Four Letters. Infinite Potential.
Vendor Performance: The Metric You Can’t Afford to Overlook

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.

  • Discovering problematic areas that previously went unnoticed — Catching red flags early gives you time to course-correct while the issue is relatively small.

  • Reduced expenses — Contract fees and terms can inch up over time without an attentive eye keeping watch and willingness to enter renegotiations.

  • More opportunities — Exploring other vendors and their offers could lead to better products and services for your institution and your account holders.

Contingency-Based Fees Help Measure Success

When it comes to choosing vendors and getting measurable results, there’s no clearer way to measure success and make sure you’re getting the best deal than to work with companies with contingency fees based on performance.

Similar to real estate agents whose fees are based on how much they sell your home for, vendors who offer contingency fees are confident in their abilities and willing to demonstrate their vested interest in your continued success. It’s like getting built-in insurance that you’ll see results before you’ll see a bill. Plus, rather than just a service provider, you gain a trusted partner that’s working hard to provide the best service and results—because their success is tied directly to yours.

Companies with contingency-based pricing also typically have performance metrics and KPIs established, since that’s how they determine their pricing. This makes it incredibly easy for both parties to spot successes, as well as set new goals to aim for. It also means that, rather than you chasing after another vendor, they will be taking the lead to provide a summary of their results once a project is completed or a contract is up for renewal.

Walking the Walk

At the end of the day, vendor results matter. And if your current vendor can’t provide you with the measurable results in the areas that matter the most, it may be time to find one that can. And as you search, keep in mind the measurable benefits that are inherent in performance-based pricing.



JMFA is one of the most trusted names in the industry. Whether it’s recovering lost revenue, uncovering new savings with vendor contract negotiations, creating more value, serving account holders better or delivering a 100% compliant overdraft service—JMFA can help you deliver measurable results with proven solutions. To learn more, please contact your local representative or call us at (800) 809-2307.


account holder account holder retention account holder strategies account holder strategies; growth strategies; account holders Advice Analytics announcement ATMs attracting talent Automation B2B Bank Bank of Pacific banking services banks batching Benefit best practices board governance board member board of directors bottom line branch equipment branch profitability branding Bryan Hanks budget business culture business environment business practices business processes business strategies career advice Case Study CEO onboarding CFPB change Charles Shanley Cher Cheryl Lawson Choose Chris Karstens Cloud Communication communications Competitive Compliance compliance examinations compliance risks compliant Consistent Consumer Consumer FInancial Protection Bureau consumer protection Consumers contract negotiations Contract Optimizer Contract Renegotiations contract review contract staffing Contracts core processor contracts Cornerstone Credit Union League corporate culture corporate governance CPE credits credit card contracts credit cards Credit Union credit unions Crissandra Fry CSS culture customer service cyber security Darin Byrd Data debit card contracts Decisions digital directors economy Education efficiency studies election employee employee retention employees EMV migration evaluation Evolve executive search Expectations expense management expense reduction expense studies expenses Federal Reserve Board fees financial services financial stability FinTech Floyd's Forum full disclosure Generating Income generating leads generation governance government hiring HR HR Consulting HR policies human capital human resources improved efficiencies improved results income income enhancement Innovate Innovative interview strategies interview tips IT contracts Jan Southern Jennifer Peoples Jim Griffis JMFA Academy JMFA clients JMFA News job search John M. Floyd Keith Hughey Kelly Flynn Kim Kreps leaders leadership Learning lending program Lesson Linda Meyer Literacy litigation loans Maintenance management Mark Roe marketing measurable Members Midwest Region Millennial Millennials Missouri Mobile Banking NAFCU NCUA negotiating contracts Net Operating Analysis NOA Non-Interest Income Oliver Ireland onboarding Organizational Health outsourcing Overdraft overdraft compliance overdraft coverage overdraft fees overdraft practices Overdraft Privilege overdraft program Overdraft programs overdraft protection programs overdraft service overdraft services overdraft strategy overdrafts Paul McFarland payday loans Pennsylvania performance performance improvement personnel planning Press Release Privilege Manager CRM proactive procedure process process improvement product profitability Profitability Improvement Program project staffing Quality Recruiting Recruitment Services recruitment strategies