1. Positioning CCCU Campuses in the Third Millennium CCCU Forum February 9, 2001 www.maguireassoc.com

2. Megatrends in Higher Education Drivers of change Shrinking revenues and rising costs Shifts in decision making Impact of workplace trends Growth in adult and traditional markets Strategic pricing and financial aid policies The Web and community

3. Drivers of Change in Higher Education Changing demographics Increasing demand Knowledge explosion Technology Globalization More competitive environment Creation of new enterprises (Source: IBM Campuslink Project Office)

4. Shrinking Revenues and Rising Costs The soaring expense of traditional need- based and no-need scholarships Declining financial support from state and federal governments The spending needed to bring – and keep – libraries, classrooms, IT, and laboratories up to date

5. Shrinking Revenues and Rising Costs The pressures of deferred maintenance The price of faculty expertise The competition for students from for-profit institutions, providers of “electronic” education, and corporations’ own training programs

6. Shrinking Revenues and Rising Costs The cost of technology The rising costs of recruiting students in the highly competitive environment

7. Shifts in Decision Making Public policy is moving toward market- driven mechanisms because of:  The increasing power of the consumer  Technology’s ability to transcend space, time, and political boundaries (Source: IBM Campuslink Project Office)

8. Impact of Workplace Trends Retraining is becoming a requirement for employees. Technology is a required workforce competency. Telecommuting is becoming a way of life. (Source: IBM Campuslink Project Office)

9. Growth in Adult and Traditional Markets Explosive growth in adult markets  90 million adults (46%) participated in one or more adult education activities in 1999.  Overall participation rate of college graduates was more than three times the rate of those without a degree.  Participation in adult education is six times the total higher education enrollment.  National Household Education Survey

10. Growth in Adult and Traditional Markets Qualified traditional student growth projections:  The number of high school graduates in 2000 will mirror the early 1980’s.  By 2004, this population is expected to reach the peak levels of the late 1970’s.  By 2009, the total number of high school graduates will be 32% higher than in 1992. (Source: Challenges in College Admissions, AACRAO, ACT, CB/ETS, NACAC)

11. Growth in Adult and Traditional Markets Qualified traditional student growth projections:  A record of more than 3.2 million high school graduates will peak in 2008-09.  Early in this century, more than a third of college students will be minority students.  By 2020, the Hispanic population will become the largest minority group in the United States. (Source: National Center for Education Statistics)

12. Growth in Adult and Traditional Markets Other notable trends:  Between 1987 and 1997, the number of men enrolling in college rose by 7%, while the number of women rose by 17%.  Between 1987 and 1997, the number of male full-time graduate students increased by 22%, compared to 68% for full-time women. (Source: The Chronicle of Higher Education Almanac, 1998)

13. Growth in Adult and Traditional Markets There are many more small colleges, but most students attend the larger institutions.  In1997, 40% of all institutions had fewer than 1,000 students; however, these campuses enrolled 4% of college students.  10% of the campuses enrolled 10,000 or more students and accounted for 50% of the total college enrollment.

14. Strategic Pricing and Financial Aid Policies Higher education has been (re)embracing merit aid programs. Sophisticated financial aid models are being employed as revenue generating tools.

15. Strategic Pricing and Financial Aid Policies The linking of institutional values and goals to pricing policies is changing the world of financial aid.  The Princeton policy  The domino theory  The virtuous circle

16. The Web and Community Distance learning techniques in a residential liberal arts environment College constituencies and community using the Internet

17. Key Research Findings from the CCCU Membership Study

18. Goals of the Project Determine how families define value Provide the CCCU with “big picture” themes Develop strategies for promoting under- appreciated yet cherished elements of the CCCU mission Uncover profiles of target audiences Gain a longitudinal perspective (1986 vs. 2000)

19. Benchmarks Comparisons of the1986 and 2000 Studies

20. 1986 Versus 2000 Comparisons Prospects: Year 2000 versus 1986  More emphasis on cost  More interest in investment value  More importance placed on social life  Less reliance on general reputation of an institution

21. 1986 Versus 2000 Comparisons Inquirers: Year 2000 versus 1986  More emphasis on monetary issues  More importance placed on social life and location  More interest in the integration of faith and learning  Less confidence in receiving financial aid from CCCU institutions

22. 1986 Versus 2000 Comparisons Accepted students: Year 2000 versus 1986  More importance on monetary issues, social life, location, and the integration for faith and learning  Less interest in preparation for graduate school and quality of faculty and facilities  Less interest in diversity  Less confidence in receiving financial aid from CCCU institutions

23. 1986 2000

24. 1986 Versus 2000 Comparisons Slight increase in CCCU visibility, but overall familiarity still low Gains in reputation for preparing students for graduate school and careers, but not as much in overall academic reputation Rise in concerns about “closed- mindedness”

25. (Totally Familiar) (Not at All Familiar) Familiarity with Christian Liberal Arts Colleges and Universities (1986 vs. 2000)

26. Research Highlights Year 2000 Membership Study

28. The college search is starting earlier for families.

29. Timing of College Search (2000)

30. The use and influence of the Web represents a major change in market behavior.

31. Use of Source

32. How the Internet is Used Use and influence of Web sites  Reliance from prospect to enrollment stages of the college search – Implications for content – Implications for investment Growing interest in email and chat rooms  Need to develop electronic recruitment plans  Call to reassess institutional policy on outside access to information and people

33. Public universities are major competitors of the CCCU.

34. First-Choice Schools (2000 Prospects): Florida State University, FL (3%) University of California, Los Angeles, CA (2%) University of Michigan, Ann Arbor, MI (2%) University of Florida, FL (1%) University of North Carolina, Chapel Hill, NC (1%) Texas A&M University, TX (1%) University of Texas, Austin, TX (1%)

35. Positioning Strategies Advantages of Christian mission and smaller size Opportunities for total student development  Character development  Spiritual development  Personal growth in a values-based environment Faculty/student rapport  Mentoring

36. The phrase “liberal arts” is not helpful in clarifying image or communicating value.

37. Understanding the Liberal Arts Families do not fully understand its meaning. The connection between the liberal arts and preparation for careers is not strong. The ability to give impressions of a Christian college or university was greatly reduced when the phrase “liberal arts” was added.

38. The Christian mission plays a major role in the college decision-making process.

39. Admissions Funnel Important College Characteristics (2000) Prospect-->Inquirer Inquirer-->Applicant (Accepted) Non-Matriculant-->Matriculant The “6 Christian Variables” Liberal Arts Education Geographic Location Close Contact with Faculty in and out of Class Character Development *Items listed are significantly more important between stages, moving DOWN the “admissions funnel.” 5 of the “6 Christian Variables” (not Church Affiliation of Institution ) The “6 Christian Variables” Social Life (Residence Life, Extracurricular Activities, etc.) Character Development Inquirer Matriculant Prospect Non- Matriculant

40. COUNCIL FOR CHRISTIAN COLLEGES & UNIVERSITIES Chaid Analysis CCCU Distinguishing Inquirers and Applicants (Admitted Students) Based on Importance of Characteristics COUNCIL FOR CHRISTIAN COLLEGES & UNIVERSITIES Chaid Analysis CCCU Distinguishing Inquirers and Applicants (Admitted Students) Based on Importance of Characteristics TOTAL 62.68% n=1329 1 32.47% n=77 1-3 48.57% n=35 4,5 19.05% n=42 2,3 46.13% n=349 1-3 66.15% n=130 1-3 96.15% n=26 4,5 58.65% n=104 4,5 34.25% n=219 1,2 53.85% n=39 3-5 30.00% n=180 4 61.74% n=264 1,2 80.70% n=57 3,4 61.80% n=178 1-4 68.79% n=141 5 35.14% n=37 5 24.14% n=29 5 75.74% n=639 1-3 91.05% n=190 1-3 98.44% n=64 4,5 87.30% n=126 4 74.92% n=303 1-3 81.62% n=185 4,5 64.41% n=118 5 57.53% n=146 1-4 82.61% n=46 5 46.00% n=100 % Applicants (vs Inquirers) Value of education Christian service opportunitiesLiberal arts education Character development Diverse student body Preparation for graduate/ professional school Integration of the Christian faith and learning Diverse student bodyQuality of major Academic facilities (quality of library, labs, computer center, etc.) Quality of major 1 = Not at all Important 2 3 4 5 = Extremely Important

41. Positive and Negative Images of a Christian Education Quality-of-life issues emerged often:  “Good atmosphere”  “Good environment”  “Nice/friendly/caring people”  “Values/morals”  “Christian fellowship”  “Christian atmosphere”

42. Positive and Negative Images of a Christian Education Top negative mentions:  “Too small”  “Too sheltered”  “Too protected”  “Closed-minded”  ”Strict”  “Expensive”

45. Understanding of a Christian campus is an underdeveloped building block of the Christian educational experience.

46. Integration of Faith and Living Prospective students are focused on rules and regulations. Students have a siloed image of campus life  Service learning  Social life  Community experience

47. Prospective students have concerns about the relationship between the Christian influence and intellectual life.

48. Integration of Faith and Learning Concerns voiced about closed-mindedness References to academic quality missing from first-word responses Concerns about restrictions on academic breadth and content Students’ priority of advancing personal academic agenda Appeal of the freedom of intellectual discourse and growth from within

49. Academic excellence is intertwined with preparation for the future.

50. Academic Quality and Future Orientation Prospective students for the CCCU identify their top priorities as:  Educational value  Preparation for future careers  Quality of a specific major  Quality of faculty  Availability of financial aid  Employment opportunities after graduation  Quality of academic facilities

52. Parents are more involved in the college search in the CCCU market.

53. (Very Influential) (Not at All Influential) Parents’ Influence in Choice of College/University (2000)

55. The Parent Perspective In their own words, parents placed substantial weight on practical outcomes, such as:  “Employment opportunities after graduation”  “Preparation for careers”

56. The “value proposition” for CCCU schools should include messages about tangible outcomes and character development.

57. Value Proposition Every institution should prepare a distinctive value proposition. Cost: Reverse tendency to think about money issues in terms of sticker price rather than net cost. Value: Students and parents are interested in “return on investment.”  First jobs, graduate school acceptances  Development of the whole person

58. Educational Value Integrated definition for prospects:  Closely tied with the importance of preparation for future careers and character development Integrated definition of value for inquirers:  Preparation for future careers  Character development  Exposure to different cultures on campus and in off-campus programs

59. Educational Value Integrated definition of value for accepted students:  Career opportunities  Quality of major  Academic reputation  Preparation for graduate school  Academic facilities  Quality of faculty  Character development

60. Hallmark Themes Academic Quality: A high-quality education in a secular world. Christian-centered Community: A close-knit, Christian community that emphasizes character development and spiritual growth. Future Orientation: Preparation for life as well as a living. Financial Investment: The value proposition.

61. Academic Quality: A high-quality education in a secular world. Introduces the Christian focus Positions against public and private secular universities Acknowledges concerns about invasion of voiceless/faceless world Sets the stage for conveying freedom of intellectual inquiry as well as the integration of faith and learning

62. Christian-centered Community: A close-knit, Christian community that emphasizes character development and spiritual growth. Highlight character development Distinguishes spiritual growth opportunities Enhances appreciation for value Develops understanding of integration of faith and living

63. Future Orientation: Preparation for life as well as a living. Addresses interest in careers Advances concept of development of the whole person Provides foundation for moral and spiritual lifestyle Raises the bar for definition of success

64. Financial Investment: The value proposition. Calls for the creation of a succinct statement at the Council and member institution levels  Fold in essential elements of the first three hallmark themes  Write to a parent audience  Connect to cost discussions and copy at all times

65. Maguire Associates, Inc. The Art of Research The Science of Communications 135 South Road Bedford, Massachusetts 01730 781-280-2900 Contact Dr. John Maguire, Chairman jmaguire@maguireassoc.com