Trends, Challenges and Issues in the U.S. Distance Education Market

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Trends, Challenges and Issues in the U.S.
Distance Education Market
Michael P. Lambert Executive Director Distance
Education Training Council
EADL CONFERENCE 2005 June 17, 2005 Helsinki,
Finland
Mike_at_detc.org
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Snapshot of DETC Today

• Total Institutions 95 in 6 countries
• Total New Enrollments, 2004 850,000
• Total Active Students, 2004 2,250,000
• Avg. No. of Programs Offered 20 for Career 12
  for Degree
• Avg. No. of Employees 37 Career 70 Degree

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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
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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
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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
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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
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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

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Course and Program Completion Rates
Av. Degree Graduation Rate 56 Av. Career Course
Completion 60
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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

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DETC School Survey

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

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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

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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?

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DETC School Survey

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

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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.)

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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

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DETC School Survey

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

Extrapolated Mean 20-25
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Future Programs in DETC (3-5 Years)

• Advanced degrees and continuing education
• Labor market-driven certifications
• Health sciences
• Digital/interactive media
• Homeland security
• Finance, auditing, accounting

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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

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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
• Access to Title IV funds transfer of credit
• Regulatory compliance and quality assurance
• Diploma mills

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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
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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

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DETC RESOURCES AND MEETINGS

• Fall Marketing Workshop, 16-18 Oct., Hershey,
  Pennsylvania
• 80th DETC Annual Conference, 9-11 Apr. 2006,
  Seattle, Washington
• DETC Course Development Handbook, 2004 edition
• DETC Accreditation Handbook, 2005 edition
  (online)
• Website www.detc.org