Key Performance Indicators You Must Monitor When Buying Leads

Reach, Recruit & Enroll the Right StudentsKPI’S YOU CAN’T LIVE WITHOUT Steve Smith, Managing Director February 2012

Spring Training

Marketing KPIs 101 – An ExampleTotal Leads = 100Cost per lead = $100Total Lead cost = $10,000Accepted leads = -Leads contacted = -Leads application = -Leads enrolled = -Leads started = -Cost per enroll = -

Marketing KPIs 101 – ScrubbedTotal Leads = 100Cost per lead = $100Total Lead cost = $8,000Accepted leads = 80Leads contacted = -Leads application = -Leads enrolled = -Leads started = -Cost per enroll = -

Marketing KPIs 101 – End of Week 1 80% 70% 60% 50% 40%Total Leads = 100 30%Cost per lead = $100Total Lead cost = $7,800 20%Accepted leads = 80Leads contacted = 24 10%Leads application = 1Leads enrolled = 0 0% Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10Leads started = 0 Contact Rate App Rate Enroll Rate Start RateCost per enroll = -

Marketing KPIs 101 – End of Week 2 80% 70% 60% 50% 40%Total Leads = 100 30%Cost per lead = $100Total Lead cost = $7,800 20%Accepted leads = 78Leads contacted = 40 10%Leads application = 3Leads enrolled = 2 0% Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10Leads started = 0 Contact Rate App Rate Enroll Rate Start RateCost per enroll = $3,900

Rookie Errors

Common Measurement Mistakes 1 Not measuring against a static pool 2 Not measuring against accepted leads 3 Not allowing data to season 4 Not assessing true lead cost 5 Using stale data

Getting to First Base:Must Have KPIs

KPI #1: Volume, Cost and Pacing vs. Targets• Target groupings (e.g. ground nursing programs)• Volume and pace versus targets and vendor boast• Cost, pacing versus target budget• Percentage to target 350 300 250 200 Leads 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Day Provider A - Cumulative Volume Provider A - Target Volume Provider A - Monthly Pace

KPI #2: Bad Lead Rates and Reason Scoring & DNC Verification 3% 4% Validation 16% Overcap 4% Q & T Call Centers 34% Other 4% Duplicates 29% Geography 6%Average breakdown of bad inquiries by reason (Q3 2010-Q2 2011)

KPI #3: Conversion Rates• Based on static pool of accepted leads• Early and late stage conversion metrics• E.g. Contact, Transfer, Visited, Application, Enrolled (Closed), Started (Funded), Graduated Representative EDU Metrics Ground Online

KPI #4: Acquisition CostsCost spent on a pool of leads divided by the number ofconversions Cost per closed loan, enrollment, start Representative EDU Metrics Ground Online

KPI #5: Operational MetricsSpeed to deliveryCycle timesVolume vs. historical

Hitting a Double: Segmentation

Hitting a Double: Segmentation Lead source, sub affiliate Target groups, program, campus, geography, market, level of education, degree type, team, other verticals - credit, LTV Comparison of offline, aggregator, paid media channels TV $1733Channel Type 3rd Party $1325 Internet Leads Paid Search – $436 Branded Paid Search - $1899 Unbranded Example Cost / Enrollment

Hitting a Triple:Optimization

Hitting a Triple: Optimization Multidimensional analysis “Heat maps” to identify sweet spots and poor areas Training for lower-performing teams Reallocation of budget Premium pricing strategies Akron 81.0% Alexandria 73.7%Campus Allentown 55.6% Anne Arundel 53.3% Arlington 90.0% Augusta 60.0% Contact Rate

The World Series: MarketingMeasurements+

The World SeriesAdvanced volume pacing & conversion forecastingThe ever-elusive ROI number %Enrollments 1 4 7 10 13 16 19 22 25 Age in Weeks

Next Season:The Future of Data-Driven Marketing

Constraint-Based OptimizationVendor A 118 23.9% 90 $ 74.73 $ 1,660.67 4 4.5% $ 6,711.40 90Vendor B 2,189 34.2% 1,441 $ 32.82 $ 863.68 55 3.8% $ 47,289.80 1,580Vendor C 225 17.6% 185 $ 117.27 $ 1,047.05 21 11.2% $ 21,738.06 200Vendor D 305 30.3% 213 $ 96.58 $ 1,085.17 19 8.9% $ 20,544.30 230TOTAL 2,837 26.5% 1,929 $ 49.92 $ 977.62 98 7.1% $ 96,283.57Vendor A -74% 23 $ 1,718.79 1 30 $ 1,660.67 Good Lead Volume 62 3%Vendor B 10% 1,580 $ 51,855.60 60 2,400 $ 863.68 Total Lead Volume 108 4%Vendor C 3% 191 $ 22,398.57 21 232 $1,047.05 Monthly Cost -$ 1,284.35 -1%Vendor D -8% 197 $ 19,026.26 18 282 $1,085.17 Monthly Enrolls 2 2%TOTAL 3% 1,991 $ 94,999.22 100 2,945 $949.99 Cost/Enroll -$ 27.62 -3%

Takeaways •Measure what matters and measure it right •Segment and optimize for Moneyball results •The investment will pay off •You can do it even with a smaller budget For additional questions: Steve Smith steve.smith@cunet.com 416-323-1366 ext. 41224

Key Performance Indicators You Must Monitor When Buying Leads

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