Best Practices For Building A Dynamic Net Price Calculator

In the rapidly evolving landscape of higher education, institutions are continually seeking ways to enhance their engagement with prospective students while providing transparent financial information. A Net Price Calculator (NPC) plays a pivotal role in this endeavor. At Baseline Innovations, a CRM consulting company, we understand the intricacies of developing and implementing effective NPCs tailored for higher education Customer Relationship Management (CRM) systems. One of our most recent projects involved developing an NPC process that allowed for anonymous submissions with Asbury University, using a third-party service to host the calculator. If you are interested in learning more about this project, feel free to reach out to us. Otherwise, this article delves into the best practices for building a robust NPC and explores the benefits of utilizing one in-house versus through a third-party.

Introduction

The primary objective of a Net Price Calculator is to provide prospective students and their families with an estimate of the actual cost of attending a particular institution, factoring in financial aid. This tool helps in making informed decisions and enhances the transparency of the college admission process. As experts in CRM solutions, Baseline Innovations emphasizes the significance of integrating NPCs within higher education CRMs to streamline financial planning and improve student engagement.

Best Practices for Building a Net Price Calculator

1. Understand Institutional Needs and Objectives

Before embarking on the development of an NPC, it is crucial to understand the specific needs and objectives of the institution. This involves:

• Defining the Scope: Determine the scope of the NPC, including the types of financial aid (federal, state, institutional) to be included.
• Identifying Stakeholders: Engage key stakeholders, including financial aid officers, admissions staff, and IT personnel, to gather comprehensive requirements.

2. User-Centric Design

An effective NPC should be user-friendly and intuitive. The following considerations are vital:

• Simple Interface: Design a clean and simple interface that guides users through the input process without overwhelming them.
• Clear Instructions: Provide clear and concise instructions at each step to ensure users understand what information is required.
• Mobile Compatibility: Ensure the NPC is responsive and works seamlessly on various devices, including smartphones and tablets.

3. Accurate Data Integration

The accuracy of an NPC is paramount. To achieve this:

• Data Sources: Integrate data from reliable sources, including the institution’s financial aid office, state databases, and federal financial aid information.
• Regular Updates: Implement a mechanism for regular updates to ensure the NPC reflects current tuition rates, fees, and financial aid policies.
• Validation: Conduct rigorous validation of data inputs and outputs to maintain accuracy and reliability.

4. Customization and Personalization

Each institution has unique financial aid policies and cost structures. Therefore:

• Customizable Algorithms: Develop customizable algorithms that can be tailored to the institution’s specific financial aid formulas.
• Personalized Results: Allow users to input personal financial information to receive personalized cost estimates, enhancing the relevance and usefulness of the NPC.

5. Compliance with Regulatory Standards

Compliance with federal and state regulations is critical. Ensure that:

• Transparency: The NPC provides clear explanations of how estimates are calculated, including assumptions and limitations.
• Accessibility: The tool meets accessibility standards (e.g., WCAG 2.1) to ensure it is usable by individuals with disabilities.
• Security: Implement robust security measures to protect sensitive user data and comply with data protection regulations.

6. Integration with CRM Systems

Seamless integration with the institution’s CRM system is essential for maximizing the utility of the NPC. This includes:

• Data Synchronization: Ensure data entered into the NPC is automatically synchronized with the CRM to maintain up-to-date records.
• Workflow Integration: Integrate the NPC into the CRM’s workflow to trigger follow-up actions, such as personalized communication from admissions counselors.

7. User Testing and Feedback

Continuous improvement of the NPC relies on user feedback. To facilitate this:

• Beta Testing: Conduct beta testing with a diverse group of prospective students and families to identify potential issues and areas for improvement.
• Feedback Mechanism: Implement a feedback mechanism within the NPC to gather user insights and make iterative enhancements.

8. Comprehensive Support and Training

Providing support and training for both users and administrators is crucial:

• User Guides: Develop comprehensive user guides and FAQs to assist prospective students and their families in using the NPC.
• Administrator Training: Offer training sessions for institutional staff to ensure they can effectively manage and update the NPC.

Benefits and Drawbacks of Using a Net Price Calculator

In-House Development

Building and maintaining an NPC in-house offers several advantages:

1. Customization and Control

• Tailored Solutions: Institutions have complete control over the customization of the NPC to align with their specific financial aid policies and branding.
• Immediate Updates: Institutions can implement updates and changes swiftly without relying on external vendors.

2. Cost Efficiency

• Long-Term Savings: While the initial development cost may be higher, in-house solutions can lead to long-term savings by eliminating ongoing vendor fees.
• Resource Allocation: Institutions can allocate internal resources for development and maintenance, potentially reducing overall costs.

3. Data Security

• Enhanced Security: Managing the NPC in-house allows institutions to implement and monitor their security protocols, ensuring sensitive data is protected.
• Compliance Control: Institutions can directly oversee compliance with data protection regulations, reducing the risk of breaches.

Drawbacks of In-House Development

Despite the benefits, in-house development has some significant drawbacks:

1. Resource Intensive: Developing and maintaining an NPC in-house requires substantial investment in time, personnel, and technical resources.
2. Specialized Skills Required: Institutions need to have or hire specialized skills in financial modeling, software development, and cybersecurity.
3. Ongoing Maintenance: Regular updates and maintenance are necessary to keep the NPC accurate and compliant, which can strain institutional resources.

Third-Party Solutions

Opting for a third-party NPC provider also presents significant benefits:

1. Expertise and Experience

• Specialized Knowledge: Third-party providers bring specialized knowledge and experience in developing and maintaining NPCs, ensuring high-quality solutions.
• Best Practices: Providers are well-versed in industry best practices and regulatory requirements, reducing the likelihood of compliance issues.

2. Time Efficiency

• Quick Implementation: Third-party solutions can often be implemented more quickly than developing an NPC in-house, accelerating the availability of the tool to prospective students.
• Ongoing Support: Providers offer ongoing support and maintenance, ensuring the NPC remains functional and up-to-date without burdening institutional staff.

3. Scalability

• Adaptability: Third-party NPCs are designed to be scalable, accommodating the needs of institutions of varying sizes and complexities.
• Resource Optimization: Institutions can focus their internal resources on other strategic initiatives while leveraging the expertise of the third-party provider.

Drawbacks of Third-Party Solutions

However, there are also drawbacks to consider:

1. Less Customization: Third-party solutions may offer less flexibility for customization, potentially limiting the alignment with specific institutional needs.
2. Ongoing Costs: Institutions must budget for ongoing subscription or service fees, which can add up over time.
3. Dependency on Provider: Relying on an external vendor means institutions are dependent on the provider for updates, maintenance, and support, which can be a risk if the vendor’s performance or service levels decline.

Conclusion

In conclusion, developing an effective Net Price Calculator is a critical component of a comprehensive higher education CRM strategy. By adhering to best practices, institutions can create user-friendly, accurate, and compliant NPCs that enhance transparency and support prospective students in making informed financial decisions. Whether opting for in-house development or leveraging third-party solutions, the benefits of implementing an NPC are substantial, but it is also important to consider the potential drawbacks. At Baseline Innovations, we are committed to guiding institutions through this process, ensuring they achieve their goals of improved student engagement and financial clarity. We are also committed to helping institutions implement their own NPCs or integrations to third-party solutions to gain a competitive edge in the marketplace.