Last month, we received numerous RFPs for new credit union websites.
They came from credit unions ranging from $150 million to $1.2 billion in assets. But all they were really looking for at the time was simply a quote. As I’ve noted in the past, I have never been a fan of RFPs. That’s because many RFPs are nothing more than a laundry list of self-diagnosed tactical features that most likely have not been vetted in any real world setting.
When asking for the amount budget for their upcoming website project, I have received following responses:
“We have $15,000 for this project.”
“We are still working on [a budget].”
“We have $35,000.”
“We budgeted $25,000.”
“We’re not sure yet.”
“I am hoping your RFP can help us figure this out.”
To be fair, they would most likely get a beautiful responsive driven website for $25,000. But in reality, what they really end up with is just an updated version of a glorified online brochure.
So How Much Should Your Website Cost?
Before I directly answer this question, let’s consider the impact your website has now and will continue to have in the coming years. Let’s also consider how the role of your website will continue to change.
As branch traffic will continue to decline, where will you sell your financial products and services? How will you open accounts, fund loans and grow share of wallet?
Your website will be your number one sells channel.
And I am willing to bet that your website gets more traffic than all of your physical branches combined.
During a recent Digital Marketing Blueprint engagement, we uncovered that one credit union’s website traffic outnumbered their branch traffic by a ratio of 8:1. Put another way, eight people visited the website for everyone one person who visited one of their four branch locations.
But up to this point, your website has mostly been neglected. It is still just a glorified online brochure reserved for marketing to manage.
And for a channel that will have such a big impact on your bottom line, I believe you should invest accordingly.
Let’s acknowledge the fact that you invest on average $1,000,000 to $2,000,000 to build a physical branch. And then it costs a least another $250,000 to $500,000 a year to staff and operate that branch.
I challenge you to consider making that same kind of investment in the branch of the future: your website.
Because what would you get if you spent $25,000 to build a physical branch?