How CRM Solutions Can Help Institutions Gain Market Share in Higher Education
Greetings, dear readers! In this article, we will explore the benefits and drawbacks of using customer relationship management (CRM) in higher education, particularly in the context of gaining market share. CRM is a methodology and technology that helps institutions manage interactions with current and potential students, alumni, donors, and other stakeholders. By collecting and analyzing data, CRM can facilitate personalized communication, improve engagement, and enhance retention and recruitment rates.
Introduction to CRM for Higher Education Market Share
CRM was initially developed for sales and marketing in the business world, but in recent years, it has gained traction in higher education as well. According to a report by Technavio, the global CRM market for higher education is expected to grow by $1.9 billion from 2020 to 2024, at a CAGR of over 14%. This growth is driven by several factors, including:
| Drivers | Restraints | Trends |
|---|---|---|
| – The need to enhance student experience and success – The rise of digital channels and mobile devices – The pressure to optimize resources and costs |
– The challenges of data privacy and security – The complexity of integration and customization – The resistance to change and adoption |
– The emergence of AI and analytics features – The shift towards cloud-based and SaaS models – The expansion of CRM beyond enrollment management |
Advantages of CRM for Higher Education Market Share
Now, let’s dive into the advantages of using CRM for higher education market share. We will discuss seven benefits, each supported by relevant data and examples.
1. Improved Enrollment Management
CRM can help institutions streamline the admission process, from inquiry to enrollment, by providing a centralized platform for data collection and analysis. By automating routine tasks, such as email campaigns, event registration, and application tracking, CRM can free up staff time and resources for more strategic initiatives, such as targeted recruitment and yield optimization.
For instance, the University of Alabama saw a 30% increase in applications and a 31% increase in yield rate after implementing a CRM system. The system allowed the admissions team to personalize communications, track engagement, and monitor progress in real-time.
2. Enhanced Student Engagement
CRM can help institutions communicate with students more effectively and meaningfully, by tailoring messages to their needs, preferences, and behaviors. By integrating various channels, such as email, social media, text messaging, and chatbots, CRM can provide a seamless and personalized experience for students throughout their lifecycle, from orientation to graduation.
For instance, the University of Michigan achieved a 92% retention rate by using a CRM system to track student interactions, identify at-risk students, and intervene proactively. The system also allowed the institution to gather feedback from students and improve services accordingly.
3. Increased Donor and Alumni Giving
CRM can help institutions build and maintain relationships with donors and alumni, by tracking their interests, giving history, and engagement level. By segmenting donors and alumni into clusters, such as affinity groups and giving circles, CRM can tailor fundraising appeals and stewardship activities to their preferences and aspirations.
For instance, the University of Notre Dame raised $2.4 billion in the “Boldly Notre Dame” campaign by using a CRM system to manage 70,000 donors and volunteers. The system allowed the institution to personalize solicitations, track progress, and recognize achievements.
4. Efficient Resource Allocation
CRM can help institutions allocate resources more efficiently, by providing data-driven insights into market trends, competitors, and internal operations. By analyzing key performance indicators (KPIs), such as conversion rates, retention rates, and ROI, CRM can guide strategic decision-making and resource allocation.
For instance, the University of California, San Francisco (UCSF) used a CRM system to optimize donor engagement and fundraising activities. The system allowed the institution to segment donors, track interaction history, and monitor performance metrics. As a result, UCSF increased donations by 36% and reduced fundraising costs by 24%.
5. Better Data Management
CRM can help institutions collect, store, and manage data more effectively, by standardizing data fields, eliminating duplicates, and ensuring data quality. By integrating CRM with other systems, such as student information systems (SIS) and financial aid systems, institutions can create a unified and accurate view of their constituents.
For instance, the University of Utah implemented a CRM system to consolidate data from multiple sources and improve data governance. The system allowed the institution to track student progress, monitor KPIs, and generate reports for various stakeholders.
6. Scalable and Flexible Solutions
CRM can provide institutions with scalable and flexible solutions that can adapt to their changing needs and contexts. By choosing cloud-based and SaaS models, institutions can avoid the costs and risks of on-premise installations and upgrades. By customizing CRM to their specific workflows, policies, and goals, institutions can maximize the value of the system.
For instance, the University of Phoenix used a CRM system to support its transition from a for-profit to a nonprofit institution. The system allowed the institution to integrate various departments, such as admissions, advising, and career services, and to provide online and personalized services to its diverse student population.
7. Competitive Advantage
CRM can help institutions gain a competitive advantage by differentiating themselves from other institutions in the market. By branding themselves as student-centered, innovative, and responsive, institutions can attract and retain students who value these qualities. By measuring and benchmarking their performance against industry standards and best practices, institutions can improve their market position.
For instance, the University of Southern California (USC) used a CRM system to enhance its reputation and visibility as a leader in online education. The system allowed the institution to expand its online offerings, attract more international students, and increase enrollment and revenue.
Disadvantages of CRM for Higher Education Market Share
Now, let’s examine the disadvantages of using CRM for higher education market share. We will discuss seven challenges, each supported by relevant data and examples.
1. High Costs and Complexity
CRM systems can be expensive to purchase, install, customize, and maintain, especially for smaller institutions with limited budgets and IT resources. The total cost of ownership (TCO) of CRM systems can vary widely, depending on the scope, scale, and features of the system.
For instance, according to Gartner, the average CRM implementation costs range from $50,000 to $250,000 for SMBs, and from $1 million to $10 million for large enterprises. The ongoing costs of licensing, hosting, support, and integration can add up to 50-70% of the initial costs.
2. Data Privacy and Security Risks
CRM systems can be vulnerable to data breaches, hacking, and other cyber threats, especially if they contain sensitive and personal information about students, alumni, and donors. The risks of data privacy and security violations can result in reputation damage, legal penalties, and financial losses.
For instance, according to IBM, the average cost of a data breach was $3.86 million in 2020, with an average time to identify and contain the breach of 280 days. The most common causes of data breaches were cybercriminals, system glitches, and human errors.
3. Integration and Customization Challenges
CRM systems can be difficult to integrate with existing systems, such as SIS, LMS, and financial aid systems, especially if they use different formats, structures, and protocols. The integration and customization process can require specialized skills, resources, and time, and can result in conflicts and inconsistencies.
For instance, according to EDUCAUSE, the most common barriers to CRM adoption were technical complexity (29%), data integration (24%), and institutional culture (19%). The customization of CRM systems can also lead to vendor lock-in, which can limit the institution’s freedom and flexibility.
4. Resistance to Change and Adoption
CRM systems can be met with resistance from staff, faculty, and students, who may perceive them as intrusive, impersonal, or unnecessary. The resistance to change and adoption can result in low adoption rates, poor user satisfaction, and missed opportunities.
For instance, according to a survey by Tambellini Group, only 37% of institutions that implemented CRM reported high levels of usage and satisfaction. The most common reasons for low usage were lack of training, lack of support, and lack of relevance.
5. Bias and Inequality Risks
CRM systems can perpetuate bias and inequality, especially if they rely on algorithms and data models that reflect historical, social, and cultural biases. The bias and inequality risks can result in unfair treatment of certain groups of students, such as low-income, minority, or first-generation students.
For instance, according to a report by New America, some CRM systems use predictive analytics to identify “at-risk” students, based on factors such as GPA, test scores, and demographic characteristics. However, these factors may not capture the full range of student experiences and needs, and may reinforce stereotypes and stigmatization.
6. Data Overload and Fatigue
CRM systems can generate a large volume of data, such as emails, alerts, reports, and dashboards, which can overwhelm staff and faculty. The data overload and fatigue can result in information paralysis, decision-making delays, and staff burnout.
For instance, according to a survey by Ellucian, 42% of staff and faculty reported that they felt overwhelmed by the amount of data they received from CRM systems. The most common sources of data overload were email alerts, data reports, and dashboard metrics.
7. Ethical and Legal Challenges
CRM systems can pose ethical and legal challenges, especially if they use data for purposes that violate privacy, consent, or regulations. The ethical and legal challenges can result in reputational damage, legal penalties, and loss of trust.
For instance, according to a report by NACUBO, the ethical and legal implications of CRM use can include unauthorized access to data, unauthorized use of data, and violations of FERPA and GDPR regulations. The institutions that use CRM systems must ensure that they comply with relevant laws and policies, and that they respect the privacy and autonomy of their constituents.
FAQs About CRM for Higher Education Market Share
1. What is a CRM system?
A CRM (customer relationship management) system is a methodology and technology that helps institutions manage interactions with current and potential students, alumni, donors, and other stakeholders. By collecting and analyzing data, CRM can facilitate personalized communication, improve engagement, and enhance retention and recruitment rates.
2. Why use a CRM system in higher education?
CRM systems can help institutions gain market share by improving recruitment, retention, engagement, fundraising, and decision-making. By providing a holistic and data-driven view of their constituents, CRM can enable institutions to identify and address their needs and preferences more effectively and efficiently.
3. What are the benefits of using a CRM system in higher education?
The benefits of using a CRM system in higher education include: improved enrollment management, enhanced student engagement, increased donor and alumni giving, efficient resource allocation, better data management, scalable and flexible solutions, and competitive advantage.
4. What are the challenges of using a CRM system in higher education?
The challenges of using a CRM system in higher education include: high costs and complexity, data privacy and security risks, integration and customization challenges, resistance to change and adoption, bias and inequality risks, data overload and fatigue, and ethical and legal challenges.
5. What should institutions consider before choosing a CRM system?
Institutions should consider several factors before choosing a CRM system, such as: their institutional goals and priorities, their budget and IT resources, their data governance and security policies, their user needs and expectations, their system integration and customization requirements, and their vendor reputation and support.
6. What are some best practices for implementing and using a CRM system in higher education?
Some best practices for implementing and using a CRM system in higher education include: involving stakeholders in the planning and implementation process, providing training and support for users, aligning the system with institutional goals and priorities, integrating the system with other systems, ensuring data quality and governance, monitoring and evaluating performance, and continuous improvement and innovation.
7. What are some examples of CRM systems used in higher education?
Some examples of CRM systems used in higher education include: Salesforce Education Cloud, Ellucian CRM Advise, Campus Management Talisma, Hobsons Radius, TargetX, Technolutions Slate, Blackbaud CRM, Jenzabar CRM, and Microsoft Dynamics 365.
8. Are CRM systems suitable for all types of institutions?
CRM systems may not be suitable or necessary for all types of institutions, depending on their size, scope, and goals. Smaller institutions with fewer resources and simpler workflows may not need a full-fledged CRM system, while larger institutions with complex operations and diverse constituencies may require a more comprehensive and customized system.
9. How do CRM systems affect student privacy and consent?
CRM systems can affect student privacy and consent by collecting and storing personal and sensitive data, such as grades, finances, and health information. Institutions that use CRM systems must ensure that they comply with relevant laws and policies, such as FERPA and GDPR, and that they obtain informed consent from their constituents for data collection, use, and sharing.
10. How do CRM systems address diversity and inclusion issues?
CRM systems can address diversity and inclusion issues by providing tailored and equitable services and communications to all students, regardless of their background or identity. CRM systems can also help institutions identify and address systemic biases and inequalities, by analyzing data and metrics and involving diverse stakeholders in the decision-making process.
11. How do CRM systems support alumni relations and fundraising?
CRM systems can support alumni relations and fundraising by tracking and managing alumni data and interactions, such as giving history, event attendance, and communication preferences. CRM systems can also help institutions segment their alumni into affinity groups and giving circles, and tailor fundraising appeals and stewardship activities to their interests and aspirations.
12. How do CRM systems help institutions gain market share?
CRM systems help institutions gain market share by improving their recruitment, retention, engagement, fundraising, and decision-making. By providing a holistic and data-driven view of their constituents, CRM systems enable institutions to identify and address their needs and preferences more effectively and efficiently, and to differentiate themselves from other institutions in the market.
13. How do CRM systems contribute to institutional innovation and agility?
CRM systems contribute to institutional innovation and agility by providing scalable and flexible solutions that can adapt to changing needs and contexts. By choosing cloud-based and SaaS models, institutions can avoid the costs and risks of on-premise installations and upgrades. By customizing CRM to their specific workflows, policies, and goals, institutions can maximize the value of the system.
Conclusion: Take Action on CRM for Higher Education Market Share
Dear readers, we have explored the advantages and disadvantages of using CRM for higher education market share. We have seen that CRM can help institutions improve enrollment management, enhance student engagement, increase donor and alumni giving, allocate resources more efficiently, manage data more effectively, and gain a competitive advantage. However, we have also seen that CRM can pose challenges and risks, such as high costs, data privacy, integration, resistance, bias, overload, and ethics.
To make the most of CRM for higher education market share, institutions must carefully evaluate their needs, goals, and resources, and choose a system that aligns with their vision and values. They must also involve all stakeholders in the planning and implementation process, and provide training and support for users. They must monitor and evaluate performance regularly, and continuously improve and innovate their strategies and tactics.
In conclusion, we encourage you to take action on CRM for higher education market share, by exploring different options and approaches, and by engaging in dialogues with your peers and experts. With the right strategy and mindset, CRM can be a powerful tool for institutions to gain market share, enhance student success, and contribute to societal progress.
Closing: Disclaimer
The opinions expressed in this article are solely those of the author and do not represent any official or organizational views or endorsements.