Increasing customers in higher education

Every business needs customers and higher education is no exception. Over the years I have seen a few businesses that did not appear to have consistent customers and had no interest in the few customers present. These businesses, however, were not selling anything and had not real need for additional customers to improve their business. I can think of 4 of these and all were museums that operated from an endowment. The earnings on the endowment paid for the utility costs, staffing, facilities, taxes, and any development. While it was a pleasure to experience these museums and exhibits, I also wondered if the lack of a drive for profits might contribute to complacency and indifference in the product from both the managers and the customers. Maybe not, but the concern is real.

The need for customers can drive a business or an institution forward and provide impetus for development and improvement of the product. Endowments, although sought after and necessary for non-profit organizations, can impede creativity by disincentivizing development and progress. Ironically, the same is true of restricted donations that insist on funds being used in specific ways. True, when money is working, it can free human capital to work on other aspects of the business. But a reliance on funds supporting funds without progress are at risk of losing customers and product development.

The answer for more customers is not improved marketing methods, not that such endeavors are without merit. Higher education, as an excessively complex institution, markets its quality of education, of student life, of degree programs, athletics, facilities, employment statistics, faculty to student ratios, completion rates, student experiences, and institutional reputation. Schools use recruiters, websites, brochures, digital resources, media, posters, calls, visits, and personal contacts to market its product. All these and more are beneficial and contribute to continued and new customers for the institution.

But in the end, marketing efforts aside, customer (students) growth must occur for the business (university) to thrive. Regardless of the marketing efforts, a business needs paying customers to remain in the business and such is true of higher education. Students, unless they have an income producing trust fund or have inherited significant wealth, have a driving need for a life filled with meaning and enough income to meet their needs and fulfill their intended professional goals.

The concern for universities is to provide a learning environment that meets the immediate needs of an education that includes experiences, entertainment, learning, excitement, safety, connections, life skills, and certification of the process. Students (parents) are willing to pay for this product in the hopes of a return on their investment. While having a college degree does help income level over a lifetime of earnings, there are many choices for how and where to pursue that degree. Students and parents have to wrestle various concepts while considering what is best for the student. Keeping in mind that a degree is a big investment of time and money, the customer of the institution must examine all facets of the institution while thinking long-term for the return on the investment.

Managers of small and large businesses or educational institutions constantly analyze expenditures to determine which are necessary for operational improvement, marketing needs, or quality improvement. Decisions to keep customers happy and returning are the essence of financial and operational management. The need for customers makes higher education no different from a business. Where the difference occurs is in the delivery of the product.