There are specific challenges at every phase of the student lifecycle that can decrease revenues or increase costs and in order to understand these lets look at each phase of the lifecycle. First let me explain the diagram: Axes. The axis running across the bottom represents Time, while the axis running along the left side represents Potential Revenue. Black line. Through the diagram, notice the black line, representing the greater the involvement with the suspect/prospect/student/alumni, the greater the revenue opportunity. The challenge is that over time, the relationship changes – then as the higher education institution gets more or less involved with the student, the revenue opportunity changes. “ Student” satisfaction drives success. Ultimately, whether an institution is public or private, revenue generation is important. In every case, the institution recognizes that it must maintain a positive, relevant relationship with its students if it is to provide an great student experience that enables it to recruit, retain, and fundraise – all activities that impact revenues. Note that revenue is the ultimate driver, while prospect/student/alumni satisfaction is the means to that end. Let’s discuss the specific challenges faced at each phase of the student lifecycle. Recruitment phase: It’s difficult to hit enrollment targets* . The competition is intense, data about prospective student is good but limited, and you know that every one of your target recruitees is being targeted by several other institutions. How do you 1) create a large enough pool of good prospective students, and 2)_ensure you generate enough interest among the right prospective students so your institution can hit your enrollment targets? Enrollment phase: Once you have a pool of candidates, how can you make your institution more attractive than others, and how do you make sure these specific prospective students apply/accept admissions into your institution? How can you provide prospective students an easier means to apply, to move more target prospective students through the enrollment phase? Retention phase: Once you have students, it’s often difficult to retain them. 1 st year dropout rates across all institutions is approximately 32%, and graduation rates across all institution types average approximately 45%. There’s huge room for improvement here, and lots of tuition revenue to protect. Fundraising phase: And once students have graduated, institutions need to continue nurturing those relationships to drive additional contribution revenue. Most institutions find that their alumni base represents a huge opportunity, but realize only a part of the potential. ============================================= Instructions: It’s important to understand the typical differences in motivation for “for-profit” institutions vs. traditional institutions, particularly when speaking to the “recruitment and enrollment phase.” “For-profit” institutions focus more on recruiting more prospective students (in addition to quality, but quality is secondary), while traditional institutions focus on identifying and attracting “the best and the brightest” (more focus on quality). *Enrollment Targets: This term refers to the quantity and quality of student an institution is trying to attract. For example, one institution may have one enrollment target for 2005 might be 1,000 students that have GPAs above 3.3, scored 1030 or higher on the SAT exam, and was involved in more than 2 extracurricular activities. In effect, this is a segment, but the institution also places a goal on how many students it will attract that meet these criteria. When talking about overall institution recruitment goals, it is appropriate to say, “Your institution can increase application rates of your enrollment targets.” When talking about individual prospective students, you should not refer to them as “an enrollment target.” Instead, call them prospective students, even if they do fall in the Enrollment Target segment criteria (ie, they are not “an enrollment target” – the “target” is the quantity of students that meet the segment definition).
Conducting marketing programs, or what is commonly called in marketing as campaigns, for activities such as recruiting, retention, or fundraising is based on a process: Outreach Analysis : Before you launch a campaign, you need to decide what to do . You need to analyze your constituent base – suspect, applicant, student, or alumni - and previous campaigns in order to decide who to target and what offers to make or content to send. Campaign Planning: Next you need to plan the campaign , select the channels, create a budget, and assign tasks. Campaign Execution: Next is actually executing awareness and outreach campaigns across multiple channels. However, it’s important to think about 2 parts of campaign execution. The first part is the “ outbound ” part -- where you reach out to constituents through a variety of channels -- such as Email, Direct Mail or Phone calls. The second part is the “ response (or inbound) part of a campaign - where you handle responses and manage follow up interactions. You also may mix and match channels -- for example an email campaign may offer a phone response or a direct mail campaign could offer a web page response. Campaign Measurement: Lastly you need to measure the results of your campaigns so you can see what worked. Through out this process you capture valuable information about your constituents, campaigns, and channels which can then be used to analysis future campaigns. PeopleSoft CRM’s Student Lifecycle Marketing supports the entire marketing business process…
PeopleSoft provides the following differentiators that institutions will not be able to find with other solutions:
Feel free to drop in these factoids from Accenture study on CRM, 2001, but change the title of the slide to make it appropriate: Financial services firms are losing an estimated $700M annually in profit opportunities by not building meaningful relationships with customers. Average acquisition costs for a new automotive insurance customer exceeds $250. The typical [American] business loses 15%-20% of its customers each year to churn, and half of its customers within 5 years. Churn rates among wireless telecommunications firms costs between $10M-55M annually. A 5% improvement in retention rates will increase profits by 45% in industrial distribution, 75% in credit card firms, 80% in insurance, and 85% in retail banking. In telecommunications, time to break-even marketing ROI on a customer increased from 6.5 months to 7.2 months from 2000-2001. In 2000, the average credit card direct mail response rates fell below 0.6%.
Here are some stats from Gartner that quantify some of the benefits we discussed. Time to launch... Campaigns is significantly lower -- about 25% of traditional campaigns. In fact many of our customers launch campaigns in 1-3 days. Time for responses.. Direct mail campaigns take time to get to recipients and more time for the customers to respond. In online campaigns, the vast majority of responses happen within 72 hours. Cost per thousand.. Is also signifcantly lower -- many customers reduce costs by up to 90% over traditional campaigns. Response rates… are also significantly higher -- typically 5-6% for basic campaigns and ranging in the 10% and higher range for more personalized and targeted campaigns -- about 5-10x versus traditional direct mail campaigns where a typical response rate is 1%
We understand that to reach your service goals you must implement an integrated service process that combines service capabilities across a single platform where information is shared and business processes are automated throughout the institution. The first step in that process involves capturing the issue……
PeopleSoft provides the following differentiators that institutions will not be able to find with other solutions:
Customer Relationship Management
Lifetime Student Relationship Management Applicant Prospective Student Student Alumni Potential Revenue Recruitment Phase Enrollment Phase Retention Phase Fundraising Phase Time <ul><li>Recruitment Pain: </li></ul><ul><li>Difficult to reach the “right” prospects </li></ul><ul><li>Recruitment potential restricted </li></ul>Impact: Lost applicants and potential tuition <ul><li>Enrollment Pain: </li></ul><ul><li>Generating the yield </li></ul><ul><li>Effective and efficient applications </li></ul>Impact: Lost applicants and potential revenue <ul><li>Retention Pain: </li></ul><ul><li>Low student satisfaction </li></ul><ul><li>Students transfer or drop-out </li></ul>Impact: Lost students and revenue, increased costs to replace <ul><li>Fundraising Pain: </li></ul><ul><li>Lose contact with alumni </li></ul><ul><li>Irrelevant communications </li></ul>Impact: Lost fundraising opportunities
Lifecycle Marketing: Reaching Out to Prospects, Students, and Alumni LEARN Outbound Response <ul><li>Email </li></ul><ul><li>Web </li></ul><ul><li>Direct mail </li></ul><ul><li>Phone </li></ul><ul><li>Email </li></ul><ul><li>Web </li></ul><ul><li>Return mail </li></ul><ul><li>Phone </li></ul>Campaign Analysis Campaign Planning Campaign Execution Campaign Measurement USE Constituent Profiles <ul><li>Suspects </li></ul><ul><li>Prospects </li></ul><ul><li>Applicants </li></ul>On-going Dialogs Student Administration
PeopleSoft Drives Value <ul><li>Why PeopleSoft Student Lifecycle Marketing? </li></ul><ul><li>Powerful profile and segmentation tools to target the most qualified applicants, “at-risk” students, and potential contributors </li></ul><ul><li>Increase tuition and contribution revenues with personalized, relevant, on-going interactions </li></ul><ul><li>Access to all constituent data for recruitment, retention, and fundraising campaigns </li></ul><ul><li>A vision for managing the entire Student Lifecycle </li></ul>-- driving unmatched interaction capabilities into every relationship to create more lifetime value per student .
Improve Results of My Outreach/Recruiting Campaigns Embedded “Smart” analytics using predictive technology lets you target students based on likely response Triggers lets you adjust the channels in real-time based on results. Dynamic content lets you personalize content for 1-to-1 marketing. Ongoing dialogs generate higher response Real-time measurement lets you make mid course correction <ul><li>Better segmentation </li></ul><ul><li>Based on interests, behavior, profitability </li></ul><ul><li>Optimize channel and offer </li></ul><ul><li>Select the best channel, best offer and best content for each person </li></ul><ul><li>Better tracking </li></ul><ul><li>Closed loop results for each step in the campaign </li></ul>The Solution The PeopleSoft Difference Analyze Students Plan Campaigns Execute Campaigns Measure Campaigns Convert Leads & Responses
Enrollment Management Portal View with Marketing Calendar
Exceeding Constituent Service Expectations <ul><li>Reduce cost through self service </li></ul><ul><li>Automate capture process </li></ul><ul><li>Understand prior contacts </li></ul><ul><li>Streamline service interactions </li></ul><ul><li>Increase first contact closure rate </li></ul><ul><li>Workforce optimization </li></ul><ul><li>Identify right solution </li></ul><ul><li>Speed time to resolution </li></ul><ul><li>Assign right field staff </li></ul><ul><li>Manage parts and equipment inventory </li></ul>Workforce Optimization Performance Measurement Capture Issue Assign Resources Diagnose & Resolve Issue Dispatch Field Personnel Evaluate Constituent History
PeopleSoft Drives Value <ul><li>Why PeopleSoft Integrated Service Management? </li></ul><ul><li>Provide convenient and consistent service across all delivery channels – campus office, email, chat, phone, and fax </li></ul><ul><li>Reduce service costs by empowering prospects, students, staff, and faculty to resolve their own issues with self-service </li></ul><ul><li>Deliver personalized, targeted services based on constituent profiles, needs, and preferences </li></ul><ul><li>Decrease service times and improve productivity with comprehensive, automated service capabilities </li></ul>Using CRM techniques to manage relationships with students and alumni serves to increase satisfaction. - BearingPoint
The Power of Dynamic Dialogs <ul><li>Relevant communications </li></ul><ul><li>Targeted to the right audience at the right time </li></ul><ul><li>Capture Real Time Profile Updates on Prospective Students, Existing Students, and Alumni </li></ul><ul><li>Measure the effectiveness of all our your outreach communications </li></ul>
The Power of the 360 Degree View <ul><li>Track all interactions with Prospective Students and Existing Students </li></ul><ul><li>Online Chat, Email and Phone access for Students </li></ul><ul><li>360 Degree View of all communications </li></ul><ul><li>Integrated access to Campus Solution data and applications such as the 3C’s, Financial Aid and Courses </li></ul>