How Do Universities Spend to Attract Students?
As we mentioned in our ‘Marketing Education to Generation Z’ blog post, universities are adapting their approach to marketing by steering away from mass communication and toward more targeted, personalised messages. Reporting on how and where universities spend their money has become a key component of these marketing messages. This shift allows institutions to engage more meaningfully with prospective students, creating a sense of connection and relevance. As a result, implementing university marketing strategies for surveys has become crucial in understanding student preferences and behaviors. By gathering and analyzing survey data, universities can refine their messaging and tailor their offerings to better meet the needs of their target audience.
As the cost of university tuition rises in many countries across the globe, students and parents are becoming increasingly interested in how universities spend their money. For incoming 2017/2018 undergraduate home students in England, they can now be charged up to £9,250 per year, making university spending a factor in establishing an appealing brand reputation. Including relevant expenditure figures in personalised university marketing materials can help prospective students lean toward attending your university.
So how are universities spending to attract prospective students?
Source: Universities UK
Teaching and Research
In 2016, more than half (55.7%) of university spending in England was allocated to teaching and research (Universities UK). In recent news, universities from the UK, USA, Australia and New Zealand have all been recognised for their generous investments in research.
In the UK, the University of Bristol invested more than £16m in supercomputers / high performance computing, and across the Atlantic, the University of Nebraska spent US$119m (~£93m) on virtual reality (VR) and augmented reality (AR) for medical training. Nine universities in Australia and New Zealand invested A$200m (~£118m) on commercialising research and innovation ideas in partnership with the London-listed IP Group.
Source: Universities UK
It’s widely known that investment in research correlates with university rankings, but this heavy expense also represents the university’s commitment to innovation and providing the best education for students with the brightest employability prospects. However, students may not be impressed with the announcement of a million pound investment in research. Instead, they may be more keen to hear about how attending a highly ranked university with exceptional teaching staff benefits them for future employment. Such factors often include access to industry connections, internship opportunities, and personalized career support. Ultimately, what students value in universities goes beyond financial investment in research; they seek environments that nurture their skills and enhance their employability. By prioritizing practical experiences and mentorship, universities can better align their offerings with student expectations and career aspirations.
Maintaining Campuses
The next biggest expenditure is maintaining campuses, accounting for 11.7% of spending. This expense includes investment in things such as academic buildings, sports facilities and arts centres. Recent examples of this include the University of West London spending £20m on recording studios for their arts programs and, in the US, Washington University investing US$25m (~£20m) in imaging sciences for research centres.
Source: Universities UK
As with investment in teaching and research, maintaining the campus may not be a memorable feature that students note on its own, but you can highlight how these expenditures can benefit them in a more personal way, such as the investment in the campus in turn leading to a better student experience. This practical expense can also elicit a lasting positive first impression whilst students visit campus on an open day.
Social Causes
Whilst not individually listed on the Universities UK’s spending breakdown, universities have been recognised for their commitment to social causes. For example, Nottingham University invested £200m into tackling global issues such as ending modern day slavery and securing sustainable food supplies. In the US, Cornell University, in partnership with the state of New York, invested US$1.5 billion (~£1.16bn) toward clean energy jobs for their Clean Climate Careers scheme.
These types of investments prove worthwhile as research suggests 70% of millennials are more likely to engage with brands that commit to helping social causes (Hanover, 2016). If your university is dedicated to supporting several diverse social causes, then it’s worth mentioning these social investments to prospective students.
With university spending being relatively uniform across the board, you can set yourself apart from the crowd by finding out what your prospective students care about most and providing them with relevant information about how your university spends its money in a way that would appeal to them. By tailoring your messaging to align with students’ criteria for choosing universities, you can effectively highlight the unique aspects of your institution’s financial priorities. Emphasizing investments in student facilities, academic programs, and extracurricular opportunities can resonate deeply with prospective students. In doing so, you foster a stronger connection and demonstrate that your university is committed to meeting their needs and expectations.
At AlphaGraphics, we specialise in helping higher education institutions deliver data-driven, automated marketing campaigns to improve student recruitment. To find out more, visit: education.alphagraphics.co.uk
