 24, 2015

2 Agenda 1:30 p.m. Welcome 1:45 p.m. The Enrollment Landscape 2:15 p.m. The New Era of Search 3:00 p.m. Break 3:15 p.m. Building an Application Strategy 4:00 p.m. Managing Yield 4:45 p.m. Wrap-up

3 Dedicated exclusively to working with colleges and universities to achieve their enrollment and financial goals through tested direct marketing strategies Student Recruitment Financial Aid Optimization Advancement Higher education focus since 1989 Undergraduate and graduate Richmond, VA/Minneapolis, MN Staff of 350+ experts Partner with 350+ institutions Client retention rate of 96%

4 Some of Royall s 350+ relationships

5 The Enrollment Landscape: Trends Impacting Higher Education Al Newell Enrollment Management Consultant

6 Changes in high school graduates ,300,000 3,200,000 3,100,000 3,089,951 3,165,069 3,000,000 2,900,000 2,873,188 2,800,000 2,700,000 2,600,000 2,500, Source: Western Interstate Commission for Higher Education

7 Changes in high school graduates West Grows 5.6% 407 Colleges Midwest Declines 5.7% 543 Colleges Northeast Declines 7.1% 515 Colleges South Grows 14.0% 720 Colleges Source: Western Interstate Commission for Higher Education

8 National changes in high school graduates by ethnicity % 41.28% % % % 0 White - Non Hispanic Hispanic African American Asian Pacific Islander American Indian Alaska Native Source: Western Interstate Commission for Higher Education

9 Changes in high school graduates Southern states 350, , , , , ,000 50,000 0 DC DE WV MS AR LA SC KY AL OK MD TN VA GA NC FL TX Source: Western Interstate Commission for Higher Education

10 Changes in high school graduates Northeastern states 180, , , , ,000 80,000 60,000 40,000 20,000 0 VT RI NH ME CT MA NJ PA NY Source: Western Interstate Commission for Higher Education

11 Changes in high school graduates Midwestern states 140, , ,000 80,000 60,000 40,000 20,000 0 IA IL IN KS MI MN MO NE OH WI Source: Western Interstate Commission for Higher Education

12 Changes in high school graduates Western states 400, , , , , , ,000 50,000 0 WY ND AK SD MT HI NM ID NV OR UT CO WA AZ CA Source: Western Interstate Commission for Higher Education

13 National average yield rate since % 42.7% 40.0% 35.0% 35.3% 33.2% 30.0% 25.0% 24.2% 20.0% Private College Yield Public College Yield Source: IPEDS

14 National average yield rate since 2003 Public colleges 44.0% 42.0% 42.7% 40.0% 38.0% -22% 36.0% 34.0% 32.0% 33.2% 30.0% Source: IPEDS

15 National average yield rate since 2003 Private colleges 38.0% 36.0% 34.0% 35.3% 32.0% 30.0% -30% 28.0% 26.0% 24.0% 22.0% 20.0% 24.2% Source: IPEDS

16 For every 1,000 students you admitted in 2003, you need to admit 45% more today Normalized admits per enrollment private colleges 1,550 1,450 1,459 1,350 1,250 1,150 1,050 1, Source: IPEDS

17 For every 1,000 students you admitted in 2003, you need to admit 30% more today Normalized admits per enrollment public colleges 1,350 1,250 1,286 1,150 1, , Source: IPEDS

18 Changes in high school graduates by ethnicity South 2013 to , , , , , ,000 60,000 10,000 Hispanic 25,341 28,730 Asian African American Caucasian 2,657 Public Schools Private Schools All Schools -40,000-6,711 Native American -5,211 Public Schools -90,000 Non-public high school data are not reported by ethnicity. Only total enrollment numbers are reported. Source: Knocking at the College Door, WICHE, 8 th Edition, 2012

19 Changes in high school graduates by ethnicity Northeast 2013 to ,000 20,000 22,469 13,715 10, ,000-20,000 Hispanic Asian African American Hispanic -4,645 Native American -304 Public Schools -13,128 Private Schools -17,151 All Schools -30,000 Asian African American Caucasian -30,279-40,000-50,000-44,363 Public Schools Non-public high school data are not reported by ethnicity. Only total enrollment numbers are reported. Source: Knocking at the College Door, WICHE, 8 th Edition, 2012

20 Changes in high school graduates by ethnicity Midwest 2013 to ,000 22,881 20,000 10, ,000 Hispanic Hispanic 9,839 Asian African American 4,471 Native American 579 6,730 Public Schools Private Schools -6,879 All Schools ,000 Asian African American Caucasian -30,000-31,040-40,000 Public Schools Non-public high school data are not reported by ethnicity. Only total enrollment numbers are reported. Source: Knocking at the College Door, WICHE, 8 th Edition, 2012

21 Changes in high school graduates by ethnicity West 2013 to ,000 92,018 84,862 80,000 70,114 60,000 Asian All Schools 40,000 Hispanic Public Schools Private Schools 20, ,480 Asian African American African American 5,584 Caucasian Caucasian -2,405 Native American 2,245 Private Schools -7,156-20,000 Public Schools Non-public high school data are not reported by ethnicity. Only total enrollment numbers are reported. Source: Knocking at the College Door, WICHE, 8 th Edition, 2012

22 Median family income by selected characteristics, 2012 Source: The College Board, Trends in College Pricing 2013, Figure 20B

23 Student application patterns continue to trend toward a buyer s market Number of Applications Submitted 27% 28% 32% 33% 35% 39% 37% 42% 46% 30% 29% 29% 29% 29% 28% 28% 27% 27% % 26% 25% 24% 22% 21% 22% 20% 18% 18% 17% 15% 14% 14% 12% 13% 11% 10% Source: Higher Education Research Institute, UCLA, The American Freshman, National Norms

24 Summary Insight One: Colleges and universities are facing challenging demographics as the number of high school graduates is declining nationally. Insight Two: The rate of decline is heightened in the Northeast and Midwest. Insight Three: There will be recruitment opportunities among multicultural students, particularly Hispanic students, although these students will be more expensive to enroll. Insight Four: With students applying to more colleges, yield rates are declining nationally.

25 The New Era of Search: How to Choose the Students You Want Alex White Senior Client Development Executive

26 Stop searching

27 Start choosing

28 You can choose the students you desire

29 Engage them and their parents

30 Whenever and wherever they are ready

31 What search used to be vs. what it can be Searching Once-a-year, onetime activity Focused on one high school class Choosing Comprehensive, year-round campaign to engage students and parents Contacts students when first available Student names from a single list source Paper mailing and one or two electronic mailings Typical result: 2% to 4% response rate Multiple list sources, segmented and targeted for right fit Persuasive, persistent marketing coupled with precise execution and data management Typical result: 8% to 15% response rate

32 Three keys to success How to increase Search performance and outcomes Strategic targeting Precise timing Proven tactics

33 Strategic targeting vs. predictive targeting Predictive Targeting Starts with identifying students who share attributes with your current enrollments Eliminates regions where you desire to grow enrollments Misses opportunities to engage students early in high school Regressive in design Strategic Targeting Starts with identifying students you most desire to enroll Leverages your past success Seeks to engage students as early as possible Aspirational in design

34 Knowing when and how to engage students Freshmen & Sophomores 50% Juniors 30% Seniors 20%

35 Pop quiz 100,000 applicants from 14 colleges across the country What percentage applied for a major different from the one listed on their search record?

36 Answer: The majority of students Percentage of students changing major category by class 61% 55% 48% Sophomore Junior Senior

37 Answer: Nearly all students! Percentage of students changing major level by class 85% 80% 74% Sophomore Junior Senior

38 Search is truly year-round Year-round Search will allow you to September 1. Recognize a student s evolving status and react to it in order to optimize response May November 2. Target students as soon as they become available, utilizing all sources of student data available March January

39 Percentage of Deposits from Search Inquiries (cumulative) Persistence in the stream pays off 100% Search Deposits by Contact 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 34% of all deposits are from students responding after 5 th message Message Number Search responder deposit data across a sampling of Royall HBCU clients

40 Proven tactics: 2014 Search

41 Key strategic element

42 Proven tactics: direct mail Search 2014 Search Responders HBCU Partnerships 15% 85% Direct Mail

43 Immediate engagement: Build a stronger relationship with students and parents First 30 days are critical Immediate fulfillment of offer and invitation to campus Expression of thanks to both student and parent Student focused on academics Student focused on affordability Student focused on visiting campus Parent expressing your interest in student S M T W T F S Parent focused on outcomes/career preparation

44 Year-Long Fulfillment Engage students when they are most interested Immediate fulfillment of offer and invitation to campus Expression of thanks to both student and parent Deepen the relationship throughout the academic year Strategically vary messages Campus Visit Affordability Academic rigor Career outcomes

45 Fulfillment

46 Optimize your Search for multiple devices

47 Langston University mobile activity Sophomore and junior Search program 38% 62% Responded via Other Device Responded via Mobile Device

48 Search builds a database of parent addresses Parent Submissions Search Why are parent addresses important? 50% 50% Students who provide parent addresses are 45% more likely to apply, and that lift carries through to deposits. No Parent Provided Parent

49 Royall average response rates Program year % 16.7% Overall HBCU

50 Search contact volume plan Search contacted by grade level Entering Classes ,000 Seniors 50,000 40,000 30,000 30,000 20,000 35,000 40,000 10,000 23,000 0 Entering Class 2014 Entering Class 2015 Entering Class 2016 Juniors Seniors

51 Multiyear multiclass recruitment Search responders by grade level Entering Classes ,000 12,000 Seniors 10,000 8,000 7,577 6,000 4,000 9,593 7,691 2,000 4,209 0 Entering Class 2014 Entering Class 2015 Entering Class 2016 Juniors Seniors Langston for EC

52 Summary Insight One: Choose the students you want. Q: What audiences do you typically engage with Search? Insight Two: Engage them as early as possible Q: When are you engaging these students? Insight Three: Invite parents into the conversation. Q: Do you have the ability to collect parent contact information? Do you communicate with parents? Insight Four: Meet students where they are. Q: How user-friendly are your communications?

53 Building an Application Strategy: Customizing an Approach That s Right for You Alex White Senior Client Development Executive

54 Can you think of some businesses that have changed in the past 15 years?

55 Banking? Do you go to the bank like this?

56 Banking? Or like this?

57 Movie rental? When you want to watch a movie at home, do you go here?

58 Movie rental? Or here?

59 Telephone? Used one of these recently?

60 Telephone? How about one of these?

61 Why, then, this? 1998 Paper Application 2012 Web Application

62 Can t the application be something more?

63 Application as a marketing platform

64 Considerations when developing your strategy 1 Audience and timing 2 Platform and technology 3 Focus on completion

65 Audience and timing Early Application Marketing Inviting inquiries to apply Recruiting new seniors Deadline marketing

66 Multichannel always your voice and brand

67 Langston University case study Rural setting Total undergraduate enrollment of 2,400 Partnership goal Increase enrollment Partnership commenced in late spring 2013 Custom Application Marketing seniors Web Application seniors Deposit IQ seniors

68 Custom Application Marketing represented a larger proportion of the 2014 enrolling class Enrollment Funnel by Source Entering Classes ,000 9,000 9,096 8,000 7,000 6,000 5,000 6,649 2,349 5,488 5,594 4,000 3,000 2,000 1, ,070 1,182 3, , , ,502 2,524 1,926 1, Submitted Applications Admits Enrolled Other Source Royall Web Application Custom Application Marketing

69 Increases in quality were driven by Custom Application Marketing Average Enrolled GPA by Source Entering Classes 2013 and = ACT SAT scores normalized to ACT Other Source Entering Class 2013 Entering Class 2014 Custom Application Marketing

70 Each launch of Custom Application Marketing provided value Custom Application Marketing Enrollment Funnel by Launch Entering Class 2014 Contacted Responders Submitted Applications Admits Enrolled October Launch 23,551 29% 6,737 44% 3,835 58% 2,242 4% 85 January Launch 10,239 26% 2,711 28% 1,570 50% 780 6% 46 March Launch % % 83 58% 48 33% 16

71 Continued incremental increases 10,000 9,000 8,000 9,096 Freshman Enrollment Funnel Entering Classes ,000 6,649 6,000 5,594 5,000 4,000 3,000 2,000 2,743 2,502 2,176 1,926 3,190 1, Submitted Applications Admits Enrolled Entering Class 2011 Entering Class 2012 Entering Class 2013 Entering Class 2014

72 Enrollments from direct marketing investments Enrollment attributed 2014 Custom Application Marketing Web Application Total Unduplicated Enrollments Unduplicated enrollments from program Estimated % that would have enrolled without program 50% 75% 68.1% Estimated incremental effect of Royall & Company programs

73 Return on direct marketing investment Freshman-year and lifetime return ROI Description Base Revenues $5 to $1 $9 to $1 Freshman-year net tuition and fees vs. direct marketing investments Freshman-year net tuition, fees, room and board vs. direct marketing investments $1,072,175 $1,738,714 $13 to $1 Lifetime net tuition and fees vs. direct marketing investments $2,521,184 $23 to $1 Lifetime net tuition, fees, room and board vs. direct marketing investments $4,388,156

74 Platform and technology Mobile Document Transfer

75 Mobile usage continues to increase Mobile Usage by Year % 56% 42% 30% 9% 2% 5 Years Ago 4 Years Ago 3 Years Ago 2 Years Ago 1 Year Ago Current

76 Percent of Mobile Interactions for Search and Application Programs 2015 Search and Application Programs Search 63% Application Marketing 48%

77 Minority populations within Royall application marketing campaigns exhibit higher mobile usage than non-minority populations Percent of Application Marketing Mobile Interactions by Ethnicity 2015 Programs Non-Minority 39.7% Minority 50.2% ** Asian Ethnicity Considered Non-Minority

78 Platform and technology

79 Royall Mobile Common Application Competitor Application

80 Application mobile interaction Accessed Via Mobile Device Submitted Applications Admits Enrolled 5,711 64% 3,678 37% 1,347 10% 135

81

82 Since inception, counselors have embraced SENDedu nationally

83 SENDedu has helped facilitate completion for students applying to Langston University 6,000 5,000 5,012 4,000 3,000 2,946 2,000 1,000 1, ,136 0 Counselors High Schools Students Documents Entering Class 2013 Entering Class 2014

84 Completion page activity 55% 52% 68% 41%

85 Remember the key steps in developing your strategy 1 Audience and timing 2 Platform and technology 3 Focus on completion

86 Additional case studies

87 Case Study A Private HBCU in the Southeast Urban setting Total undergraduate enrollment of 1,500 Partnership goals Increase applications Increase enrollment Partnership commenced on June 9, 2014 Custom Application Marketing seniors (new names only)

88 Custom Application Marketing is a revenue game changer at any time of year Custom Application Marketing Entering Class 2014 Contacted Deployed 6/9/2014 Responded Submitted Promising Candidate App Enrolled Custom Application Marketing 25, % 3, % 1, % 78

89 Case Study B HBCU in the Southeast Urban setting Total undergraduate enrollment of 5,600 Partnership goal Increase enrollment Partnership commenced in late spring Custom Application Marketing seniors

90 Case Study C A test of Application Marketing Selected 30,000 names from the inquiry pool 15,000 inquiries received typical application encouragement 15,000 invited to apply through a direct marketing campaign including a custom branded application and the Common Application Application fee was not waived Letters of recommendation and essays required Test launched in December for the next fall s entering class

91 20% increase in first-year enrollment 2,200 First-Year Enrollment 2,169 2,100 2,000 1,900 1,808 1,800 1,700 1,600 Year before Royall First Year with Royall

92 7% increase in out-of-state enrollment First-Year Out-of-State Enrollment Year before Royall First Year with Royall

93 Case Study D: Testing the Custom Application Four colleges wanted to measure the impact on enrollment outcomes Colleges varied in terms of location, size and selectivity Inquiries were randomly divided into two statistically identical groups Test Group: Inquiries invited to apply through the Custom Application program Control Group: Inquiries invited to apply through the college s traditional application program Measured the differences between the two groups at each stage of the enrollment process

94 Contact quantity by test group 12,000 10,000 College A 9,779 9,740 18,000 16,000 14,000 College B 15,193 15,071 8,000 12,000 6,000 10,000 8,000 4,000 6,000 2,000 4,000 2,000 0 Control Traditional App Test Royall-Partnered App 0 Control Traditional App Test Royall-Partnered App 12,000 10,000 8,000 College C 10,679 10,571 12,000 10,000 8,000 College D 10,217 10,199 6,000 6,000 4,000 4,000 2,000 2,000 0 Control Traditional App Test Royall-Partnered App 0 Control Traditional App Test Royall-Partnered App

95 Applications by test group 1,600 1,400 1,200 1, College A 1, Control Traditional App Test Royall-Partnered App 2,200 2,000 1,800 1,600 1,400 1,200 1, College B 2, Control Traditional App Test Royall-Partnered App 1, College C College D Control Traditional App Test Royall-Partnered App 0 Control Traditional App Test Royall-Partnered App

96 Enrollments by test group College A College B Control Traditional App Test Royall-Partnered App 0 Control Traditional App Test Royall-Partnered App College C College D Control Traditional App Test Royall-Partnered App 0 Control Traditional App Test Royall-Partnered App

97 Summary Insight One: Choose the students you want Q: What audiences do you typically include in a senior marketing program? Insight Two: Engage them whenever they re ready, wherever they are. Q: Is your application user-friendly and mobile-optimized? Insight Three: Focus on completion. Q: What processes are in place to help with completion? Do you market to high school counselors?

98 Managing Yield: How Best to Engage Admitted Students, Manage Human Resources and Monitor the Enrollment Environment David Cullen Senior Strategic Leader

99 Some of the challenges in managing yield Short season Traditional yield predictors are volatile and sometimes dated Lack of vision into strategies of competitors

100 Traditional responses to yield management Informative mailings Increased frequency of events Calling/ ing campaigns

101 What if there was a better way? Gain real-time feedback on student intentions Allocate and manage valuable staff time Deploy an early warning system for competitor practices

102 Campaign starts with strong personal outreach Do you plan on attending? Yes No Maybe

103 Second measure of success is getting the responses in time to take action First and final answers 100.0% 90.0% 80.0% 70.0% 65.6% 81.4% 90.9% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 45.2% 45% of response comes in week 1 20% more comes in the next two weeks More than three-fourths of response is received by week 5 More than 90% of response is received by week

104 Real-time reporting = peace of mind Track results minute by minute Easily accessible through an online reporting portal

105 Quick counselor action can change behavior and increase student outcomes

106 Example of a maybe responder

107 Confidently deploy resources to impact yield Maximize and target limited resources Identify and qualify admitted students who are on the fence Refocus staff resources for maximum impact

108 Allocate resources based on student response Response Rate Distribution First Answer 70.0% 60.0% 50.0% Employ Minimal Effort Ensure that deposit arrives. Follow up if it does not materialize. Begin melt prevention. Focus All Resources Contact students immediately to answer specific questions and influence deposit decision. Employ No Effort If they say they are not coming, there is little you can do to convince them otherwise. 40.0% 30.0% 49.7% 20.0% 10.0% 0.0% 25.5% 13.0% 2.2% 9.6% Already Done Yes Probably Maybe No

109 Quick counselor action can change behavior and increase student outcomes Response Distribution First and Final Answers 80.0% +90% +28% -47% -44% +21% 70.0% 60.0% 50.0% 49.7% 59.9% 40.0% 30.0% 25.5% 20.0% 10.0% 2.2% 4.2% 13.0% 16.6% 9.6% 5.1% 14.2% 0.0% Already Done Yes Probably Maybe No First Answer Final Answer

110 The responses you receive are predictive of yield Responses are indicative of actions Know for sure about students intentions Real-time reporting

111 Response is indicative of deposit behavior Deposit rate by first TM response 100.0% 90.0% 86.8% 80.0% 70.0% 71.8% 60.0% 50.0% 47.8% 40.0% 30.0% 20.0% 10.0% 0.0% 16.6% Already Done Yes Pretty Sure More Info No 0.4%

112 Leverage real-time analysis of non-enrolling students Leverage real-time trend analysis of where your accepted students are depositing High participation rates Real-time insights Early warning about competitor strategies Benchmarking analysis against a robust data set

113 High participation rate Langston University Exit survey submission 57% 43% Did Not Submit Survey Submitted Survey

114 Real-time views on non-enrolling students plans

115 Deploy an early warning system Know sooner if you are on target to reach enrollment goals Detect changes in the competitive landscape Gain insight to inform wait-list strategies Benchmark results and plan for the future

116 Summary Insight One: Know the intentions of your admitted students. Insight Two: The responses you receive are predictive of yield. Insight Three: Confidently deploy resources to impact yield. Insight Four: Leverage real-time analysis of non-enrolling students.

117 Wrap-up Al Newell Royall & Company

118 3 keys to ensure success Year-round search Application Marketing strategy Yield management

119 Questions? Thank you for joining us today. Alex White Client Development Executive Royall & Company David Cullen Senior Strategic Leader Royall & Company Al Newell Enrollment Management Consultant Royall & Company

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