Vendor Performance: The metric you can’t afford to overlook

With some service providers, it’s easy to measure success. They perform a one-time job and collect an agreed-upon fee when the problem is solved, or the project is complete. But for third-party vendors that provide an ongoing service, it can be more difficult to measure success.

Staff members get busy. They have important tasks to finish. They forget to monitor benchmarks and key performance indicators (KPIs)—if any were established in the first place. “Good enough” becomes not just acceptable but the standard. And the service continues virtually unchecked.

However, evaluating vendor performance on an ongoing basis is essential for your institution. Monitoring and measuring success frequently can lead to many valuable benefits, including:

• Improvements in services received — It’s the classic case of the squeaky wheel getting the grease. Checking in with your vendors keeps them accountable and on their toes.
• Higher account holder satisfaction — A vendor delivering on its promise successfully helps in delivering an effortless experience to your account holders.

 

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