Posted on April 20, 2018
In 2004, when I first became involved in the business of higher education – I had been an entrepreneur for the previous thirty years – I was a bit shocked to learn that colleges discounted their tuition for a large percentage of students. But college admissions executives only used the word “discount” when talking among themselves; when speaking to the public they substituted “scholarship” for “discount.”
Why do they do this, I wondered? The “why” became obvious after I had been involved in higher education for a while, including six years as CEO of a university. When I passed on what I had learned to friends and relatives they either didn’t believe me or thought I was belittling their childrens’ or grandchildrens’ wonderful achievements in securing scholarships to college. So I said little while being frustrated at what I perceived as closed-mindedness, which was probably better defined as “don’t give me any information, factual or not, that will in any way diminish my pride.” It is all about pride, and college admissions people use it to their advantage.
On Wednesday, April 18, 2018, The Wall Street Journal published an article by Melissa Korn titled Prizes for All: Colleges Use Scholarships to Lure Students (URL below). Seems like Melissa discovered what I had discovered years ago and wrote about it in a prominent publication (not Fake News). Here, in her words, is the essence of the article:
Hundreds of colleges and universities are using academic scholarships and other merit-based financial aid to gain an edge in a battle for students. The scholarships make students feel wanted and let families think they’re getting a good deal, like a shopper who buys an expensive sweater on sale.
Ms. Korn goes on to describe how tuition discount rates for full-time new students at private colleges averaged 49% in 2017. I can imagine all the moms and dads who crowed about the huge scholarships their sons and daughters were awarded last year. There’s no harm in feeling good, and I guess it’s a bit like all the kids in kindergarten coming home with a gold star. Everyone’s happy – the kid, the parents, and in this case, especially the college.
The wide availability of discounts – call them scholarships if it makes you feel better – and the lack of awareness of their availability, is one of the reasons my organization created WhatsBestforMe.com. This new website allows prospective college students of all ages to state what they want in a school and what they’d like in the way of scholarships, grants or financial aid. Then schools who are looking for that type of students offered admission as well as tuition discounts (0ops. I mean scholarships).
Melissa Kern’s article can be found at https://tinyurl.com/y825mjzp.
Posted on March 19, 2018
Yes, they probably are, according to a March 12, 2018 article in The EvoLLLution newsletter by Walter Pearson, Dean of the School of Continuing and Professional Studies, Loyola University. The heading on an illustration in the article reads:
While demographic shifts spell a tough road ahead for institutions and divisions focused squarely on traditional-age learners, those that serve adult students have a brighter future in store.
What does this mean for institutions (like yours?) that seek either an increase in enrollment or more adult students? It means a couple things, especially that your institution promote – or develop – online programs that appeal to a growing segment of college students, particularly adults. Easier said than done, you say? Maybe. But there are proven approaches you can use.
And where can you find these proven approaches? Aim small, for starters, by encouraging a shift in your marketing message to appeal to those ages 24-35 who started college but have not yet earned a degree. This should be your primary target market, not those who have never attended college. For more details I encourage that you read Walter Pearson’s fine article at https://tinyurl.com/y9qjtqbv and then look for inexpensive qualified leads at www.collegeleadexchange.com . Easy, inexpensive…and smart.
Posted on March 5, 2018
It’s frustrating to pay forty dollars for a supposedly good lead and, when you call them, have them say, “How did you get my name?” or “I’m not interested in enrolling in college.” According to industry statistics, this happens over ninety percent of the time. Makes you want to rely on the leads you develop yourselves, doesn’t it?
Having dealt with the same frustrations while heading a small university for six years I decided to try and improve this situation for all the colleges and universities, many like the one I led, trying hard to either maintain or increase enrollment. And after a false start, my team finally came up with something that drastically improved the situation.
We started with the assumptions that institutions trying to recruit students of all ages would want the following: access to prospective students who fit specific profiles; the ability to access these profiles easily online and with no buying requirement; the ability to select none, one, or multiple files; files having detailed information on the prospective student; and finally, a low-cost with no contract or minimums.
When we queried multiple marketing, enrollment and recruiting experts to verify our assumptions – remember, we wore those same hats ourselves – we picked up a few additional “it would be nice to have” things. So we added additional features, one of which was what I’ll call “trust.” In this case, trust means we will invoice for purchases an institution chooses to make. No contracts required prior to an admissions department acquiring leads. No credit cards and no money up front. Buy what you need when you need it.
Beta testing began; the usual issues were identified and fixed. Pilot programs were next. More tweaks were needed (of course). Now we’re in the final phase, which adds weighting to each file based on an institution’s specific enrollee profile. This means that if an “ideal” profile, as determined by each institution, contains ten qualities (i.e., age, military, program choice, time to start, etc.) and a prospect’s file indicates eight of the qualities are present, the weighting will be greater than if the file only contained three qualities. The result is that only the files with higher weighting will be shown to the institution on the website.
The platform itself, collegeleadexchange.com, can be easily accessed online. Any enrollment team can, without cost or obligation, create a profile of their best prospective enrollee. And without buying anything, can see how many profiles in the database match their ideal profile. But keep in mind the weighting feature is still being tweaked and will not be fully functional until about the middle of April 2018.
I believe this new approach to finding the best prospective enrollees for each institution’s programs will soon play a major role in assisting enrollment teams in meeting their goals of quality and quantity. And I invite you and your enrollment team members to keep an eye on collegeleadexchange.com over the next few months.
Posted on January 26, 2018
Wow, I haven’t read anything like this in years. And to my great surprise, it is about colleges and higher education in general, written by an insider – a professor of sociology. Mom, dad and their college-age kids should read this eye-opening piece. The laundry is dirty and it’s being aired out in this article titled “Higher education is drowning in BS.” And the “BS” doesn’t stand for bachelor of science.
Click on this link and enjoy: https://tinyurl.com/y8sl3xsf
Posted on January 11, 2018
It seems that, in the last few months, people in higher ed are talking about two things: nontraditional students and online course offerings. Strange, those of us who’ve been paying attention for the last dozen years have known more and more adult students are attending college each year, and many of these adults enroll in online courses, most on a part-time basis. Why have so many missed these obvious occurrences?
Forgive me, but I’m a businessman who became involved in higher education when I was asked to rescue a small failing college in 2005. Thanks to my business background I was not a prisoner to the traditional, pervasive mindset clouding the objectivity of far too many higher ed administrators and trustees. Two things were immediately apparent to me by the middle of 2006, both related to the inevitability of online penetration in providing courses to the busy but interested adult. Traditionalists attacked the University of Phoenix and its many imitators, as much for being online as for being for-profit.
Now I see pundits of varying backgrounds writing and talking about the adult – nontraditional – college student and the necessity of providing classes and degree programs online. Some institutions, most recently the University of Massachusetts, are crowing that they are either starting or expanding online programs. No surprise that they are also beginning to target working adults.
Despite the recent emergence of those heads from the sand, I still talk to institutions who are reluctant to start or expand, online programs. And god-forbid they target potential enrollees who are 24 or older. I keep hearing “It’s our mission to (fill in the blanks) and that doesn’t include (adults or online courses).” Well, folks, missions change as the environment changes. Some business gurus say, “If you don’t change you’re falling behind.” How many of our colleges and universities are falling behind because they won’t change? Far too many, I think.
Posted on January 2, 2018
Once each year, in preparation for finalizing University Research & Review’s annual Best Value College Awards, I have conversations with dozens of colleges and universities. Typically, these schools are lesser-known but reasonably priced, quality institutions whose students love them. Sadly, too many of these schools face stagnant or declining enrollment and revenue. Too often this precarious position is paraphrasing Jimmy Buffet, their own damn fault.
Several examples of this perplexing situation come immediately to mind as does a conversation I’ve had with several of these schools. To their dismay, I ask them to think of their institution as a restaurant (they hate when I say this). This restaurant, which pays rent and operating costs no matter how many hours it is open, has decided to only offer one or two menu choices. Worse, the restaurant is only open three days a week, and only for lunch. To make matters worse, they will only serve people who are between the ages of 18 and 24, and they automatically add a 30% service charge to the already high bill. This restaurant has fewer and fewer customers, loses money, but it won’t change the way it operates. It is doomed to eventually close its doors.
Few college administrators see the point in this analogy. They don’t realize that, while they have great academic programs and a sunk investment in infrastructure, they restrict their programs unreasonably. They say they don’t want to attract adult students; they don’t feel online programs are something they should offer, and their escalating fees are justified because they don’t want to raise tuition too much. Will these folks ever see the light? Time will tell.
Posted on December 18, 2017
The financial experts at Moody’s don’t think many positive things are in store for higher education over the next year or so. Is this a surprise? I think not, especially when taken alongside the news that the numbers of high school graduates are dwindling, professors are chafing at salary freezes, states are not increasing funding to universities, and the unemployment rate is shrinking, the latter depleting the ranks of potential college enrollees.
But to paraphrase Bugs Bunny, that’s not all, folks! Far too many private colleges want to believe it’s 1955 and their liberal arts programs are in great demand. They’re not. Further, conversations I’ve had with numerous smaller, lesser known schools indicate they are reluctant to add online programs and broaden their appeal to adult – nontraditional – students. Take the blinders off, folks, or you’ll fall off that cliff that you’re steadily approaching.
If that’s not enough bad news, there’s also the new GOP tax bills. Until we know exactly what the final bill will contain we all sleep uneasily. Maybe the party of President Trump will view the higher education establishment in a positive way. And maybe Betsy DeVos will be the best Secretary of Education in a hundred years. Time will tell, of course, but until then higher ed administrators, instructors, and trustees will continue to lose sleep over the current uncertainty. As well they should.
Posted on December 5, 2017
The House and the Senate tax bills have the higher education establishment all in a-tither. Corporations, though, are happy; not so many colleges or their executives making over one million per year. And then there is the reauthorization of the Higher Education Act. All this will cause many sleepless nights as those in academia – most of them anyway – hate disruption. What’s an administrator to do? The best advice: complaint to your congressman or congresswoman. Do it now. Be proactive. And hope for the best.
Posted on November 30, 2017
Old news but now involving a new antagonist: the California AG. Does Mr Becerra want the publicity? Does he aspire to higher public office?
Posted on November 28, 2017
Yet another survey of higher education professionals, this time with financial staffers, indicates only half believe their institutions’ business models are sustainable. This Kaufman Hall survey echoes earlier predictions, first from management guru Peter Drucker then from Harvard professor Clayton Christensen, stating that colleges and universities will not survive in their present form, the brand-name schools excepted. Coupled with a dwindling target market – high schoolers – and negative media coverage concerning high costs and poor value (i.e., lack of jobs for graduates), it’s no surprise that many institutions have fallen 30% or so below enrolment targets.
It’s obvious to me, though maybe not to thousands of college administrations and trustees, that there’s a leak in the hull that’s letting in more water every day. It’s also obvious to me that there are three logical steps to take to plug the leak, so schools can regain steerage and resume their journey.
First, determine what you’re good at, what makes you different; your Silver Bullet. Find out by asking your current and former customers (students). Ignore your faculty’s opinion; they have vested interests and they aren’t customers. Use some marketing smarts, preferably from experienced third-party marketers, and position your key differentiator to attract those who want or need that Silver Bullet knowledge and credential. Above all, stop trying to be everything to everyone. No one is good at it.
Second, realize it’s 2017, not 1960, and add online courses and programs. Start with your Silver Bullet program. This will likely be the best investment – and smartest decision – you’ve made in decades.
Third, change the way you recruit potential enrollees. Buying names from the College Board is passé. If you don’t believe me take a hard look at your conversion rates. Use reputable lead generation organizations to target only the prospective student who meets your own specific criteria. Buying general interest leads (i.e., “I may be interested in college”) is a bad investment. Only buy leads that meet specific criteria. Now here’s where I plug my company: College Lead Exchange (coming soon) is the best example, I believe, of creating specific criteria that ensure the leads you invest in are for the type of people you want. To see how this works, go to www.CollegeLeadExchange.com and go through the no-cost-or-obligation process.
One more thing. Realize you’re running an organization whose product is education, and don’t restrict access to the 18-23 age group, or to specific religious denominations or sexes. Open your eyes to adult learners. They want knowledge and credentials, not sports teams, Greek life and climbing walls. And they’re likely to pick and choose what they will buy while paying sticker price. And that’s good.