Higher education can drive growth by using data to guide engagement across the student lifecycle, strengthening both mission impact and institutional sustainability.
Higher education is in the midst of profound change. Economic uncertainty, shifting demographics, and evolving student expectations are prompting colleges and universities to rethink how they operate and engage. Yet amid this transformation lies an opportunity – to take a page from the business world. Not to commercialize education, but to sustain it.
Institutions already navigate complex ecosystems of recruitment, retention, and lifelong relationships. They manage customer journeys not unlike other industries, only their “customers” are students, alumni, and communities whose success directly reflects each institution’s mission. The challenge isn’t whether higher ed should act like a business; it’s how to apply business intelligence to advance both mission and margin.
By adopting data-driven strategies that illuminate each stage of the student lifecycle (from prospect to alum), colleges and universities can better understand the people they serve, anticipate their needs, and build enduring relationships that sustain both mission and margin.
Seeing the full student journey
In any industry, sustainable growth comes from understanding and nurturing relationships over time. Higher education is no different. Every stage of the student lifecycle, from recruitment to alumni engagement, offers an opportunity to build trust, connection, and momentum.
Nationally, student persistence and retention have rebounded to near pre-pandemic levels, with more than three quarters of first-year students returning for their second year. However, many still leave before completing their degree, and even small improvements in engagement can have a substantial impact on both institutional health and student outcomes.
The same principle applies long after graduation. Alumni engagement isn’t just about philanthropy; it’s about fostering a lifelong connection that continues to deliver mutual value. Research shows that 76% of alumni engagement teams operate with six or fewer staff members, yet those that leverage data-informed outreach report far higher connection rates. For example, 80% find in-person events most effective for deepening relationships, while 78% report that virtual engagement platforms help sustain those connections year-round.
This underscores a simple truth: meaningful engagement isn’t about scale, it’s about precision. When institutions view the student-to-alum journey holistically and use data to guide outreach, every interaction compounds over time, driving both the mission impact and institutional sustainability.
Turning data into action
Universities have no shortage of data. The challenge is using it effectively. Student information systems, CRMs, learning management platforms, and advancement databases all hold valuable signals about behavior and engagement – but most operate in silos.
By integrating these systems and applying AI-powered analytics, institutions can start to see the full picture. For example:
- Recruitment teams can identify which prospective students are most likely to enroll and personalize outreach accordingly.
- Student success teams can detect early warning signs – missed advising appointments, low LMS engagement, financial stress –and proactively intervene.
- Alumni relations teams can segment outreach based on prior engagement and interests, cultivating meaningful connections that last decades.
Institutions using predictive analytics for student success report significantly higher retention rates compared to those who solely rely on historical data. The takeaway here? The value of data lies not in collection, but in activation – using insights to drive timely, human-centered engagement.
Balancing business growth with mission
Adopting a business mindset doesn’t mean abandoning the mission of higher education. In fact, it strengthens it. When institutions leverage data to improve experiences, they’re ultimately advancing the outcomes that matter most – student belonging, success, and opportunity.
Think of it as building a sustainable growth model rooted in relationships. A student who feels supported throughout their journey is more likely to persist, graduate, and stay connected. An alum who stays connected and feels seen and valued is more likely to contribute financially.
In this light, data isn’t just a business tool; it’s a bridge between the institutional purpose and the performance of the people it serves.
A new model for sustainable growth
Higher education faces unprecedented pressures – declining enrollment, tightening budgets, changing demographics, shifting demographics, and increasing competition for both students and donors. The institutions that thrive in the years ahead will be those that think strategically about engagement as an ecosystem, not a series of transactions.
By blending data-driven intelligence with human connection, colleges and universities can strengthen both financial sustainability and education impact. It’s not about becoming more corporate – it’s about becoming more connected.
In business, growth comes from knowing your customer. In higher education, growth comes from knowing your people – students, alumni, communities – and using every insight available to help them succeed. That’s not just good business. It’s the future of higher education.
