By Brennan Stang, Director of Client Services - InnerSpace
Last week I had the opportunity to attend the Society for University and College Planning’s annual conference in Philadelphia, PA. It was a fantastic opportunity to connect with campus planners and higher education leaders to learn more about how they are planning for the future and looking to technology to solve some of their biggest challenges today and moving forward.
There were a number of informative sessions and I am so appreciative of the insights shared by all of the invited speakers. I learned a great deal about the challenges facing higher education in the coming years and I am excited to share some of the key themes and takeaways from the conference.
A really exciting takeaway from the conference is that more and more universities and colleges are turning to technology as part of their strategy to take on a rapidly shifting industry. More and more planners and senior leaders are becoming increasingly open to sourcing technology experts and platforms and it is paying off.
Whether it is space utilization or asset management, higher education is looking for new ways to solve new (and existing) challenges.
One of the biggest challenges on the minds of leadership teams at strategists in higher education is the coming enrollment cliff. This significant demographic shift will mean fewer students will be applying to schools resulting in a drop in enrollment and resulting lower revenues.
This seismic shift means that schools will need to start investing in technology like ours to ensure they are future proofing their enrollment and revenue goals.
Having a dynamic understanding of how your space is being used means you are able to constantly adjust space allocation to enhance your overall student experience. Your utilization data may show that students are finding spaces to study in hallways and passages indicating a need for more quiet learning spaces for students as an example.
Reducing friction wherever possible means an improved student experience overall, retention of currently enrolled students and intentions to pursue grad school programs. It also means that students are far more likely to recommend schools based on their individual experiences.
Enhanced Learning Environment - Well-designed and maintained academic buildings, libraries, and study areas provide students with a conducive learning environment, boosting their academic performance and satisfaction (HEMS)
Improved Campus Living - Quality of on-campus housing plays a crucial role in overall student experience. Comfortable and safe living conditions help students feel at home, reducing dropout rates due to dissatisfaction with living arrangements (Budget, Plan & Research). These can include the following;
Investing in the quality of campus spaces not only enhances the overall student experience but also significantly impacts their decision to stay and succeed in their academic journey.
One of the biggest things on everyone’s mind at the conference was the impact big changes will have on the bottom line. This is the biggest area where I can see InnerSpace having a significant impact on strategic planning. Here are some of the major ways space utilization data can impact your budgeting and revenue streams;
Higher Tuition Income - Some estimates suggest that improving student retention by 5% can increase revenue by up to 25% over several years, considering the cumulative effect of tuition and fees from retained students (HEMS).
Word-of-mouth significantly impacts students' decisions to choose a university, though the extent varies. Research indicates that word-of-mouth can account for a substantial portion of the decision-making process, with some studies suggesting it influences between 20% to 50% of these decisions.
While specific percentages can vary, these estimates provide a general idea of the financial benefits that can be realized through better space utilization. Each institution's context, including its current space usage efficiency, student population, and financial structure, will influence the actual impact. (McKinsey & Company)
Surveys of the faculties and business units are the most traditional way they are doing it but this is self reporting and institutions are realizing this isn’t an effective way of doing space utilization because people aren’t 100% honest in their surveys because they don’t want to lose their space.
Space Studies performed by Architecture and Design firms are also a very traditional way of getting space utilization data. These are becoming an outdated method because they are only snapshots in time and can lead to the wrong decisions being made. They are also very expensive when you look at the amount of time they take to complete and limited data they provide.
More and more higher education institutions are turning to technology and new ways of collecting data and moving away from traditional approaches. This most certainly requires an innovative approach and a willingness to break from what has always been done to embrace newer and more accurate and long term solutions. I am excited to see senior leaders and campus planners showing interest and allocating budget to implementing technology like ours.
Universities can save between 5% to 20% on operational costs by optimizing space usage. This includes savings on utilities, maintenance, and other operational expenses (Budget, Plan & Research) (HEMS).
More and more colleges and universities are looking at space utilization technologies to solve for falling revenues and an innovative approach to creating the campuses of tomorrow. I was really glad to see that some of highest attended sessions were sessions regarding space utilization.
Some of the key comments from attendees I heard from the sessions I attended included the following;
Having a constant understanding of how space is being used allows you to be dynamic with how space is being used allowing you to focus on enhancing the student experience and can increase margins. Here are a few examples of how this can happen;
Through my discussion with clients and the conferences, I have also noticed a few key areas that schools are looking to optimize their space and make strategic utilization data based decisions around investment and potential divestments in their real estate footprints. Below are some of the important use cases on the minds of higher education professionals;
In summary, by understanding and optimizing how campus spaces are used, universities can enhance the student experience, leading to higher retention and enrollment rates, additional revenue streams like event rental spaces, and more efficient operations overall. These improvements contribute to better financial performance and increased profit margins.
Here are some key revenue considerations you should consider when evaluating your need for space utilization technology;
While specific percentages can vary from institution to institution, these estimates provide a general idea of the financial benefits that can be realized through better space utilization. Each institution's context, including its current space usage efficiency, student population, and financial structure, will influence the actual impact.
If you are not already looking for new and innovative solutions to solve your existing problems, it is most definitely time to start thinking about. I invite you to reach out directly to learn more about our Wi-Fi based solution and how higher education institutions are embracing technology to ensure they are strategically thinking about the future of their campuses and the impact this will have on student experiences, campus planning, enrollment rates, student satisfaction and perhaps most importantly, the impact on revenue.
Higher education leaders equipped with space utilization data are setting themselves up to ensure they have a reliable and data based approach to fully understanding how their campuses are being used and leveraging this data to make immediate and ongoing strategic decision about their campus.
Let’s Talk!
Brennan Stang
brennan.stang@innerspace.io