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Relationship marketing has emerged as a dominant paradigm with consequences for marketing and management of a relationship-type marketing strategy. A number of researchers have advocated a move towards relationship marketing in the corporate world but application of relationship marketing strategies towards educational services has received little attention. This paper is an attempt to addresses the gap. The relevance of relationship marketing paradigm to student recruitment and retention in distance learning programs is described. Theory of student retention and the relationship marketing paradigm reinforce similar strategies to promote student retention and are complimentary to each other. A comparison of the roles and responsibilities of the marketing and non-marketing staff in implementing the relationship marketing strategy is discussed. Also included is a brief discussion of Service Center , an online application developed by the academic outreach staff of University of Illinois at Urbana-Champaign, and the service management strategies by departments of three online graduate degree programs to build long-term relationship with the student and other collaborating partners. Changing Landscape of Higher Education Higher education in general and distance education in particular are going through a number of changes as a result of advancements in computer technology and changes in the student profile. Internet has created a new level of competition with the entry of for-profit dot.com companies who pose a credible challenge to the traditional educational institutions especially in the online programs. At the same time, enrollment in higher education is expected to grow at 16% over the next decade (Jones, 2003 ) with an increasing enrollment in online programs (Allen & Seaman, 2004). Educational institutions are responding to the changes by offering online versions of a number of traditional campus-based programs and in some cases creating a virtual campus (Howell et al, 2003). Institutions are also collaborating to offer joint degree programs. For example: Cornell Hotel School, eCornell and The Culinary Institute of America have combined to produce a series of self-guided interactive online courses using multimedia technology and are targeted for restaurant professionals to develop managerial skills. New School University and Open University in Britain are jointly offering courses leading to a Certificate in Management.
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