Most credit unions outsource the creation and delivery of their member communications. Evaluating and selecting a new vendor is often a slippery slope that leads to unexpected results and possible long term constraints and consequences. This is only natural in light of two key situational factors. First, credit unions do not change their statement and notice vendors very often. Secondly, on the surface, most vendors appear to be offering identical products and services.
For example, consider statements, letters, and notices. These are often the most frequent direct touch point that a credit union has with members. In today’s world, more and more credit unions are delivering these documents electronically. Methods such as mail, email, text, mobile banking access and direct ePresentment sites must all work hand-in-hand in order to meet the many different ways that members now expect to be communicated with. This broad spectrum of deliverable methods has transformed a vendor selection process from one that was once a simple price focused choice into a complicated review that requires a deep dive into each potential vendors business.
What typically happens when credit unions sit down to finally select a new vendor? Well many times the credit union has a difficult time clearly defining distinctions. This often results in making a selection that is based on one of three flawed selection methods: 1) The coin flip method 2) The price method or 3) The relationship method.