Alan Hallett JP, M.Ed., B.Ed (Hons)

English Oak Recruitment

 

 

 

TRUST AND LOYALTY IN THE MARKET PLACE: A PRACTICAL BUSINESS ANALYSIS

 

 

SUMMARY

 

In our modern world, the words ‘business’ and ‘agent’ often have negative connotations, with the inference that a financial mercenary is exploiting gullible and naive customers for significant personal gain. This paper attempts to provide a more considered appreciation of the role of the agent in higher education and explores the complex relationships inherent in the role.

 

 

1.      Introduction

 

I should state, from the outset, that I am not an academic and this is not intended to be an academic paper, in the accepted sense. Rather, this is a practical analysis of how marketing and customer loyalty affect my business.

English Oak Recruitment was established last year, with the aim of recruiting continuing students from Central European colleges and universities to study in one of four English universities, primarily for a one year ‘top-up’ honours degree. I am currently seeking to recruit students from 22 institutions in Poland, Slovakia, Lithuania and Latvia to study at the universities of Derby, Salford, Huddersfield and Central Lancashire.

The development of an individual relationship with 26 different institutions is both very demanding and very rewarding for me. It is not enough for my company to respond to their enquiries and concerns: what they need and appreciate is a personal response from me, indicating my personal involvement in their matters of concern. However, that does not fully reflect the complexity of my relationship with them. My position in relation to the partner institutions is shown in Fig.1.

 

 

Fig. 1  The Role of The Agent

 

 

 

2.       Understanding The Relational Construct

 

I am the conduit, the pipeline, the interpreter of ideas, the messenger, the enabler, the advisor, the guide. I provide information, advice, support, inside knowledge, interpretation.

Most of these ‘roles’ are not fixed and substantive: they are subjective, theoretical and cannot necessarily be quantified or proved in a physical way. What is of primary importance, therefore, is that the institutions and students I meet should feel able to trust me implicitly.

Perhaps it is a little easier for students : I dress like an academic, the meeting is scheduled, I am introduced by a member of staff, I use academic facilities and I make a presentation in the manner of an academic.

The relationship with academic staff and institutions is not as difficult as it might at first seem: I have been working with most of these Central European institutions for some time whilst doing similar work on behalf of a specific university. All I have asked is that institutions should switch their allegiance from an institution represented by me, to me personally. This is a matter of trust and a well developed and stable working relationship.

 

The situation in England was somewhat different because I was working with three institutions that knew nothing about me. What are the critical requirements for the development of a positive relationship in this context?

 

1.             Desire. Universities in England are keen to recruit overseas students: they like the work ethic of overseas students, they certainly like the increased income and the students recruited help to establish or develop courses, departments etc.

2.             Reputation. My earlier work in a university had led to some articles being printed in newsletters and journals. The printed word is a powerful persuader!

3.             Knowledge. Until recently most English universities have been entirely ignorant of the opportunities for recruitment overseas

4.             Understanding. When institutions understand the full potential for overseas study they are invariably interested in developing the idea

5.             Transparency and Honesty. To some extent, the knowledge and understanding is reaching the institutions ‘second hand’ so they must be able to trust the provider of that information implicitly

6.             Professional and Businesslike Approach. Higher education is a business. We may not like to think of it in those terms, but ultimately, success or failure is determined by recruitment, which really means income. The management of procedures must therefore be seen to be ‘professional and businesslike.’

7.             Efficiency. To be professional and businesslike, we must be efficient : we must make best use of resources, be quick to respond to issues and show we are in control of events.

 

Most of these elements cannot be ‘sold’ or marketed effectively, without practical evidence. In other words, these skills become evident within the context of a developing relationship. So, having established working relationships with both English and Central European institutions, what are the expectations? I anticipate a recruitment pattern of this nature:

 

Fig. 2 Recruitment Potential

In general terms, institutions on both sides might, initially, have rather low expectations of initial recruitment and are therefore pleasantly surprised by the rapidly increasing take-up. If this graph is a relatively accurate indication of student recruitment then a number of ‘critical’ points immediately become apparent.

 

 

Fig. 3 Stress Points In The Recruitment Profile

 

 

3.      Pressure Points

 

 

We have already discussed Point 1. Point 2 represents that period when there is a perceived increase in the number of students applying. At this juncture the increasing number of students results in a number of issues assuming greater importance:

 

For me

 

 

For English Universities

 

 

For Universities and Colleges in Central Europe

 

 

At Point 3, the main concern might well be the management of numbers: how can we maintain the quality of provision with a large quantity of students? To what extent is quality linked directly with individualised and personal care?

 

Points 4 + 5. It is anticipated that demand will reduce somewhat before settling at a more moderate level. The idea of overseas study will seem less challenging and innovative as more students take part in the scheme and more choices become available to them. This is, perhaps, a crucial moment in the triangular relationship between English universities, the agent and the participating colleges and universities in Central Europe. The strength of the bond must be recognised as being of rather more importance than the mere number of students recruited, because that strength provides significant advantages to all concerned.

Another important factor, which needs to be considered, is student achievement. English universities are generally impressed by the commitment and work ethic of Central European students. Students obtain creditable results and return home satisfied, but English universities can, on occasion, lose sight of the fact that the students are working in their second language in an educational system that works on very different principles to that in their own country. Thus, whilst student results show a steady improvement as each new cohort learns from the experience of its predecessors, so academic staff might anticipate a more obvious rate of improvement, given their students’ approach to their studies and commitment to work.

 

 

 

Fig. 4 Achievement Profile

 

 

Once again, this is an occasion where the intermediary, or agent, might use his knowledge of the source country to ensure a just appreciation of student achievement. There is, of course, an alternative means of achieving this state of equilibrium : the development of meaningful academic contacts which might help to develop better mutual understanding. In my view, the initial development of a relationship between institutions, the maintenance of trust and the nurturing of a confident approach by prospective students should be the responsibility of the consultant/agent.

I am a strong believer in the concept of ‘diseconomies of scale.’ By that I mean that as a company gets larger it loses the ‘personal touch’ and finds it increasingly difficult to maintain close contact with its customers or its workforce. It might, with effort, strive for efficiency but this will almost always be at the cost of its humanity. In other words, a small company is better equipped to develop a closer relationship with its customers and hence inspire market loyalty. How does this manifest itself in practical terms?

 

 

Fig. 5 Growth of Market Loyalty

 

 

 

 

 

4. Trust and Loyalty

 

As was mentioned at the very beginning of this paper, the agent is a conduit, enabling the efficient flow of information between two significant organisations:

 

Fig. 6 Knowlwedge Transfer

 

 

If we accept that a small company/agent is in an advantageous position regarding marketing loyalty, how might that be developed effectively?

 

1.             Personal, efficient service

2.             Direct contact

3.             Professional approach

4.             Individualised response

5.             Personal relationships

6.             Recognisable brand name/logo/product

7.             Speed of response

8.             Flexibility

9.             Marketing approach in touch with real and immediate needs of the customer

10.         Specialist knowledge

 

However, as an agent, I am only ever the intermediary or ‘middle man.’ I cannot dictate the quality of teaching or the conditions the students live in. Thus there has to be a reverse loyalty :

 

I must trust the English universities to:

1.             Provide an appropriate standard of education

2.             Provide good accommodation

3.             Recognise the needs of overseas students

4.             Teach in accordance with the programme specifications

5.             Maintain appropriate contact with the source institutions

 

I must trust the source universities to:

1.             Encourage suitably qualified students to apply

2.             Accurately transmit relevant information regarding the opportunities available to students

3.             Provide me with accurate and relevant information about their institution

4.             Provide appropriate counselling and support to students studying in England

 

You may have noticed that I have been fairly relaxed about using the words ‘trust’ and ‘loyalty’ in similar ways in this paper: that has been deliberate, for although the dictionary definitions of these words indicate a significant difference in meaning, within the context of this situation they are closely related. In my view the development of trust is critically important in the nurturing of loyalty. This is not necessarily the case in all areas of business: the development of discount stores, for instance, has not relied on ‘trust’ in order to create loyalty, but almost entirely on price. However, in the field of education, where product quality and customer satisfaction are primary considerations, trust and loyalty are of much greater importance.

 

 

 

 

4.      Conclusion

 

The success of this business depends on a complex network of relationships and loyalties, where trust is of critical importance. In one sense this is no different to any other business : the customer must believe that he is purchasing a good product at a reasonable price from what he would hope is a reputable supplier. The difference is that I am not marketing or selling my own product: I am, quite literally, an agent, encouraging students to partake of a product that I have not, myself, experienced. Similarly, I do not have unfettered access to my own marketplace, since students can only participate if sanctioned by their own institution. The rapid increase in the number of students recruited and the concomitant expansion of my company would seem to indicate that the development of a symbiotic relationship between trust and loyalty, together with a vibrant market, is at the core of success.