January 2008 Lawlor Focus

Ten Observations and Trends for 2008

The marketplace of prospective students is dynamic, robust and challenging. Based on extensive quantitative and qualitative research The Lawlor Group has conducted this past year for our clients, along with other primary and secondary research available to the general public, the following are ten observations and trends impacting student recruitment and enrollment that we believe are worth taking note of in 2008.

1. Geography is Destiny—Population shifts are requiring colleges and universities to re-examine course offerings, delivery systems and recruitment strategies. Proximity to where people live and work, convenience, and niche offerings can create demand that is relevant to the marketplace.
2. Older & Wiser—Non-traditional students, ranging from age 25 and into the retirement years, represent a largely untapped market. Older learners are more likely to have the ability and willingness to pay for the education they need or desire.
3. An Education That Works—The desired outcome of earning a four-year degree is jobs, careers and vocational mobility. Prospective students and their families seek evidence of practical outcomes that point to a return on their investment in a college education.
4. Show Me the Value—Stating the "so what?" benefits of a college experience can increase the willingness of prospective students to consider and select one over another, but the net cost of attendance ultimately influences selection.
5. The Wealth of Stealth—The stealth marketplace and its accompanying behaviors, particularly word-of-mouth recommendations, dominate the college consideration process. An institution's Web site, as well as other Internet resources and online social networks, are changing the way prospective students search and learn about colleges and universities.
6. Seeing is Believing—The campus visit and its accompanying atmospherics and sensory cues provide authenticity to prospective students and families. Colleges and universities must always manage this experience.
7. Home Sweet Home—Prospective students look for indications on campus of the physical comforts and psychological supports found at home. Parents, and this usually means moms, are taking note of the same and are important gatekeepers to the final decision process.
8. Belief in the Future—Spirituality, environmentalism and social consciousness should all have a place on college campuses, according to most students. The presence of programs and organizations dedicated to these areas enhances the value proposition.
9. Staying Connected—Recent innovations in communication technology provide the means for the college to stay connected with parents of current students, as well as alumni and gatekeepers. Staying connected with the people who are most familiar with the institution, and who are most likely to have a favorable impression, enhances word-of-mouth referrals and increases familiarity and institutional recognition.
10. Make It Personal—Personalized attention and a customized experience enhance value and increase satisfaction. The benefits of size can help customize the process, personalize the message, and individualize the experience.

To view data and statistics that provide evidence of these trends, you can download the handout, "Ten Observations and Trends Impacting Student Recruitment and Enrollment at Independent Colleges and Universities," that accompanied our presentation earlier this month at the Council for Independent Colleges (CIC) Presidents Institute.

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The years ahead are going to be very challenging for higher education. The reality is that there is excessive capacity, and the marketplace is not going to respond to static organizations. Discussing, synthesizing, analyzing and implementing changes that take into account the previously mentioned trends and observations will help colleges and universities at least maintain some semblance of enrollment stability into the future.

In the news

Last month's Lawlor Focus considered the implications of Harvard's decision to award more financial aid to middle-class families. Dr. Donald R. Eastman III, president of Eckerd College (St. Petersburg, Florida), responded, "It is not clear to me that what Harvard has done here has any impact on most of the schools in the country, which are already doing pretty much all they can to control price and provide all the financial aid they can." Columnist Jay Mathews made a similar point in the Washington Post: "Offering millions of dollars in grants is fine for schools that have that kind of money in the bank, critics of the Harvard policy say, but that won't help the less affluent colleges that serve 95 percent of students." Scott Friedhoff, vice president for enrollment and communications at Allegheny College (Meadville, Pennsylvania), was among those who shared their thoughts in the Post article, saying, "There are many other actions that our super-wealthy institutions could take that would likely better insure access to their institutions" for low-income students.

Did you know?

The 2007 Annual National Shopping Behavior Survey found that 88 percent of holiday shoppers reported being very concerned about the environment, and 74 percent said they buy environmentally friendly products. Sixty percent were willing to pay more for environmentally friendly items, and 55 percent said they make a special effort to patronize retailers with a "green" reputation.

Source: KPMG