The Importance of Vendor Appreciation

During this season of Thanksgiving and gratitude, it's good to remember the power of appreciation. While we typically show gratitude to family, friends, and neighbors, let's not overlook the significance of expressing thanks to our vendors. Building a culture of gratitude can foster positive and meaningful relationships that ultimately benefit both organizations in the long run.

Let’s consider the scenario that your organization is developing a new product and your vendor plays a vital role in its delivery. A positive vendor relationship built on respect, trust, and appreciation can ensure your vendor understands your goals and is committed to helping you achieve them. A vendor with whom you have a neutral and purely transactional relationship may not be motivated to go above and beyond for your organization. 

Let's discuss practical ways to show gratitude to your vendors and tips for building positive relationships with them.

5 Ways to Show Gratitude to Your Vendors 

Expressing gratitude to your vendors can foster open communication and nurture a mutually beneficial relationship. Vendors who feel appreciated are more likely to promptly address any issues and are committed to assisting you in finding and implementing solutions. 

Here are five ways to show thankfulness to your vendors: 

• Say it – Sometimes, all it takes is simply expressing your gratitude to your vendor on a regular basis. In fast-paced business environments, many professionals unfortunately forget basic etiquette and fail to deliver a genuine “thank you” in transactions. It can be beneficial to specifically mention reasons for your appreciation if the vendor surpasses your expectations.
• Leave a review – Consider leaving a customer review on an online platform to show others how this vendor brings value to your organization. A positive customer review can be a valuable tool to strengthen your vendor’s reputation and attract more leads to their organization.
• Offer positive feedback – Make sure your vendor knows how their product or service is benefiting your organization. Vendors are quite accustomed to hearing customer complaints, so any unsolicited positive feedback will likely be a welcome surprise that will make them feel appreciated.
• Be a loyal customer – Purchasing additional products or services from your vendor or simply renewing your contract is another effective way to show gratitude. Both strategies communicate that you’re trusting your vendor to help grow and strengthen your organization.
• Advocate for your vendor – When you attend trade shows or network with others in your industry, a great way to show gratitude to your vendor is by advocating for their products and services. If your organization allows it, endorsing your vendor through formal or informal references can really help their brand.

How to Cultivate Positive Vendor Relationships 

Showing thankfulness and appreciation to your vendor can significantly improve relationships. However, your organization can also foster better vendor relationships in other important ways, like:

• Define shared goals – Identify any shared goals you have with your vendor, whether that’s investing in new technology or trying to solve a common problem for your customers. When you and your vendor share similar strategic goals, your partnership is more likely to succeed.  
• Communicate often – This can’t be stated enough. The key to a positive vendor relationship is open, honest, and regular communication. Don’t wait until you have a formal complaint or need to renew the contract. An ongoing dialogue can help avoid misunderstandings and keep both parties informed of each other’s challenges and priorities. 
• Solve challenges together – Many of the challenges you face could be solved with a good vendor relationship. Maybe there’s an ongoing supply chain disruption or your customers are requesting a unique product functionality that hasn’t yet been developed. Working with your vendor can help bring innovative solutions to solve these challenges together.
• Rely on their expertise – Your vendor comes to the relationship with their own expertise and knowledge that may be outside of your industry. This can give you valuable perspective and insight into certain business areas that can benefit your organization, such as new technology or changing customer expectations. 
• Be open to feedback – Your organization should seek to create an environment that welcomes feedback and recommendations from your vendors. For instance, maybe your vendor has a suggestion on how to optimize their product or service. While making changes or implementing new process requires consideration and planning, it’s important to be receptive to their suggestions especially if it means better outcomes for both parties.
• Celebrate each other’s successes – In a positive vendor relationship, you celebrate each other’s successes, whether that’s the launch of a new product or service or the acquisition of a major customer. Celebrating your vendor’s success and sharing your own wins can help demonstrate that you value their partnership.

Cultivating a positive vendor relationship is most successful when you communicate often, build a foundation of shared goals, and express your appreciation for a job well done. Once the relationship is established and maintained, your organization is likely to find that achieving your business goals becomes easier and more enjoyable.