Fee-for-Service: Building a Sustainable Online Program

Executive Summary

Note: To maintain confidentiality, the AllCampus partner referenced in this case study will be referred to as “the University.”

Higher education has faced rapid digital transformation over the past two years, driving many universities to place the success of online programs at the forefront of their strategic priorities. By partnering with an online program management (OPM) services provider, universities can meet their goals for growth and stay competitive in today’s fast-moving market.

Revenue share, the model that offers access to a suite of services optimized for long-term development, is the traditional choice for OPM–university partnerships. But for some universities, revenue share may not be the option best suited for their needs.

Fee-for-service is an excellent alternative for institutions seeking the option to choose and pay for services based on their existing capacities and shifting objectives.

Learn more about the differences between tuition revenue share and fee-for-service models

The Challenge

A top-ten university (“the University”) needed to reach an ambitious enrollment growth target for their online master’s program. They wanted to support that initiative with a focus on digital marketing and enrollment management. The University sought a short-term partnership, which allowed them to fill their needs gaps as they built up internal capabilities.


The Solution

The Solution

After considering many options, the University chose to enter into a customized, fee-for-service partnership with AllCampus to grow the enrollment in their online master’s program.

To provide the adaptability that the University requested, AllCampus agreed to review the agreement and budget annually.

The University did not require a full suite of services. Several teams at AllCampus leveraged the company’s expertise, resources, technology and services to contribute the following:

  • Corporate partner channel manager tapped into new channels of prospective students by presenting the program to AllCampus’ extensive corporate partner network, encompassing more than 4,000 companies and organizations across 60 industries.
  • Enrollment specialists nurtured prospective students at every point of the enrollment process — from initial contact to completed application.
  • Digital marketers deployed and optimized targeted advertising campaigns for paid search and social media by factoring in enrollment funnel metrics.
  • Content writers, designers and developers created compelling, informative and user-friendly collateral for the program’s new organic site, hosted within the University’s site architecture.

“AllCampus saw this FFS partnership as a significant success, as it achieved the client’s goals,” said Kyle Shea, EVP of partnership development at AllCampus. “We grew the program to a sustainable enrollment size and then helped our partner get to a position where they could bring their program back in-house with new additions to their staff to manage the marketing and enrollment services.”


Results

The collaborative partnership scaled up the University’s enrollment and operations to a sustainable level, enabling the university to begin managing the online program internally.

Enrollments Grew by 2.5x

Enrollments Grew by 2.5x

New enrollments rose from 20 in the year before the partnership to 50 in its final year

$9.5 Million

$9.5 Million

University’s net revenue from the partnership

Over the span of the partnership from spring 2019 to fall 2021, AllCampus generated the following results:

  • The number of students enrolled in the online master’s program more than doubled, from 20 students pre-partnership to 50 students in the final year.
  • The University’s digital properties generated more than 125,000 unique visits and more than 6,000 inquiries.
  • Paid efforts resulted in more than 34,000 visitors and nearly 2,400 inquiries, with a 7 percent on-page conversion rate.
  • The partnership generated more than $9.5 million in net revenue for the University.
13x Increase to Landing Page Conversion Rate

13x Increase to Landing Page Conversion Rate

Optimizations to paid marketing led to steady performance gains over the partnership

124% Increase in Inquiry-to-Attending Rate

124% Increase in Inquiry-to-Attending Rate

Marketing and Enrollment teams worked closely together to improve identification and targeting of qualified prospects


Conclusion

No two programs are the same, and not every college or university has the same goals; a one-size-fits all approach to program management is not enough. By providing both fee-for-service and revenue-share options, AllCampus is able to expand the customization available to their partners.

The University had a critical need that did not require a full suite of marketing services. Instead, they were able to enlist the exact, targeted support they required — in this case, digital marketing and enrollment support. Not only did they achieve 250 percent growth, but the University’s internal team gained insights and guidance that empowered them to maintain this success after the partnership concluded.


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