CRM in Higher Education
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- Penelope Thornton
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1 A Datamonitor report Institutions of higher education use technology to strengthen relationships with constituents Published: Feb-05 Product Code: Providing you with: The results of phone-based interviews with higher education institutions Samples including a cross-section of institutions by type, control, organization and size The opinions of senior IT decision-makers Use this report to... Enhance your messaging with current, in-depth information on the higher education market Profiles of key CRM vendors and their higher education offerings
2 Introduction Institutions of higher education are increasingly viewing students as customers they need to serve. CRM technologies targeted at higher education allow institutions to build strong relationships with students and other constituents. Based on a survey of 100 US higher education institutions, this Datamonitor study analyzes the market opportunity for CRM vendors in US higher education. Key findings and highlights Institutions of higher education consider building constituent relationships to be a high organizational strategy. Yet the market for CRM technology in higher education is still nascent. This report analyzes the results of Datamonitor's higher education technology decision-maker panel, which focused exclusively on CRM. It also examines the needs and goals driving institutions to invest in CRM, while highlighting vendors currently offering CRM solutions for higher education. Finally, this report discusses the criteria necessary for an institution's CRM strategy to be successful. Reasons to buy Despite growing financial pressure, institutions of higher education are increasing their spending on CRM. Institutions overwhelmingly agree that current students are their primary constituents. In order to support current and prospective students, institutions identified admissions and enrollment, student services, and financial aid as the areas driving CRM investment. Successful CRM strategies will mimic the student lifecycle by strengthening relationships with candidates, students, and alumni. Enhance your messaging with current, in-depth information on the higher education market Tailor your CRM solutions strategy to address specific pain points facing higher education institutions Benchmark your company relative to vendors already supplying CRM to higher education Contact us... From Europe: tel: fax: tcmarketing@datamonitor.com From Germany: tel: fax: deinfo@datamonitor.com From the US: tel: fax: ustcmarketing@datamonitor.com From Asia Pacific: tel: fax: apinfo@datamonitor.com
3 Sample pages from the report Competitive Dynamics Vendor assessment Below is a table detailing the key strengths of CRM providers to higher education in the US. Figure 5: Vendor assessment Key Strengths Competitive Dynamics Out-of-the-box integration with s Campus Management solution. my CRM tailored to meet constituent needs throughout the student lifecycle. NetWeaver platform (open, standards-based portal) makes integration with non- systems easier. Applies best practices learned in other industries to higher education clients. Oracle Large higher education client list, including 10 of the top 10 research institutions (after merger with PeopleSoft). Out-of-the-box integration with Oracle s ERP solution. Vendor assessment Targets many constituent groups, not just students. Stores constituent data in a single repository, accessible institution-wide. PeopleSoft Strong presence in higher education, Below especially is with a table large research detailing institutions. the key strengths of CRM providers to higher education in Offers both out-of-the-box integration with PeopleSoft s ERP systems and more modular solutions. Recently released Enterprise CRM the for Higher US. Education. Named a "2004 CRM Market Leader" by CRM magazine. Talisma Multi-channel CRM is main product Currently experiencing rapid growth Figure in its higher 5: education market Vendor segment. assessment CRM solutions built to follow the student lifecycle. Jenzabar Key Strengths Offers CRM modules tailored for the needs of different constituents and follow student lifecycle. Out-of-the-box integration with s Campus Management solution. CRM modules can integrate with JICS or other ERP systems and databases. my CRM tailored to meet constituent needs throughout the student lifecycle. SunGardSCT NetWeaver platform (open, standards-based portal) makes integration with non- systems easier. Differentiates CRM products based on institution size. Applies best practices learned in other industries to higher education clients. CRM solutions focus on variety of constituents students, candidates, alumni, faculty and staff. Oracle Large higher education client list, including services. 10 of the top As 10 research students institutions evolve (after merger from with prospects to current students to alumni, they Datatel PeopleSoft). Five CRM solutions integrate with its ERP product Colleague. Out-of-the-box integration with Oracle s will ERP solution. demand the same quality of technology-enabled services they received Company recently acquired Liquid Matrix, a provider of Web solutions Targets for many student constituent recruiting groups, and not just students. fundraising. during the enrollment process. Just as private companies must follow through on Stores constituent data in a single repository, accessible institution-wide. PeopleSoft Strong presence in higher education, especially their sales with large promises research institutions. and offer customers the products they advertised, institutions Offers both out-of-the-box integration with PeopleSoft s ERP systems and more modular solutions. Source: Datamonitor Recently released D A Enterprise T A M O CRM N I T for O Higher Rof higher education that use CRM technology to recruit students must continue to Education. Named a "2004 CRM Market Leader" by provide CRM magazine. similar services in order to retain students and keep them involved after Talisma Multi-channel CRM is main product graduation. Currently experiencing rapid growth in its higher education market segment. CRM solutions built to follow the student lifecycle. Profiles of selected CRM for higher Jenzabar education vendors Market Context Offers CRM modules tailored for the needs of different constituents and follow student lifecycle. CRM modules can integrate with JICS or other ERP systems and databases. SunGardSCT Figure 3: Development of CRM should follow the student lifecycle Differentiates CRM products based on institution size. CRM solutions focus on variety of constituents students, candidates, alumni, faculty and staff. Datatel s higher education CRM functions are offered in its my Five CRM CRM solutions solution, integrate with which its ERP product Colleague. Company recently acquired Liquid Matrix, a provider of Web solutions for student recruiting and is a component of my Business Suite. Functionalities include: market research fundraising. and analysis, product/brand marketing, marketing program management, management of sales, recruitment and prospect service, alumni services and Source: Datamonitor D A T A M O N I T O R institutional development. A key selling point of my CRM is that it can be linked Candidate Student Alumni Financial Aid Recruiting Advancement Academic Advising Admissions Alumni Development Datamonitor (Published 02/2005) Profiles of selected CRM for Page higher 23 education vendors Online Registration Enrollment Donor Management Course Management Events Marketing This report is a licensed product and is not to be photocopied Degree Audit Online tuition/fee paying Source: Datamonitor D A T A M O N I T O R s higher education CRM functions are offered in its my CRM solution, which is a component of my Business Suite. Functionalities include: market research and analysis, product/brand marketing, marketing program management, management of sales, recruitment and prospect service, alumni services and institutional development. A key selling point Serving of my other CRM constituents is that can besides linked students. Institutions of higher education serve a variety of constituents, including alumni, parents, faculty, staff, high school guidance counselors and the government. However, institutions are Datamonitor (Published 02/2005) focusing their CRM investment Page mostly 23 on prospective and current students. This report is a licensed product and is not to be photocopied According to the results of Datamonitor s Higher Education TDP, the top three areas institutions are likely to make new technology investments in are student recruiting (37% of respondents rate it as their top budget priority), enrollment (18%) and academic advising (12%). This concentration of investment contributes to a one-dimensional CRM strategy that is unlikely to help the institution meet its long-term goals. A multi-dimensional CRM strategy effectively manages its relationships with all constituents with the ultimate goal of improving service to its primary constituent the student. Datamonitor (Published 02/2005) Page 15 This report is a licensed product and is not to be photocopied Request more sample pages...for FREE! From Europe: tel: fax: tcmarketing@datamonitor.com From Germany: tel: fax: deinfo@datamonitor.com From the US: tel: fax: ustcmarketing@datamonitor.com From Asia Pacific: tel: fax: apinfo@datamonitor.com
4 Table of contents EXECUTIVE SUMMARY MARKET CONTEXT Introduction Key findings The need for IT in higher education Translating CRM for higher education institutions Drivers of CRM investment in higher education Inhibitors of CRM investment in higher education COMPETITIVE DYNAMICS Introduction Key findings Vendor assessment Profiles of selected CRM for higher education vendors - - Oracle / PeopleSoft - Talisma - Jenzabar - SunGardSCT - Datatel What vendors need to know - Use hard targets when discussing ROI - Institutions are wary of outsourcing - Be prepared for slow decisions FIGURES Figure 1: Higher education IT spending in the US ($bn), Figure 2: The main functions of CRM in higher education institutions Figure 3: Development of CRM should follow the student lifecycle Figure 4: Institutions of higher education must manage many relationships Figure 5: Vendor assessment THE FUTURE DECODED Introduction Adoption of CRM will mimic the student lifecycle CRM investment by higher education will likely grow, but not aggressively Conclusions APPENDIX...Interest in CRM by institutions of higher education appears to be growing. According to Datamonitor's Higher Education TDP, 82% of institutions currently have enrollment management systems in place...
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6 Interested in this topic? Datamonitor's Public Sector Technology Strategic Planning Program (SPP) offers strategic research and advisory services that provide guidance in understanding the competitive landscape of the public sector and identifying the best opportunities in it. Its scope includes the take-up of technologies that enhance government/citizen interactions, as well as, integration and automation technologies that enable government departments to streamline existing systems. We also address the procurement process and related sales issues, such as, when to go direct, or when to partner, maximise profitability and exploit new technologies in an evolving competitive environment. Other reports available in this series A Vendor's Guide to Understanding IT Spending Priorities in Higher Education Analysis of an end-user survey probing short-term IT spending priorities among educational institutions. Published: Oct-04 Product code: DMTC1081 Exploiting Technology Opportunities in European Education Tight margins make cost the key factor in education and technology spend in schools and higher education institutions reflects this. Vendors are unsure how to add value to boost profit. This report explores what educators are buying and why. Published: Sep-04 Product code: DMTC IT Infrastructure Trends in US Healthcare Providers Analyzes the results of Datamonitor's healthcare technology survey, involving 103 interviews with key line of business and IT decision makers in US hospitals and integrated delivery networks (IDNs). Published: May-04 Product code: DMTC1004 Selling Telecom Services to Higher Education Provides a complete sales strategy for telecoms equipment and services provision to the higher-education sector. Published: Mar-04 Product code: DMTC0994 For more information on reports and briefs go to: Subscribe to Monitor A monthly update of Datamonitor's new products, delivered to you by . monitor@datamonitor.com
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