Introduction

Fueled by both new installations and the expansions of existing ones, spending on CRM by higher education institutions is growing rapidly. Having recognized the power of this solution area to manage student relationships more effectively, institutions are shifting CRM form a position as a niche application in the IT infrastructure, to a mission-critical one.

Scope

Identifies the potential drivers and inhibitors to the uptake of CRM solutions. Offers insight into which features and functionality institutions will most compelling. Explores the competitive landscape for CRM solutions across leading markets. Forecasts institutional spending on CRM solutions in the US, UK and Australia.

Highlights

The pump is primed for the rapid adoption of CRM in higher education. CRM is positioned to break free from its emergent status in higher education. Higher education institutions have unique requirements of CRM solutions.

Reasons to Purchase

Understand what drives institutions to purchase CRM solutions Gain insight into which CRM features and functionality institutions find most appealing Identify which markets offer the most opportunity for CRM vendors

Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Introduction 2
Priming the Pump for CRM in Higher Education (Market Focus) 2
Assessing the State of CRM Adoption Amongst Higher Education Institutions (Strategy Focus) 2
Building an Effective CRM Solution for the Higher Education Market (Technology Focus) 3
European Higher Education Spending on CRM, 2007 - 2012 (Databook) 3
US & Australian Higher Education Spending on CRM, 2007 - 2012 (Databook) 3
Table of Contents 4
Table of figures 5
Table of tables 6
Priming The Pump For CRM In Higher Education (Market Focus) 7
Summary 7
The pump is primed for the rapid adoption of CRM in higher education 7
A gathering storm will drive the more pervasive institutional adoption of CRM 8
Shifts in the student landscape are making the management of relationships a strategic imperative 8
The number of students prepared for higher education will decline over the near-term 8
Meeting the preferences and expectations of tomorrow's students requires a new approach 11
Globalization is changing the competitive landscape for higher education 12
Doing more with the same or less is the new budgetary reality 14
Recent IT investments have put CRM within the reach of many institutions 15
Powerful factors may impede the more substantive adoption of CRM 16
Confusion persists in the market about what CRM is for higher education 16
The strategy elements of CRM present unique challenges to its implementation 17
Creating a 360° view of the student experience is not a ``piece of cake`` 17
A definition for CRM should be disseminated widely to reduce market confusion 18
CRM solutions must scale up and down easily 19
Vendors must demonstrate how their solutions provide value to institutions 19
Assessing the State of CRM Adoption Amongst Higher Education Institutions (Strategy Focus) 20
Summary 20
CRM is positioned to break free from its emergent status in higher education 20
Stakeholders from across the institution benefit from using CRM 20
Higher education's existing usage of CRM will set the stage for more substantive, future adoption 21
There are multiple targets for CRM within higher education institutions 22
Creating a 360° view of the student experiences drives an institution-wide CRM implementation 22
Geography strongly influences the rate of CRM adoption amongst institutions 22
Capturing the international student market will drive Australia's more widespread adoption of CRM 23
Changes in the UK institutional landscape will contribute to the CRM spending growth 24
The increasing popularity of institution-wide CRM implementations will drive US spending growth 25
The global higher education market supports a diverse array of CRM vendors 26
Risks and opportunities characterize the Australian higher education market 26
UK higher education institutions choose from a broad set of CRM vendors 27
There is a cacophony of CRM vendors in the US higher education market 28
Future opportunities will arise from both new and expanded CRM installations 29
Different higher education markets require different CRM solutions 29
CRM vendors should prepare for a shifting competitive landscape 30
Building an Effective CRM Solution for the Higher Education Market (Technology Focus) 31
Summary 31
Higher education institutions have unique requirements of CRM solutions 31
The institutional IT infrastructure poses unique challenges for CRM solutions 31
Integration and interoperability are central to an effective CRM solution 32
CRM depends on analytics which in turn depends on integration and interoperability 33
Outside in or inside out - institutions have two options when adding a CRM solution 33
The most effective solutions support the entire student lifecycle 34
CRM solutions must support a diverse array of institutional stakeholders 35
An internal institutional audience requires specific functionality 35
Configurability offers institutions the flexibility to create a customized look and feel 36
Usability increases the likelihood of widespread adoption 37
Role-based views of the solution enable end users to use it more effectively 37
Automated workflows help end users to be more productive 37
Professional services aide in the creation of a robust CRM strategy 38
Millennial and non-traditional students are pushing the envelop for CRM functionality 38
Students are drawn to a customized institutional experience 38
Self-service functionality is core to an appealing CRM solution 39
Multi-channel capabilities enable institutions to communicate with students more effectively 39
A note on communications' resistance 40
The competitive landscape for CRM is comprised of a broad set of vendors 40
Niche vendors support discrete departmental processes 41
Nimble horizontal vendors bring robust functionality to higher education 41
Large software vendors bring the stack together into a complete solution 42
Institutions will increasingly adopt more sophisticated CRM functionality 42
The boundaries will blur between CRM and other mission-critical applications 43
Growing market maturity will tighten the CRM competitive landscape 43
European Higher Education Spending on CRM, 2007 - 2012 (Databook) 44
Introduction 44
Definitions 44
Total spending by higher education institutions in France on CRM, 2006 - 2012 45
Higher education spending in France on CRM by IT segment, 2006 - 2012 46
Total spending by higher education institutions in Germany on CRM, 2006 - 2012 47
Higher education spending in Germany on CRM by IT segment, 2006 - 2012 48
Total spending by higher education institutions in the UK on CRM, 2006 - 2012 49
Higher education spending in the UK on CRM by IT segment, 2006 - 2012 50
US & Australian Spending on CRM, 2007 - 2012 (Databook) 51
Introduction 51
Total spending by US higher education institutions on CRM, 2006 - 2012 52
US higher education spending on CRM by IT segment, 2006 - 2012 53
Total spending by Australian higher education institutions on CRM, 2006 - 2012 54
Australian higher education spending on CRM by IT segment, 2006 - 2012 55
APPENDIX 56
Abbreviations 56
Definitions 56
Methodology 56
References 57
Further reading 57
Ask the analyst 57
Datamonitor consulting 58
Disclaimer 58
List of Tables
Table 1: CRM definitions 44
Table 2: Total spending by higher education institutions in France on CRM, 2006 - 2012 45
Table 3: Higher education spending in France on CRM by IT segment, 2006 - 2012 46
Table 4: Total spending by higher education institutions in Germany on CRM, 2006 - 2012 47
Table 5: Higher education spending in Germany on CRM by IT segment, 2006 - 2012 48
Table 6: Total spending by higher education institutions in the UK on CRM, 2006 - 2012 49
Table 7: Higher education spending in the UK on CRM by IT segment, 2006 - 2012 50
Table 8: Total spending by US higher education institutions on CRM, 2006 - 2012 52
Table 9: US higher education spending on CRM by IT segment, 2006 - 2012 53
Table 10: Total spending by Australian higher education institutions on CRM, 2006 - 2012 54
Table 11: Australian higher education spending on CRM by IT segment, 2006 - 2012 55
List of Figures
Figure 1: Secondary school graduates are forecasted to decline in 2010 9
Figure 2: The effectiveness of the admission funnel depends on a sufficient number of prospective students 10
Figure 3: The millennial generation turns to the Internet first for information and relationships 12
Figure 4: While the US dominates, other countries still have key positions in the international student market 14
Figure 5: CRM uptake will trail the upgrade cycle for ERP & SIS solutions 15
Figure 6: Data must persist across the entire student lifecycle 18
Figure 7: There is broad uptake of CRM in the higher education market 21
Figure 8: Total spending by Australian higher education institutions on CRM, 2006 - 2012 23
Figure 9: Total spending by higher education institutions in the UK on CRM, 2006 - 2012 24
Figure 10: Total spending by US higher education institutions on CRM, 2006 - 2012 25
Figure 11: A small number of vendors represent the CRM competitive landscape in Australia 26
Figure 12: UK higher education institutions choose from a broad set of CRM vendors 28
Figure 13: There is a cacophony of CRM vendors in the US higher education market 29
Figure 14: Using student data from multiple sources is the cornerstone to effective CRM 33
Figure 15: The most value is realized from adopting CRM solutions that support the entire student lifecycle 35
Figure 16: Institutional end users have unique requirements of CRM solutions 36
Figure 17: The emerging CRM market supports a diverse set of vendors 41
Figure 18: Total spending by higher education institutions in France on CRM, 2006 - 2012 45
Figure 19: Higher education spending in France on CRM by IT segment, 2006 - 2012 46
Figure 20: Total spending by higher education institutions in Germany on CRM, 2006 - 2012 47
Figure 21: Higher education spending in Germany on CRM by IT segment, 2006 - 2012 48
Figure 22: Total spending by higher education institutions in the UK on CRM, 2006 - 2012 49
Figure 23: Higher education spending in the UK on CRM by IT segment, 2006 - 2012 50
Figure 24: Total spending by US higher education institutions on CRM, 2006 - 2012 52
Figure 25: US higher education spending on CRM by IT segment, 2006 - 2012 53
Figure 26: Total spending by Australian higher education institutions on CRM, 2006 - 2012 54
Figure 27: Australian higher education spending on CRM by IT segment, 2006 - 2012 55