It’s arguable that there is no industry where the marketing function is in a greater state of flux than higher education. Elizabeth Scarborough, CEO and Partner of SimpsonScarborough, a leading research, strategy, and creative services firm used by academic institutions across the U.S., indicates: “Less than two decades ago, marketing within higher education was a service function rather than a strategic function that drives admissions, recruitment, and fundraising. Few institutions had marketers and those that did rarely leveraged the expertise of marketers to help recruit better quality faculty and staff, admit higher quality students, or increase fundraising.”
However, this is changing … fast. I recently spoke at the AMA’s CMO-only event where the rise of the CMO in higher education was chronicled. There is good news and bad news. In an analysis from the CMO Impact Study that compared higher ed CMOs to their non-higher ed counterparts, turnover in the CMO position is much lower (and stability is much higher) in higher education institutions (see below). However, on the flip side, a challenge that CMOs in higher education have to manage is the lack of “customer centricity” within their organizations. In a question regarding the degree to which their organization is “driven by customer needs,” the average CMO in higher education gave a rating of 3.53 versus 4.54 for CMOs in non-higher education organizations (higher rating is better). Although the sample size was small, it provides some directional insight into the benefits (stability) and challenges (lack of customer orientation) that higher education CMOs face.
Below, I share some insight from the AMA conference regarding why higher education institutions need cabinet-level marketers today and what this means for the future of the CMO role in higher education. For insight as to how this impacts today’s higher education CMO, I turned to three experts: Julie Daum, Executive Director, Communication and Marketing, University of Virginia Darden School of Business; Shari Gibbons, CMO at Woodbury University; and Teri Lucie Thompson, SVP for University Relations and CMO at University of Arizona. .
Q: Why is Marketing important in higher education institutions today?
Woodbury suggests: “The world is changing more rapidly than most colleges or universities can adapt to and yet, the competition for prospective students is getting fierce. The standard recruiting play-book no longer works and institutions will need to use marketing to clearly articulate their unique value proposition and tell their brand story. Hopefully that story is authentic and speaks to the competitive white space in the marketplace. Selling an undifferentiated product in this environment will get you nowhere.”
Daum elaborates on the shift: “The internet and digital and social media have changed the way people discover and select educational programs. As marketers in higher education, we need to meet today’s savvy students where they are and demonstrate to them the value that our institution brings. An education is a substantial investment, and we must earn their attention and interest. Institutions that embrace technology, leverage insights from marketing and data analysis, and develop a nimble and customer-focused marketing culture will be better equipped to attract great people to their schools and build lifelong connections to them.”
Q: How will the CMO role change in the future?
Thompson indicates that right now, there are multiple tests happening around the country with the results yet to be determined. If marketers excel and make a difference, there should continue to be a steep increase in the number and importance of CMOS. If marketers brought in from outside of academia do not add value, then there will be a shift in hiring that reflects that learning. At present, CMOs can shape the role; key advantages seasoned CMOs bring to higher education include a brand management orientation, a data-driven decision-making and resource allocation orientation, and a focus on marketing as a strategic activity.
Q: How will the changing landscape of higher education impact the CMO?
Thompson indicates that there is a belief among some that the number of higher education institutions in the U.S. will have to dramatically decrease because of: 1) funding issues, 2) more competitive global marketplace for students (Asian countries are investing heavily in higher education), and 3) innovation in lower cost, alternative methods of acquiring an education (e.g., online, MOOCS, etc.) which may incent students to opt out of traditional education. In aggregate, these changes will increase the degree of competition, making the need for marketing excellence even more salient.
There is also another factor that can influence the hiring / status of marketing within higher education – the individuals hired to be President of the University and/or Deans of Business Schools. Historically, Presidents and Deans have risen through the faculty ranks. However, there is an emerging trend to hire presidents and especially business school Deans from outside of academia. In “The American President Study,” by the American Council on Education (2012), Bryan Cook notes, “The share of [university] presidents whose immediate prior position was outside higher education has increased since 2006 from 13 percent to 20 percent.” Consider Mitch Daniels, the prior President of North American Operations for Eli Lilly and Governor of Indiana hired to be the President of Purdue University. Or Janet Napolitano who transitioned from Governor of Arizona to Director of Homeland Security to President of the University of California system. Kerry Murphy Healey, once Lieutenant Governor of Massachusetts now serves as President of Babson.
And there are even more examples of Deans having come from outside of academia: Suffolk University’s William O’Neill (from Ford and Polaroid), Wake Forest University’s Steve Reinemund (prior CEO and Chairman of PepsiCo), Chapman University’s Reginald Gilyard (prior Managing Director of BCG consulting group), and the newly appointed Dean for the University of Virginia’s Darden School of Business (Scott C. Beardsley from McKinsey & Co.). When Universities hire presidents and deans from industries that have seen the benefit of more sophisticated marketing, there is a greater likelihood that they may embrace the CMO role – particularly the skills that CMOs can offer higher education.
Only time will tell what the future holds for higher education CMOs. For right now, it is the wild west of CMO opportunities, a place where strong leaders with an ability to navigate bureaucracy can chart a new course and make a real difference.
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