Campus-Wide Information SystemsEmerald Article: Customer relationship management in higher education: Using information systems to improve the student-school relationshipElaine D. Seeman, Margaret O'Hara

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Customer relationshipmanagement in higher educationUsing information systems to improve the

student-school relationship

Elaine D. Seeman and Margaret OHaraEast Carolina University, Winterville, North Carolina, USA

Abstract

Purpose The purpose of this paper is to explore customer relationship management (CRM) in ahigher education setting.

Design/methodology/approach The development and implementation of a CRM project in astate community college was examined as were the benefits realized by implementing CRM. Ascolleges increasingly embrace distance learning and e-business, CRM will become stronger and morepervasive. Viewing students as customers provides a competitive advantage for higher education andenhances a colleges ability to attract, retain and serve its customers. Semi-structured interviews wereconducted with individuals involved with the planning, development and implementation of astatewide CIS system. Student support personnel were additionally interviewed.

Findings The benefits of implementing CRM in a college setting include a student-centric focus,improved customer data and process management, increased student loyalty, retention andsatisfaction with the colleges programs and services.

Research limitations/implications The entire community college system has not implementedthe project. Rather, only the phase one colleges have implemented at this juncture.

Originality/value Viewing students as customers provides a competitive advantage and enhancesa colleges ability to attract, retain and serve its customers. As colleges increasingly embrace distancelearning and e-business, CRM will become more pervasive.

Keywords Customer service management, Higher education, Students, Relationship marketing,Colleges, United States of America

Paper type Case study

Introduction

In this dynamic, competitive environment the future success of educational establishmentsrests on their ability to differentiate themselves and build meaningful relationships not onlywith existing students but with potential students as well. To achieve this, internal systemsneed to be maximized to their full potential through the integration and use of internal CRMwhich can pull together disseminated pieces of information from all types of databases andsources (King, 2005).

Customer relationship management (CRM) is a set of practices that provide aconsolidated, integrated view of customers across all business areas to ensure that eachcustomer receives the highest level of service (Karakostas et al., 2005; TDWI IndustryStudy, 2000). CRM enables an ongoing one-to-one relationship with the customer.When relationship management is enhanced by technology, a seamless integration ofevery area of business that touches the customer is provided (DCI, 2004). In highereducation, students are the customers; some areas that touch the students are the

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Campus-Wide Information SystemsVol. 23 No. 1, 2006pp. 24-34q Emerald Group Publishing Limited1065-0741DOI 10.1108/10650740610639714

registration processes, transcript services, career counseling and academic supportservices.

Graduating high school seniors today have a wide variety of choices in highereducation; competition for their business is keen, especially in a tight economy.Students can choose four-year colleges, technical schools, or community colleges in aface-to-face or online learning environment. While the academic reputation of a schoolis a major factor in determining its selection, other performance indicators thatprospective students may examine include pass rate of licensure examinations,improvement in critical thinking and communication skills, alumni satisfaction withtheir college experience, and the percentage of graduates who find employment (Cleary,2001).

Satisfaction with the colleges programs and services is also a critical performancemeasure. CRM can play a significant role in this area. While being able to obtaininformation about a course prerequisite or a schedule listing is not germane to thestudents learning, it is nonetheless an integral part of the college experience. Moststudents view administrative activities as a necessary evil; thus, an information systemwith an enhanced CRM initiative that provides an individualized fast-track tocompleting these activities can be a strong incentive for selecting a particular institution.

In this paper, we first define customer relationship management, discuss howtechnology facilitates CRM, and explain its place in higher education. We then offer abrief history of the community college system and explore the concept of students asprimary stakeholders. Finally, we examine the life cycle of an actual CRM project in astate community college system.

CRMCRM has been described as a customer-focused business strategy that aims to increasecustomer satisfaction and customer loyalty by offering a more responsive andcustomized service to each customer (Croteau and Li, 2003). In the early twentiethcentury, managing customer relationships was a fairly simple task. Merchants hadfewer customers and most were local. Recordkeeping was done in the merchants head orin a simple ledger. Merchants knew who their customers were and what they wanted.

In the last 20 years, the super store concept, the internet, the rise of the suburbs, andincreased consumer mobility, have made the customer relationship more complex.Customers had more choices and marketing needed to become customer-centric. Whileinformation systems provided far more customer-related data, making sense of thatdata became nearly impossible. Attempting to glean useful information from myriadsources was very labor intensive. The organization needed to identify, acquire andretain new customers, to understand what they wanted, and to develop customerloyalty. CRM systems accomplish this task by consolidating information from allcustomer touch points into a central repository accessible by all business areas.

CRM systems enable customers to interact with the business in an individualized,need-specific manner, and include processes to bring together information about boththe customer and the business. The tasks performed by CRM systems fall into two

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main areas operational and analytical. In brief, the operational side gathers datafrom various touch points; the analytical systems make sense of it.

Although CRM systems employ sophisticated technology, a CRM initiative involvesmore than just technology. CRM is both a business strategy and a technology-softwareset. The technology and software automate and enhance the processes associated withmanaging customer relationships. The business strategy positions the customer as thefocus of the organization, creating a customer centric orientation (Grant andAnderson, 2002).

In implementing a CRM system, the firm must first decide what information it needsabout the customer and what it will do with it. Next, it must determine how theinformation is gathered, where the data are stored, how it is used, and who uses it. Inthe typical firm, information about a customer might be gathered from a web site, aphysical store location, sales reports, and mail (electronic or traditional) campaigns.Using the data gained from these customer touch points, analysts can develop acomplete view of each customer and pinpoint where additional services are needed(Deck, 2001).

While CRM efforts are often daunting, the benefits achieved are impressive. Firmswho successfully implement CRM systems report improved customer data and processmanagement, increased number of transactions and improved analysis and reporting.Information is more timely and accurate and customer complaints are reduced(Integrated Technologies Corporation, 2005).

CRM in educationPostsecondary schools are increasingly challenged to maintain student enrollmentlevels. Enrollment management programs to market the institution are growing innumber and their efforts are paying off. While the number of high school graduatesdeclined in the 1980s and 1990s, university and community college enrollment did not(McDonough, 1994). Once students arrive on campus, however, the challenge is to keepthem there. Retention activities had focused traditionally on comprehensive orientationprograms, in-depth student advising, and a variety of student-focused activities.Community colleges in North Carolina realized that an enterprise-wide informationsystem, focused on the student as customer, could also enhance enrollment andretention.

A total of 75 percent of incoming traditional-age freshman have significantexperience with information technology (Milliron, 2001). This experience translatesinto higher student expectations regarding the available technology resources.Students expect technology to be an integral part of their entire educational processand anticipate a higher level of access to information. From the student-as-customerperspective, an educational CRM system would provide interaction with all thetraditional student touch points admissions, registration, financial aid, etc. through a single system that would facilitate a complete understanding of eachstudents unique situation (Grant and Anderson, 2002).

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The community college in America a brief historyCommunity colleges focus on the community and its needs and offer workforcetraining, open admissions and low tuition (Phillippe and Patton, 2000). Courses offeredmay be applied to a vocational diploma or associate degree, or transferred to afour-year college. Other courses include non-credit, continuing education courses inliteracy, basic skills and life enhancement areas. The open admission policy, low cost,proximity, and courses offered at the community college often add up to the onlychance for many students to obtain an education.

In the early twentieth century, American leaders realized that a skilled workforcewas needed for continued economic strength and successful competition in a globaleconomy. However, only 25 percent of high school graduates were continuing theireducation due, in part, to a reluctance to leave home for a distant college (www.aacc.nche.edu, 2003). From this need the earliest community colleges emerged, committed tomeeting local needs through small classes, close student-faculty relations and aprogram that included academics and extracurricular activities.

The initial focus in community college education was on liberal arts studies;however, during the Depression, community colleges began offering job-trainingprograms. After the Second World War, the conversion of military industries toconsumer goods created new, skilled jobs. This economic transformation along withthe GI Bill created the drive for more higher education options. In 1948, a network ofpublic, community-based colleges was initiated to serve local needs (AmericanAssociation of Community Colleges, 2003).

Today, community colleges provide educational marketplaces where studentchoices and community needs influence course offerings. Two-thirds of theapproximately 20 million students enrolling in community college courses takecourses for academic credit; the rest enroll in noncredit classes, typically in workforcetraining courses.

The North Carolina community college systemThe North Carolina Community College System (NCCCS) is the 3rd largest in the USA,serving more than 750,000 students each year at the states 59 institutions. NCCCS isthe states primary provider of job training, literacy and adult education. NCCCSprovides high-quality, accessible educational opportunities that improve the lives andwell-being of individuals by providing support for economic development throughservices to business and industry; and services to communities and individuals toimprove the quality of life.

Students as stakeholdersAll institutions of higher education have a variety of stakeholders, and while eachinstitution must work to satisfy them, the stakeholder with the most influence is thecustomer the student. The typical college student makes several trips to campusbefore classes start. These include one visit prior to college selection, a registrationvisit and another visit to pay fees and purchase textbooks. While telephone andweb-based registration systems have alleviated some problems, students are still faced

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with numerous administrative tasks to be completed during their college careers. Alltoo often, these tasks involve considerable time spent waiting

For community college students, many of whom work full-time, these tasks can be adeterrent to completing or even initiating their education. A CRM system can ease thecomplexities of accomplishing these administrative tasks by providing a means ofanytime-anywhere registration, as well as payment, advising and requirementschecking that is individualized to meet the students needs.

The CRM projectBy 1997, the computing system used by NCCCS, never able to adequately support thelarger community colleges, was unable to meet the state reporting requirements.Designed to support only the administrative functions of the colleges, colleges wereusing it as a management information system to support decision making. At eachcollege, separate databases stored employee and curriculum information. Student datawas split in two databases one for traditional students and the other for continuingeducation students. This disparate data resulted in inaccurate and redundant data andfrustrated students. Continuing education students, for example, were not recognizedas students in the college they werent in the college student database! In 1997, asurvey of college business managers in the state showed that nearly 80 percent of thoseresponding supported investigating other options for administrative computingsystems.

In the sections that follow the North Carolina Community College Systems CISproject is presented in chronological order from conception to implementation. Sincethe student system is only one part of the enterprise-wide CIS, it is necessary to take abroad view of the systems development before returning focus to the CRM portion.

1997-1998A steering committee was appointed to clarify the need for an enhanced administrativesystem, establish the vision for the financial, student, and business systemsarchitecture, establish the scope, priorities and character of the project and provide anevaluation process for the project outcomes. Based on information gathered from threefocus group meetings, the steering committee developed a vision statement for theproject:

The comprehensive, fully integrated administrative system of the twenty-first century willsupport student-centred learning, management decisions, accountability to externalconstituencies, and business operations for all community colleges through a flexible,seamless electronic network that is accessible to all (NCCCS, 2000, p. 2).

A project management team composed of functional experts from the 59 communitycolleges was tasked with developing a systems requirements document andrecommending an administrative system harmonious with the vision statement.Working with functional subgroups from areas such as curriculum, faculty, continuingeducation, the registrar, and financial aid, the team formalized the overall requirementsand the steering committee issued a request for information (RFI) in early 1998. TheRFI required that vendors:

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. provide information on the best combination of build, buy and partner solutions;

. provide information on the feasibility and estimated costs of potential build, buyand partner solutions;

. identify potential vendors/partners for subsequent Request for Bids (NCCCS,2000).

A total of eight vendors responded to the RFI. After a formal evaluation of theresponses, the team recommended the purchase, customization and implementation ofan integrated information system that would include a student information system,financial information system and human resources system. In addition, the teamsuggested that the system integrate and support specialized third party systems andrecommended the development of a system-level operational database and a datawarehouse.

1999-2000In 1998, the state legislature had passed a bill that required that the colleges develop aplan for an information system to support NCCCS processes. The plan must identifythe needs of local colleges as well as the costs and benefits of meeting these needs. Tocomply with the bill, a plan was developed and approved by the State Board ofCommunity Colleges. This plan required an information system to support theadministrative operations and the management information needs of the colleges andthe Department of Community Colleges (NCCCS, 1999). The NC General Assemblyappropriated $8 million for the 1999-2000 fiscal year and $15 million for the 2000-2001fiscal year.

A request for proposals (RFP) that outlined system requirements and specific needswas issued to all interested venders. Their responses were evaluated and in May 2000,a contract was awarded to Affiliated Computer Services (ACS) to implement DatatelsColleague software and custom develop several unique applications. While the contractincluded student, financial and human resource systems, only the student system isaddressed in this paper.

The student system components included: academic records, accountsreceivable/cash receipts, campus organizations, curriculum management, degreeaudit, faculty information, financial aid, recruitment/admissions management,registration, and residence life. Enhancements to the existing Datatel componentsconsisted of curriculum standards, curriculum program design and approval, programauditing, and career planning and placement (NCCCS, 2000). In addition, third-partyproducts to be integrated with the Student System included an electroniccommunications web portal, a bookstore system, telephone-based registration, andseveral information analysis tools.

Participation by each college was essential to produce an efficient and effectivesystem owned by all of the colleges. To ensure that the three systems would meet theneeds of all the constituents, teams for each system, along with a technologycoordination team, were assembled to provide detailed knowledge specific to theirbusiness area. Teams included members from colleges of all sizes and with all degrees

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of existing technical systems. Collectively, these teams were called the build team(NCCCS, 2000).

The project consisted of two major phases. Phase I included the development andinstallation of the standard CIS configuration at eight colleges of various sizes chosenbased on their location, commitment to the project and resource capability. In Phase 2,half the remaining colleges would implement the project in the first year with theremainder rolling out the systems in the second year (NCCCS, 1999).

2001-2002The template for the student system was scheduled for August 2001; fullimplementation was scheduled for spring 2002. Phase I included the planning anddevelopment of the standard configuration including enhancements by the build team,the project management team, information services staff and the vendor. Softwareinstallation would follow with customization as required to meet the specifications ofthe RFP. Migration of data from the legacy system was to follow, along with thecreation of any temporary interfaces. The vendors provided technical and usertraining, and were also responsible for ensuring availability of the data needed forstandard NCCCS reports. At this point, all third-party applications would be enabled.During Phase I, decision points and implementation processes would be recorded andmaintained for application to the Phase II implementation (NCCCS, 2000).

Following the completion of Phase I, the project management team would evaluatethe information system, and the vendor would make any required modifications to thestandard system. These changes would then be implemented and tested by the Phase Icolleges. When the standard system was in production at all Phase I colleges, Phase IIimplementation would begin. In Phase II, the remaining colleges would implement thestandard system over a two-year period (NCCCS, 1999). The Phase I colleges beganimplementation in July of 2001 for the financial system and by June 2002, all systemsand components were up and running in the pilot schools (State of NC InformationResource Management Commission, 2003a, 2003b, 2003c, 2004).

2003-presentImplementation was progressing as scheduled until a disparity was discoveredbetween the accrual-based accounting system of the Datatel Colleague software andthe cash-based system required by the State of North Carolina (Olson, 2003). Thisdisparity delayed implementation of the systems in which the AR/CR issue causedproblems. The implementation schedule for Phase II was revised from two to threecollege groupings of 14 (2A), 18 (2B) and 18 (2C) colleges, with the planned end dateextended to June 30, 2007 (State of NC Information Technology Services, 2004).

The Phase I colleges completed the Pilot test of the AR/CR System in October 2004and the system and documentation were approved six months later. The Phase 2AStudent System Go-Live is scheduled for completion in July 2005 for allimplementation activities. The Phase 2B colleges began their initial Student Systemactivities in March 2005, with a planned Go Live scheduled for student registration inJuly 2006 for the fall, 2006 semester. The Phase 2C colleges will begin implementing the

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Student System in March 2006 with a planned Go Live scheduled for June 2007 (Stateof NC Information Technology Services, 2004).

The student system as a CRM systemTo support the goal of student-centered learning, the student information systemfeatures a streamlined application process that allows anytime, anywhere registrationwith a date-driven set-up to support traditional and distributed learning offerings.Student services access is provided, and students can access and update theirinformation without requiring assistance or service from a staff member unlessproblems arise. In addition, comprehensive date tracking maintains all history andstatus changes with student records available via the web. All transactions areimmediately reflected in the database and in related processes (such as a studentdropping a course and immediately having financial aid recalculated). Informationabout students and employees is accessible to all functions (with appropriate security).

With the elimination of multiple databases and resulting duplicate records, thestudent view is no longer fragmented across the organization. Instead, student data isstored in one place on a single system. This data integration increases coordinationamong functional areas and synchronizes processes, thereby improving customerservice. Information about all colleges can be collected and stored centrally in the datawarehouse. This central repository accommodates information retrieval and reportingfor both analytical purposes such as data mining and for operational tasks such asscheduling and registration. All systems utilize electronic forms and workflow insteadof paper forms that must be carried or sent between offices. This enhanced efficiencyimproves speed, customer service and satisfaction (NCCCS, 1999).

One pilot colleges experienceIndividuals involved with both system development and Phase I implementation at oneof the eight Pilot colleges were interviewed in 2003 and 2005 after the initial rollout.The following challenges and successes were extracted from those interviews:

ChallengesThe disparity in the accounting system was deemed the biggest challenge by thoseinterviewed. It caused the above-mentioned delays in the implementation and broughtunwelcome and extremely negative publicity about the issue, which made the job ofselling the system to colleagues difficult. Although the AR/CR issue received themost public attention, smaller issues such as creating the customized reports weremore challenging for some builders.

While the involvement of functional experts throughout the system addedknowledge, it was not as successful at ensuring buy-in throughout the communitycollege system as had been hoped. Build team members were absent from their dutiesoften and for lengthy periods. This separation caused some difficulties both for thebuilders and their co-workers. Burdened with extra work and lacking in supervisionand guidance, many employees began to see the system in negative terms.

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This project was the largest ever awarded to ACS, and according to some teammembers, this lack of experience sometimes showed. In some instances it appeared thatACS had underestimated the complexity of the community college system whereineach college did things somewhat differently and used varying terminology. The ACSemployees knew their product so well that they forgot that the trainees were notfamiliar with the software. One implementation problem cited by team members wasthat the IT employees at the individual colleges were not trained early enough. Oneindividual felt that the infrequent user would require lots of training because thesystem was not user friendly.

SuccessesDespite delays in implementation of the entire student system, student servicespersonnel remain excited about the benefits to come. They cite the move to a studentfocus as long overdue. Individuals involved with the admissions and applicationprocessed expressed enthusiasm that students can register for classes on-line. Withstudents able to do business with the school when convenient for them, registrationpersonnel expect the students to be delighted with the new system.

Counsellors see convenience as the greatest student benefit. Although the systemrequires marketing to the non-traditional student who may not be comfortable withcomputer technology, these students will benefit most from the convenience of asystem that allows online transactions. For the younger students at area high schools,the system provides a great recruiting tool. Even while recognizing the need for carefulcommunication, training and marketing for the new system, counsellors envisionstudents taking ownership of their education. With access to online curriculum sheetsand graduation checklists, scheduling and grades, students gain both control andresponsibility for their education.

Often, student services and instructional activities operate as separate entities. Byproviding a common platform for customer communication and interaction, facultycan utilize the system to access student learning profiles to customize student learningor to refer students to support programs. Staff and faculty members envision using thesystem to more effectively interact with and serve students or prospective students.

ConclusionThis paper explored customer relationship management in a higher education setting.The development and implementation of a CRM project in a state community collegewas examined as were the benefits realized by implementing CRM. These include astudent-centric focus, improved customer data and process management, increasedstudent loyalty, retention and satisfaction with the colleges programs and services.

As colleges increasingly embrace distance learning and e-business, CRM willbecome stronger and more pervasive. Viewing students as customers provides acompetitive advantage for higher education and enhances a colleges ability to attract,retain and serve its customers.

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Cleary, T. (2001), Defining quality through the eyes of campus stakeholders, CommunityCollege Journal, Vol. 72 No. 1.

Croteau, A. and Li, P. (2003), Critical success factors of CRM technological initiatives, CanadianJournal of Administrative Sciences, Vol. 1 No. 1, pp. 21-34.

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McDonough, P. (1994), Buying and selling higher education: the social construction of thecollege applicant, The Journal of Higher Education, Vol. 65 No. 4, pp. 427-46.

Milliron, M. (2001), Touching students in the digital age: the move toward learner relationshipmanagement (LRM), Learning Abstracts, Vol. 4 No. 1, available at: www.league.org/publication/abstracts/learning/lelabs0101.htm

NCCCS (1999), Plan for an Efficient and Effective Technology and Management InformationSystem for the NCCCS, available at: www.ncccs.cc.nc.us/IT_Projects/docs/CIS_Project/project%20background/Legislative_Report_1-99.pdf

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Olson, F. (2003), North Carolina, Community Colleges and States Accounting Systems areincompatible, Chronicle of Higher Education, available at: http://chronicle.com/free/2003/05/2003050103t.htm

Phillippe, K.A. and Patton, M. (2000), National Profile of Community Colleges: Trends &Statistics, 3rd ed., Community College Press, Washington, DC.

State of NC Information Resource Management Commission (2003a), available at: www.ncccs.cc.nc.us/IT_Projects/docs/CIS_Project/Status%20Report/NCCCS%20CIS%20%20Project%20IRM%20Status_09_12_2003.doc

State of NC Information Resource Management Commission (2003b), available at: www.ncccs.cc.nc.us/IT_Projects/docs/CIS_Project/Status%20Report/NCCCS%20CIS%20%20Project%20IRM%20Status_11_12_2004.doc

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State of NC Information Resource Management Commission (2003c), available at: www.ncccs.cc.nc.us/IT_Projects/docs/CIS_Project/Status%20Report/NCCCS%20CIS%20%20Project%20IRM%20Status_06_17_2005.doc

State of NC Information Technology Services (2004), available at: http://so9.ncccs.cc.nc.us/IT_Projects/docs/CIS_Project/Status%20Report/NCCCS%20CIS%20Project%20IRM%20Status_11-12-2004.doc

TOWI Industry Study (2000), Harnessing Customer Information for Strategic Advantage:Technical Challenges and Business Solutions, The Data Warehousing Institute, Fairfax,VA.

Further reading

Best Value Information Technology Procurements (1997), available at: www.ncleg.net/html1997/bills/currentversion/ratified/house/hbil1357.full.html

Lee, K.C. and Lee, S. (2003), A cognitive map simulation approach to adjusting the designfactors of the electronic commerce web sites, Expert Systems with Applications, Vol. 24No. 1, pp. 1-11.

Selland, C. (2002), available at: wwwrealmarketcom/experts/experts102 available at: www.realmarket.com/experts/experts102802.html

Corresponding authorElaine D. Seeman is the corresponding author and can be contacted at: seemane@mail.ecu.edu

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