A Guide to Market Research for Colleges and Universities

New academic programs yield innovation. They help institutions stay relevant and competitive. They enliven campus culture, offer fresh perspectives and expertise, and push beyond the limits of your current course catalog to include what learners want to know and what employers need.  

However, new programs are inherently risky. Even an online program requires additional investment in personnel and marketing and outreach resources, among other costs. If the program is unlikely  to produce enough revenue to cover those budgetary costs, it may not be sustainable.

That's why it’s crucial to have market research processes in place prior to seeking approval for new programs. And to help with that, we created Lightcast's 2024 Guide to Market Research , where we outline 3 key steps for developing programs that are aligned with market needs.

Three Steps to Higher Education Market Research for Developing New Programs

1) Conduct a Competitive Analysis with Degree Completion Data 

What are the strengths and weaknesses of degree completion data, and how can you use it to find opportunities or verify the feasibility of a program idea? 

2) Assess the Program Viability with Labor Market Data 

How can you use labor market data (both industry and occupation data) to further verify the viability, timeliness, and relevance of potential programs? 

3) Plan a Curriculum with Employer & Job Postings Data  

How can you use business and job postings data to construct programs that align with workforce needs and prospective students’ interests? 

Keep scrolling to read an excerpt from the Guide, download it for free, or watch this <10 minute tutorial where we walk through an example of market research using Lightcast’s Analyst platform. 

A Sample from the Guide: Competitive Analysis with Degree Completion Data 

Education Data 

The Integrated Postsecondary Education Data System (IPEDS) is one of the most useful data sources available to universities and colleges in the US when evaluating new program potential.  

Developed by the US Department of Education’s National Center for Education Statistics, IPEDS collects data from every college, university, and technical and vocational institution that  participates in federal student financial aid programs.  

IPEDS data is organized into a taxonomy called the Classification of Instructional Programs (CIP) system. The CIP system tracks and reports on fields of study and completions activity.  

This data has a variety of uses for market research, primarily in terms of assessing the competitor landscape. With it, you can: 

• View nearby, competitor, and online program completion data to determine if there is strong student demand for programs like the one you are considering.

• Identify competitor programs to research further, to determine how you can differentiate your institution’s program or fill a gap in regional offerings.

• Learn how you might adjust your program name and course offerings to capture student interest in particular areas of emphasis (e.g. Applied Economics vs. Economics, General)

Clearly, this information is valuable. However, because IPEDS is so comprehensive, it can be bewildering and difficult to navigate. CIP classifications do not necessarily match up with the exact names of majors, so even finding your own institution’s completers might be difficult. How can you make sense of it? 

One method is to try different levels of detail. If you can’t find what you’re looking for at a more detailed level, you’ll often be able to find it with a broader view—and vice versa. The CIP taxonomy is organized on three levels:  

1. The two-digit series: general groupings of related programs

2. The four-digit series: intermediate groupings of programs that have comparable content and objectives

3. The six-digit series: specific instructional programs

IPEDS can also tell you if a specific institution offers a similar program. You can compare prices, enrollment, financial aid, student success, and finances. You can even see if it offers an online option for that program (this is one way to estimate online program popularity).  

One way to assess how many students are graduating with online degrees in a certain discipline is to analyze completions data for majority-online universities (such as Southern New Hampshire University, Western Governors University, Capella University, etc.). By viewing these institutions’ degrees and completions, you can estimate interest, popularity, and need. 

How else can IPEDS data be used for market research? With this information, you can easily see whether or not your institution can compete with other programs in terms of tuition rates,  scholarship offerings, etc. For example, if the degree program you want to start is popular but the average price of the program is higher than your institution would charge, this could be a good opportunity for you to enter the market and provide a lower cost alternative. 

We hope this excerpt has been helpful! You can download the full guide below to keep reading, or reach out to a team member to learn how Lightcast data can help your institution with developing market-aligned programs. We'd love to talk!