The transformation of higher education : evaluation of CRM concept application and its impact on student satisfaction

An important question for higher education institutions (HEIs) worldwide is how to use the customer relationship management (CRM) knowledge and technologies generated from the research on the corporate business and adapt it to the university environment. Using indicators such as students’ satisfaction, HEIs are creating strategies to ensure student retention by focusing on a student-centric education approach, but they can no longer analyze their operations as independent and separate. Based on the Krueger/Homp SOS concept, efficient performance in the market is possible only with the joint performance of all three process categories, and for HEIs, those include class-related activities, management, and supporting processes. The main purpose of the research was to examine the applicability of the proposed student satisfaction model in relation to the CRM strategy at HEIs in terms of identifying key student satisfaction components. Results aided us in developing a new perspective in evaluating the CRM strategy in the higher education sector and a better understanding of pedagogical basis for the shift toward student-oriented education. Practical implications highlight the importance of adapting the CRM strategy in the sector of higher education and creation of student-oriented environment by constantly adapting its processes in accordance with indicators of student satisfaction. Identification of factors constituting student satisfaction enables universities’ management board and other departments to establish grounds for practices that would result in a more efficient organization and an increase in student satisfaction. Findings should also give strong incentives to management boards of education institutions to devote their efforts to CRM concept application at their institution.