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“Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

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Page 1: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur
Page 2: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

“Customers today are strongly value-oriented. They seek results

and service process quality that far exceeds the price and acquisition

costs they incur for a service.”

Source: Heskett, J.L., Sasser Jr., W.E. & Schlesinger, L.A. (1997). The Service Profit Chain. New York: Simon & Shuster Inc. 2

Page 3: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Presentation Outline

Introductions

Why is student satisfaction important?

Instrument design: What does your institution want to learn?

Best practices in current student data collection

Data analysis and reporting: Highlights of selected research results

From research to action

Questions

3

Page 4: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

About Maguire Associates

A 25 year-old, research-based consultancy helping over 350 educational institutions and consortia

Founded in 1983 by Jack Maguire, former Dean of Enrollment Management at Boston College

Staffed by a senior consulting team comprising higher education and marketing practitioners with governing board experience

Supported by a team of market researchers and social scientists

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Page 5: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Student Satisfaction & Retention

Market Research

Strategic Financial Aid Modeling

Student Recruitment Optimization

Enrollment Management Consulting

Strategic Planning

Advancement & Alumni Engagement

Branding & Image Development

Pricing Optimization & Value Enhancement

Integrated Marketing

5

Service Areas

Page 6: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Primary Goals of Student Satisfaction & Retention Research Identify strengths and weaknesses of an

institution as perceived by students

Examine how these variables contribute to students’ overall satisfaction and likelihood of completing their education at the institution

Highlight differences and similarities across important subgroups

Make decisions about where to invest institutional resources to enhance satisfaction with the overall experience and increase student degree completion rates

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Page 7: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Why is Student Satisfaction Important?

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Page 8: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Freshman Retention Rates (4-Year U.S. Universities & Colleges)

Source: Data from 2008 U.S. News and World Report College Edition

8

Statistics

Mean 75%

Median 75%

Minimum 33%

Maximum 99%

N 1,348

Page 9: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Graduation Rates (4-Year U.S. Universities & Colleges)

Source: Data from 2008 U.S. News and World Report College Edition

9

Statistics

Mean 53%

Median 52%

Minimum 7%

Maximum 98%

N 1,390

Page 10: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

The Multiple FunnelModel of Enrollment Management

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Page 11: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Important Outcomes to Define Success of Presidency

Improved retention and graduation rates

11

Source: 2005 Chronicle of Higher Education Survey of Four-year College and University Presidents

Page 12: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Top Institutional Concerns

Student retention

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Source: 2005 Chronicle of Higher Education Survey of Four-year College and University Presidents

Page 13: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Satisfaction-Retention Matrix

STAY

LEAVE

SATISFIEDLESS THANSATISFIED

A

DC

B

“Loyalists” “Hostages”

“Mercenaries” “Defectors”

Satisfaction

Retention

AB: Among persisters, what are the demographic and attitudinal differences between satisfied and less than satisfied students?

BD: Among less than satisfied students, which students stay versus dropout, and why?

AD: What are the differences between satisfied current students and dissatisfied dropouts?

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Page 14: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Instrument Design:

What Does Your Institution Want to Learn?

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Page 15: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Key Outcome Variables

How satisfied are you overall with your experience at X University?

How likely is it that you will complete your degree at X University?

or

To what extent have you considered leaving X University?

If you were able to go back to when you chose a university, knowing what you know now, would you choose to attend X University again, choose to attend another university, or not go to university at all?

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Page 16: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Key Predictor Variables

Demographic/socioeconomic characteristics

Attitudes/opinions about X University on specific areas:– Academics– Resources– Affordability/value– Faculty– Supporting/Advising services– Preparation for the future– Social life– Extracurricular activities – Educational goals

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Page 17: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Stated vs. Derived Importance

Stated Importance

Derived importance– Is calculated by correlating evaluation of particular

attributes with overall satisfaction– Uncovers items that are most important to the

satisfaction of students (These attributes will not always be the same features students identify as being important. However, they will be the ones which, if improved, will most likely increase satisfaction.)

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Page 18: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Sample University

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Average

Importance Rating

Average Quality Rating

Intellectual Environment 4.48 4.08

Access to a City 4.25 4.10

Quality of Campus Housing 4.14 3.46

Diversity of Student Body 4.10 2.66

Availability of Financial Aid 3.86 2.95

Sense of Campus Community 3.69 2.35

Prestige 3.24 3.82

Correlation:Quality Rating with Overall Satisfaction

.40

.36

.33

.50

.13

.45

.33

Page 19: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Derived Importance

Pros– Shorter instrument– Can ask many more “other” questions (i.e., demographic,

goals, etc.)– “Stated” importance may be misleading and very often

many variables are rated as important

Cons– Satisfaction ratings with small standard deviations will not

be correlated with dependent measures

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Page 20: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Best Practicesin Current Student

Data Collection

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Page 21: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

On-line Survey Larger samples can be collected more cost-efficiently

Sample sizes are more manageable to process and more conducive to sophisticated analyses

Surveys have a shorter turnaround time

Instruments can be customized and use complex skip patterns

Visual stimuli or dynamic content can be more easily incorporated

24-hour access is available to respondents; respondents can work at their own pace and/or return later

Surveys are not subject to interviewer bias

Respondents tend to provide more in-depth verbatim responses

More environmentally friendly21

Page 22: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Response Rates 31 survey records analyzed; 24 colleges and universities

22 undergraduate surveys– Range: 11% to 45%– Average = 25%

9 graduate student surveys– Range: 7% to 34%– Average = 21%

Variables examined– Setting (urban, suburban, rural)– Religious affiliation (has an affiliation, does not have an affiliation)– Timing of the data collection– Incentives– Students’ overall satisfaction levels and self assessed likelihood of

graduating

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Page 23: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Response Rates by Top Prize Amount

05

101520253035

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100

Resp

onse

Rat

e (%

)

Undergraduate Graduate

Correlation = +0.413

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Page 24: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Data Analysis and Reporting:

Highlights of Selected Research Results

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Page 25: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Overall Satisfaction – 35 Surveys

Graduate StudentsUndergraduate Students

Research Audience

6.00

5.70

5.40

5.10

4.80

Ov

era

ll S

ati

sfa

cti

on

Undergraduate Students: mean is 5.16, range of 4.61 to 5.65Graduate Students: mean is 5.45, range of 4.83 to 6.16Scale: 1 = Not at All Satisfied and 7 = Very Satisfied 25

Page 26: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Likelihood of Graduating – 21 Surveys

Graduate StudentsUndergraduate Students

Research Audience

6.60

6.30

6.00

Lik

elih

oo

d o

f G

rad

ua

tin

g

26

Undergraduate Students: mean is 6.40, range of 5.86 to 6.64Graduate Students: mean is 6.51, range of 6.25 to 6.76Scale: 1 = Not at All Likely and 7 = Definitely

Page 27: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Overall Satisfaction by Likelihood of Graduating

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Likelihood of Graduating

1 Definitely Will not

Graduate 2 3 4 5 6

7 Definitely

Will Graduate

Overall Satisfaction

1=Extremely Dissatisfied 0 0 0 1 0 0 2

2 1 0 0 0 0 1 11

3 1 0 3 1 2 1 10

4 0 0 0 4 1 4 16

5 0 0 0 2 3 8 27

6 0 0 1 1 5 4 62

7 = Extremely Satisfied 0 0 0 0 0 1 17

27 of the 190 responding students (14%) are dissatisfied, but say they are likely to graduate

1 student is satisfied yet unlikely to graduate

Page 28: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Current StudentsMean = 6.55

Former StudentsMean = 4.34

Overall Satisfaction of Current and Former Students

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Page 29: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Percent of Students Enrolled at First-choice Institution – 16 Schools

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-- 16 Different Colleges and Universities --

Page 30: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Segmentation Analysis

Overall satisfaction

Likelihood of graduating

Class year or semester

Gender

Major program of study

Academic ability (grade point average)

Residential status

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Page 31: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Segmentation Analysis

5.53

6.406.84 7.00

1

2

3

4

5

6

7

Freshman Sophomore Junior Senior

Scale: 1 (Definitely Will Not Graduate) to 7 (Definitely Will Graduate)

Likelihood of Graduating by Class Year

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Page 32: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Segmentation AnalysisSatisfaction by Class Year

Agreement with“There are plenty of internship opportunities available to me”

4.123.83

3.65 3.56

1

2

3

4

5

Freshman Sophomore Junior Senior

Agreement with“Career advising at this university

meets my needs”

3.963.74

3.553.31

1

2

3

4

5

Freshman Sophomore Junior Senior

Agreement with“I find students herecare for each other”

4.364.07

3.90 3.88

1

2

3

4

5

Freshman Sophomore Junior Senior

Agreement with“Students have no voice

in what goes on at this school”

3.63

4.42 4.53 4.60

1

2

3

4

5

Freshman Sophomore Junior Senior 32

Page 33: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Segmentation Analysis

Current Students

Former Students

n ~ 1,200 n ~ 150 Distance of Home from School

50 or fewer miles 64.9% 56.7% Gender

Male 35.5% 46.2% Ethnicity

Caucasian/White 68.6% 74.8% Family Income

> $60,000 44.4% 52.5% High School Type

Public 78.9% 82.5% High School GPA

3.50 or higher 34.9% 23.8% 3.00-3.49 37.1% 41.3% Below 3.0 16.2% 19.6%

Demographic Profile of Current and Former Students

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Page 34: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Segmentation AnalysisIndependent T-Test Analysis of Quality Ratings of a University

on Characteristics by Overall Satisfaction

2.94 2.22 1>2

2.95 2.27 1>2

4.24 3.72 1>2

4.01 3.41 1>2

3.40 2.64 1>2

3.59 2.87 1>2

3.62 3.11 1>2

3.49 2.92 1>2

3.10 2.25 1>2

3.92 3.57 1>2

3.71 2.98 1>2

4.14 3.48 1>2

3.79 3.15 1>2

3.97 3.47 1>2

3.64 2.91 1>2

3.52 2.80 1>2

4.03 3.37 1>2

3.63 2.58 1>2

2.76 2.19 1>2

3.26 2.75 1>2

3.52 2.83 1>2

3.82 3.04 1>2

3.18 2.51 1>2

3.33 2.69 1>2

3.49 2.99 1>2

3.50 2.91 1>2

2.97 2.43 1>2

3.65 3.16 1>2

3.84 3.21 1>2

3.44 2.79 1>2

3.20 2.47 1>2

3.34 2.80 1>2

3.14 2.53 1>2

3.06 2.70 1>2

3.20 2.65 1>2

3.44 3.03 1>2

3.43 2.99 1>2

Total Costs (tuition, room and board, and other expenses)

Availability of Financial Aid to Meet Need

Attractive Campus

Geographic Location

Social Life

Prestige of College or University

Size of Student Body

Diversity of Student Body

Sense of Campus Community

Access to City

Academic Reputation

Quality of Major

Interdisciplinary Courses/Majors

Academic Facilities (library, computers, classrooms, labs, etc.)

Close Contact with Faculty

Preparation for Graduate/Professional School

Availability of Majors/Programs

Value of Education (combination of quality and costs)

Area Surrounding Campus

Parents' Preference

Employment Opportunities After Graduation

Quality of Faculty

Ratings in Guidebooks/Magazines

Extracurricular Activities

Instruction Enhanced by Technology

Accreditation from National Professional Associations

Quality of On-Campus Housing

Small Class Size

Emphasis on Teaching Undergraduates by Professors

Undergraduate Research/Internship Opportunities

Quality of Students

Reputation of Alumni

Merit-Based Financial Aid

Varsity Athletics

Campus Safety and Security

Availability of an Honors College

Recreational Sports/Fitness Facilities

(1)

MoreSatisfied

(2)

LessSatisfied

Overall Satisfaction

SignificantDifferences

Maguire Associates, Inc. Bedford, Massachusetts

Scale: 1 (Very Low Quality) to 5 (Very High Quality)Notes: Bold indicates significant market segment differences (p < .01).

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Page 35: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Regression Analysis

Multiple Regression AnalysisPredictive Model of Overall Satisfaction

Using Quality Ratings on the College Characteristics

10 = Extremely Satisfied1 = Very Dissatisfied

Scale: 1 (Very Low Quality) to 5 (Very High Quality)

Ratings in Guidebooks/MagazinesValue of EducationQuality of StudentsSocial LifeCampus Safety and Security

Item

Best Fitting Model

ß = 0.22ß = 0.22ß = 0.20ß = 0.17ß = 0.16

Variance Accounted for (R2) = 0.399 Overall

Satisfaction

Outcome Measure

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Page 36: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Satisfaction-Retention Matrix

STAYSTAY

LEAVELEAVE

SATISFIEDSATISFIEDLESS THANLESS THANSATISFIEDSATISFIED

A

DC

B

SatisfiedStaying

Less than SatisfiedStaying

SatisfiedLeaving

Less than SatisfiedLeaving

Satisfaction

Retention

STAYSTAY

LEAVELEAVE

SATISFIEDSATISFIEDLESS THANLESS THANSATISFIEDSATISFIED

A

DC

B

SatisfiedStaying

Less than SatisfiedStaying

SatisfiedLeaving

Less than SatisfiedLeaving

STAYSTAY

LEAVELEAVE

SATISFIEDSATISFIEDLESS THANLESS THANSATISFIEDSATISFIED

A

DC

B

SatisfiedStaying

Less than SatisfiedStaying

SatisfiedLeaving

Less than SatisfiedLeaving

Satisfaction

Retention

AB, BD, AD

The following variables are in model for all three transitions:

– quality of students– quality of major

The following variables are in model for two out of three transitions:

– parents’ preference (AB, BD)– value of education (AB, AD)

Regression Analysis

Page 37: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

From Researchto Action

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Page 38: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

From Research to Action

Organize recommended actions suggested by the research in a thematic fashion

– Academic community– Future outcomes– Campus atmosphere and student life– Value and affordability– Location

Share results with current students, faculty and staff

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Page 39: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur

Questions

Tara E. ScholderVice President for Research Operations

[email protected], Ext. 241

Linda Cox MaguireExecutive Vice President

[email protected], Ext. 221

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Page 40: “Customers today are strongly value- oriented. They seek results and service process quality that far exceeds the price and acquisition costs they incur