For several years now, our family has patronized a UPS store just a few blocks from our house. With two kids in college, we’ve spent hundreds of dollars annually using the services of this store. The franchise recently was taken over by a new owner, and almost immediately, we began to notice subtle changes. Less of a friendly feel among employees (including the owner), but also more “tack-on” charges for every little request. A few weeks ago, I was charged a $2 “handling fee” in order for them to tape the label on my package. That was the last straw. We now visit another UPS store an additional two miles away. More cost in terms of inconvenience, but also more value.

I share this story because I believe it demonstrates one of the fundamental principles of marketing: when it comes to the customer service equation, value must be significantly greater than cost. When value decreases to the point of even approaching cost, the consumer begins to consider switching products or providers. And here’s the other interesting aspect of the equation: value is a perceived commodity! It’s an abstract emotion that often is determined more by how we feel about the goods and services we receive than what we actually experience.

This perceived value equation directly affects those of us working in higher education. I can think of many ways this phenomenon can affect our campus communities, but perhaps in no way more directly than retention. You may be providing your students a quality education, but a lack of social activities on your campus may leave them looking for another alma mater. Like the proverbial bad apple in the bottom of the barrel, one bad professor can infect any number of students like a virus and send them packing.

So how do we ensure we’re providing our “customers” with lots of perceived as well as real value? Consider High Point University in North Carolina. They offer music in the cafeteria. An ice cream truck that dispenses free frozen treats. And on their birthdays, each student receives a card from the university, personally signed by the president, with a Starbucks gift card tucked inside. The university even has a Director of WOW! whose job it is to identify new ways to make students feel loved and appreciated.

Superficial, you say? Yes, but consider that during the past three years, enrollment at High Point has tripled while the cost of tuition has increased. And during this same period, the university has built a dozen new buildings with a half dozen more under construction, thanks in large part to $100 million in donated funds. Do students value the education they’re getting at High Point University? I’ll bet they do.

Which leads to this question: what value would the students at your institution place on the education they believe they are receiving? And what can you do to boost that perception?