The Power of Segmentation and Targeting

True to logic, the conversion of admitted students into enrolled students ("yield") improves when distinctive, authentic messages have been delivered to those who are most receptive to them. Ideally, this targeting begins with an institution's initial direct marketing ("search") efforts, which are designed to allow prospective students to indicate their interest in the institution—thus progressing through the admission funnel as inquiries who are then considered to be qualified leads and are further encouraged to become applicants.

Of the four elements that matter most in a direct marketing campaign—segmentation/targeting, content/offer, creative execution, and timing of delivery—the most effective way to increase responsiveness is through segmentation and targeting, says Michelle Arntzen, a senior vice president of direct marketing at the advertising agency Campbell Mithun. "Those who cast a wide net with their marketing initiatives are not maximizing the return on their investment," she warns. "Segmenting lets you focus your efforts on those customers you are able to tailor your message towards, which increases the likelihood of a response." Applying this principle to search campaigns means segmenting your audience (according to academic interest, demographic characteristics, etc.) into groups distinct enough to allow personalization that approaches as close to one-on-one communication as possible.

At this time of year, as admission professionals wrestle with determining how many applicants to admit (a calculation based on their yield predictions), it helps to know the level of interest of those coming through the funnel as a result of direct mail targeting. Yet making that determination has been complicated by the rise in "stealth" applicants, who decline to respond to search mailings in the requested manner but rather investigate the institution on their own terms, opting out of the top part of the admission funnel. At this month's College Board Midwestern Regional Forum, presenter Sundar Kumarasamy, vice president for enrollment management at the University of Dayton, offered a partial means of tracking the interest of these search non-responders, demonstrating how Google Analytics can be utilized as an alternate measure of a direct marketing campaign's effectiveness. The goal, he indicated, is to derive data that can be used in the design of better-targeted subsequent search mailings.

In the News: Harvard Redux

The debate rages on in the pages of The Chronicle of Higher Education and Inside Higher Ed about the implications of Harvard University's new financial aid policy. Meanwhile, at the College Board Midwestern Regional Forum earlier this month, Jon McGee (vice president for enrollment, planning and public affairs at College of St. Benedict and St. John's University) argued the essential message Harvard delivered was that middle-class students cannot afford to attend colleges priced similarly to Harvard. Traditionally, making the case for a private college education has involved moving families toward a willingness to pay the net tuition price. Are we now reaching a tipping point regarding affordability (especially given the tightening credit market), so that the sticking point is no longer willingness, but rather ability to pay? McGee will address this topic at the 2008 Summer Seminar .

Did You Know?

A nationwide survey of 13- to 21-year-olds revealed that 66 percent would like to travel the world, 59 percent would like to speak another language, and 42 percent would like to live in another country.

Source: Harris Interactive (.pdf)