Maximizing ROI on your next student success initiative

Boost your return on investment while helping students succeed

In today's higher education landscape, demonstrating value is paramount. For institutions, this often translates into a focus on return on investment (ROI) — both in terms of the institution’s own financial health and operational efficiency, as well as student degree completion and earnings after graduation. This pressure has placed a spotlight on student support services, prompting many schools to reassess their current models and consider whether these services are both effectively supporting students and contributing to the institution's bottom line.

This leads to a fundamental question: Is it time for a strategic overhaul to improve institutional ROI for your student success initiatives? In this blog, we explore the critical elements institutions must consider when evaluating their student support services and seeking to maximize their return. It's a big decision, and one that requires careful consideration of costs, efficiency and impact on key institutional metrics.

So how can institutions best improve student support while ensuring a strong return? Whether through internal resources, ready-made solutions or external partnerships, the key is achieving measurable improvements in student success and institutional ROI.

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Understanding four key elements of ROI

To maximize return on investment in student success initiatives, institutions should consider enacting these four key elements:

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1. Measure the net revenue gains generated by your student success initiative

For any institution considering investing in a student success initiative, demonstrating a positive return on investment is crucial. While showing an initiative’s ability to impact students is critical to success, it’s also imperative to demonstrate the financial value of these programs to secure funding and ensure long-term sustainability. Although securing the initial investment can be a challenge, illustrating a clear path to ROI is key to unlocking necessary resources. 

Calculating ROI doesn't have to be intimidating. Determining whether a program is financially successful and deserves continued investment is often a matter of simple arithmetic. You'll need four key figures. 

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• First, determine the number of learners you're supporting. For instance, are you reaching out to 1,000 prospective students or supporting 150 current students to improve retention? In our example, let's say you're working with 1,000 prospective students. We'll call this "Students Receiving Coaching." 
• Next, calculate the cost of this outreach, including internal and external expenses like marketing materials, admissions counselors and enrollment coaching. This is your "Program Support Costs." For our example, let's use $100,000. 
• Now determine how many students enrolled or were retained due to your efforts. If 75 new students enrolled, we'll call this "New Enrolled Students" (or "Retained Students" if calculating retention ROI). 
• Finally, you'll need the average "Net Tuition Revenue" (NTR) per student. Let's use $7,500 for our example.

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To calculate ROI in this case, simply multiply the number of "New Enrolled Students" (75) by the "Net Tuition Revenue" per student ($7,500), which equals $562,500. Then, subtract the "Program Support Costs" ($100,000) to arrive at your ROI of $462,500. While the initial number of "Students Receiving Coaching" (1,000) isn't directly used in the ROI calculation itself, it's essential for determining the "Program Support Costs."

Calculating ROI for retention programs follows a similar process. If your retention "Program Support Costs" are $350,000 and you retain 75% of your 500 incoming students (375 students), this generates $2,812,500 in tuition revenue (375 students x $7,500 NTR). It's crucial to compare this retention rate to your historical rate and ideally use disaggregated data to show the impact on specific student populations — such as Pell-eligible, first-generation and Latine learners. If your historical retention rate was 60% (300 students), the increase to 75% (375 students) means 75 more students retained. This translates to $562,500 in additional net tuition revenue (75 students x $7,500), resulting in a positive return of $212,500 on your $350,000 investment. Remember, this ROI will continue to grow in subsequent terms as these students remain enrolled.

To forecast return on investment, institutional leaders should consider the following key questions:

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• What are we trying to accomplish, and how will we measure the impact? Clearly defined goals and metrics are essential for monitoring progress and demonstrating success.‍
• Do we have baseline metrics to compare against? If not, is there a suitable proxy we can use? Having a benchmark allows you to evaluate the actual impact of the initiative.‍
• What time period are we measuring, and what is the timeline to demonstrate a positive payback? Establishing a clear timeframe is crucial for managing expectations and demonstrating ROI within a reasonable period.‍
• Does our funding model enable upfront investment for longer-term ROI? Some initiatives may require initial investment before generating substantive  returns.‍
• What costs are associated with the launch and operation of this program? A comprehensive understanding of all costs (including staff time, technology, external partnerships and other recurring costs) is essential for accurate ROI calculations.‍
• What key milestones should be tracked related to enrollment, persistence, retention and completion? These key performance indicators (KPIs) directly impact institutional revenue and should be closely monitored.‍
• How will we capture, track and report on the outcomes data? Robust data collection and reporting mechanisms are crucial for demonstrating the impact of the initiative.

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Partner Spotlight: UNCF coaching program exceeds benchmark by over 100% — and continues to grow

To help former HBCU and PBI students overcome the challenges of returning to college, UNCF knew they wanted to level up their outreach to stopped-out students at partner institutions. That’s why they partnered with InsideTrack on a pilot program to provide personalized success coaching to former students. Of the 4,000 students who received outreach, 344 returned for the fall term — a re-enrollment rate of 8.6%. This more than doubled UNCF’s 4% benchmark for success. What’s more, this program generated 35 times its cost in revenue from re-enrolled student tuition. Building on this success, UNCF worked with InsideTrack to expand the coaching program and is now investing in coaching development and training to ensure the program's long-term sustainability across its network schools.

‍Learn more about this partnership. 

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2. Track short- and long-term student impact

When evaluating the ROI of a student success program, focusing solely on financial gains gives an incomplete picture. True ROI also hinges on the long-term, lasting impact on students. By considering both short-term and long-term student outcomes, institutions can gain a more complete picture of a program's value and its contribution to institutional success.

In the short term, student success might look like increased enrollment, improved term-to-term persistence or better engagement with support services. These are important indicators, but they don't tell the whole story. The long-term impact — degree or certificate completion and successful career entry — is also critical to measure and contributes to the long-term ROI for the institution. 

For instance, a graduate who secures a good job in their field is more likely to become an engaged alumnus — a positive advocate for the institution and potentially a future donor. This is why measuring both short- and long-term outcomes is essential. And these outcomes need to extend beyond just enrollment or persistence rates, to include the end result that students are actually focused on: degree/certificate completion and career opportunity. 

However, one of the biggest challenges institutions face is gathering reliable data on long-term outcomes. While many schools effectively track short-term metrics, measuring post-graduation employment rates, job relevance to major, and other long-term career data can be difficult. This is a critical area for higher education to address. As a start, Strada Education Foundation’s 2024 State Opportunity Index gives education leaders, policymakers and employers a framework for helping students achieve their career and life goals. Several states are leading the way in developing innovative approaches to measuring these long-term outcomes. 

For instance, Kentucky is at the forefront of a national movement to assess the relationship between in-state employment outcomes and the field of study and degree level of its graduates. Texas has implemented an outcomes-based funding model for its community colleges, allocating funds based on the number of students who earn valuable credentials rather than the traditional approach of funding colleges based on enrollment numbers. And Colorado's earnings outcomes dashboard allows students and institutions to evaluate the potential return on investment of higher education.

With these examples in mind, institutions can focus on the following key questions to maximize their own ROI:

• What short-term success metrics (such as enrollment, persistence, engagement with support services, etc.) should we analyze for this initiative, and do these align with our strategic goals? Defining these metrics upfront ensures that data collection is targeted and relevant to the program's goals, allowing for accurate assessment of immediate impact.‍
• How are staff members measuring the impact of their interactions with students? Are they using standardized assessments, tracking student progress, or other methods to demonstrate the effectiveness of their work?‍
• Do our teams have the tools and resources they need to effectively evaluate and analyze short-term data? This includes access to data analytics software, trained personnel, and established processes for data collection and reporting, ensuring accurate and efficient analysis.‍
• What long-term success metrics (such as post-graduation employment rates, job relevance to major, alumni engagement, etc.) should we measure for this initiative, and do these align with our strategic goals? Identifying these metrics clarifies the program's ultimate goals and provides a framework for measuring its lasting impact on students' lives and careers. ‍
• Do our teams have the tools and resources they need to effectively measure and analyze long-term data? This may involve partnerships with alumni networks and third-party data providers or the development of internal tracking systems to gather and analyze post-graduation outcomes.‍
• If and when we identify areas lagging behind benchmarks, how will we mobilize our teams to make appropriate adjustments and improvements? Establishing a process for addressing performance gaps, including clear communication channels and defined responsibilities, is crucial for continuous improvement and maximizing ROI.
• ‍How will we measure the impact of this initiative on students' development of critical knowledge, skills and beliefs (KSBs), such as self-confidence, effective navigation of resources and a strong sense of belonging? This includes assessing changes in students' understanding of relevant concepts, their ability to access and utilize available support services, their sense of connection to the institution, and their beliefs about their own potential for success.

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Partner Spotlight: NC Reconnect delivers millions in ROI for North Carolina community colleges

To address the state's attainment goals and help adults return to finish their education, North Carolina launched NC Reconnect, a statewide initiative providing personalized coaching and support to stopped-out learners. The partnership, funded by the John M. Belk Endowment, brings InsideTrack coaching to community colleges across the state and has seen remarkable results across its first three cohorts. Over 2,000 students have re-enrolled at 15 different community colleges — and for those re-enrolled in the Fall 2021 or Fall 2022 cohorts, between 66-68 percent completed their program or enrolled in the following term at the time of data collection.* So not only are students re-enrolling, they are finishing their credentials and moving forward in their careers. 

This success has translated to an impressive $3.5 million in institutional ROI since 2021, supporting institutions to reinvest and grow their student support practices. NC Reconnect demonstrates the power of coaching to drive statewide attainment, boost economic growth and empower adult learners to achieve their educational and career goals.

Learn more about this partnership.

*This analysis continues to evolve as additional data becomes available.

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3. Evaluate student support staff retention, satisfaction and development

Financial gains and positive student outcomes are only part of the ROI equation. The impact of a student success initiative on the staff who deliver those services is equally important. High caseloads, staff turnover and burnout continue to plague higher education institutions. Because staff well-being is intrinsically linked to student success, institutions must recognize that investing in staff well-being is a crucial component of any successful student support initiative.

The challenges facing student support staff in higher education are well-documented. Overwhelming caseloads, insufficient resources, and a lack of professional development opportunities are significant pain points that contribute to staff burnout and high turnover rates. These challenges not only impact staff morale but also directly affect the quality of support provided to students.

While implementing a new partnership or initiative may initially feel like a significant change for staff, the ultimate goal should be to improve their bandwidth, enhance job satisfaction and provide opportunities for professional growth. This includes not only providing necessary resources and managing caseloads effectively, but also investing in their ongoing development. InsideTrack’s coaching development and training programs, for example, take a holistic approach to staff development, incorporating one-on-one mentorship, ongoing professional development opportunities and change management strategies to ensure that new initiatives are effectively implemented and sustained. Investing in staff means investing in the long-term success of the institution.

To evaluate the staff impact of a student success initiative, leaders can start by asking themselves the following questions:

• Are we measuring staff efficiency and efficacy? If so, how? What metrics are we using to track performance and identify areas for improvement?‍
• Has employee morale improved since implementing a new initiative? How are we measuring this? Are we using surveys, feedback sessions or other methods to gauge staff satisfaction?‍
• Are we tracking changes in staff turnover and career path options? Has the initiative created new opportunities for professional development and advancement within the institution?‍
• Can we measure changes to coach/student staffing ratios and the related financial impact? How do these changes affect both staff workload and the cost-effectiveness of the program?‍
• What are students saying about staff and support? Are we actively soliciting student feedback through surveys, focus groups or other means?‍
• Are students utilizing the resources provided by staff more effectively? If so, how is that being tracked? 

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Partner Spotlight: Utah’s holistic coaching model drives significant retention gains and staff development

To improve retention rates, particularly for first-generation and Pell-eligible students, the University of Utah sought to enhance its student support services with a more holistic and personalized approach. Partnering with InsideTrack in 2022, the university implemented a success coaching program, which consisted of training and certifying in-house staff members in InsideTrack’s coaching methodology over the course of two years. This included a comprehensive certification program for all student success coaches, reinforcement trainings to help coaches put their skills to practice, one-on-one personalized development sessions, and change management support to make the new processes stick. According to Dr. P. Brandon Johnson, head of student success and transformative experiences at the University of Utah, “Our initial return on investment is being able to provide coaching training to our team and campus partners. I see that, over the life of the program, capacity building is an essential investment that lets us chart our own course.” 

Impressively, the initiative resulted in a 21.4% higher retention rate for coached Pell-eligible students (93%) compared to non-coached Pell-eligible students (75%), and a 25.5% higher retention rate for coached students with a GPA under 2.5 (75%) compared to non-coached students with a GPA under 2.5 (58%). Retention rates for coached first-gen students and students of color were also higher (vs. their non-coached counterparts). By building internal coaching capacity and training staff in InsideTrack’s evidence-based coaching methodologies, the university is fostering a sustainable, student-centered culture across campus.

‍Learn more about this partnership. 

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4. Assess the efficiencies gained and sustainability of your student support program

A truly successful student success initiative isn't a one-time fix; it's a sustainable investment that yields returns long into the future. This means thinking beyond immediate results and considering how the program can be integrated into the institution's long-term strategy. Investing in the right partnership or program can significantly improve cross-departmental communication, provide valuable insights into student trends, and ultimately enhance institutional efficiency.

For example, a strong partnership can help break down silos between departments, creating a more unified and student-centric approach. By sharing data and best practices, different teams can work together more effectively to support student success. These partnerships can also provide access to sophisticated data analytics and reporting tools, offering valuable insights into student behavior, needs and challenges. These insights can then be used to inform institutional decision-making and improve student outcomes across the board.

When considering sustainability, it’s important to think about how the program’s benefits can continue even after a formal partnership has ended. This involves building internal capacity, training staff and developing sustainable processes. The goal is to empower the institution to own and continue the program's success. Our Empowering Teams, Transforming Outcomes report provides a practical guide to building a holistic in-house student support program. It features four essential elements for program creation, three firsthand case studies showcasing effective strategies, and three downloadable tools to aid in implementation. This guide can be a valuable resource as you embark on an initiative to transform your student support systems.

To assess the sustainability and efficiency of their program, leaders can start by asking themselves the following questions:

• Do we have a designated change management plan in place to ensure our initiative sustains momentum? This plan should outline strategies for managing the transition, addressing potential resistance, and ensuring buy-in from all stakeholders.‍
• Has our staff received the training and development needed to carry on the initiative in-house? Adequate training empowers staff to maintain and improve the program after the initial implementation phase.‍
• Do we have a plan to monitor success metrics to determine long-term impact? Establishing a clear monitoring plan is critical for assessing the program's ongoing effectiveness and identifying areas for improvement.‍
• How has student/advisor engagement changed as a result of implementing the program? This includes assessing whether students are more proactive in contacting advisors, responding to outreach, and interacting more frequently and regularly throughout the school year.‍
• Are key student success metrics (GPA, term-to-term persistence, timely major declaration) showing positive trends? Regularly analyzing these metrics provides valuable insights into the program's impact on student academic progress.‍
• Is the program demonstrating cost-effectiveness in relation to the outcomes achieved? This prompts consideration of the financial ROI and efficient use of resources.

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Partner Spotlight: ACC’s coaching investment yields dramatic student success and sustainable impact

To address challenges with student retention and completion, and ultimately improve the economic and social mobility of its learners, Austin Community College (ACC) partnered with InsideTrack to transform advising from transactional to transformational by embedding research-proven coaching techniques into everyday advising. The results were dramatic: graduation rates rose from 7% to 23% and persistence rates climbed from 45% to nearly 75%. Even after the initial partnership, ACC has prioritized sustainability by selecting staff to undergo additional certification that allows them to train new coaches in house — certifying 110 new coaches on their own over five years. This commitment has fostered a shared coaching culture across the institution, now benefiting more than 35,000 students annually.

‍Learn more about this partnership.

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Building a foundation for long-term impact and institutional ROI

Investing in student success is an investment in the future of your institution. But what truly makes it worth it? It's knowing that your investment will have a lasting impact, creating a ripple effect that benefits students, staff and the institution as a whole. As we've explored, maximizing your ROI isn't just about immediate financial returns — it's about taking a holistic approach that considers short-term gains alongside long-term sustainability.

By focusing on these four key elements outlined here — measuring net revenue gains, factoring in short- and long-term student impact, evaluating staff impact, and ensuring long-term sustainability and efficiency — institutions can build a strong foundation for sustainable ROI. When we work together and prioritize a holistic approach, the impact on student success and institutional well-being is amplified.