The Relationship Between Retention & Revenue

The Relationship Between Retention & Revenue

Retention is a critical measure of success for career education compliance, and it has a direct impact on your school’s bottom line.


A significant component of your school’s reputation is your ability to get students to graduate on time and a big selling point for prospective students. In addition, retention is associated with funding from the government and is directly tied to the amount of tuition dollars schools receive–or don’t!


This post will look at the economic impact of improving retention and how schools can achieve retention goals.

How absences affect the bottom line

Many students who drop from their programs do so because they’ve missed too many hours to remain enrolled. Your school can protect tuition dollars by ensuring students are showing up to class and increasing their chances of graduation.


To illustrate, let’s look at an example.


Consider a school of 100 students with an average tuition cost of $20,000. If ten students drop out halfway through their program, schools lose approximately $100,000 of tuition. If a school could improve its retention and ensure that only five students dropped out halfway through the program instead of ten, that’d be just $50,000 of tuition missed. $50,000 saved every module quickly adds up to a significant amount of revenue gained back.


Increasing retention rates by even just a few percentage points can have a major economic impact on schools. So now the question is, how can schools boost their retention rates and keep them consistently high? The answer is by using proactive retention strategies.

The power of proactive retention for career universities

A proactive retention strategy monitors students’ progress and addresses absences before students drops out. The key element of proactive retention is having access to real-time data.


With real-time insight into which students have checked in to their course and which haven’t, staff can immediately begin outreach to absent students. When your staff contacts students during the time they should be in class, the chances of reaching students are higher. Your school can reiterate to its students how costly missing class is, improving the odds of showing up next time. In some cases, students can even get to class or log on to their online course before it’s over.

Real-time attendance data in action

Using a tool like CourseKey, schools can gain access to real-time attendance data. Administrators can see the data through enterprise-style dashboards that constantly refresh, giving admins real-time visibility into what’s happening in their courses.


CourseKey’s upcoming Retention Dashboard aggregates attendance and other student data into clear risk dashboards, giving administrators rapid insight into at-risk students. Administrators can establish low, medium, and high-risk categories based on attendance, tardiness, grades, and more. Administrators will receive daily alerts with a list of students by risk level, allowing them to prioritize outreach by risk and intervene quickly.

Schools that use data to execute proactive retention strategies consistently achieve higher retention rates.

Helping more students cross the finish line

Increasing retention rate by a few percentage points allows your school to help more students achieve their goals while accessing additional tuition dollars. With additional funds, your school can invest in other initiatives like hiring more staff and faculty, expanding program offerings, improving campus infrastructure, and more.


Is your school reaching its retention goals? Find out how CourseKey can help more of your students cross the finish line by requesting a demo below!

Request A Demo

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