Think your strategic enrollment efforts and intentional retention efforts don’t matter? Guess again. Your impact might be bigger than you think. If your student retention rates on your campus increase by just one percent the impact can be significant to the university’s bottom line.
Let’s do some quick math based on a real-life example of a 1.6 percent increase in student retention at Maryville University in St. Louis, MO. Thanks to Dr. Beth Triplett & Dr. Jennifer McCluskey for supplying the numbers.
The Numbers:
- Number of New Freshman: 310
- Sample Retention Rate: 78.4%
- Number of Returners: 248
- “New” Retention Rate: 80.0% (1.6 percent increase)
- New Number of Returners: 253 (an increase of five students)
- Annual Net Tuition: $10,000 (Student tuition minus any institutional financial aid)
- Annual Additional Revenue: $50,000 (Five more students at $10,000 tuition each)
- Total Additional Revenue: $150,000
This example uses freshmen and assumes that your retention efforts keep them enrolled to complete their 4-year degrees. If the freshmen are on-campus residents, this will lead to additional room and board revenue. Focusing on retention often yields retention results with students becoming upper-class alumnus and that generates additional revenue as well. A reduction in expenses is also realized when you consider that it costs on average five times more to recruit and admit a new student than to retain a current student.
So my question – especially to the orientation staff – is, “What can you do this year to help increase retention rates by a mere one percent?”
Because if you do, and you can track it, that’s not only more job security, that’s ammunition to go have a talk about that raise. And don’t feel you need to wait for the economy to get better because this is exactly what the administration wants to see in any economy – someone with their eye on the bottom line.
I’d love to hear what your better ideas have been to increase retention rates. Also, what have you done to track this? I’ll continue this conversation on other blog posts about ideas to increase retention and possibly what you can do to track it.
Troy
Troy Stende uses experiential learning-based leadership programs to help schools develop student leaders and increase student retention. He believes those two things are inseparable and has been helping colleges and universities create connections and strengthen campus community since 1998.
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The book “Voluntary Student Clubs” demonstrates the impact of student organizations on retention rates.
http://www.abidanbooks.com/voluntary-student-clubs
This is interesting. I think of student retention from a parent/student viewpoint. Does considering why students aren’t returning helping institutions with their bottom line? And as they consider their bottom line do they work on the core issue of what keeps students from returning or just want benefits the school?
Great post.