International Journal of Engineering and Technical Research (IJETR)

ISSN: 2321-0869 (O) 2454-4698 (P), Volume-5, Issue-1, May 2016

CRM in Education Institutions- A Study with Special

Reference to Student life cycle in management
affiliated to Bangalore University
S.Harish, Dr.T.V.raju

can be considered as customer. Considering student as

Abstract The primary objective of the Research was to customers has created a lot of intellectual debate among
determine the extent of adoption of Customer Relationship scholars. A number of scholars have been able to adduce the
Management (CRM) strategies in undergraduate (UG) reasons why students should be regarded as customers
management institutions for managing student life cycle. The
(Hwang & Teo, 2001; Kotler and Fox, 1985; Reavill, 1998;
research is eventually aimed to assess the various issues and
challenges related to the adoption of CRM and the likely
Robinson & Long, 1987). It has been scholarly supported by
benefits the colleges can get out of it. But, similar studies in the above researchers and authors that student can be indeed
Indian scenario especially with University affiliated considered as customers for all commercial purposes.
Management colleges is rare. This study is precisely addressed Student life cycle management in the education sector,
towards this. This study has used both descriptive and especially the Government or privately owned education
inferential statistics for data analysis. Eighteen hypotheses are institutes / Universities in India, have witnessed huge issues
formulated in this study covering various critical aspects of with respect to student dissatisfaction. The effect of these
CRM adoption. Appropriate statistical techniques used in the student dissatisfaction on the economics of the colleges and
study are Linear Regression, single sample and independent
academic programs, and also on students learning can better
sample t-tests, Chi-square tests, and paired sample t-test. The
research results showed that the CRM implementation help
be imagined than described earlier. Edinyang and Ubi (2013)
colleges to manage the student life cycle more effectively and stated, This has always subjected the students to pitiable
improves the overall student experiences with the institution. conditions, disrupting academic programs, giving students
This eventually benefits the colleges in various aspects resulting undeserved extension in their study years, poor students
in increased student referrals, better admission quality, reduced focus on academic programs and poor teacher student
student recruitment cost among others. It is therefore relationships amongst others. Consequently, the academic
recommended that educational institutions should adopt performance of the students has comparatively become very
effective CRM strategies to achieve student satisfaction. low due to the disconnect between students and colleges. As a
result, products that are ill equipped in both character and
learning are turned out to the society. Educational institutions
Index Terms Customer relationship management, Student
satisfaction, Student life cycle management. in India have thus suffered tremendous setbacks even in
managing relationships with their alumni, who in fact act as
I. INTRODUCTION the brand ambassadors of the institution. This aspect can also
lead to problems that affect student life cycle in the
This study attempts to examine the relationship between institutions / university which in turn discourages students
CRM service and students satisfaction through various willingness to recommend their educational institutions to
moderating factors. Furthermore, the study also attempts to others.
analyze critical models in CRM that contribute most to the It is observed that todays Indian colleges are mere shadows
students satisfaction. of their past, in terms of academic standards. Politicians, some
Maintaining customer satisfaction is the core of every educational bureaucrats, college administrators and
business philosophy and objective which focuses on the teachers/instructors/lecturers/professors have sacrificed
creation of worth for customers, forestalling and managing quality education due to their insatiable desires to accumulate
customers expectations, and signifying capacity and wealth.
responsibility that will satisfy customers needs (George, In general, Indian educational institutions are characterized
Emmanuel, and Christiana, 2012). The delivery of by poor infrastructures which lead to poor customer
high-quality services and the satisfaction of customers are two relationship and student dissatisfaction. Todays educational
critical factors in the growth and development of every institutions are not able to maintain their basic needs, that is,
organization (Dominici & Guzzo, 2010). Berkowitz (2006) the laboratories, libraries, accommodation facilities available
pointed that the whole essence of business is customer for students, lecture theatres are no theatres and the lecture
satisfaction. Therefore, the delivery of high-quality service is halls are in a very deplorable condition (Benin, 2013).
paramount to achieving sustainable organizations Specifically, the libraries are not able to subscribe current
performance. books and periodicals. All these lead students to contemplate
The critical point to be noted here is that whether student about the future security and existence of these educational
institutions and their ability to provide quality education.
S.Harish, Research scholar, CBSMS, BU & Principal, Vijaya Evening Adding to this, poor CRM in Indian educational institutions
college leads to student unrest and dissatisfaction.
Dr.T.V.raju,Dr.T.V.Raju, Research Guide, CBSMS & Director, RV
Institute for management

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 CRM in Education Institutions- A Study with Special Reference to Student life cycle in management affiliated to
Bangalore University
1.1 Concept of Customer Relationship Management managing the relationship between an organization and its
internal and external factors. Ledingham (2003) defined an
The term Customer relationship management was first organizationpublic relationship as the state which exists
used by management scholars such as Peter Drucker and between an organization and its key publics in which the
Theodore Levitt in the 1960s (Venoos & Madadiyekta, 2005). actions of either can impact the economic, social, cultural or
CRM, which seeks for the customers conception of an political well-being of the other (p. 184). Moreover, the
organization, includes individuals, processes, and technology. concept recognizes relationship as the core focus of public
CRM has three perspectives, including information relations. A strategy engaged by an institute in which an
technology perspective, the customer life cycle perspective, endless level of arrangement is retained between the institute
and business strategy perspective (Wali & Nkpurukwe, and its target market. Relationship management is between a
2008). Wali and Nkpurukwe (2008) defined CRM as the business and other businesses (business relationship
process of customer acquisition, customer retention, customer management) and between a business and its customers
extension, and the delivering of a sustainable competitive (CRM).
advantage. Peppard (2000) posits that CRM aims at creating The aim of the CRM is to build a relationship between
an emotional connection with the customer, understanding education sector institution and its target market, but not
customer needs, differentiating between customers via market transactional relationship. Customers who feel that an
segmentation and performance analysis of customer loyalty. organization responds to their want and needs will continue to
Ozuru and Kalu (2009) defined CRM as the function of use the products and patronize the services that the
building trust, bond, or connection between an organization organization offers. Furthermore, sustaining a level of
and a customer with the aim of influencing a repeat purchase. communication with customers enables the organization to
Ogbadu and Usman (2012) posited that CRM deals with ascertain potential causes of pricy problems before they
customer data management and the management of customer happen.
touch to maximize customer loyalty by building and 1.4 Stakeholder Theory
maintaining profitable customer relationships and delivering
superior customer value and satisfaction. CRM can also be
The stakeholder theory, which is a business theory, states the
seen as a business strategy which identifies profitable
purpose of a business is to create as much value as is possible
customers and prospective customers and devoting time and
for the stakeholder. The theory addresses morals and values
attention to expand such relationships with those customers
that should be exercised when managing the organization.
(Kotler & Armstrong, 2008).
Based on the conceptual, theoretical and empirical
clarifications discussed earlier. An institute of education has
1.2 Concept of Customer Life Cycle Management many stakeholders other than students. Say for example like
alumni, regular teachers, visiting faculty, corporate
One major strategic difference between CRM and customer companies who provide projects and employment etc.
life cycle management (CLM) is the element of time. CRM 1.5Customer (student) Satisfaction theory
can be an act at one particular contact point with the customer,
whereas customer life cycle management is a measurement
Customer satisfaction is the core of every business philosophy
over time. It was also observed from literature that customer
and objective which focuses on the creation of worth for
life cycle management is a static entity and is more based
customers, forestalling and managing customers
upon a single measurement (which incorporate multiple
expectations, and signifying capacity and responsibility that
metrics) than a philosophy (Edward, 2002). Without
will satisfy customers needs (George, Emmanuel, and
practicing CRM whatsoever, a company can take various
Christiana, 2012). The delivery of high-quality services and
measurements of its customer life cycles and find ways to
the satisfaction of customers are two critical factors in the
improve or manage them better. CLM is also non
growth and development of every organization (Dominici &
departmental, that is it incorporates all interactions with
Guzzo, 2010). Berkowitz (2006) pointed that the whole
customer throughout that customers life. However, as a result
essence of business is customer satisfaction. Therefore, the
of the application of business techniques in the management
delivery of high-quality service is paramount to achieving
of undergraduate management institutions in this modern
sustainable organizations performance.
time, student life cycle management has also attracted
attention by different scholars. In fact, student life cycle
Considering student as customers has created a lot of
management is the same as customer life cycle management.
intellectual debate among scholars. A number of scholars
This position has created a lot of intellectual debates among
have been able to adduce the reasons why students should be
scholars. Some scholars viewed students as captive audience
regarded as customers (Hwang & Teo, 2001; Kotler and Fox,
whose voice should not be heard, while this study supports the
1985; Reavill, 1998; Robinson & Long, 1987).
views of scholars that believe that students should be treated
as customers and their interests should be recognized in the
II. LITERATURE REVIEW
management of undergraduate management institutions
(Hwang & Teo, 2001; Kotler & Fox, 1985; Reaville, 1998; 2.1 Customer Relationship Management
Robinson & Long, 1987).
1.3 Relationship Management Theory Customer relationship management (CRM) is an
enterprise-wide initiative which focuses on developing and
The term relationship management refers to the process of influencing an in-depth view of customers across enterprise

170 www.erpublication.org
 International Journal of Engineering and Technical Research (IJETR)
ISSN: 2321-0869 (O) 2454-4698 (P), Volume-5, Issue-1, May 2016
applications and business units. It assures to provide seamless complex interactions especially during the retention phase as
integration of multiple business areas that reach the customer academic programmes and advising, and student life plays
marketing, sales, customer service and field support critical role in student retention (Tinto, 2005).
through integration of people, process and technology (Satish
et al., 2002). It is a combination of business processes and III. DEFINITION OF TERMS
technology which seeks to understand a companys customers
from the perspective of who they are, what they do and what 3.1 Under graduation
they like (Ryals and Knox, 2001). Along with other enterprise
systems, such as enterprise resource planning (ERP) systems, Under graduation is education generally begun after twelfth
companies are adopting CRM technologies to strengthen standard, usually carried out at a university or college, and
customer interactions and shifting their focus from business usually involving study for a degree or diploma (cited in Sen,
efficiency to business effectiveness (Sheng, 2002). 2010, p. 8).
2.2 CRM in Under graduation 3.2 Marketing

Under graduation institutions are student centric Basically refers to the way in which organizations design their
organizations that encompass a wide range of student offerings to satisfy the demands and desires of target markets
outreach and counselling activities such as admissions, by using effective pricing, communications and delivery
academic advising, job placement and more. strategies within these markets (Kotler and Fox, 1995).
While CRM usage is widespread in the corporate sector,
under graduation is far behind with CRM implementation 3.3 Customer Relationship Management
(Grant and Anderson, 2002). Universities and colleges may
benefit from CRM by improving student-facing processes Rodgers and Howlett (2000) have defined CRM as a
(Chen and Ching, 2005), personalizing communications with business strategy which places the customer at the heart of an
students (Karimi et al., 2001), sharing information among organizations processes, activities and culture. In this regard,
departments (Chen and Ching, 2005), and increasing student IT applications are the tools which allow organizations to
retention and satisfaction (Bradshaw and Brash, 2001). implement that strategy.
2.3 Student Life Cycle 3.4 Information Technology

Significant changes in the expectation of students contribute IT concerns any device or system that allows the storage,
to the relevance of relationship management strategy (Conant, retrieval, manipulation, transmission and receipt of digital
2002). While it might seem counterintuitive to view students information (Doyle, 2008, p. 41).
as customers, changes in the under graduation sector 3.5 Students
necessitate this shift in thinking. Viewed from the CRM lens,
the concept of customer life cycle can be mapped to the stages
that a student progresses through when considering and using In the study at hand, students refer to all those students
the services of a learning institution to form the student life pursuing their undergraduate management course from any of
cycle. Within a student life cycle, a student progresses the affiliated college of Bangalore University.
through the following stages: current students; who are currently studying a full
Suspect Prospect Applicant Admitted Enrolee time bachelor course Management in one of the
Alumni Bangalore University affiliated colleges
Suspect: A suspect is any student who might be a prospective students; who can be potential applicants
potential candidate for the college. for a full time bachelor course Management in one of
Prospect: A prospective student is at the information the Bangalore University affiliated colleges
gathering and opinion forming stage. alumni; who already have graduated from one of the
Applicant: A student is an applicant when he/she Bangalore University affiliated colleges
makes the decision to join the institution.
Admitted: A student is admitted when the college IV. PROBLEM DISCUSSION
makes a decision to accept the student.
Enrolee: This is the stage where students become a The growing importance of relationships in under graduation
part of the institution. has encouraged these institutions to start thinking of a
Alumni: At this stage, students who are satisfied with systematic way of managing their relationships. In business,
their academic experience will develop long-term managing relationships with stakeholders can be challenging
loyalty to their alma mater. for many organizations since they are involving in different
operations and their customers needs and wishes can
In view of corporate CRM activities, college student significantly vary (Kleinaltenkamp and Ehret, 2006).
enrolment management activities of converting suspects to Similarly, in the area of under graduation in which the primary
the admitted represent the marketing components of CRM, stakeholders are students (Nicolescu, 2009), the need for an
the conversion of admitted students to enrolees represents the organized system for managing and monitoring the
component of sales and the continuous enrolment and relationships between universities and students is obvious.
participation as alumni represent the retention and support Pausits (2007) believes that colleges / universities must
components. However, student life cycle involves more identify their stakeholders clearly and engage into activities

171 www.erpublication.org
 CRM in Education Institutions- A Study with Special Reference to Student life cycle in management affiliated to
Bangalore University
that reinforce their relationships with these stakeholders by and in few cases it was Chairmen. The private educational
proper integration of strategy, processes and people. institutions involved were predominantly colleges affiliated
In the meanwhile, the pervasiveness of new advances in IT to Bangalore University. In selecting the respondents for this
and communication technology has positively contributed to study, a complete enumeration method was used. The
managing such relationships in universities by enabling them self-administered questionnaire was in printed format. Of the
to systematically identify, collect, analyze and satisfy their 82 self-administered questionnaire, 61 were returned and
students needs and preferences. An example of this properly filled for a final response rate of 74%.
utilization can be the student lifetime management (SLM) The sample size of colleges was calculated using the formula
model that has been introduced by Pausits and Pellert (2007) N= ((Z/2)2 * 2)/ E2 , where Z is the Z score for 95%
to plan, form and analyze the relationship cycles of students. confidence interval (1.96), is the standard deviation
(Rs.15,00,000) of annual CRM budget, and E is the accepted
V. PROBLEM STATEMENT margin of error (Rs.4,00,000) of annual CRM budget.

Universities / colleges in Bangalore offer a wide range of VIII. DATA ANALYSIS AND INTERPRETATION OF RESULTS
programmes and courses predominantly to national and in a Hypothesis 1
smaller extent to international students. According to H0- CRM practice does not decrease the student
University sources, the number of free-movers (full recruitment cost
programme international students) who applied for studying H1- CRM practice does decrease the student recruitment
in Indian universities has had a significant increase recently to cost
the extent that in 2008. Table 1 CRM practice v/s student recruitment cost
Indian private under graduation institutions are self-financed
and get almost no support from government. Moreover, Correlations
universities and colleges are competing in a tremendously
globalized and high competitive environment in offering CRM_im Admission_co
educational programmes and services as stated earlier. pl st_reduction
Thus, it is imperative for Indian universities to take strategic
steps and preparations to meet these forces safely. According
Pearson
to what has been reviewed in background section, the IT 1 .637**
Correlation
believes that Indian universities will be able to survive in this
critical situation by embracing a market-oriented strategy CRM_impl
Sig.
with focus on establishing effective and long-term 0.008
(2-tailed)
relationships with their students.
Not astonishingly, IT can play a facilitating role in this regard. N 16 16
Therefore, having been studied the major in IT and
Pearson
management as well as the novelty of this situation motivated .637** 1
Admission Correlation
the authors to scrutinize this problem from the IT point of
view within the context of CRM. _cost_redu
Sig.
ction 0.008
(2-tailed)
VI. OBJECTIVES OF THE STUDY
N 16 16
The major objective of this study is **. Correlation is significant at the 0.01
To ascertain the adoption of customer relationship level (2-tailed).
management (CRM) practices, its benefits and
challenges, among the under-graduate management Table summarizes the statistical relationship between two
colleges affiliated to Bangalore University variables; Admission cost reduction and extent of CRM
The specific objectives of the research is to ascertain the implementation. The table clearly shows that the admission
following: cost decreases with the extent of adoption of CRM practice.
1. Relation between CRM practices and students Increased CRM practice significantly affect the admission
satisfaction cost at 0.05 levels of significance. The p-value is lesser than
2. Relation between CRM practices and students the 0.05 indicates that the two variables are strongly related.
willingness to recommend their educational
institutions to others. Hypothesis 2
3. Relationship between student life cycle management H0: Customer relationship management does not help
and student repeat patronage intention. to achieve student satisfaction.
H1:Customer relationship management does help to
VII. RESEARCH METHODOLOGY achieve student satisfaction.
Table: Regression effects of customer relationship
A questionnaire survey was conducted between February,
management on students satisfaction. (Source: Field Survey,
2014 and April 2015 to collect the information required for
2014).
this study. 82 educational institutions were selected for the
Table 2 CRM adoption v/s Student satisfaction
study. The respondents for the study were the head of the
institutions. In some cases it were Directors of the institute or
Correlations

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 International Journal of Engineering and Technical Research (IJETR)
ISSN: 2321-0869 (O) 2454-4698 (P), Volume-5, Issue-1, May 2016

CRM_ Stud_satisfacti indicates that institutions with effective CRM strategy, by

impl on which they maintain regular contact with parents, has a main
impact on students repeat patronage intentions (p 0.005).
CRM_impl Pearson Table summarizes the relationship between student life cycle
1 .0380
Correlation management on students willingness to recommend their
Sig. (2-tailed) .000 educational institutions to others and student repeat patronage
intention. It shows that the dimensions quality admission and
N 61 202 effective graduate progress monitoring significantly affect
Stud_satisf Pearson student willingness to recommend their educational
.0380 1
action Correlation institutions to others at 0.01 and 0.05 levels of significance,
Sig. (2-tailed) .000 respectively. This indicates that quality admission has a main
impact on students willingness to recommend their
N 61 202 educational institutions to others (B = 0.29, p 0.005),
**. Correlation is significant at the 0.01 level (2-tailed). whereas effective graduate progress monitoring significantly
affect students willingness to recommend their college to
others (B = 0.27, p 0.005). A student repeat patronage
PRM: parent relationship management; SLCM: student life intention, on the other hand, has a collective significant
cycle management. impact on quality admission, good induction, effective
Table 2 explained that parent relationship management is communication and graduate progress monitoring. It implies
significant to student satisfaction, because it made a unique that students life cycle management contributes significantly
and statistical significant contribution to the model. to students repeat patronage intention.
Hypothesis 3
H0-Student life cycle management does not help to IX. CONCLUSION AND RECOMMENDATIONS
achieve student repeat patronage intention.
H1- Student life cycle management does help to achieve This study concludes that student life cycle management in
student repeat patronage intention. the university enhance students willingness to recommend
their educational institutions to others. It was also observed
Table 3: The Regression effects of student life cycle that the presence of effective parent relationship management
management on students willingness to repeat the patronage in the university increases the level of student repeat
towards their institution. (Source: Field Survey, 2014-15). patronage intention. The study made the following
Table-3 Descriptive Statistics recommendations:
The type of the UG college management does not play
Mean Std. N important role in increased inclination of CRM
Deviation adoption.
Stud_rep_patronage 2.7885 1.41985 610 The CRM adoption does not help UG colleges to get
Parent_connect 3.0197 1.41175 610 better quality students.
Educational institutions should provide services at a
level that exceeds customers expectations through
Table 1 CRM practice v/s student patronage effective student life cycle management, such as
providing quality admission procedures, regularly
Correlations communicating and carrying along students with
Stud_re Parent_ regards to activities in the university.
p_patro connect
nage X. SCOPE FOR FUTURE RESEARCH
Pearson Stud_rep_patr
1.000 .717
Correlation onage As colleges under Bangalore University makes it a single
Parent_connect .717 1.000 sample, there is a need to cover more Universities for
Stud_rep_patr generalizing the findings. Hence, researchers can repeat the
Sig. (1-tailed) . .000
onage similar researches in other Universities. Secondly, the role of
Parent_connect .000 . Information technology in CRM in academic institutions
Stud_rep_patr needs to be investigated to ascertain to what extent the CRM
N 610 610
onage activities can be made IT based and alumni.
Parent_connect 610 610
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