How a University Revenue Strategy Balances Enrollment and Financial Sustainability

A strong university revenue strategy is essential for institutions navigating shifting enrollment trends, financial pressures, and increased competition.

Universities must find ways to grow while maintaining financial health, ensuring that their investments in marketing, recruitment, and student success lead to sustainable long-term revenue.

On this episode of The Higher Ed Marketer podcast, we sat down with Steven Rutt, Chief Revenue Officer at Abilene Christian University, to discuss how institutions can balance enrollment growth with financial sustainability.

He shared actionable insights on breaking free from the scarcity mindset, making data-driven decisions, and fostering collaboration across departments to create a sustainable university revenue strategy.

Why Higher Ed Needs a University Revenue Strategy

Many institutions operate with a scarcity mindset—a belief that because budgets are limited, risks should be minimized, and financial caution should override bold investments.

While financial prudence is important, this mindset can hinder long-term growth.

Steven Rutt has seen this firsthand.

As one of the few Chief Revenue Officers (CROs) in higher ed, he advocates for a growth mindset that encourages universities to think beyond cost-cutting and instead focus on strategic investments that drive enrollment and revenue.

“If you are given growth targets, you are not going to cut your way to growth in this industry for the next 10 years.” — Steven Rutt

Instead of reducing marketing spend or limiting program expansion, institutions should focus on smart financial planning and long-term investment strategies as part of their university revenue strategy.

Breaking Down Silos: The Key to a Successful University Revenue Strategy

A common major challenge in higher ed is the disconnect between finance, marketing, and enrollment teams. 

These departments often work in isolation, leading to misaligned strategies and missed opportunities.

Steven emphasizes the need for cross-department collaboration to create a university revenue strategy that benefits the entire institution.

Marketing’s Role in Financial Strategy

For a university revenue strategy to be effective, marketing teams must develop a deep understanding of financial constraints and ROI expectations. 

Too often, marketing operates in a silo, focused solely on lead generation, branding, and awareness campaigns without a clear view of how their efforts translate into financial sustainability. 

By working closely with finance teams, marketers can track key performance indicators (KPIs), justify budget allocations with data, and prioritize initiatives that drive the highest return on investment (ROI). 

This collaboration ensures that marketing dollars are spent efficiently and strategically, ultimately leading to more sustainable enrollment growth rather than short-term gains.

“If you’re not in constant communication with finance and enrollment, you’re missing significant insights.” — Steven Rutt

By aligning marketing efforts with financial realities, institutions can ensure that every dollar spent contributes directly to long-term enrollment success and institutional stability.

Finance Must Recognize Marketing as a Revenue Driver

A common misconception in higher education is that marketing is simply a cost center—an operational expense rather than an investment in revenue generation. 

However, universities that view marketing as an integral part of their financial strategy see greater success in enrollment growth. 

Finance teams must shift their perspective and recognize that strategic marketing efforts contribute directly to revenue by attracting, converting, and retaining students. 

This means treating marketing as a key stakeholder in financial discussions, ensuring they have the resources needed to execute data-driven campaigns that yield measurable enrollment outcomes.

“If you have an understanding of where the finance team is trying to manage things, you can start to put plans together in a way that bridges that gap a little more.” — Steven Rutt

When finance teams recognize marketing as a growth driver rather than a cost, institutions can develop more effective budgeting strategies that prioritize long-term revenue generation rather than short-term cost-cutting.

Enrollment, Finance, and Marketing Must Align on Recruitment Goals

For a university revenue strategy to be truly effective, enrollment teams must work hand-in-hand with marketing and finance. 

“If you don’t know your total acquisition spend versus total new enrollments, you’re flying blind.” — Steven Rutt

Enrollment professionals are on the front lines, interacting with prospective students, understanding their needs, and identifying barriers to enrollment. 

However, if their efforts are disconnected from marketing campaigns and financial planning, institutions risk misallocating resources or failing to meet recruitment goals. 

By fostering ongoing communication and shared accountability between these three departments, universities can align their outreach strategies with financial objectives, ensuring that every dollar spent supports institutional growth and sustainability.

Measuring ROI: The Right Data for a Strong University Revenue Strategy

One of the biggest mistakes universities make is failing to measure the right data when evaluating their university revenue strategy.

Without a clear understanding of key performance indicators, institutions risk making blind financial decisions that don’t support sustainable growth.

Instead of focusing on vanity metrics—such as website visits or social media engagement—Steven Rutt emphasizes the importance of tracking financially impactful data points that directly influence revenue and enrollment outcomes.

Steven suggests three key metrics that every institution should track:

1. Total acquisition spend – The total marketing and enrollment costs combined.
2. New student enrollment – The number of students acquired per dollar spent.
3. Lifetime student value – The projected revenue from a student throughout their academic journey.

By focusing on these three metrics, universities can optimize their marketing investments and predict long-term financial health.

Beyond these three core metrics, Steven also highlights the importance of benchmarking against peer institutions.

Universities that understand their cost-per-enrollment compared to similar schools can better position themselves in an increasingly competitive market.

If a school’s acquisition costs are significantly higher than its competitors, it may indicate inefficiencies in marketing strategy, recruitment efforts, or program positioning.

By conducting data-driven comparisons, institutions can identify areas for optimization and reallocation of resources, ensuring that marketing dollars are being spent effectively.

“You should be benchmarking your marketing and enrollment costs against other institutions. If you’re spending significantly more per student than your competitors, that’s a red flag. It means there are inefficiencies in your strategy that need to be addressed.” — Steven Rutt

Another critical factor in data-driven decision-making is the connection between marketing investments and student retention.

While many universities focus on front-end enrollment numbers, Steven encourages institutions to examine how well they retain students and maximize revenue over time.

If a university is spending heavily on acquisition but struggling with student persistence, it could signal a deeper issue—such as misalignment between marketing messaging and the actual student experience.

By integrating student satisfaction scores, Net Promoter Scores (NPS), and retention rates into their revenue strategy, universities can ensure they are attracting students who are the right fit and likely to persist through graduation.

Final Takeaways: A Roadmap for Sustainable Enrollment Growth

Steven Rutt’s insights provide a clear roadmap for universities seeking sustainable enrollment growth.

• Shift from a scarcity mindset to a growth mindset.
• Foster collaboration between finance, marketing, and enrollment teams.
• Measure the right ROI metrics to guide investment decisions.
• Differentiate between smart spending and unnecessary costs.
• Leverage AI and automation to optimize revenue strategy.

In today’s competitive landscape, universities can’t afford to cut their way to growth. 

Instead, they must invest wisely, track performance, and create a university revenue strategy that ensures long-term financial success.

🎧 Listen to the Full Episode

Want to hear Steven’s full insights? Tune in to Episode #197 of The Higher Ed Marketer podcast now!

Is Your Enrollment Strategy Driving Sustainable Growth?

A strong university revenue strategy starts with understanding what’s working—and what’s not—in your enrollment process.

At Caylor Solutions, we help institutions pinpoint inefficiencies, optimize enrollment strategies, and drive long-term financial sustainability with our Enrollment Assessment service.

What We Evaluate:

• Admissions workflows & recruitment strategies
• Communication tactics across all enrollment stages
• Prospective student engagement & conversion effectiveness
• Retention strategies and student satisfaction insights

The outcome? A detailed, data-driven report with specific, actionable recommendations to:

🚀 Boost enrollment numbers
📈 Improve student retention
🎯 Maximize the impact of your university revenue strategy

Your institution can’t afford to guess when it comes to enrollment. Let’s take the guesswork out of your strategy.

Schedule an Enrollment Assessment today!

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Featured image via acu.edu