distance learning
TRANSCRIPT
National Press Foundation SeminarNov 1, 2006 New York
Michael P. LambertExecutive DirectorDistance Education Training Council
:The Business ofHigherEducation
Student enrollments grew from 483,000 in 2002 to
1.5 million in 2006
In 2004 alone, student growth was 34%
Average annual growth will be over 20% for each
year of this decade
The Distance Learning
(the above data does not include DETC data)
Total online school revenues grew 36% in 2005, to
over $7 Billion U.S.
By contrast, the online music market was only $1
billion in 2005
In 2001, online students were just 2% of the total
U.S. college students. Today, they are over 7%
cont.
cont.
Due to aggressive internet marketing, and the
availability of Title IV student aid since July 1,
2006, for-profit online schools will exceed over
50% growth rate in 2006.
Availability of Federal Student Loans and
Grants to online schools will likely result in
millions of new student enrollments in the
coming years
Growth at non-profit online
colleges is strong as well: 25%
growth in 2004 and 23% in 2005
2 out of 3 Universities now offer
online programs
As growth in classroom
colleges flattens, growth in online
learning will soar
cont
Total Institutions 100 in 7 countriesTotal New Enrollments, 2005 850,000Total Active Students, 2005 2,250,000Avg. No. of Programs Offered 20 for Career; 12 for DegreeAvg. No. of Employees 37 Career; 70 Degree
Profile of Students
in DETCCareer Courses Degree Programs
Av. Age 34 37
Employed: 81% 94%
High School Diploma 85% 99%
Male 47% 55%
Fees Paid by Employer 40% 38%
TopAcademic Degree Programs inDETC
1. Bachelors in Business
2. Masters in Business
3. Bachelors in Criminal Justice
4. Masters in Information Systems
5. Health Care Administration
( - )TopCareer non degree Programs inDETC
1. Medical Transcription
2. High School Diploma
3. Child Care
4. Paralegal
5. Medical Billing and Coding
6. Bookkeeping
7. Personal Computer
8. Nutrition
Technological Features Used in DETCSchools
Offer Online Programs 70%
“Free” Phone for Students 96%
Enroll Online 95%
Uses Email for Services 98%
Use Phone to Contact Students 96%
CustomerSatisfaction inDETC
RESPONDED “YES”
• Did you achieve the goals you had? 95%
• Would you recommend the school to a friend? 96%
• Were you satisfied with your studies 96%
Responses from random surveys of students from EVERY DETC institution
Course andProgram CompletionRates
Av. Degree Graduation Rate 56%
Av. Career Course Completion 60%
• Moving content and courses online
• Moving tests/exams online
• Making content more interactive and engaging
–Streaming video and audio, simulations, interactive assessments
• Implementing communication tools
–Messaging and online meetings
• “Staying the course” with print/correspondence models
, InCurricula Area DETC --Institutions PlanOn
Do you currently use or plan to purchase a commercial course/learning management system to deliver online courses to students?
Yes, 44%
No, 56%
DETCSchool Survey
•Positioning and differentiation
–From a niche market to a mass-market
•Marketing expenditures escalating
–20-30% annual increases among for-profit institutions
–+1-2 percentage points over revenue
•Supply and demand and competition from “traditional” institutions is driving up costs
•Media mix is shifting toward the Internet
•New channels and strategies are emerging
Marketing Shifts
Of the following marketing channels, which do you expect to focus more (i.e., budget, time) on in the next 2 years?
14%
16%
24%
25%
37%
37%
45%
51%
67%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Broadcast
Internet: Banner advertisements
Internet: Directory placement/listings
Internet: Direct e-mail marketing
Direct mail
Events
Employers, military, government
Print media
Internet: Search engines
DETCSchool Survey
Select 3 of the following elements of your institution's offering that you most emphasize in marketing to potential students
6%
12%
17%
33%
33%
37%
52%
54%
79%
0% 20% 40% 60% 80% 100%
Other
Technological innovation
Time to completion
Price/cost
Quality of learning outcomes
Customer/student service
Quality of faculty
Quality of content
Convenience and flexibility over on-campus
DETCSchool Survey
•“Real school. Real degree.”
•Penn State Online (PSU World Campus)
•“E-learning with a tradition of excellence”
•Virginia Tech
•“Get your degree at warp speed – from a name you trust.”
•Kaplan University
•“Looking for a top-ranked degree that is also convenient? Earn your master’s online from one of America’s Best Colleges.”
•Drexel University
•“The nation’s leading online university”
•University of Phoenix Online
•“Accredited degrees – online, with the flexibility to fit your busy lifestyle”
•The University Alliance (Regis, St. Leo, Tulane, etc.)
Marketing Taglines
• Online or on campus, nationwide and around the world”
• Blended models and national/international network
• “The country’s only AAPT-accredited online program”
• Programmatic accreditation and niche uniqueness
• “Online education from your local university”
• Brand/locality
• “A quality online degree at a fraction of the cost”
• Price competition
• “The online degree rated #1 by manufacturing employers”
• Prospect of quality ratings and labor market outcomes
Potential, Future Marketing Taglines
Percentage of Students Supported/Reimbursed by Employers (in whole or in part)
22%
14%
12%
52%
0% 10% 20% 30% 40% 50% 60%
51%-100%
26%-50%
11%-25%
<10%
Extrapolated Mean = 20-25%
DETCSchool Survey
Future Programs in DETC (3-5 Years)
■ Advanced degrees and continuing education
■ Health sciences
■ Professional Doctorates, e.g., Doctor of Business Administration
■ Homeland security
■ Graduate degrees in education administration
■ Para-professional degrees, e.g., Physicians Assistant
Trends in the U.S. Market
■ More discriminating and selective consumers
■ Continued private investment
■ Blurring of traditional “boundaries” and segments:
– For-profit/non-profit
– Online/on-campus
■ Growing importance of employer relationships
■ Evolving and increasingly favorable regulatory environment
■ Productivity and service enhancements through technology
■ Content is becoming more flexible, dynamic, and interactive
■ Beginnings of stronger international push among U.S. institutions
Future Challenges
■ Competition and differentiation– Escalating competition in a growing market– Traditional institutions waking up to the opportunity– Increasing marketing costs, positioning in a noisy market
■ Staying technologically current■ Finding and retaining quality faculty■ Transfer of academic credits■ Regulatory compliance and quality assurance■ Diploma mills
DETC Internet UseIn which ways do students use the Internet to interact with your institution?
68%
74%
78%
86%
96%
0% 20% 40% 60% 80% 100%
Interacting with other students
Taking tests/exams
Accessing course materials
Accessing student services (e.g.,library, tuition payment, etc.)
Interacting with faculty
Note: “Check all that apply” – totals do not add to 100%
MEGA Trends for USA Distance Providers
■ More Competitors for the Same Student
■ Everything will be Online and Instant
■ Homogenous Learning Products and Services
■ More International Partnerships
■ Price is the Key Marketing Edge for DETC
■ Productivity and service enhancements through technology
■ Content is becoming more flexible, dynamic, and interactive
■ Beginnings of stronger international push among U.S. institutions
……Wh a t Wo r k s InMANAGEMENTand ADMINISTRATION
■Annual Strategic Planning
■Performance-Based Staff Accountability
■Competitive Environment Awareness
■Virtual Staff and Faculty Meetings
■Comprehensive Outcomes Assessment System
……Wh a t Wo r k s InPROGRAMDEVELOPMENT
■Custom (Docutech) Publishing
■Ad Hoc Program Development Teams
■Third Party Text Storage and Shipping
■Partnerships With Reputable Online Institutions
■Customizing LMS Templates
……Wh a t Wo r k s In Curriculum Strategies
■Spin-Off Programs/Multiple Options for Majors
■Combination Degree Programs: Health Care and Law
■Degree Completion Programs (2+2 BS programs)
■Pre-Matriculation Assessment for Aptitude for Distance Learning
■Small (Virtual) Group Projects
……Wh a t Wo r k s In MARKETING
■Bidding for Top Position on Internet Search Engines
■Branding to “Stand Apart” from the crowd
■Telephone Call after Literature is Received
■Referrals from Current Students
■Easy to Navigate Websites with Easy to Enroll Feature
……Wh a t Wo r k s InTURNING PROSPECTS INTO STUDENTS
■Convenience of the Method
■Accreditation and Acceptance by Institutions
■Acceptance of the Degree by Employers
■Price versus PERCEIVED Value of the Degree
■Program Matches Career and Life Aspirations
Wh a t DOES NOT Wo r k To d a y
■Print-based Advertising
■Mailed-In Enrollments
■Voluminous, Printed Catalogs
■Scripted, Motivational Email Messages
■Slow Evaluation of Student Assignments
■Lack of 24x7 Student Services Via Email
DETC RESOURCES AND MEETINGS
81st DETC Annual Conference, April 15-17 2007, Tucson, AZ
DETC Course Development Handbook, 2004 edition
DETC Accreditation Handbook, 2006 edition (online)
Website: www.detc.org