The Numbers:
Our programs can affect your bottom line. If we can increase your retention rate by just 1% it would be more than worth it.
Here’s an example of a 1.6% increase in retention and how the numbers work:
Impact of Retention on Net Revenue @ Maryville University, St. Louis, MO
Number of New Freshman: 310
Sample Retention Rate: 78.4%
Number of Returners: 248
If strategic enrollment efforts and intentional retention efforts yield a net increase of 1.6% freshmen retention for the year:
Number of New Freshmen: 310
“New” Retention Rate: 80.0%
New Number of Returners: 248
An Increase of: 5
Additional Returners: 5
Annual Net Tuition: x $10,000
(Tuition – Institutional Financial Aid)
Annual Additional Net Tuition: $50,000
These are freshman; therefore x 3 years
Increase in net revenue as a
result of 1.6% increase in retention $150,000
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 generates additional revenue as well.
Source: dr. beth triplett & Dr. Jennifer McCluskey