Nov 18, 2010
- Posted by:
- John Hall
In 1992, Bill Clinton rode to victory over a president that just a year earlier registered a nearly 90% public approval level in the wake of the first Gulf War. Many political observers argued that the victory was made possible by Clinton’s understanding of these four words – “It’s The Economy, Stupid!” With the current turbulence and uncertainty in the non-traditional student marketplace, especially for for-profit schools, we think that we will begin hearing the words, “It’s Reenrollment & Retention, Stupid,” in the very near future.
While many for-profit institutions are fearful that new enrollment growth will be severely curtailed by increased scrutiny and pending “Gainful Employment” regulations, many schools that have been successful with their recruitment over the past years are sitting on a potential goldmine that can help buffer their financial performance during the short-term even if they experience declining rates of new enrollment growth. In the long-term, this treasure chest can help create substantial new enrollment growth as well as many other benefits.
What is this panacea? It is Reenrollment & Retention! We will leave out the other part of the phrase as none of our clients and readers are stupid! That said, if schools focus on these areas with even half the intensity that some focus on recruitment, they will be amazed by the positive results.
We all know what retention is. We may, however, not be as familiar with the term reenrollment. Reenrollment intervention is the practice of ensuring that students reenroll each term instead of stopping out of a program. This is especially important for non-traditional learners such as online students who are taking part in accelerated terms (some as few as 4-5 weeks.). Unlike traditional or campus-based students, these learners are not physically connected to an institution. As a result, they may not know what they need to do and when they need to do it – to maintain continuous enrollment. These learners are also leading busy lives where educational pursuits often take a back seat to professional and family needs.
The benefits of ensuring on-going enrollment are clear. First, an institution maximizes its tuition revenue. In the long term, we have found that students that do not stop-out are less likely to dropout of a program altogether, thereby, improving retention. Even the most committed and engaged students are more likely to leave for good if they stop-out for even one-term, unless they are actively encouraged to return.
Although the right reenrollment platform can dramatically reduce stop-outs, it is difficult to eliminate them all especially as it relates to non-traditional students. Work, military deployment, health problems, finances, or family issues are all reasons why a student may need to sit out a term. Reenrollment intervention is designed to maintain contact and connection with these students with the goal of them resuming their education as quickly as practical.
I can attest to this first-hand. In 2009, I began a full-time classroom doctoral program on the weekends at the University of Southern California. I loved my first few terms and could not imagine ever not completing the program. Well early this year, my Mother passed away unexpectedly and at the same time we landed a large contract that took much of my attention. I decided to stop-out a term during the add/drop period which was a wise decision. During that term, I became quite accustomed to having my weekends free again. When it came time to register for the next term, I came up with a handful of compelling reasons why I could not return at least immediately.
With the growth of my business, being a parent, etc., chances are had I not returned, I would have put off doing so even though that was not my original intention. What inspired me to return despite all the reasons I had not to? A mentee and client of mine in higher education essentially told me “I had to.” You can’t say no to a client! I was also motivated by calls and emails I received from fellow students in my cohort who told me they were looking forward to seeing me in the next class. So, I went back and I am working on my dissertation as we speak. Luckily, I had a strong social network that motivated me to return to school.
But what about the single mother of 3 children who has been out of school for the past 20 years and is working on completing her bachelor’s degree? Does that student have a mentor and classmates that are holding them accountable? Probably not! That’s where reenrollment comes into play!
Reenrollment provides a consistent, personalized support system for every student. Each student is assigned a dedicated counselor that follows a very specific methodology that enables them to build a relationship with their students, check-in with them often, and help them through obstacles that can cause a temporary or permanent stop-out (or even a class drop). Coupled with proprietary tracking and relationship management technology, these counselors can have profound impacts on student persistence as well as enhancing student connectivity to a particular institution.
Similar to an Enrollment Counselor that works tirelessly to recruit a new student, a Reenrollment professional works diligently to stay connected with their students on a regular basis and sometimes more often if a student has not been attending class, made a payment, registered, or just needs extra encouragement. Reenrollment personnel typically have the same or greater qualifications than Enrollment Counselors. In fact, many of our Reenrollment team members have Masters degrees. Like a recruiter, they do what it takes to reach their students – email, phone calls, text messages. If they cannot reach a student during their shift, they call that student on the weekends or well into the evening. They do whatever it takes to ensure student persistence, success, and the removal of as many obstacles as possible. As a result, the return-on-investment to an institution can be considerable.
We work with an institution with a large online presence. Prior to a reenrollment intervention program, an average of 22% of the program’s students were dropping at least one class each term – mainly due to minor reasons including not having the appropriate text book, forgetting to login to a class, not registering for class, forgetting to make a payment, etc. Within six months, the drop rate was down to 8%!
Another institution we work with was losing over 30% of their revenue every term due to drops and 72% of the students that stopped out never returned. Within a year, the introduction of reenrollment support reduced the lost revenue rate to less than 10% and those students that did stop-out returned in subsequent terms 67% of the time – a huge turnaround. This particular school estimates they saved over $ 8 Million in revenue during the first year of providing this valuable support to students. I had the pleasure of attending this institution’s graduation event last spring. I was pleasantly surprised to see students embracing their Reenrollment Counselor more often than anyone else. It illustrated the bond developed by student and their Reenrollment Counselor.
Reenrollment should not be confused with Academic Advising – both which are critical support components. Reenrollment and Academic Advising staff typically coordinate their efforts loosely, however, they play very different roles that are almost impossible to combine without detrimentally impacting either or both Academic Advising and Reenrollment support.
Whether due to recent scrutiny or heavier competition, new student recruitment is generally a costly endeavor. This alone provides schools with a profound financial incentive to take steps to maximize persistence. Reenrollment support can also provide schools with an innovative differentiator in terms of how they support students and fulfill their educational missions. The increased retention that reenrollment counseling can stimulate helps create better student outcomes, higher loan repayment rates, and enhanced institutional reputations. Finally, schools arguably have an ethical and moral responsibility to help students be successful.
Until now, with certain exceptions, it has been mostly not-for-profit institutions that have championed reenrollment solutions. It will be interesting to see if the for-profit sector embraces this type of support and leverages it against their large student populations. Any institution (for-profit or not-for-profit) that is serious about revenue growth and student outcomes should seriously consider this ROI positive support system.
John Hall
Greenwood & Hall
jhall@greenwoodhall.com
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Nov 09, 2010
- Posted by:
- John Hall
In our last article, we highlighted how for-profit institutions are reinventing themselves in light of proposed Gainful Employment regulations and significant public scrutiny. Some for-profits have taken a wait and see approach. The majority, however, are taking bold steps to maintain their relevance and enrollment growth in this changing environment. Many of these initiatives are focused on increasing student engagement while enhancing learner satisfaction and maximizing best outcomes.
Here are 10 initiatives that both large and small institutions are executing to reinvent and strengthen their offerings. While many of these concepts are not new ideas, schools are utilizing them in innovative ways as they adapt to new realities.
1) Next Generation LMS
For-profit schools are leading the charge to develop intelligent learning management systems (LMS) that determine the most effective learning style to present curriculum to individual students in order to maximize their success. These systems can employ a learning modality that best supports each unique learner on a per lesson or per course basis. Such adaptive learning technologies individualize learning and focus on subject mastery versus simply presentation. Additionally, these technologies have been shown to increase non-traditional student course completion by up to 42%, making them extremely attractive for institutions focused on improving outcomes.
2) Persistence & Motivational Assessments
For-profits are beginning to rely on simple online, non-academic assessments that measure a prospective student’s ability to persist as well as their motivational level. Besides providing key information about a student’s chances for success, these tools are most helpful in helping retention/reenrollment counselors, academic advisors, and instructors to develop individualized counseling and follow-up strategies that best serve a student’s needs. By way of example, if an assessment suggests that a student has limited self-confidence as it relates to their ability to be successful, the student’s retention counselor and academic advisor can check-in with the student more often while faculty can provide extra instructional support and motivation.
3) Reenrollment Counseling & Coaching
Many schools are beginning to realize that enrollment counseling is essential throughout the entire student lifecycle to drive persistence, not just during the recruitment process. During the enrollment process, a student is introduced to a dedicated Reenrollment Counselor who becomes a student’s on-going coach and key point-of-contact. This counselor is responsible for developing a relationship with their students, understanding each student’s unique situations/objectives, and providing motivation to each learner. By checking in with their students at least once a term and personally engaging students more frequently who have failed to login to class, order books, register for a new term, complete their financial aid paperwork, or linking students with school services, such counseling efforts can significantly improve persistence by removing the most common obstacles that routinely cause students to stop-out.
4) Testing Labs
A few for-profits are following the path of high-tech companies that have set-up elaborate testing laboratories to test and improve products. For-profit institutions are testing the effectiveness of everything from new marketing pitches to curriculum and instructional delivery approaches in experimental environments. These labs are relatively new but are beginning to help their for-profit operators improve efficiency and effectiveness.
5) Student Concierge Hotlines
Some schools with non-traditional populations have maintained 24/7 “Student Concierge hotlines for years, however, many more for-profits are beginning to implement these student help desks. Most of these lines can assist students with basic questions regarding registration, financial aid, technical support, and student services. The most innovative hotlines can help students with Microsoft Office questions, providing referrals for day care or community services, and even providing students with connections to real-time tutoring support day or night. More importantly, these hotlines can provide students with a friendly voice, encouragement, and a connection to an institution even on the weekends or late at night when non-traditional students are typically focused on their studies and may need the most support.
6) Career Placement Coaching
A number of for-profits have provided their students with career placement services with mixed success. Now, some for-profits are expanding these placement services to include career coaching that begins immediately upon matriculation. Schools are finding that this coaching not only better positions students to find a job after graduation but also consistently reminds the student why they are in the school in the first place, thereby, theoretically improving retention.
7) Mobile Learning
Just as the computer has been key to the growth of online learning over the past 15 years, many schools are betting that smartphones, iPods, and iPads will take on new prominence in delivering education to students. While smartphones and other mobile devices cannot yet be exclusively used to complete most online programs, many schools are adapting certain types of content so students can learn on the go with their mobile devices. Making content available in this fashion can increase the amount of time students spend engaged in their coursework.
8 All You Can Learn Pricing
Following the not-for-profit Western Governors University model, a few for-profits are considering flat-rate pricing in which students can take as many classes as they can for one flat amount during a term. While the jury is still out on whether this type of model is scalable, some institutions see this tuition arrangement as adding value and encouraging increased student engagement. On the other hand, such arrangements can encourage students to bite off more than they can chew which can detrimentally impact student success and persistence.
9) Practical Learning
Some schools are expanding partnerships with industry, non-profit, and governmental organizations to provide integrated practical learning experiences embedded within their content. More than case studies, these partnerships provide participating schools with customized real-life content that is designed to augment traditional curriculum and expand student engagement as well as mastery of key concepts. One innovative program has even established a unique partnership with a nationwide organization that allows students to participate in an actual hands-on practical learning experience – even on evenings and weekends when they are most likely to have free time. Since doing so, this school has experienced significant increases in student satisfaction and retention.
10) “Smart” Early Alert Systems
We have all heard about the value of early alert systems as it relates to improving retention and overall outcomes. For programs with early alert processes, they are typically limited to detecting students who have failed to login to a course for a pre-determined period of time or are receiving poor grades in a specific course. By the time such information is followed up on, it is often too late to perform a successful intervention. A few schools are looking at ways to make their early warning systems more dynamic and proactive. One school we work with relies on a system that constantly scans for 31 unique warning indicators that may suggest a student might be in jeopardy, providing key information to all stakeholders in a learner’s success – students, retention counselors, academic advisors, and faculty members.
John Hall
Greenwood & Hall
jhall@greenwoodhall.com
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Oct 19, 2010
- Posted by:
- John Hall
This year has been dominated by discussions about the efficacy of for-profit education. Government officials, politicians, and the media have bashed for-profits for months. The chorus of criticism became so intense that many felt the days of for-profit education, as we have known them, were limited. Many for-profit executives were caught off guard by the level of scrutiny. A few privately shared with us that they did not know what the future would hold. Some still feel this way.
Some not-for-profit institutions saw the events of this year as a game changer. One provost told me that he was convinced that the public would now “finally understand how inferior the for-profits are” and would begin ignoring all their expensive marketing and attend non-profit schools “en masse.” One public university administrator declared the for-profits as “dying” and no longer a threat to the school’s adult-learner degree programs.
Last week, the Apollo Group, which operates the University of Phoenix, announced that new enrollments could be down as much as 40% in upcoming quarters. While a level of decline was anticipated due to increased regulatory scrutiny, the 40% sent shock waves throughout Wall Street. Within 48 hours, the University of Phoenix made another bold announcement – introducing its Learning Genome Project – technology that adapts to the instructional needs of each learner. Unlike the announcement regarding short-term enrollment declines, the latter announcement could be a real game changer that all institutions with online program offerings need to pay close attention to.
The Phoenix initiative introduced at last week’s EDUCAUSE conference, was referred to as “The Thinking LMS” in yesterday’s edition of Inside Higher Ed. While in an early design phase, this new platform appears to be an innovative twist of adaptive learning, in which instruction is adapted to a modality that is most compatible with a student’s individual learning style. Although adaptive learning is not a new concept and was not invented by the University of Phoenix, the school plans to publish research as it relates to its initiative and share some of the technology with other institutions. Further, a Phoenix executive declared that the school now “rejects the one-size-fits-all model of presenting content online.”
Phoenix’ announcement seems to convey that it seeks to be on the cutting-edge and wants to claim a leadership position not only as it relates to market share but in terms of instructional leadership. The school has also set the foundation for a market expectation that it knows many of its competitors (especially non-profits) will not be easily able to deliver on. This announcement could have easily come from MIT, Harvard University, or the University of Southern California instead of an institution who until recently was considered by many to be the poster boy for everything that was wrong with for-profit education. Yet, it came from the University of Phoenix.
No matter what one feels about the University of Phoenix, Phoenix’ positioning is illustrative of a marketplace that is learning and adapting. For-profit institutions are business enterprises. When regulations become tighter or other factors change impacting a market, savvy participants change too. The University of Phoenix is slowly but surely turning a negative and a potent business threat into an opportunity to reinvent and differentiate itself. If the Learning Genome Project is successful and the institution is ultimately viewed as being a key element of “revolutionizing” online learning, the events of the last year will become a powerful business opportunity for the institution.
Other for-profit schools are reinventing themselves as we speak. Those who are not, are wasting valuable time and jeopardizing their long-term survival. While many for-profits can innovate faster than non-profits, change still takes time in any organization. Cultures must change and it will take time to alter public perception after so much negative attention. This provides a unique but very limited window of opportunity for non-profit institutions.
During the next 6-12 months, as for-profits reinvent themselves perception-wise and structurally, non-profit institutions have an opportunity to introduce innovations, new programs, and support services that allow them to differentiate themselves. They also have an opportunity to lead while capturing additional market share and positioning themselves strongly for the future. This will be difficult for many non-profit institutions, as even the most agile non-profit schools cannot or will not innovate overnight. Those that can and are willing to move quickly, however, have a unique opportunity which will be key to their success (and potentially survival) on a long-term basis.
As the for-profits have influenced how education is delivered especially to non-traditional and adult learners over the past decade, for-profits are beginning to position themselves again to create the next wave of influence. Even the most selective non-profit institutions will be impacted as many of the features and benefits that will be pushed by for-profits will become expected by increasingly savvy-learners at large – specifically the adult learner segment that continues to see robust growth.
Our next article will address the 10 Major Innovations That Key For-Profit Institutions Are Developing Right Now to reinvent their images and products. This will be information that every for-profit and non-profit institution needs to know as we enter yet another phase of educational service delivery.
John Hall
Greenwood & Hall
jhall@greenwoodhall.com
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Sep 28, 2010
- Posted by:
- John Hall
Earlier this summer, we predicted that the governmental and media scrutiny that for-profit institutions have faced for much of the year would be relatively short-lived. We wrote that the for-profits exercised significant political influence and it was doubtful that Gainful Employment would be implemented as initially proposed if at all. We also predicted that the largest for-profits had the market power, expertise, and resources to “reinvent” themselves just as other large corporations have done throughout contemporary American history.
Well, light is beginning to appear at the end of the tunnel for these schools, although, it is happening much faster than we ever expected.
Last week, in the wake of receiving over 90,000 comments, the United States Department of Education (DOE), decided to postpone issuing final rules on Gainful Employment. This will delay enactment by at least a year and that is assuming the political environment in November will sustain continued effort at all by the Department. If the DOE does enact new rules on the issue, we will be very surprised if they are not much tamer than the proposed regulations that have been introduced.
Now that media scrutiny on for-profit schools has started to subside and the public’s attention is beginning to focus on the November elections and challenges of our public K-12 education system, the University of Phoenix has led the way in the effort to “reinvent” for-profit education. Some of its efforts have been subtle and others fairly bold.
The nation’s largest for-profit school and second largest university system, has been including significantly more testimonials of successful student outcomes in its advertising. These messages have been present in Phoenix advertising for a while, however, they seem much more present as of late. Ads are also trying to deliver the message that Phoenix is similar to a traditional university with individual schools. By way of example, ads touting Phoenix education degree programs now prominently include “College of Education” or “School of Business” for Phoenix’ MBA program.
In our view, the most significant move in the “reinvention” process came this week with University of Phoenix’ sponsorship of NBC’s Education Nation initiative. Not only is Phoenix’ name being prominently promoted by NBC but the school’s ads are actively promoting how Phoenix and its programs are playing an active role in improving student achievement.
No matter how one feels about the University of Phoenix or for-profit institutions, it is easy to acknowledge that these ads make viewers “feel good” and create a perception that the University of Phoenix is at the “forefront of education.” If we were one of the 30 Million adult learners who make up the non-traditional marketplace, we would see these ads and probably be tempted to strongly consider Phoenix. Even if we had heard the University of Phoenix was a for-profit, we would probably view the school as one of the “good” guys, simply based on messaging.
This is just one for-profit. In the coming weeks and months, we suspect we will see similar types of “reinvention” initiatives from many other for-profit schools especially the very large players. There are opportunities here for both for-profits and non-profits.
While the potential troubles for for-profits are far from over and certain changes are on the way no matter what occurs with Gainful Employment, there is a window of opportunity here for the for-profits. Rebranding and reinvention (hopefully more than just superficial) can strengthen their position and the public perception. For-profits can ride the coattails of Phoenix’ initiatives and position themselves in similar ways. For those for-profit schools that are niche providers, there is a great opportunity to not only take advantage of the subsiding negative attention and begin getting unique, positive messaging out to prospective markets/students.
Non-profit institutions perhaps still have the best opportunity in our view. We have heard a collective sigh of relief from many non-profits over the past several months. Many think that all the media and governmental scrutiny have permanently damaged the for-profits beyond repair and that there is no need to view for-profits as competitors any longer. Rightfully or not, many non-profit leaders feel vindicated – that all the scrutiny has “proven the point.” This is the farthest thing from the truth. In our view, for-profits will be stronger than ever in the next year or two. As the scrutiny concludes and many for-profits work on recasting themselves, there is a unique opportunity for many for non-profits to innovate and expand their presence, however, the clock is ticking to get ahead. The bear may be hibernating now but once the bear wakes up, it will be refreshed and ready to fight.
John Hall
Greenwood & Hall
jhall@greenwoodhall.com
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Sep 26, 2010
- Posted by:
- John Hall
I was recently discussing the state of education with the President of a major urban university. Specifically, we were talking about America’s changing demographics and the significant disparity in college going (and completion) as it relates to students of color. The university president suggested that our nation’s failure to provide effective post-secondary education opportunities is a significant national security risk. I agree.
As our economy becomes more globalized and dependent on highly skilled labor, failure to educate large growing segments of our population, will relegate many to a permanent underclass. Further, the lack of a large qualified workforce will prevent us from generating the economic output and innovation that is necessary to keep the United States relevant globally. Both scenarios threaten the social order as well as our ability to maintain our superpower status.
A recent report by Ed Week found an over 26-point percentage gap between high school graduation rates of Latino and White Students. The divide for African-Americans is even greater. Unfortunately, these disturbing gaps do not end with high school completion. Huge disparities also exist between the college completion rates of White students compared to African American and Latino students. These gaps are a social travesty but they are much more than that.
In 2007, Latinos and African Americans accounted for nearly 40% of all births in the United States. If we fail to educate a significant portion of this many Americans over the next two (2) decades, what will our nation become? As our population ages, who will our future scientists, doctors, educators, leaders, and business innovators be? Who will grow our economy so we can afford our government or meet our obligations to our retirees? Who will keep us safe and free? Who will come to America to pursue the “American Dream?” Who will ensure that our nation continues to grow and prosper just as it has for much of its 234 year history?
We have a choice to make. We can take steps to address these gaps not incrementally but powerfully and with urgency, or we can do nothing and put our nation at risk. If we make the right decision, we can put ourselves on an unprecedented trajectory for the greatest success America has ever enjoyed.
Many of us in post-secondary education might believe that most of the challenges and solutions are inherent in the nation’s K-12 public education system. To be clear, our K-12 system has tremendous issues to overcome. On the other hand, America’s higher education system certainly has its own challenges as it relates to the achievement gap and delivering outcomes that prepare students to be competitive in today’s workforce. I would also argue that post-secondary institutions also have a responsibility and opportunity to help our K-12 system in educating our youth.
Both non-profit and for-profit schools of higher education have a responsibility to help address this most serious national security priority. Our non-profits have missions focused on providing educational opportunities and the historical expertise in educating so many of our nation’s leaders and innovators. I would argue our for-profit institutions have an even greater obligation (and opportunity). Our largest for-profits have resources that many of our non-profit schools do not. They can make impacts in terms of funding, innovation, and business expertise. For-profit schools also have unique experience attracting and serving our non-traditional students as well as individuals who otherwise might be ignored by traditional higher education.
Here are 10 ways our over 6,700 post-secondary institutions can take bold steps in both the K-12 system and their own schools to address this potential national security crisis:
1. Adopt a local secondary school for the long-term. Beautification, clean-up and used computers are nice but what are truly needed are resources, technology, expertise, specialists, and an on-going commitment. A miniscule fraction of what many for-profit schools spend on recruitment can outfit a high school with high-speed WIFI service while instructors and professors with specialized knowledge can provide lower-achieving students with intense reading or math instruction.
2. Set-up mentoring teams of students and faculty that counsel high school students on post-secondary options, applying to school, and obtaining financial aid.
3. Help provide tutoring, extended instruction, and other types of after school program support for secondary students.
4. Provide students in Grades 7-12 with opportunities to experience higher education and earn college credit.
5. Introduce secondary students to hands-on experiences with careers and professions.
6. Provide high school students with summertime internships and jobs.
7. Work with key industries, large local/regional employers, economic development officials, chambers of commerce, and labor officials to develop program offerings (and curriculums) that best meet the demands of business while incorporating industries into the educational delivery process.
8. Utilize available assessment systems to pinpoint post-secondary students who are at most-risk, focusing scarce academic advising and other support services on these students.
9. Reallocate resources to make proactive career advising services that start at matriculation and last through graduation – a significant institutional priority.
10. Update curriculum so it is more interactive, engaging, and adaptive to different learning styles. Instruction also needs to be flexible as it relates to delivery and the utilization of technology including mobile devices.
There are many examples of many post-secondary institutions working to address this crisis. If all our post-secondary schools begin taking bold steps, we could be well on our way to overcoming this national security risk and guaranteeing America a future of unprecedented success and prosperity. Taking action now provides all our institutions, specifically our for-profit schools with the opportunity to demonstrate that substantially increasing access for all, enhancing outcomes, and strengthening the fabric of our education system – are truly priorities.
John Hall
Greenwood & Hall
jhall@greenwoodhall.com
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