Getting Ready to Take the Journey into Distance Learning

1
The Business of Higher Education
The Distance Learning
Revolution
Michael P. Lambert Executive Director Distance
Education Training Council
Mike_at_detc.org
National Press Foundation Seminar Nov 1, 2006
New York
2
The Distance Learning
Revolution

• 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 above data does not include DETC data)
3
Revolution
cont.

• 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

4
Revolution
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

5
Revolution
cont

• 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

6
Snapshot of DETC Today

• Total Institutions 100 in 7 countries
• Total New Enrollments, 2005 850,000
• Total Active Students, 2005 2,250,000
• Avg. No. of Programs Offered 20 for Career 12
  for Degree
• Avg. No. of Employees 37 Career 70 Degree

7
Profile of Students in DETC
Career Courses Degree Programs Av.
Age 34 37 Employed 81 94 High School
Diploma 85 99 Male 47 55 Fees Paid by
Employer 40 38
8
Top Academic Degree Programs in DETC
1. Bachelors in Business 2. Masters in
Business 3. Bachelors in Criminal Justice 4.
Masters in Information Systems 5. Health Care
Administration
9
Top Career (non-degree) Programs in DETC
1. Medical Transcription 2. High School
Diploma 3. Child Care 4. Paralegal 5. Medical
Billing and Coding 6. Bookkeeping 7. Personal
Computer 8. Nutrition
10
Technological Features Used in DETC Schools
Offer Online Programs 70 Free Phone for
Students 96 Enroll Online 95 Uses Email
for Services 98 Use Phone to Contact
Students 96
11
Customer Satisfaction in DETC
Responses from random surveys of students from
EVERY DETC institution

• 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

12
Course and Program Completion Rates
Av. Degree Graduation Rate 56 Av. Career Course
Completion 60
13
In Curricula Area, DETC Institutions Plan On--

• 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

14
DETC School Survey

• Do you currently use or plan to purchase a
  commercial course/learning management system to
  deliver online courses to students?

15
Marketing Shifts

• 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

16
DETC School Survey

• Of the following marketing channels, which do you
  expect to focus more (i.e., budget, time) on in
  the next 2 years?

17
DETC School Survey

• Select 3 of the following elements of your
  institution's offering that you most emphasize in
  marketing to potential students

18
Marketing Taglines

• 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 masters online from one of
  Americas Best Colleges.
• Drexel University
• The nations 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.)

19
Potential, Future Marketing Taglines

• Online or on campus, nationwide and around the
  world
• Blended models and national/international
  network
• The countrys 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

20
DETC School Survey

• Percentage of Students Supported/Reimbursed by
  Employers (in whole or in part)

Extrapolated Mean 20-25
21
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

22
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

23
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

24
DETC Internet Use
In which ways do students use the Internet to
interact with your institution?
Note Check all that apply totals do not add
to 100
25
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

26
What Works In
MANAGEMENT and ADMINISTRATION

• Annual Strategic Planning
• Performance-Based Staff Accountability
• Competitive Environment Awareness
• Virtual Staff and Faculty Meetings
• Comprehensive Outcomes Assessment System

27
What Works In
PROGRAM DEVELOPMENT

• Custom (Docutech) Publishing
• Ad Hoc Program Development Teams
• Third Party Text Storage and Shipping
• Partnerships With Reputable Online Institutions
• Customizing LMS Templates

28
What Works In
Curriculum Strategies

• Spin-Off Programs/Multiple Options for Majors
• Combination Degree Programs Health Care and Law
• Degree Completion Programs (22 BS programs)
• Pre-Matriculation Assessment for Aptitude for
  Distance Learning
• Small (Virtual) Group Projects

29
What Works 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

30
What Works In
TURNING 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

31
What DOES NOT Work Today

• 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

32
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