Aim: To investigate how the University of Gävle conducts relationship with graduate students and retains graduate students and creates loyalty. This study explores the importance of relationship marketing theories that intends to be applied in higher education through alumni programs and services. University of Gävle and Stockholm University will be compared in benchmarking to determine in what ways the alumni offices create relationships to retain and create loyalty to alumni students.  Method: A qualitative research was conducted on the University of Gävle and Stockholm University in Sweden for this study, which included interviews with the relation officers on this subject. Result & Conclusions: It was evident that the University of Gävle alumni actually exist as titles, and there is no certain relationship strategy, however, only they are NOT actively operational. The study identified that the University of Gävle was not using a certain strategy to create lasting relationship, loyalty and increase prospective students. The study revealed the importance of relationship marketing strategy to effectively administrate the progress in establishing relationship with the alumni, to increase the prospective international students, to keep a regular track and communications with alumni. Suggestions for future research: This study focused on two universities, further research could be conducted to examine the relationship marketing with alumni students and investigate students’ relationship with university in other countries and institutions.