Good customer service goes both ways- internally and externally.  If your employees are happy, they will work harder to make sure the customers are satisfied.

A good image in the community will go a long way in making the institution more appealing to prospective students.  If they see the community interacting with the institution and vice versa, it will create a positive image and draw the student to want to be involved.

Finding the right balance between making sure the customer is satisfied and protecting the company's best interests can be difficult.  Every company wants to make sure their customers are satisfied, but they also need to know when to stop catering to a customer who will never be satisfied.