Home⇛Asia Pacific Journal of Management and Sustainable Development⇛vol. 13 no. 1 Part 5 (2025)

Customer Relationship Management Practices and Service Differentiation in a Private Higher Education Institution: Basis for Student’s Retention Strategy

Jesimiel Jake O. Garcia | Dickson P. Caringal

Discipline: Marketing

 

Abstract:

In the competitive landscape of higher education, particularly within private institutions, student retention has become a critical indicator of institutional success and sustainability. Private higher education institutions rely heavily on maintaining strong relationships with their students to ensure continued enrollment, student satisfaction, and overall institutional reputation. This study aims to explore the role of CRM practices and service differentiation strategies in private higher education as foundational components of a robust student retention strategy. Through examining existing practices and their impacts, this research seeks to provide actionable insights that private institutions can use to enhance student satisfaction and retention, ensuring that students feel valued, supported, and engaged in their academic journeys. The study utilized a structured modified questionnaire on a four-point Likert scale. Respondents were the enrolled students, in all program offerings, for the academic year 2024-2025 of a private higher education institution in Batangas province. The study found that respondents strongly agreed that the customer relationship management practices of higher education institutions are highly effective. Additionally, respondents have a high level of agreement with the service differentiation factors of the higher education institution. The study concluded that in terms of a significant relationship between customer relationship management and service differentiation, customer service emerges as the most critical determinant of student engagement, satisfaction, and retention, with facilities following closely behind. Quality of Instruction, while still a significant factor, shows a relatively lower influence on CRM practices when compared to these two elements, although it remains a key component of the overall student experience. Based on the results of the study, a student retention strategy was developed for the higher education institution.



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