Enrollment Management - The 1% Solution
Private, postsecondary career schools are supported primarily by tuition revenue. The enrollment and training process works like a funnel from inquiries to employment. A school’s future depends on effective management of the school’s operating system, in particular, the enrollment process. Monitoring the conversion rates from inquiry to enrollment is essential.
There are no standard conversion rates. It will vary from school to school. However, a classic ideal is 70-70-40; 70% appointment to lead, 70% interview to appointment, and 40% enrollment to interview. Translated into numbers from 100 leads would result in 70 appointments set, 49 interviews conducted and 19 enrollments. (This is for net leads, meaning those who are qualified with a specific interest in the programs offered.)
Regardless of what are a specific school's conversion rates, improving the conversion rate can have a dramatic impact on enrollments.
A simple example:
- Tuition at $15,000
- 1000 leads annually at a conversion rate of 5% = 50 students
- Increase the enrollment to lead rate by just 1% to 6% = 60 students
- This increase of 10 students = $150,000 in additional revenue at NO ADDITIONAL COSTS.
Effective data management and enrollment practices oversight are essential to the success of any private postsecondary career school.
This means oversight of all conversion rates.
- Appointments to Leads
- Interviews to Appointments
- Applications to Interviews
- Enrollments to Applications
- Sits to Enrollments
- Graduation to Sits
- Employment to Graduation
Why is this so essential?
According to Gino Wickman in his book, Traction: Get a Grip on Your Business, “What gets measured gets done. Complete mastery of your Data Component is achieved when you boil the organization's number down to the point where everyone has a single meaningful, manageable number to guide them in their work. This number will enable leaders to create clarity and accountability throughout their team.”
“There are eight distinct advantages to everyone having a number.
- Numbers cut through murky subjective communication between manager and direct reports.
- Numbers create accountability.
- Accountable people appreciate numbers.
- Numbers create clarity and commitment.
- Numbers create competition.
- Numbers produce results.
- Numbers create teamwork.
- You solve problems faster.”
So, when are you starting to count your numbers and create that 1% solution?