When institutions face increasing pressure to ensure their academic programs remain relevant and competitive, provosts, presidents, and higher education leaders must make critical decisions about program development, resource allocation, and strategic direction. A key factor in this process is understanding market demand. The following information is based on insights from a Gray Decision Intelligence masterclass. It explores how institutions can leverage market data to make data-informed decisions and drive program growth.
The Resource Paradox and the Power of Data
Many institutions grapple with a paradox: the need to innovate and launch new programs versus the constraint of limited resources. As Zach Paz, COO, and Executive Vice President at Gray Decision Intelligence, highlighted, this can lead to stagnation. However, market data offers a solution. By strategically using data to identify high-potential programs and avoid costly missteps, institutions can optimize resource allocation and achieve a greater return on investment.
Defining Your Market: It’s Not Just About the State
A crucial first step is to define your institution’s market accurately. Relying solely on state or national-level data is not enough. As Paz emphasized, institutions must understand where their current students come from. Analyzing student travel patterns by program and award level can reveal valuable insights for marketing efforts and program development. For example, a master’s program might draw students from a smaller radius than a four-year undergraduate program.
Assessing Student Demand: A Multifaceted Approach
Evaluating student demand requires a comprehensive approach that incorporates multiple data sources. Paz outlines five key sources:
- Enrollment Data: Offers a current snapshot of student enrollment trends.
- Google Search Data: Reveals future trends in student interest.
- Completions Data: Provides a comprehensive but dated view of program completions.
- International Student Data: Identifies opportunities for international enrollment.
- Coursera Data: Provides early indicators of student interest in specific courses and subjects.
Each data source offers unique insights, and combining them creates a more complete picture of student demand throughout the student lifecycle.
Understanding Employment Opportunities: Beyond Direct Prep
Connecting academic programs to career outcomes is essential, but it’s not always straightforward. Paz cautioned against relying solely on “direct prep” job classifications, as many graduates find employment in fields that aren’t directly aligned with their degree. Institutions should analyze actual graduate employment data, including:
- Trends in job postings
- Required degree levels
- Essential skills (both technical and durable)
- Job postings per graduate ratio
This information can help institutions align curricula with workforce needs and enhance student career readiness.
Competition: A Critical Consideration
Understanding the competitive landscape is crucial for attracting and retaining students. Paz emphasizes the importance of:
- Identifying competitors, both on-ground and online
- Analyzing program naming conventions
- Benchmarking program size
- Assessing online marketing costs
Ignoring competition can lead to missed opportunities and declining enrollment.
Degree Alignment: Offering Programs at the Right Level
Institutions should carefully consider the appropriate degree level for their programs. Analyzing enrollment, completions, and labor statistics data can help determine if a program should be offered at multiple levels (e.g., bachelor’s and master’s) or if a new program is being launched at the optimal degree level.
Bringing It All Together: Prioritization and AI
Effectively using market data requires a way to synthesize and prioritize information. Paz advocates for creating a one-page summary of key metrics to facilitate data-informed decision-making. Furthermore, he stresses the potential of AI to turn this data into narrative reports, alleviating resource constraints within departments and improving communication across campus.
Conclusion
Market data is a powerful tool for provosts, presidents, and higher education leaders. By embracing a data-informed approach, institutions can make strategic decisions that drive program growth, enhance student outcomes, and ensure long-term relevance in a competitive environment. As Paz concluded, leveraging market data helps institutions use their limited resources wisely and maximize their return on investment.
Interested in a personalized discussion about your markets? Schedule a demo to explore how Gray Decision Intelligence can support your institution’s goals.
