Keeping Tabs on Your Clients

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 customers.

 
 

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 customers.

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.

 

 

 

May 26, 2003


Comments

 
 
 

No comments have been posted yet. Be the first one.