Article

Synergy unleashed: securing strong vendor relationships for your clients

May 15, 2024

As you prepare for client renewals, you may be opening your considerations to new vendors for your client partners. Brokers play a crucial role in ensuring the dependability and appropriateness of a vendor partner for your clients. A collaborative experience during the RFP process can establish a strong foundation of partnership between broker, vendor and client. The following are some considerations and approaches you may want to consider as you navigate the vendor market and work to set the stage for a long-lasting successful partnership:

1. Adhere to a process

Remain diligent in your adherence to your organization’s established vendor vetting and due diligence processes. Validate the vendor’s organizational background, credentials and even consider performing an onsite visit to gain comfortability with the vendor partner.

2. Research

Have stand-alone conference calls and meetings with the prospective vendor prior to introducing them to the client. This is a great opportunity to vet the vendor. Validate that the contacts are established within the industry through LinkedIn and confirm their industry memberships.

3. Consider the vendor a business partner

As you vet a potential new vendor, treat them as you would treat a valued business partner. Your vendor recommendations will ultimately reflect upon you. A successful business partnership and demonstrated ability to work collaboratively with the vendor will bring tremendous long-term value to your client partner.

4. One size does not fit all

Be wary of isolating yourself to a single preferred vendor. Your clients may differ in their needs and preferences. For example, some clients may prefer the most forward-looking technology while others place a much higher value on the level of service that they receive from their account team. Matching client preferences with the best vendor to suit them will ensure that the relationship will be a successful one. A fresh partnership can lead to new successful relationships that set you apart from your competition.

5. Seek references

Request that the vendor provide references of similar size and industry to the client you are looking to match them with. Have conversations with those references to validate that the service provided will meet expectations and what’s been promised.

6. Consider all payment and pricing options

Widening your understanding of the payment and pricing arrangements available in the market will give you more leverage in negotiating terms that will be suitable to your clients. Be aware of how your client size, attrition or growth, turnover rates, employee demographics and preferred employee communication strategies may impact the scope of the work being performed and priced.

7. Be aware

As the saying goes, if it looks too good to be true… it probably is! Seek out value for fees and vendors that can align the value with the appropriate pricing strategy. Seeking out bottom barrel pricing may offset some expectations of serviceability for your client partner. Make sure that the pricing aligns with the value you seek to provide to your client partner. Articulate how the pricing can improve a program’s operations, efficiency and employee engagement.

8. Make the connection

Finally, and most importantly, effectively bridge the vendor with the client partner that you’re seeking to align them with. Observe their interaction and the client’s comfortability with those that will be associated with their account. Consider if the vendor can respond adequately to spontaneous discussion points and build the relationship through more informal exchanges.

Successful vendor relationships are built on mutual understanding, ability to collaborate and problem-solve and a clear understanding of your client’s needs and expectations. You play a critical role that is valued by both your clients and vendor partners.