Mastering Your Enrollment Management FunnelPresented by The CollegeBound NetworkJuly 2009

INTRODUCTION

Greg O’Brien – CFO, The CollegeBound Network

• CFO of CBN, also manage CBN EM products and services

• 10 years experience in higher education investment banking

• Former EVP of Enrollment Management and educational publishing business

• Consulting on lead generation and EM with several NP and FP institutions

• Where are you here from?• What type of school are you with:

– Higher Edu (NP, FP) or Industry– Geo region– Online and/or campus– Current enrollment– Target enrollment growth

SURVEY

• Defining Your EM Funnel

• EM Funnel Operating Metrics

• EM Budget, Expense Management

• EM Solution Providers

• Wrap it Up

• Q&A

WHAT WILL WE COVER TODAY

Operating Parameters• Target/goal number of enrollments

• Target/goal enrollment growth (%)

• Segment targets by channel- campus, delivery method, academic program, geo, other demographics, etc- Tracking & transparency

Life Cycle• Prospect contact management

• Application life cycle management

• Student life cycle management (retention)

5

DEFINING YOUR EM FUNNEL

Top-5 School Business, CBN client– Began defining EM funnel first with leads– Differentiate leads by quality = leads scoring– Map campaigns so you can effectively measure performance– Derive true CPE on a lead-source basis, which is the start of

your funnel

DEFINING YOUR EM FUNNEL

This is the truest way to connect the top of your EM funnel with the bottom

DEFINING YOUR EM FUNNEL

Source: BMO Capital Markets

Admissions Funnel

Cost per lead (CPL) - costs for admissions, recruiting, and marketing divided by the number of leads.

Cost per applicant - costs for admissions, recruiting, and marketing divided by the number of applicants.

Conversion rate (“inquiry to applicant” ratio) - measures the percentage of leads that actually are converted into applications.

Cost per accepted (CPA) - costs for admissions, recruiting, and marketing divided by the number of students accepted.

Lead-to-start rate (“inquiry-to-start” ratio) - measures the percentage of applications that are converted into new students.

Show rate (“yield rate”) - measures the percentage of those accepted that actually decide to enroll. Calculated as number of enrollments divided by number of acceptances.

Cost per start (CPS) (cost per enrolled, cost per new student, student acquisition cost) – costs for admissions, recruiting, and marketing divided by the number of new students enrolled.

DEFINING YOUR EM FUNNELA number of different metrics are used in an attempt to measure the effectiveness of sales and marketing spending at points along this funnel:

DEFINING YOUR EM FUNNEL

N.A. = Not AvailableSource: NACAC (National Association for College Admission Counseling) Annual State of College Admissions.

DEFINING YOUR EM FUNNEL

N.A. = Not Available.Source: BMO Capital Markets estimates and company reports.

Note: Data represents fiscal years. Data for American Public Education represents costs per new registration.Data used for Career Education and Corinthian Colleges excludes discontinued operations where available.

Career Education (CECO):

Rating: Outperform

DEFINING YOUR EM FUNNEL

“Event: This is a follow up to CECO's 4Q08 EPS (GAAP from cont. ops.) of $0.38 versus $0.21, well above the consensus $0.20 and our $0.21 estimate management does not provide guidance). New student starts (excluding Transitional Schools) increased 3.5% y/y (close to our 4% estimate) while total population (excluding Transitional Schools) rose 6.9% y/y, well above our 3.8% estimate (consensus not available for enrollment data).”

• Lead flow (by channel, program)

• Cost Per Lead (CPL)

• Conversion – lead to appointment

• Conversion – lead to application

• Conversion – lead to enrollment

• Effective Cost Per Enrollment

• Life-Time Value Per Enrollment (by channel)

EM FUNNEL OPERATING METRICS

What are your “electrons & neutrons” vs “atoms, elements, molecules”?

What should you wake up and worry about?

EM FUNNEL OPERATING METRICS

Source: Gragg Advertising

EM FUNNEL OPERATING METRICS

Source: BMO Capital Markets estimates and company reports.

Sources of New Students for Select For-Profit Providers (FY2002-FY2007)

• Cost per application• Cost per start• Lifetime value of an enrollment • Balancing cost with enrollment goals

- Micro view - Macro view

• Do incremental students yield higher margin or diminishing returns?• Does one channel/delivery method support deficit or lower margin of another?

EM BUDGET, EXPENSE MANAGEMENT

EM BUDGET, EXPENSE MANAGEMENT

Source: Bureau of Labor Statistics, BMO Capital Markets and company reports.

Expected Fastest-Growing Occupations (2006-2016E)

EM BUDGET, EXPENSE MANAGEMENT

N.A. = Not Available. Source: BMO Capital Markets and company reports.

Note: Data represents fiscal years. Data used for Career Education and Corinthian Colleges excludes discontinued operations where available. Education Management was a publicly held company until being taken private on June 1, 2006.

Advertising Expense as Percentage of Revenues for Select For-Profit Providers (FY2000-FY2007)

EM BUDGET, EXPENSE MANAGEMENTAdvertising Expense as Annual Growth in Net Advertising Spending (1998-2010E)

Source: BMO Capital Markets Media Group.

• Publishers- The CollegeBound Network- eLearners- Quinn St.

• Brokers/Agencies- Ward Media- Vantage- CU Net- DataMark

EM SOLUTION PROVIDERS

Lead Generation Sources:

How do they do it? Lead content, sources, etc. How to measure cost and quality

CRM• Who are they?

- PeopleSoft, Campus Management, Hobsons, Intelliworks, others

EM SOLUTION PROVIDERS

How do they integrate with campus-wide systems?

How to maximize benefit of these solutions.

• Scope of partnership, services

• Various economic models

- Fee for service- Cost plus- Revenue share models

• Need to balance “ownership” of EM task with school/faculty culture, goals, desires

• Regulatory considerations

EM SOLUTION PROVIDERS360 Enrollment Management Solutions

• Define• Metrics• Monitor, adapt• Leverage vendors

WRAPPING UP

Gregory P. O’BrienChief Financial Officer718-761-4800 x128646-422-9946 (m)gobrien@collegebound.net

The CollegeBound Network1200 South Avenue, Suite 202Staten Island, NY www.collegebound.net/corporate

QUESTIONS