Deciding to save money in the short run on advertising and inquiry development could have a long-lasting effect. And on the flip side, mounting an immediate and massive nurturing / rejuvenation campaign could yield immense rewards.

Let’s take a look at three colleges and attempt to understand their buyer journey, sales staffing and attitude toward inquiries. All of the charts below reflect enrollments during the first quarter of 2020.

College A

This particular college has a robust contact center. They embrace drip marketing and actively nurture their inquiry database. Their population is over 90% male and they use no traditional marketing. Students find this school from the internet both organically and from paid search on Google Ads and Facebook/Instagram. A small portion of their enrollment comes from face to face interactions at career fairs.

Interestingly enough, 45% of the students who started school in 2020 inquired at least 61 days in advance. And 12% of this year’s population inquired more than 4 months ago.

Take-aways: While most institutions would be focusing on the “new inquiries” from the last two months, this school employs multiple touches and continues to connect with and engage inquiries for many months. This takes appropriate staffing levels and a long-term view. But it also results in many more enrollments.

Final thought: A large scale reduction in advertising (like pausing a month) now could be offset slightly from the “lead bank” – but enrollments will lag dramatically over the next 90 days and in fact it will take at least 4 months to regain momentum.

College B

Not unlike College A, this school has a significant portion (35%) of its enrollment coming from inquiries that are more than two months old. However, the absence of a contact center means admissions advisors are tasked with the responsibility for contacting all inquiries – both new, old and VERY old.

This institution is also committed to on-going contact with its inquiry database in the form of email and text messages. Inquiry sources include digital efforts similar to College A — but in addition to digital, College B spends about one third of its budget on traditional channels.

Takeaways: Adding a contact center and actively recycling older inquires could yield substantial success for College B. The “direct response” nature of the traditional inquiries results in a larger number of students who are further down the buying path and who are ready to enroll sooner, but more support could be given to working older inquiries.

Final Thoughts: A large scale reduction in advertising (like pausing a month) now would create disaster for the following two months as enrollments could fall off by 60% in the two months immediately after “going dark.” The absence of a contact center will also translate to fewer enrollments from older inquires and would exacerbate the situation. All told, it will be very challenging to ever regain the ground lost after pausing or greatly reducing lead generation.

College C

This could be a conundrum. How do you manage an extended enrollment funnel when almost 60% of your starts this year have been in your data base for three months to three years? SMH.

The good news: The combined efforts of admissions and marketing are effectively nurturing the database. Deeper insight would reveal this college attracts some high school seniors – but not at significant numbers. However, the behavior of the 29 enrollments (23% of the 2020 YTD starts) who inquired more than six months ago merits additional study. If these are in fact 2019 or 2018 HS grads, a targeted effort to message to this population should be tops on the list.

Takeaways: The gaping hole in the production of enrolls from four to six months needs to be addressed. There may be significant gains to be made by addressing this “dormant but not dead” population. Additional inspection internally may also improve cash flow. Could additional start dates be added to accelerate enrollments? Note: Of the three schools studied, College C has less frequent starts.

Final Thoughts: Pulling back on advertising in the short run is probably least disruptive for this school in the immediate near future, as only 20% of enrollments inquire in the prior month. However, when you roll forward over the next two months and consider the cumulative impact, a large advertising cut in month one could actually reduce enrollment by 60% in month two through four. And that’s downright frightening.

Conclusions: Increased awareness of your new student life cycle can yield opportunities you may be missing. Redacting data and sharing with your peers in non-competitive markets would be an excellent way to spend 30 minutes over a cup of coffee. Finally, cutting ad spend now will hurt more later than you realize.

Source: https://www.linkedin.com/pulse/understanding-sales-cycle-vince-norton/

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Well, getting a college degree ensures a good job, right? Not so fast. A report issued by Burning Glass and the Strada Institute shows that 43 percent of recent graduates are underemployed in their first job out of college. That means their earning potential is lower than expected, which means their ability to reasonably pay back their student loan debt is reduced. But wait – of that 43 percent of graduates, two-thirds find themselves in the same predicament five years after graduation, and more than half are still unemployed after 10 years. Chances are that one of 10 people who find a first job that pays appropriately, will be underemployed after five years.

What’s wrong with this picture? Plenty. How to fix the broken student loan system is a question yet to be answered.

The times, they are a changin’

The cost of higher education today is not what it once was. In the 20 years between 1995 and 2015, things changed dramatically. A Yahoo! Finance report shows that student debt has risen faster than income. Income rose only 2.4 percent, but debt skyrocketed 78.1 percent. This tremendous disparity may be contributing to the default rate of borrowers. Researchers at New York’s Federal Reserve Bank discovered that 26 percent of those who completed their education in 2009 with debt defaulted at some point. At least 37 percent of 2009 graduates have been delinquent on repaying their loans. America’s student loan program simply does not work.

In her brief on the broken student loan system, Professor Joni E. Finney of the Wharton School, University of Pennsylvania, states that we have the best 20^th century model for financing education. The problem is that this is the 21^st century, and the model for public financing of higher education is outdated.

Families are challenged with having to pay costs for education, while struggling with rising costs of living that are greater than their income growth. By 2020, for our economy to remain competitive, it will require that 65 percent of individuals have post-secondary credentials. However, students are coming from more diverse backgrounds and often from families with modest incomes. All they can do is take out more student debt.

What to do about an unsustainable higher education finance system

Several plans are being introduced, from “free college for all” to new models that shift the burden from students and their families to more of a shared responsibility with the institutions themselves. Dr. Finney offers suggestions for repairing the failing system:

• Because many state governments have had to slash their budgets due to structural budget deficits and elevated Medicaid expenses, she suggests that they insulate higher education funding during recessions.
• Incentivize innovation as an efficient use of public money.
• Prioritize funding for low-income and first-generation students, and link tuition policy to their families’ income level.

ISA vs. IBR vs. Standard Repayment Plan

Another experimental education finance model is an Income Share Agreement (ISA). Tony James, a Blackstone billionaire, came up with the idea that proposes that in exchange for higher education, students agree to pay back a certain percentage of their income for a set number of years. This means that their overall student loan program obligation adjusts with their income. The premise is that it:

• Incentivizes higher education institutions to keep costs low and quality education high
• Allows students to choose their career path without a fixed level of repayment
• Doesn’t accrue interest over time, and there’s no principal
• Means financial obligations will never exceed a student’s ability to pay

An ISA can be a good option for anyone – even for those who are not as successful as they had hoped to be. It can reduce stress levels because it’s adjusted to income. If a graduate had to take a job as a barista, the repayment is within that salary range. Likewise, if the graduate is not underemployed and earns more, his or her payment is adjusted to income.

An ISA is not the same as an IBR (Income-Based Repayment) plan that is offered by the government. Loan repayment amounts are based on your income, but there are stipulations. As long as you make 20 years’ worth of on-time payments (25 years’ worth if you took out the loan before 2014), any outstanding debt after that time will be forgiven. Payment amounts are recalculated annually, based on 10 percent of your discretionary income for loans taken out after 2014 and 15 percent for loans taken out before that. If your income remains low over 20 or 25 years or you expect your family size to grow, it may be a viable option.

The Standard Repayment Plan is a student loan program that requires a set monthly payment made for 10 years and is based on the amount of student debt incurred. If a student is underemployed, he or she still has to pay the required dollar amount, regardless of income.

Where higher education’s responsibility lies

U.S. News & World Report surveyed 300 colleges and universities about their average tuition rates. In 1998, private schools charged an average of $18,000 a year and $43,000 in 2019. Out-of-state tuition rose from $10,000 in 1998 to $26,000 in 2019, and in-state tuition from $3,500 to $11,000.

The bottom line is that higher education isn’t always providing value for education. The price of an education is affecting the economy because young people today are not able to buy homes. Their student debt, in some cases, is their 30-year mortgage. This begs the question: Are colleges more interested in providing an affordable, quality education, or are they more focused on maximizing revenue from tuition and putting together a list of high-profile donors?

Perhaps higher education institutions need to re-evaluate their admission practices. Maybe they should assume some of the debt if a borrower defaults on his or her loan. At the very least, they could help potential students make informed borrowing decisions.

Outstanding student debt stands at $1.4 trillion in the United States. We have a broken student loan system that desperately needs to be fixed. In the meantime, what is the alternative?

Skilled trades: in-demand jobs, low-cost training options

Right now, there’s a shortage of skilled trades workers, from CDL drivers to HVAC technicians and welders. The Bureau of Labor Statistics says that by 2022, one-third of new jobs will be in construction, healthcare, healthcare support or personal care. Most do not require a four-year college degree. Some fields require as few as three weeks of training – certainly not the four years needed for a bachelor’s degree – and some pay $50,000 to start.

For information about how colleges and universities can exceed their goals through training, marketing, and pre-enrollment advising contact Norton | Norris, Inc.

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But are students leaving with digital materials that they can’t even use?

In our travels, we’ve been noticing that quite a few schools have jumped at the chance to modernize their materials and have started to hand out digital catalogs, either on CDs/DVDs or USB memory sticks. As part of a collection of materials, our field agents have liked the memory sticks as a backup for the information if they lost the information sheets they received. However, most of the evaluators reported that CDs and DVDs were essentially unusable to them – most laptops no longer have disc drives, so they’re little more than shiny donut-shaped coasters.

Recently, two evaluators reported that when they asked representatives about key topics, they were directed to the school catalog. They were discouraged when they found out that they couldn’t access the information that they needed, mirroring many students who may not have the resources they would need to be able to access digital files:

Brian told me that I would not have to worry about their accreditation status and that I could read all about it in the school catalog. He did not show me the catalog during his presentation, but he assured me that it was already packed in my materials folder. I also asked about tuition and he just smiled and pointed to the folder and stated, “It’s all in here.” When I opened the folder after the interview, I saw only one program course list and a CD that was labeled “Catalog” with a Sharpie. I tried to access the info, but I didn’t have a CD drive.

—

Jim gave me a USB memory stick to take home with me. He said it would have the information I asked him for regarding jobs. However, I couldn’t access the information since I only have a tablet. I had to find a library that would let me use their computer and that allowed USB sticks to be used on their computers.

Our evaluators develop a keen eye for collateral, which includes how representatives use the materials to provide info, answer questions, and showcase the school. It also includes looking at the resources they send home with prospective students.

Using a presentation or website to present info is a fantastic idea, but if the student can’t find it on a website later or doesn’t have a handout, even the fondest of interview memories can only last so long.

Kelly navigated to a page title ‘Consumer Disclosures’ on the school website by clicking on various links. She did not explain how to navigate to this page. She pointed out the total tuition cost, the retention and job placement rate, and a link to BLS on the disclosures. However, she did not provide any printed information, nor did she write down the link to this page. I was unable to find this page on my own.

Certain sets of materials can be especially beneficial. Like receiving printed documents to look over later with family/friends as they consider school options, and digital resources to use/send as well. For example, on one of our recent visits we left with one set of documents that included printed tuition information and financial aid estimates, with a sheet outlining all of the other pertinent data. This sheet not only outlined current information, it also provided permanent links to the information on the school website, where we could seek out updated information about the program if we decided to enroll in a future term. The representative also emailed a PDF of the sheet.

David told me that the sheet contained all of the links that I would need to learn everything about the school. He said that my questions were excellent, and I would not need to worry about remembering any of the information he had given me, since I could access all of it online. He said that he would email me a copy, just in case it ended up getting lost in my car. I was able to access all of the information later by using the email that he sent.

Another set of materials with which our evaluators were impressed was a single program information sheet, a financial aid guide customized to the school, and a catalog. No digital materials were provided, but students reported that all of the summarized information about the school and program on the information sheet was enough to make an enrollment decision.

I was able to relax during my interview, since Toby had a program information sheet that he used to present all of the information about the program and school that I needed. I did not have to ask him any questions because he then used a catalog to show me more detailed information, including a tuition breakdown. When I met with Financial Aid, they provided an estimate sheet for me to take home that outlined what I would have to pay, assuming that I reported my information correctly to them. The materials were more than enough to make a decision about enrolling since any questions I had could be answered by using the catalog (or the various website links printed in it).

Although it may seem like progress to stop providing printed documents to potential students, many students who are attracted to career training schools may not have the resources required to access key information.

Based on our evaluators’ experiences, we have seen that digital resources tend to be a backup means of looking up information about the school, and many of the digital materials provided can be useless unless they have the right tools to open the files. Most students rely heavily on phones or tablets to do things. With this in mind, maybe it’s too early completely write off printed materials…or at least too early to offer zero printed takeaway information.

Are you hoping to transition to 100% digital for your Admissions team? Do you think printed materials are still worth their weight in…paper? Share your thoughts in the comments or on our Facebook page!

If you’d like to see what our incredible covert assessment evaluator team will learn at your school, Vince at Vince@nortonnorris.com is ready to put together a customized program!

The post April Tales from the Trail: Students Love Paper Materials – Even in the Digital Era appeared first on Norton Norris.

On Wednesday, January 3, the New York Times reported that Governor Cuomo was following the lead of Oregon and Tennessee and unveiling a proposal to make public college free to New York residents under a specific income level – with one twist. Unlike Oregon and Tennessee, which make a two-year education at the community college free, Governor Cuomo has expanded the concept to most four-year state schools in New York. Free college – How fortunate for New York residents. Or should I say, how unfortunate?

New York residents will now be able to flock in droves to institutions that are already overcrowded and produce dismal results. The default rate on student loans at New York public universities and colleges was 9.3% for the 2012 cohort. And the completion rate at New York community colleges is only 20.6%.

So let’s see how this will work. We will encourage students to attend a college where only a small amount of entering students earn a degree. And of course, we won’t be able to stop students from taking out a student loan. Nope! You see, the cost of attendance as calculated by the school and regulated by the U.S. Department of Education far outweighs tuition and includes room and board, transportation and more. And schools can’t prohibit students from borrowing more than the cost of tuition. The result? Students will enroll at a “free college” and borrow money for the cost of attendance. Then, they will drop out and have a student loan – but no skills. Brilliant.

Meanwhile, is the “free college” really free? Of course not. Public education is funded primarily by property tax. So taxes will go up and all property owners – whether they have college-age children or not – will, in fact, pay for the free college. No, let me reword that. They will pay for the free tuition while soon-to-be college dropouts use student loans. Then, when the students attending “free” college default on their student loan, the taxpayer will once again shoulder the burden.

Let’s back up a minute and explore one of the reasons Governor Cuomo states free college is necessary: “crippling student debt.” Why isn’t anyone addressing the primary contributor to student debt? Colleges and universities are not allowed to limit student loan amounts. If a student is eligible for a loan – whether they need it or not to cover tuition – they are allowed to borrow.

According to the New York Times article, “Current full-time tuition at four-year State University of New York schools for residents is $6,470. . . . The state also provides nearly $1 billion in support through its tuition assistance program, which has an adjusted gross income limit of just under $100,000. Those awards top out at $5,165; many grants are smaller.” So a student may only need to cover $1,305 of their tuition (and that’s assuming they are not using a Federal Pell Grant), but they can borrow up to $23,000 over four years. And the college can’t stop them from borrowing – even though when the student defaults on the loan, the college is held accountable. It also begs the question, is a college education worth it?

College student persistence and success will decrease

Free college has the potential to undermine persistence. Currently, most colleges charge tuition when a student repeats a course. Let’s talk for a minute about the dynamics on a college campus. When faced with challenging and rigorous classes, some students will realize they are in danger of failing and play the “W” card. As in withdrawing from the class. Depending on the grading system at the college/university, a “W” grade may not factor into the grade point average calculation. But withdrawing from a class has financial ramifications. At least until now. Once tuition becomes free, I predict increased abuse of withdrawing from classes. After all, the financial incentive to finish what you start has been removed.

How will students choose where to study?

In addition to the projections for student loan default increases and persistence decreases there are also economic and “choice” considerations. Currently, prospective college students select an institution of their choice and then fund tuition with grants, scholarships, loans, and savings. This allows private colleges and public colleges to compete for the same student, and students review financial aid awards and ultimately make decisions based on not just finances – but also fit.

For some students, being part of an entering freshman class of 8,000 students may be overwhelming, and sitting in a lecture hall with 200 may not be their preferred way of learning. These are the kinds of students who are currently attracted to smaller private institutions where crowds are smaller and instructor interaction is more personal. And most frequently, these are private colleges and universities that don’t receive direct support from the state or federal government.

So what happens when a high school senior and his or her parents compare a private college in New York with the annual tuition of $50,000, or even one where tuition is just $14,000, with Binghamton University–SUNY, where tuition is zero? Will the small private college merit any consideration? Probably not. But wait, where will the student flourish? What environment will fuel their success? What’s best for the student? Will any of that be considered once they have the option of “free college”?

And what is in the future of private colleges?

What happens to the private colleges? Will they become extinct? Did Governor Cuomo intend to issue a death sentence to private education in his quest to make education free at the public schools? What impact will “free college” have on his alma mater, Fordham University? Tuition at Fordham exceeds $47,000 a year – and that’s current tuition without fees. The four-year price of a Fordham education, with tuition increases and fees, will easily exceed $200,000. And that’s without housing costs.

According to the Fordham website, the university has 2,211 freshman students and an acceptance rate of 48%, making it a “more selective” university. And with students from 68 countries comprising the freshman class, Fordham may feel a little impact if public schools are made free. In fact, only 18% of the freshmen class comes from the five New York boroughs.

But how might free college impact the average private college? I will make a prediction: freshman enrollment will drop 10%. After all, a bachelor’s degree is somewhat of a commodity. I mean, if I can get a cheap or free bachelor’s – why not? I’m going to go on for a graduate degree anyway.

Let’s play out the impact of a 10%decline in student enrollment at an average private university that would normally enroll 500 new freshmen at $50,000 annual tuition revenue. The first year financial impact is $2.5 million. And that’s not even factoring in the discounting that will need to be done in order to remain attractive to the 450 entering freshmen. Fast-forward four years, and you are looking at $10 million less in revenues.

My question: What average nonprofit college can weather a $10 million decrease in revenue over a four-year period?

But back to Fordham for another thought. There are 12 CUNY or SUNY colleges with an acceptance rate that is lower than Fordham’s – meaning it’s harder to get in. And now we are going to make them free? That’s absurd. These are schools that students are desperately trying to get into. And now we will give it away?

Some may argue that the lower-income students who are admitted will be funded via merit scholarships. And if that’s true, then why is Cuomo changing anything? State and federal financial aid programs make higher education accessible and affordable to most entering freshmen. And if the prospective student excels academically, additional institutional scholarships will likely be available.

Shouldn’t we be focusing on vocational and trade schools?

Finally, why push more students to traditional college, when our country is suffering from a shortage of skilled workers? Vocational and trade schools should also be part of a master plan to incentivize education. Some specific jobs are experiencing exceptional growth rates – like occupational therapy assistants, a position with a projected national growth of 43% and a New York growth of 30% from 2014 to 2024, according to O*Net OnLine.

But most occupational therapy assistant programs are taught at vocational schools – not four-year universities. And occupational therapy isn’t the only high-growth career that is reached by an alternative to a college education. The need for electricians is projected to grow 23% in New York from 2014 to 2024.

 To summarize, here are the 7 reasons why free college is a bad idea:

1. Student loan defaults will increase
2. Completion rates will decrease
3. Property taxes will increase
4. Persistence among college students will decrease
5. Private colleges will suffer enrollment declines and financial hardships
6. Free college does not address occupational shortages
7. Free college will not help solve “crippling student loan debt”

Other stats you may find interesting:

• The four-year graduation rate averages 47.8% at SUNY colleges, with some locations as low as 20%. Source: https://nortonnorris.com//system.suny.edu/media/suny/content-assets/documents/institutional-research/2013_09_BOTAA_GradRates.pdf
• Another study has the New York public-college four-year graduation rates in New York at 37.8%. https://collegecompletion.chronicle.com/state/#state=ny&sector=public_four
• The same study shows New York private-college four-year graduation rates of 55.1%.   https://collegecompletion.chronicle.com/state/#state=ny&sector=private_four
• Student loan default rates at public colleges in New York are more than double those of private colleges: 4.2% vs. 9.3%. https://www.osc.state.ny.us/reports/highered/student_loan_debt.pdf

About Vince Norton
Managing Partner, Norton|Norris, Inc.

Since 1979, Vince Norton has worked in higher education administration, marketing, admissions, and enrollment management, for both not-for-profit and proprietary institutions. His 35-plus years of experience include 19 years in admissions, marketing, and administration at non-profit colleges, and three years with for-profit colleges. For the last 16 years, he has served as Managing Partner of Norton|Norris, Inc. Vince is regarded as an expert on college marketing and mystery shopping and has delivered presentations on this topic for numerous associations.

The post Why Free College is a Bad Idea appeared first on Norton Norris.

In similar fashion, Veterans Education Success has published a lengthy report in an effort to help veterans “understand misleading websites and lead generators.”

I wonder if 2000+ Leads Con attendees in New York last week even know what goes on?

Even more recently, an article published at Inside Higher Ed examined the increasing use of “secret shoppers” to review the performance and practices of third-party lead vendors. At Norton Norris, we’ve been a national leader in providing mystery shopping and assessment services to schools across the country for more than 20 years.

And, how do I know the real truth? Good question. I own and operate a mystery shopping firm – and we shop lead vendors. I bet that after reading this blog you’ll want to shop your vendors, or you may just want to stop using lead vendors altogether.

Why Pay Per Lead (PPLs)?

For the uninformed reader, here’s how it works: Lead vendors sell inquiries to schools on a pay-for-performance model. Over the past several years many schools abandoned their traditional advertising (TV, radio, outdoor) and moved to the lead-vendor diet. Although contact rates are low – normally under 50 percent – and the conversions from inquiry to new student are abysmally low and average just 2 or 3 percent at most institutions, the attractive feature of scalability and paying only for what you get hooked many schools. At first it was just another tool in the marketing toolbox. But then the savvy operators discovered that coupling a call center with pay per leads (PPLs) would yield predictable numbers that could be “modeled” and the race was on. Once they perfected the model they could add more PPLs to the mix, increase call center staffing and grow enrollments – especially in the online learning environment. It was magic. But many enrollment managers never knew what was really happening. And they still don’t.

How it works for a prospective student

From the student’s perspective, using an education matching system could seem like a good idea. I mean, if you aren’t sure where you want to attend but you know you want to pursue additional training, then browsing the web and finding a solution that matches you to schools – or lets you pick from a few select schools might make sense. And that’s how many of these services work – or are supposed to work.

The prospective student often begins their inquiry journey by simply entering their zip code in response to the offer to “find schools in your area.” The less scrupulous vendors may be trolling with a scholarship or sweepstakes offer – but we’ll talk about that later. After entering their zip code and/or address, the prospective student is taken through a few questions:

• What level of degree or training are you looking for (certificate/diploma, associate degree, bachelor’s degree, master’s degree)?
• When would you like to begin education/training (immediately, 1 to 3 months, 4 to 6 months, etc.)?
• What is your highest level of previous education?

The slick sites always insert some sort of teaser along the way… “just 2 more questions and we’ll match you with schools that meet your needs.”

• What areas are you interested in (health/medical, business, criminal justice, information technology, graphic arts, welding, etc.,)?
• How would you like to study (online or on ground)?

And then “poof!” after hitting submit, the website reveals schools that are a match. It sounds logical and makes sense. Or does it? You see, the search engine driving the selection of schools isn’t a search engine at all. The website isn’t selecting from the universe of schools at all. Instead it’s serving up suggestions of schools that have contracted for leads. So the listing isn’t inclusive. It’s limited to a short list of institutions that have agreed to buy inquiries. But how would the student know that? They wouldn’t. And that’s just one problem with this product line.

But there is one more wrinkle. It sounds innocent enough too, and even well intentioned. After the student selects a school from the list to learn more about and hits “submit”, the next screen  is typically something to the effect of: “Vince, students who research and inquire to more than one school make better and more informed decisions. We’ve also matched you with these schools in your area or that offer online instruction. You may also get information from them by clicking “yes” below.”

And then it happens. The poor prospective student’s phone implodes under the duress of multiple and incessant calls. Under the scenario outlined above, the lead has now been sold to multiple schools. And they all have the same intention: Call immediately and get this student in for a campus visit – or, if it’s an online school, get them on a phone interview ASAP and get them committed to completing an application.

How the Enrollment Managers and Marketing Managers at Colleges See the Process

Unfortunately, many schools that are buying leads from lead vendors are naïve and uninformed as to how the inquiries are really being generated. Because the inquiry comes in via a form that is emailed to the school or posted into their CRM, the school officials believe that the inquiry was submitted by the student, like the scenario described above. Sometimes this is true, as prospective students complete the process explained earlier. But sadly, over half of the inquiries that schools are buying don’t come from a student completing a form. Nope. The inquiries come from a call center.

Here’s how: The lead aggregators contract with downstream affiliates to generate leads. These affiliates buy data that resemble potential students based on socio-economic factors. Then the data goes into an auto dialer at a call center, and when the potential prospect answers, they are talking with a call center agent. The pitch can vary, but often it centers around a training opportunity, a job opportunity, or financial aid to go to school. If a positive response is received, the call center agent – not the student – completes the form and hits submit. 

As a side note, if you are a college administrator and considering buying leads from a vendor, ask the vendor for costs and counts based on your programs of study for exclusive, non-call center leads. The response you get could be interesting and range from “we don’t do exclusive leads” to “let me check and get back with you” – but I know the cost per lead will increase.

Okay, back to the real story – what happens when we shop lead vendors. These results are based on a sample size of 100 shops spread across 20 vendors. The school we shopped offered online courses, so the geography was unlimited. The degree level was associate degree.

Problem 1: 40 percent of the lead vendor inquiries submitted were never delivered to the school.

Ouch. Think about the student’s perspective on this. They took time to research schools, found a program and school they were interested in, completed a form, hit submit, got a message back that the school would contact them – and then radio silence. No call back. No email from the school. Nothing.

How could this happen? Well, that’s easy…. If a lead vendor has reached their cap, and the school didn’t have budget for any more leads, then the lead would either go into a black hole, or worse yet – be sold to another school. Both of these options are terrible, but they continue month after month, in our shopping.

Problem 2: 10 percent of the lead vendor inquiries were told that school X wasn’t accepting inquiries.

Wow. What would you think if you were the student? Worse yet, if you are in charge of enrollment or marketing at a school – your lead vendor has just told a prospect that you basically aren’t enrolling. Really? Wait; it gets better.

Problem 3: 10 percent of “your” lead vendor inquiries were referred to another school.

Unbelievable. As an enrollment or marketing manager, I would be furious. And it continues. Each month we inquire about school X – only to be directed via the computer and even by call center reps, that we could inquire to school Y. To me, it’s worse than #2 above – it’s one thing to say a school isn’t taking inquiries, but it’s worse to blatantly direct them to a competitor. Not good. NOTE THAT BOTH SCHOOLS OFFERED THE SAME PROGRAM. And, it gets worse. One of our inquiries specifically made for school “X” was contacted by the lead vendor’s call center and then warm transferred to school “Y.”

Problem 4: Immediate re-sale of data

15 percent of our inquiries immediately got a call from another party other than the school they submitted their information too. How ironic, right? You request information from school “A” and kaboom – you immediately get calls from school “B” or from an-unrelated entity like “Rewards Redemption.” I got a call from XXX-XXX-1234, which was from Julie at Rewards Redemption. The recording stated that I recently was on one of their affiliated websites and I had won a $100 voucher that could be used at popular stores like Walmart, etc.

Final Thoughts and Recommendations

• Shop your lead vendors to keep them honest.
• If lead vendors must be part of your mix, manage them diligently.
• Track the number of voice to voice calls you have with the inquiries from each vendor – remember, if you never talk to the prospect you can’t invalidate them or begin the recruitment process.
• Consider asking your lead vendor for exclusive, non-call center leads.
• Ask your lead vendor to explain and detail how many inquiries come from:
  • Student-generated from submissions
  • Call centers
  • Warm transfers

Finally, consider going to a marketing mix that uses traditional media to drive traffic to your digital properties. A well-balanced advertising mix will fuel your organic website inquiries and your PPC inquiries. Changing the mix of leads will result in driving up contact rates, with a smaller staff. Ultimately you’ll increase enrollments and reduce cost.

More details on : Our Admission Training Program

About Vince Norton
Managing Partner, Norton|Norris, Inc.

Since 1979, Vince Norton has worked in higher education administration, marketing, admissions, and enrollment management, for both not-for-profit and proprietary institutions. His 35-plus years of experience include 19 years in admissions, marketing, and administration at non-profit colleges, and three years with for-profit colleges. For the last 16 years, he has served as Managing Partner of Norton|Norris, Inc. Vince is regarded as an expert on college marketing and mystery shopping and has delivered presentations on this topic for numerous associations.

The post Bad News – Beware of Buying Education Leads from Vendors appeared first on Norton Norris.

When convenience, affordability, and substance come together, powerful things happen. At Norton Norris, we’ve known that for a long time.

It’s that principle that has driven many of our efforts over the years to deliver the highest quality solutions to the schools and higher education professions with whom we partner in a way that works best for them.

And the latest example of this mission is one of the biggest and most exciting to date.

We’ve gone virtual with our industry-leading EnrollMatch® Admissions Training (EM).

First, let’s talk about the substance.

Long-recognized as one of the most respected admissions training programs in the country, EM is at the leading edge of creating better informed prospective students and better-informed admissions professionals.

As anyone who’s worked in the higher education arena knows, more often than not the single most important choice factor for students is “fit.” For years, EnrollMatch® has empowered admissions professionals with the training to understand and decipher the differing preferences of today’s students so that, together, they can achieve that fit.

It begins with seminar training that can range anywhere from a half-day to two full days, and from there is strengthened by custom workshops, webinars, discussion forums, eLearning programs, Train-the-Trainer (T³) options, and ongoing consulting with comprehensive reports.

That’s kind of a long-winded way of saying EnrollMatch® works. It has earned all of the acclaims it’s received. And it’s the first and only admissions training program that’s been reviewed and approved by regulatory counsel for consistency with accrediting and federal admissions related standards.

But don’t just take it from us.

“After a thoughtful review of the training workshops and materials, our firm endorsed this program for alignment with all national and regional admissions related standards,” said Ron Holt, an education legal expert.

Now, about convenience and affordability.

It’s no secret that institutions of higher education across the country are in the midst of major budget constraints and enrollment shortfalls. Public universities continue to see cuts in state funding, and enrollment shortages at private colleges and universities that rely on tuition revenue are leading to cuts in faculty, staff, and program offerings.

Now more than ever, administrators need to find ways to give their admissions departments every advantage they can in terms of their effectiveness in recruiting incoming classes.

So, given the realities that we know schools are dealing with, it only makes sense to remove as many barriers as possible for schools seeking the exceptional offerings of our admissions training.

That’s exactly what going virtual with EnrollMatch® will accomplish.

“It was a natural progression,” said Dr. Jean Norris, managing partner at Norton Norris, Inc. and the primary developer of the training program. “Given the advanced nature of the content and pace, it was important for our team to see the participants and adjust their delivery in the moment. We also stand behind our results so we had to make sure each participant walked out of that room a changed person.  At the same time, the expense of travel and pulling employees away from their jobs for a few days can be a barrier.”

By offering virtual and hybrid models for the delivery of EnrollMatch® training, schools won’t have to incur the expenses associated with sending their admissions teams away, or the loss of productivity while they’re out.

With this endeavor, we’re essentially meeting them where they’re at by offering more affordable and convenient access to the training program, without compromising even a hint of the quality that’s always been associated with it.

“EnrollMatch is a solid, proven program with ongoing support long after the initial workshop,” said Joe Sallustio, seasoned EM trainer and vice president of marketing and enrollment at National American University. “It’s exciting to know the eLearning, discussion forums, coaching, and reinforcement training will still be available. And now we have an additional method to support our efforts for those who prefer the live, virtual option.”

And with the EM’s Train-the-Trainer (T³) program also being delivered virtually and through a hybrid model, more campus-based admissions professionals can earn a license to train their staff, help their team stay compliant, and make the most of their recruiting efforts and meeting the needs of their students.

“Our team is able to effectively onboard new employees, as well as provide ongoing learning and development,” said Wendy Olivieri, long-time EM trainer, and director of admissions at San Joaquin Valley College. “The live, virtual option allows campus-based trainers to work right alongside Norton Norris Master Facilitators. It’s fabulous.”

Learn more right now about our virtual training for admissions, faculty, leadership development management, career services, and financial aid!

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Deciding on going to college or even finding the right college depends on how one actually defines value, doesn’t it? For some, the value of a college education can come in the form of self-development. The sheer opportunity and joy of learning and growing can be enough to motivate someone to attend college and rationalize the expense. And yet others are looking for a more definitive return on investment such as a job immediately following graduation that pays enough to cover the bills and have a meaningful quality of life. Even more so, a college education should also pay dividends into the future through promotions and even higher earnings, right?

Is college worth the cost? There is evidence through the U.S. Bureau of Labor Statistics to support the correlation of educational attainment and increases in median earnings. Those with a bachelor’s degree earn, on average, $459 more each week than someone with only a high school diploma. Even further, the unemployment rate decreases significantly with a degree. Those with an associate’s degree have a 3.8% unemployment rate while those with a high school diploma average 5.4% unemployment (a master’s degree is only 2.4% unemployment).

The investment to earn the credential or degree is a major piece of the value proposition. Vocational training can average $33,000 with average earnings near or above the tuition while a bachelor’s degree can cost $127,000 and average annual income for an entry-level position around $46,900.

According to the Detroit Free Press, college grads in the class of 2016 will have a record level of about $37,000 in student loan debt for a bachelor’s degree. Those graduating with a master’s degree will have an average of $43,500 in college loans and for those studying medicine or law – the debt can easily be over six figures. Keep in mind that not everyone graduates on time either which adds to the debt and delayed earnings by not being in the workforce faster.

It is also worthwhile to consider the future of higher education given other options. Will the traditional four years, brick and mortar experience sustain? Many are still getting used to the “click” and mortar hybrid education models and yet there is so much more out there. For instance, Massive Open Online Courses (MOOCs) have been around since 2008 and credentialing and badging have grown substantially since the introduction of open badges by Mozilla in 2011. In fact, millions of badges have been awarded to hundreds of thousands of participants and the open badges community is working on the next version. Keep in mind that the new specifications are focused on verifiable learning similar to those of higher education accrediting agencies.

A 2016 study conducted by the University Professional Continuing Education Association (UPCEA), found that one in five colleges have issued digital badges. They also coined the term “T-shaped” graduates who have a combination of deep, “vertical” knowledge in a particular area (such as a college major) and a broader set of “horizontal” skills in areas like communication skills, teamwork, and appreciate diverse cultures. The sheer speed of knowledge acquisition may bring value to this type of credential (not to mention it’s low cost and ease of access).

The good news is the acting Secretary of Education, Betsy DeVos, is a big fan of education whether public or private. She also believes in less federal oversight and regulations with more power going to the state. Under her tenure, alternate forms of education and learning may see more growth and acceptance.

Where does all this information leave the person considering college? And if so, choosing the right college? My guess is probably in a more confused state. That is why we suggest anyone considering any form of higher education to adopt the “Five Factors of Fit” to sort through the options.

The “Five Factors of Fit” begins by considering the initial question about value. What does value mean to you? Relatedly, one has to determine their goals and where they want to be in the future. With this information in hand, we encourage an exploration of programs and interests. There are several online resources to help determine what major/program might be a good fit.

Next, it’s important to determine what skills you currently have as well as those that will be required to be successful in your chosen career field. Are you willing to spend the time and resources necessary to acquire these skills? If not, take a step back and look at other areas of interest to find something more in line with your abilities and interests. A good place to start is to determine what skills you already find as strengths. At that point, you can then determine what further skills you are willing to develop.

One area that warrants focus is an in-depth understanding of what you value. Think about it. If the direction you are moving toward doesn’t align with what you believe in or value than you will more than likely feel a great tension and ultimately drop out. For example, at a recent high school presentation one of the students stated they wanted to become a surgeon but when another classmate informed them about the rigor, time commitment and life of a surgeon, there was a value question raised. Did their priorities align with this kind of commitment? This factor is something that represents the core of who you are. It will include your entire life outlook. Psychology Today offers a Values Profile survey to help you uncover what is most important to you. Take your time on this factor. But most importantly, be honest with yourself. It will go a long way.

Another element that needs to be considered within the “Five Factors of Fit” is one’s life situation. Through a series of self-discovery questions, one must explore their motivations, potential obstacles to enrollment along with possible solutions. Further, there must be consideration of others involved in the decision and how their opinions and resources play a role in the decision. Finally, what is most important in a learning environment? Is it self-paced learning such as MOOCs or an online option? Or do you prefer a campus with a lively and engaged study body?

Putting all of this information together is key to determining “Fit.” The alignment of one’s goals to the school, program/interests, values and life situation is the key. For those seeking a resource that puts this all together, check and see if the colleges you are considering offer pre-enrollment advising through their admissions office or an automated solution such as MyGuidance Coach^®. This legally endorsed, pre-enrollment advising software helps prospective students explore their interests, research career options, proactively identify and resolve potential challenges, and review customized school resources from any desktop or mobile device 24/7.

Given the high drop out rates in college it’s essential to take the time to review these areas to make a meaningful decision about what college is right for me. Talk to people you trust, do your in-depth research and take some time for introspection. The more time spent in this phase, the easier the rest of the process will be. Good luck on the journey!

SOURCES

5 Things to Know About Trump’s Pick for Education Secretary by Emily Deruy, The Atlantic, Nov 3, 2016.

Digital Badges and Academic Transformation by Veronica Diaz, Published: Thursday, September 1, 2016. EDUCASE Review

U.S. Bureau of Labor Statistics, Earnings and Unemployment Rates by Educational Attainment, 2015.

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Writing in The New York Times, Danny Hakim observed: “The reaction to the scandal has been swift. A recent Harris Poll of Americans’ attitudes toward the 100 most visible companies ranked Volkswagen dead last.”

Or perhaps you are familiar with the plight of the Live Strong campaign after its icon, Lance Armstrong, was stripped of his Tour de France titles amid a doping scandal.

If you think there isn’t a correlation between these stories and higher education, think again. There are more similarities than you might imagine.

For career colleges, 2016 will go down in history as a year of orchestrated attacks resulting in a swarm of bad press, consumer outrage and financial hardship. And it didn’t happen at just a few schools – the entire career college sector was negatively impacted.

Whether the claims are actually true is somewhat irrelevant when it comes to regaining consumer confidence. The media, which itself struggles with negative public perception, tends to focus on the dramatic. Perhaps this is to raise ratings or support a particular political agenda, but either way, the battle is multifaceted and must include a strategy to win back consumers and increase supporters of the career college sector.

 Where to Begin?

With the public relations nightmares mentioned earlier, dramatic changes were necessary to fix the problems and appease consumers. What strategies can career colleges adopt to reestablish a sense of comfort with consumers, accreditors, the media and government agencies?

As we examine what others have done to regain public trust, there are five steps to consider:

1. Look in the Mirror

They say the first step is the hardest, and this hurdle is no exception. It’s easy to claim the opposition is out for revenge and dismiss the allegations of the naysayers. However, those who are willing to step back and take an objective, unbiased look at their own motives, business practices, unwritten rules and alignment with mission may find a kernel or two of truth. Although the profit motive is nothing to apologize for, if it outweighs meaningful student outcomes, then you may have some work to do.

2. Align Resources

The next step is to ensure that resources are aligned with quality student outcomes. Follow the student’s journey from inquiry generation to career placement to determine if qualified people and services are offered to help students find the right fit and reach their goals through your school.

3. Assess Leadership

Anytime you make changes, there are those who will push back. It’s time to ask: Do you have the right players on the team, or do you have some with limited mindsets pushing for self-preservation rather than what benefits students and the organization? It’s also time to empower those who are in alignment by removing obstacles to success.

4. Update Models and Measurements

This one is tricky, because business models and related metrics have been in place for decades. When examining the traditional enrollment funnel, it’s easy to see the declining return on investment. The new world of higher education begins by determining how many successful graduates are needed to support the business operations. Use that number to calculate what else is necessary in conversion rates from enrollments, applications, etc. Let’s face it: people will work to what they are measured on, so nothing else you do will matter without this critical piece.

5. Tell Your Story

Much of the pushback by career colleges has been targeted at the government. Currently though, there isn’t a cohesive, consumer-focused plan. My guess is that many schools have opted out of public relations, since it can be difficult to pinpoint a specific return on investment. The problem with not doing PR, though, is that someone else will tell your story if you don’t. You also lose the buffer of built-up goodwill that can deflect a negative story in the press.

We have entered a new political environment, but that in no way guarantees a favorable perception by the consumers entering career colleges. Prospective students are more aware than ever of their educational options and the negative view of a career education. It’s time to turn this perception around. Perhaps we begin in the department that is perfectly positioned to lead the charge: admissions!

Dr. Jean Norris, Managing Partner

Norton|Norris, Inc.

Dr. Jean Norris began her educational pursuit in a 10-month medical assisting diploma program. In the 27 years since, she has served in the role of admissions rep, dean of admissions, faculty member, vice president of marketing, vice president of enrollment management and vice president of organizational development. Currently Jean is a managing partner at Norton|Norris, Inc.

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Think of the important contributions your local school counselors have made in your success as an admissions professional. Counselors spend a great deal of their time helping students develop and grow in three specific areas: academics, social/emotional growth and career development. Post-secondary planning is an important part of what school counselors do. However, a recent study found that they can devote only 30% of their time to college and career readiness due to so many other responsibilities. Exploration of key areas related to post-secondary options directly impacts the options students decide to pursue. This makes the relationship that college admissions counselors establish with their local school counselors critically important to ensuring students are able to perform once enrolled in your programs and institutions.

Many conversations related to the success of college admissions counselors today relate to how we can assist our prospective students in finding the right fit. And for many, the idea of “fit” can be difficult to quantify. What are the elements that a student must consider in order to determine the right “fit”? We can look to our school counselor partners for help in defining those areas. As ASCA’s Executive Director, Kwok-Sze Wong has pointed out that “school counselors actively engage in helping students examine their abilities, strengths, interests and talents.” In doing so, counselors are instrumental in laying the foundation for determining a student’s “fit” criteria. Through the partnerships we establish with school counselors, we have the opportunity to continue that initial exploration of “fit” criteria as it relates to prospective students, gaining a better understanding of alignment and likelihood for success in our program and beyond.

I wholeheartedly believe that helping students determine if your school, college, university or program is the right fit for them is one of the most important tasks that admissions professionals have when working with prospective students. Our school counselor partners help to establish a foundation of fit criteria early on, by exploring their students’ interests, skills and values associated with specific careers. College admissions professionals then have the opportunity to carry that discovery forward through the student’s journey in a given institution to help increase the likelihood of success at the college and beyond.

I personally would like to give a shout-out to the school counselors whom I have had the good fortune to work with throughout my career. While I have not been a student on your caseload, you have contributed to my development over the years and cultivated a deep passion for helping students. Thank you for your continued collaboration in helping students reach their truest potential and achieve the goals they have set while pushing toward even greater heights. For any of you who have had the privilege to work with amazing school counselors, don’t be shy this week (and beyond). Let them know how much you appreciate their time, passion, energy and efforts in positively impacting students’ lives. #NSCW17

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