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By offering classes online, Kaplan eliminates a great many overhead expenses associated with a brick and mortar institution. There are no real estate costs, utilities costs, leases, rent, or property taxes. Staff costs can actually be increased slightly because of the savings in other areas, which is helpful in recruiting instructors.
Customer.
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By offering a range of degree programs, Kaplan increases its appeal to a wider array of students. This translates into a larger revenue base and thus larger profit. Currently, Kaplan offers over 125 degree programs, which is comparable to many colleges and universities. These degree programs are primarily in career tracks that reflect the employment outlook for the future. .
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While Kaplan is primarily an online institution of higher learning, it also offers a variety of campus experiences for students who desire the traditional classroom setting. Some students live near these campuses and are more comfortable attending classes there. This dual offering has had an effective appeal to the segment of student who needs the flexibility of an online school but is more comfortable going to an actual class. Kaplan is able to enroll these students, which in turn affects profitability.
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Kaplan places great emphasis on customer service for each of its students from the moment they call as a prospect. The philosophy is that if a student feels respected and valued, they will choose Kaplan and refer their friends and family. Keeping students happy increases matriculation rates and student successes help bring in the next class.
Internal Business .
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Many metrics that deal with the raw data of being a student are routinely monitored and reported on as a way to gauge the effectiveness of a program or even a single class. A simple metric like grading trends help identify problems in course structure or course materials and help shape the curriculum to be more effective at imparting knowledge.
