Higher Ed Student Recruitment Cost Benchmarking & Optimisation

The Challenge

Our client, a domestic, nationwide higher ed student recruitment provider in Australia, was ‘operating in the blind’ with regards to the cost of competing recruitment options for universities and hence at what level to price its services. Our client also recognised that universities lacked the same insights, and wanted to close this gap to provide client value and demonstrate the competitiveness of their recruitment services.

We were engaged by the CEO to benchmark recruitment cost across recruitment channels (e.g. direct, admission centres, outsourced) and course levels (e.g. undergrad and postgrad).

The Solution

ConceptSix conducted a rapid 4-week review to establish sector wide benchmarks for domestic student recruitment cost, leveraging and triangulating a wide range of insights and data sources.

Robust, detailed methodology

We took a driver tree approach to identify all elements impacting on overall recruitment cost per student, including marketing cost (advertising and marketing teams), conversion cost (recruitment and admission teams and relevant volume by channel). This approach was validated by university and recruitment executives and specialists.

Ongoing refinement and iteration of data and assumptions

For all cost elements, we collected and analysed a broad set of data sources (e.g. university P&Ls, org charts, salary data) to estimate the specific costs. These estimates were validated through data triangulation, expert interviews, and sensitivity analysis (to test materiality to guide effort). We also collected pricing information for outsourced alternatives, e.g. lead gen options.

Frequent client engagement to validate findings and drive value

We completed the review well within the agreed timeframe, whilst ensuring that the client was comfortable with all inputs and estimates as the review progressed. Finally, we developed (1) strategic pricing options for our client and (2) ways for them to engage with universities to help them, incl. reducing university recruitment cost.

The Impact

Our benchmarks and recommendations resulted in strong options for revenue uplift for client, which our client used to increase their fees without client pushback.

Additionally, universities has since engaged with our client to explore ways to reduce student recruitment cost.

Universities have also recognised ConceptSix as expert in student recruitment cost optimisation and are in active discussion with us for support in this area. As part of this, we have started benchmarking of individual universities.