Often, once a sale is made, or client signed on, that
customer's performance becomes less important in the
eyes of the service provider. They are on to their next
prospect and reviewing the performance of future clients.
However, reviewing current client performance should
remain an important part of the ongoing evaluation of
your products and services. That evaluation will allow
you to promote yourself more successfully to future
clients and identify growth areas within your current
Credit unions, when performing due diligence on a potential
vendor relationship, will want to know the success rate
of their current customers. If a credit union is thorough,
and thorough clients are more likely to be return customers,
they will want to know more than just the performance
directly related to your product or service. Areas of
financial performance that are seemingly unrelated to
your specific service focus are still relevant.
If you offer an investment product, the most important
areas of financial performance will be yield on average
investment and general earning measures like return
on average assets. However, you should highlight other
areas of your clients' performance. What are their average
balances, how many accounts per member does your client
service and what are your clients' efficiency ratios?
These questions, while not necessarily directly related
to your service offering, identify overall management
success of your client. If nothing else, that a well-managed
credit union sees value in your offering will make your
company more desirable to another credit union.
Perhaps more importantly, evaluating your current clients'
performance will allow you to recognize growth potential
within your current clients. It's always easier to expand
a current relationship than to initiate a new one.
For instance, if I was a check printer, I would want
to know the collective performance of my clients to
promote successes to potential clients, but I would
also like to know individual performance to nurture
a relationship that has unmet potential. In 2002 average
share draft account growth was 5% and average share
draft penetration (number of share draft accounts divided
by the number of members) was 40%. If my clients are
out performing these averages, I want to be sure to
let potential clients know that I am aiding their success.
But within my group of clients, I really want to know
which credit unions are not meeting these expectations.
If one of my clients had no share draft growth, and
share draft penetration around 25%, how can I as a vendor
help them promote their share drafts to their members?
What can I learn from the business strategies of some
of my more successful clients to pass along to those
that are less successful? Being in a position to help
that credit union grow their share draft business is
easier than signing on a client that already has a successful
program. Furthermore, successfully improving that credit
union's business then becomes another success story
to add to your promotional arsenal.