About the Blog
Successful higher ed institutions rely on strategic decisions based on market research. Effective market research requires careful planning, systematic execution, and overcoming common obstacles.
Higher ed institutions operate in an increasingly competitive environment. The challenge they face is to maximize existing resources while adjusting to trends in the marketplace, all while continuing to achieve their core mission. To succeed, education market research is essential.
As a leader trying to navigate this environment successfully, you need good data to ground decision making. One of the most important sources of data is market research. A clear understanding of who you serve and your competitive environment should influence everything from program development to marketing strategies.
In this article, we’ll take a deeper look at why higher education market research matters and share actionable guidance about how to do it effectively.
Why Education Market Research Matters
The results of market research are like a map that helps you understand your context. Here are three reasons why having that map is so important.
It's Easier to Understand Student Needs and Preferences
Historically, educators have been reluctant to think of students as consumers buying a product. However, while a university education is much more than a simple transaction, it is subject to the same market forces as any business. Students have preferences and will tend to choose those schools that pay attention to what they are and shape their offerings accordingly.
For instance, government statistics show the number of English majors in the U.S. has been cut in half between 1970 and 2021, despite the student population more than doubling. At the same time, enrollment in computer-related programs has skyrocketed. This kind of information is vital when it comes to deciding which programs to offer. We can’t rely on guesses. We need data.
It Helps You Stay Competitive in a Changing Landscape
Student preferences aren’t the only thing that changes. The context changes, too. New trends in higher education constantly reshape the landscape. Emerging technologies power new models of learning.
The rise of online education is a key example. In 2022, over 50% of students took at least one online course. Ten years ago it was half. Online courses are quickly moving from an interesting new mode of content delivery to a core offering for many schools.
Market research helps you stay on top of a changing context to ensure you aren’t left behind.
It Enables Informed Decisions Through Data Analysis
As a higher education leader, you’re constantly tasked with making weighty decisions. Should you launch a new program? Does the institutional marketing strategy need to shift? These kinds of choices can involve allocating substantial budgets, hiring staff, and setting strategic directions that can take years to show fruit.
Having access to good data provides necessary guidance, helping you select from all the seemingly good ideas those most likely to succeed.
Key Components of Education Market Research
The importance of market research is clear. How should you approach it? Here are three things you need to clarify up front.
Defining Your Objectives
Begin with a precise understanding of what you hope to find out and how that information will help you move forward. Knowing what you’re looking for and why is crucial for focusing your research efforts.
If you’re considering a new program, for instance, you will probably want a measure of market demand. This will tell you if there is enough interest to make the program sustainable.
On the other hand, if you aim to optimize your student recruitment efforts, you might want to quantify the return on advertising spending in different channels. This would enable you to invest in those places showing the greatest return.
Identifying Your Target Audience
Next, you’ll want to consider how to segment your audience effectively in your research. For example, if you want to assess demand for a proposed program, who should you investigate? Potential students, obviously, but which ones? You may choose to investigate those populations you know your school tends to draw from. On the other hand, you might be hoping the proposed program will appeal to a new demographic and want to test that hypothesis.
We know that parents have become one of the key influencers when it comes to a student’s decision about where to study. So that’s an audience you’d want to explore, too.
Clarity about the first point we addressed, what you hope to find out, is the basis for clarity about this second one: Who’s the right target for your research?
Selecting the Right Research Methods
You know what you want to find out and you know where you need to look. Next, you need to decide how you’ll do so.
The best option depends on what you’re trying to find. For instance, let’s say you want to collect a data point about alumni career outcomes. In this case, an emailed survey would be appropriate. Or, maybe you want to understand how first-year students decided to enroll in your school. In this case, a focus group might be a better choice, since it allows you to glean a more nuanced understanding.
Steps to Conduct Effective Education Market Research
After working through these three points, you’re ready to begin the process of research. Here are the key steps involved.
Step 1: Start with Secondary Research
There’s no reason to reinvent the wheel. You should always begin by finding out what data is already out there. There is a wealth of government statistics, research reports, industry publications, and other online resources.
These can do two things. First, they might be able to answer a question you have and relieve you of the burden of additional research. Second, even if they don’t answer your question directly, they’ll provide useful background information that can help you further refine the questions you need to ask.
Step 2: Develop Primary Research Strategies
In this step, you’re going to turn the research methods you identified earlier into concrete tools and specific plans for how you’ll use them. If you decided to create a survey for your alumni, for instance, now it’s time to craft the survey questions, get access to the email addresses you need, and decide on the details like when you’ll send the survey and how you’ll follow up.
At this stage, don’t forget to take advantage of other resources at your institution to make your job easier and more likely to succeed. For instance, talk with a professor in social sciences about how to design an effective survey. Also, be sure to involve IT and other relevant offices early to make sure your deployment plan is going to work.
Step 3: Analyze Competitor Offerings
Your school doesn’t operate in a vacuum. You should always try to gain an understanding of what your peers are doing, since you are competing with them for the same students.
Begin by identifying who your actual competitors are. Then develop relevant benchmarks that allow you to assess your relative strengths and weaknesses. For instance, maybe you don’t have as many program options as a nearby school, but have a distinctive program they lack. Or, perhaps your tuition is relatively high but your financial aid resources are well above average.
Step 4: Gather and Analyze Data
Once you’ve collected your data, it’s time to organize and analyze it. Sometimes we have so much data it’s difficult to see the forest for the trees. Two things can help bring order to the chaos.
First, identify key performance indicators (KPIs) that allow you to express the most important data points clearly and succinctly. For instance, you might develop an alumni success score that combines information about employment rate, salary, and satisfaction with their education into a single number.
Second, put your numbers in context by plotting year-over-year changes and comparing with peer institutions or industry averages.
These and other strategies will help you identify trends, spot market opportunities, and highlight problem areas that most urgently need your attention. New tools even allow you to pair generative ai and data sources for additional help in identifying and responding to insights.
Common Obstacles When Conducting Market Research
Market research isn’t always easy. Here are some ideas for how you can overcome common problems.
Budget Constraints
Market research can be expensive. But it doesn’t have to be. As we noted above, there is a lot of information you can access easily online—much of it free. You can also stretch your resources by creating tools, like surveys, you can build once and reuse in the future. Colleges and universities also have large built-in audiences of good will, like current students, their parents, and alumni, many of whom will be willing to help if you ask them.
Limited Access to Reliable Data
Good data related to higher education isn’t always easy to find. This raises the temptation to make decisions based on more anecdotal evidence, like the impressions of a handful of faculty interviewed in the latest edition of The Chronicle of Higher Education.
Don’t yield to this temptation. You need your decisions to be driven by more than anecdotes. If you can’t find out what you need to know in reliable sources, it’s time to consider if you need to invest the resources to gather the data yourself.
Internal Resistance to Change
A university has many stakeholders. Even with the most compelling research data, not everyone will be enthusiastic about change. There are three things leaders need to do to minimize resistance.
First, have empathy. Change is difficult and can be threatening. Work hard to understand things from the other person’s point of view.
Second, listen. Talk to faculty, staff, alumni, board members, and others. Even if it doesn’t ultimately change the outcome, people are much more likely to cooperate if they feel their concerns are heard.
Finally, invite cooperation. You need allies everywhere you can find them. A program change driven solely by the admissions department, for instance, is going to be an uphill battle. Invite faculty into the conversation early to help you formulate a plan and act as an advocate for change with their colleagues.
Best Practices for Implementing Research Insights
Now that you’ve gathered your data and gleaned insights from it, how do you put those insights to work? Prioritize two things.
Turning Data Into Actionable Strategies
The key word here is “actionable.” You need to translate research findings into specific changes you’ll make, whether in program offerings, marketing strategies, or other areas.
It’s not enough to look at your data and say, “We need to develop a social media presence to stay competitive.” Instead, shoot for something like, “By the end of the semester, we need to recruit and train four student ambassadors who will post at least once a week on Instagram.”
Continuous Evaluation and Adaptation
Your job isn’t finished once you have actionable plans in place. Establish a process and timetable to monitor the results of the changes you make. You’ll need to continue to refine your strategies based on what the data show.
Conclusion
Higher education is a fiercely competitive, rapidly changing sector. One of your most important assets in successfully navigating this environment is high-quality market research that allows you to make strategic decisions on the solid foundation of data.
In this article, we’ve considered how to conceptualize, plan, execute, and use market research in higher education. Put the principles covered here to use for more efficient and targeted market research as you continue to steer your institution forward.
Better Marketing Data with Element451
One area rich with opportunities for market research is your interactions with students, from initial inquiry through application and on to graduation. Element451 gives you powerful, integrated tools that provide visibility into your marketing and enrollment efforts from the very top to the very bottom of your funnel. Book your free demo to discover how you can start uncovering more actionable insights.
Frequently Asked Questions
How often should institutions conduct market research?
The higher ed landscape is constantly changing. As a result, higher education institutions should follow a program of regular market research, including ongoing monitoring of key indicators. This allows them to assess the effectiveness of what they’re currently doing and quickly adjust to shifting market conditions.
.svg)
.svg)
