Learn how to define your enrollment management funnel, evaluate your enrollment management operating metrics, set budgets/expense management, and review enrollment management solution providers.

1. Mastering Your Enrollment
Management Funnel
Presented by The CollegeBound Network
June 2009

2. 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

3. SURVEY
• 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

4. WHAT WILL WE COVER TODAY
• Defining Your EM Funnel
• EM Funnel Operating Metrics
• EM Budget, Expense Management
• EM Solution Providers
• Wrap it Up
• Q&A

5. DEFINING YOUR EM FUNNEL
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

6. 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
This is the truest way to connect the
top of your EM funnel with the bottom

7. DEFINING YOUR EM FUNNEL
Admissions Funnel
Source: BMO Capital Markets

8. DEFINING YOUR EM FUNNEL
A number of different metrics are used in an attempt to measure the
effectiveness of sales and marketing spending at points along this 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.

9. DEFINING YOUR EM FUNNEL
N.A. = Not Available
Source: NACAC (National Association for College Admission Counseling)
Annual State of College Admissions.

10. DEFINING YOUR EM FUNNEL
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.
N.A. = Not Available.
Source: BMO Capital Markets estimates and company reports.

11. DEFINING YOUR EM FUNNEL
Career Education (CECO):
Rating: Outperform
“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).”

12. EM FUNNEL OPERATING METRICS
What are your “electrons & neutrons” vs “atoms, elements, molecules”?
What should you wake up and worry about?
• 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)

13. EM FUNNEL OPERATING METRICS
Source: Gragg Advertising

14. EM FUNNEL OPERATING METRICS
Sources of New
Students for Select
For-Profit Providers
(FY2002-FY2007)
Source: BMO Capital Markets estimates and company reports.

15. EM BUDGET, EXPENSE MANAGEMENT
• 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?

16. EM BUDGET, EXPENSE MANAGEMENT
Expected Fastest-Growing Occupations (2006-2016E)
Source: Bureau of Labor Statistics, BMO Capital Markets and company reports.

17. EM BUDGET, EXPENSE MANAGEMENT
Advertising Expense as Percentage of Revenues for Select For-Profit Providers (FY2000-FY2007)
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.
N.A. = Not Available. Source: BMO Capital Markets and company reports.

18. EM BUDGET, EXPENSE MANAGEMENT
Advertising Expense as Annual Growth in Net Advertising Spending (1998-2010E)
Source: BMO Capital Markets Media Group.

19. EM SOLUTION PROVIDERS
Lead Generation Sources:
• Publishers
- The CollegeBound Network
- eLearners
- Quinn St.
• Brokers/Agencies
- Ward Media
- Vantage
- CU Net
- DataMark
How do they do it?
Lead content, sources, etc.
How to measure cost and quality

20. EM SOLUTION PROVIDERS
CRM
• Who are they?
- PeopleSoft, Campus
Management, Hobsons,
Intelliworks, others
How do they integrate with campus-
wide systems?
How to maximize benefit of these
solutions.

21. EM SOLUTION PROVIDERS
360 Enrollment Management 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

22. WRAPPING UP
• Define
• Metrics
• Monitor, adapt
• Leverage vendors

23. QUESTIONS
Gregory P. O’Brien
Chief Financial Officer
718-761-4800 x128
646-422-9946 (m)
gobrien@collegebound.net
The CollegeBound Network
1200 South Avenue, Suite 202
Staten Island, NY
www.collegebound.net/corporate