Choosing the right software vendor is an important decision for any bank. You are looking for the one, so it's time to be picky. Not only do you need to be sure that the software meets your needs and provides a good return on investment, but you also need to make sure that the vendor is a good fit for your long-term support and product needs. Let’s explore the different factors you should consider when evaluating a software vendor before signing a contract.

Understand Your Needs

Before you even begin researching vendors, it’s important to have a clear understanding of what you need out of your software and why. Do you want a banking CRM for referrals and customer management only? Do you need a workflow tool for lending officers? Does your Marketing department want to utilize the CRM as part of their strategy?

Make sure you know exactly what features and functions are most important to your business. Think about how those features will be used in both the short-term and long-term. Once you know what your specific needs are, it will be much easier to find a vendor that can provide what you need now with options for what you might need in the future.

Analyze Their Culture

Once you've identified potential vendors, it's time to start doing some research. Pay attention to what they say about themselves and also what others say about them. Testimonials are a good starting place, but nothing beats talking to a current client. Ask for references early in the process. This will give you a good indication of how reliable their products are as well as how well they support their customers over time.

Once you've narrowed the field to solid vendors, you have to find the right fit for you. You need to click on many levels, such as formality, flexibility, communication styles, and other expectations.

• Are you a suit and tie operation looking for a sleek, polished, automated onboarding experience or are you more laidback and relational and want to work with real people?

• Will the vendor move at your pace – whether breakneck or more measured. Can they flex with you or do they expect you to fit their timeline?

• Is it a plug and play solution, a toolbox you will need full time admins to support, or an out of the box solution with high value configuration options? None of these are right or wrong. It's what's right for you.

• Do you have access to the vendor’s management team? Are the employees accessible and available?

CRM doesn’t have to be as huge of a project as you might fear, but it’s not small. As you’ll be investing time to adopt a new CRM, making sure you trust the vendor and they are the right fit for you should be as important as the features they offer.

Any vendor will sell you their product. You want to partner with a vendor that will be with you long after the ink is dry.

Evaluate Their Prices & Contracts

When evaluating different vendors, make sure to look at more than just the upfront cost of their product or service. You'll also want to evaluate any additional fees associated with using their product or service (such as maintenance fees or additional training). Most vendors are willing to negotiate with you in some areas. Consider a longer contract term for more favorable pricing.

If you know that your enhancement or support needs might be high, consider adding a pre-paid support or product development addendum. Additionally, take some time to review the contract carefully so that you understand all your rights and obligations clearly before signing anything.

Conclusion

Evaluating a software vendor is an essential step in ensuring that your bank or credit union gets the best possible deal while still getting access to top-notch technology solutions. By understanding your needs beforehand, analyzing each vendor's culture, and carefully reviewing pricing structures and contracts, you can be confident that you're making an informed decision that will benefit your business in both the short-term and long-term. With these tips in mind, you'll know when you've found the one.