Online Higher Education Conversion Rates Are Climbing
Although higher education conversion rates were flat across all program types between Q2 2016 and Q3 2016, the conversion rate for online programs spiked in Q3 2016 to 8.8% according to our Q3 2016 Higher Education Inquiry Generation Review. This conversion rate is the highest for online programs since before 2014, and the cohort is not even fully mature.
Campus-Based Higher Education Conversion Rates May Be Stabilizing
Conversion rates for campus-based programs peaked at 11.3% in Q4 2014 and declined every quarter since Q2 2015. The conversion rate slip from Q2 2016 to Q3 2016 was minor, potentially indicating the start of a stabilization period.
First-Party Channel Conversion Rates Are Slipping
After peaking at 17.1% in Q3 2014, the conversion rates of first-party channels have consistently fallen ― down every quarter since Q3 2015.
The conversion rate for Q1 2016 was 14.5%. Although this represents strong performance in comparison to all leads, it was down 4.8% YOY. Most likely, this can be attributed to the expansion of emerging first-party channels (like social advertising) that do not convert at the higher rates of paid search and organically driven leads. The conversion rate for Q2 2016 was 14.2%. Taking further maturation into account, we expect it will wrap up with a final conversion rate similar to the quarter prior. With much more maturing still to come, the conversion rate of Q3 2016 was 13.7%.
Third-Party Conversion Rates Remain Steady
Conversion rates for third-party inquiries steadily hang in the 3-4% region. The Q1 2016 conversion rate was 3.9%, the lowest conversion rate we’ve seen since the first quarter of 2015. Due to high inquiry volume rates, conversion rates are typically the lowest during the first quarter of each year. The 3.9% conversion rate during the first three months of this year surpassed the 3.7% first quarter conversion rate of 2015 and the 3.0% conversion rate from Q1 2014.
Expected to mature slightly more, the 4.0% conversion rate from Q2 2016 was on par with norms. At 4.02% in Q3 2016, continued maturation may bring this quarter’s conversion rate above the 4.4% peak from Q2 2015.
The Sparkroom Q3 2016 Higher Education Inquiry Generation Review covers overall trends in the inquiry and student acquisition activities of higher education institutions for the period of January-September 2016. The following topics are featured:
- Inquiry volume
- Conversion rates
- Channel distribution
- Inquiry costs
- Program distribution
- Degree-level distribution
Click here to get your free copy of the Sparkroom Q3 2016 Higher Education Inquiry Generation Review.
Note: The data within the Sparkroom Q3 2016 Higher Education Inquiry Generation Review is based on last-click attribution tracking. Many first-party channels log stronger performance when cross-channel attribution is measured.
About the Author
Kathy Bryan is the Senior Vice President of Corporate Marketing and Communications at Digital Media Solutions (DMS), an industry leader in providing end-to-end customer acquisition solutions that help clients grow their businesses and realize their marketing goals. In this role, Kathy is responsible for all aspects of marketing and communications for DMS and its subsidiary brands. Since its inception, DMS has evolved into a full-service performance marketing company that services firms within highly complex and competitive industries including mortgage, education, insurance, consumer brands, automotive, jobs and careers. DMS has achieved incredible year-over-year growth, which has earned recognition on the Inc. 5000 list in 2014, 2015, 2016 and 2017.More Content by Kathy Bryan