Technology vendors: stop the hard-sell.
That's one message delivered by a number of information technology (IT) managers, who told The Credit Union Journal what third-party providers could do to improve service to credit unions.
"I know of no business, including credit unions, that appreciates hard-core sales techniques," said Steve Mooney, assistant vice president, information services, operations and telecommunications, at $1.4-billion Tinker Federal Credit Union here.
The 'End-Run' Gambit
One such sales technique is the "end-run," in which vendors pitch a product to those who may not know better: senior management, said Mooney.
"Some try to bypass the IS (information systems) department completely," he explained. "At some point, that will get back to IS and will only serve to create tension and short-term engagements."
Too often, application service providers forget to properly develop a product in their rush to sell it, continued Susan Phillips, chief information officer at $241-million People First FCU in Allentown, Penn.
"Vendors often mislead credit unions as to the capabilities of their software, or sell software that is not fully functional," Phillips said. "They need to take the time to understand the functionality required by their clients."
In fact, many sales executives virtually abandon credit unions after making the sale, asserted Rudy Pereira, senior vice president, operations and technology, at $4.4-billion Alliant CU in Chicago.
"I can count just a few vendors whose sales executive stayed actively involved in the account after the sale, and when they have, we have had very good success," said Pereira.
Sales executives can help make sure that items negotiated for in the contract are actually implemented later as they become available, he said.
"I'd like to see more follow-through from vendors in meeting our strategic initiatives," agreed Becky Banta Summers, vice president, marketing, at $1.6-billion Teachers CU in South Bend, Ind.
If a solution goes awry after the sale, vendors can be hard to reach, Mooney added.
"Vendors tend to hide when there is an issue or problem," he said.
Vendors are afraid that credit unions will think they are incompetent if they can't provide instant answers, Mooney went on to explain.
Instead, collaboration is key, he said. "Let us know that you don't know and allow us to participate in the resolution."
Sales and follow-up aren't the only problems credit unions are having with vendors: Butch Leonardson, vice president, IT, at $7-billion BECU in Seattle, is weary of application service providers that try to be everything to everyone.
"A credit union of our size is not interested in monolithic providers that try to be one- stop shops," Leonardson said. "Typically, these companies have a bunch of disparate mediocrity jumbled together, and the brochure is the only place they are 'seamlessly integrated.'"
Leonardson suggested that companies create parameter-driven products, or tools that allow credit unions to adapt to their respective markets, rather than producing specific features or functions.
In addition, vendors should push credit unions to take the reins in technology projects, said Leonardson.
CUs' Responsibility
"Credit unions are responsible for the implementation," said Leonardson. "Weak leadership from the credit union will cause the provider to be blamed when things get rough."
In turn, credit unions that show strong leadership and technical skills should be acknowledged, added Mooney.
Instead, vendors often go forth with the attitude that credit unions know little about technology, he said.
Vendor engineers should listen to the recommendations made by credit union engineers, said Mooney. "We have some highly skilled engineers working for us."
CUJ Resources
For info on this story:
* www.alliantcreditunion.com
* www.becu.org
* www.peoplefirstcu.org
* www.tcunet.com
