For several years now, you’ve managed your bottom line by cutting costs and streamlining processes. Now, many of you say you’ve cut as deep as you can and it is time to focus on the top line. But there are several dynamics in motion that will work against increasing revenue: declining support from state governments; an improving economy; and a declining pool of traditional students. So where will revenue growth come from in the next 5-10 years? The answer may be closer than you think—it could be the “business next door.”
A NACUBO poll has shown that third-party (Sponsor) billing is a growing source of revenue for many campuses. Businesses of all sizes contract with college and university campuses to pay students’ tuition. However, tuition is only the tip of the iceberg. These Sponsors represent a gold mine of future revenue opportunities! Your goal should be to transform them from sponsors into full-fledged campus Supporters.
Here are some issues to address to help make the transition a reality:
- Think Like a Business: You’re an institution of higher education, so it might be hard to consider your campus a business. But it is. Growing sponsor account revenue means nurturing solid business-to-business (B2B) relationships.
- Capitalize on Billing: The most common “touch point” for Sponsors is the bill. But your current billing process is probably painful for you and your staff, as well as your Sponsors. Make it easier for organizations to do business with you and you’ll reap the benefits, too.
- Leverage the Relationship: Consider your Sponsors as an excellent source of sustainable revenue. Grow their business by offering them additional services—conference and meeting hosting; research partnerships; employee training; and more.
Thinking like a business can help you attract more revenue opportunities. Putting B2B systems and technology in place now will make your revenue push more manageable in the future. The “business next door” can be a major supporter of your campus tomorrow, but you must nurture the relationship today.