"Our Take" - The Use of References

(Past Editions by: Date, Title, Topic)

 
About "Our Take" 
"Our Take" is a collection of daily vignettes covering a wide range of CRM topics. It's an attempt to add our own spin to the world of CRM. We will use the column to share our perspectives, opinions, epiphanies, web nuggets, or quite frankly anything that moves us. Get ready to expect the unexpected. And, don't be shy about sharing your thoughts.
 
 
8/31/06 - References - An Alternative to the Bake Off?
I am a big believer in references before buying software. Someone who has actually implemented and lived with a system will have great insight into how the software works. So are references a good substitute for a bake off?
 
One reader wrote, "What worked for us was to actually visit organizations that had already implemented the software. We spoke to the company implementers that lived through the transition. Reviewed the promises by the vendor and what was actually delivered. Discussed the roadblocks and benefits."
 
I often counsel people that references are the gold standard for credibility and confidence. But what are the risks to relying on references? Please tell me what you like and don't like about references. More on this tomorrow.
 
Gary Lemke, Publisher
(Share your thoughts)
 
9/1/06 - How to Research a Reference
Today, I wanted to share suggestions from readers about their best practices as it relates to checking out references from software vendors. We will continue the discussion next week, so feel free to share your best practices too.
 
One reader offered the following: "Be sure to include references that the vendor didn't necessarily provide - perhaps someone in a user group or local area. The vendor will likely provide only happy customers, and it is important to get perspectives from a broader segment."
 
References from vendors are handpicked. They often represent the best of the best rather than a representative of the good and the bad. If you rely solely on vendor references, make sure you provide a criterion that matches your operations - industry sector, size of implementation, choice of database, etc.
 
Gary Lemke, Publisher
(Share your thoughts)
 
9/5/06 - Questions for References
Years ago, CRMAdvocate was a sponsor of the Users Choice Awards. Awards were based on the input from users of contact center and CRM solutions. The questions were meant to get directly to question of effectiveness.
 
I feel these questions can be used when you talk to a reference. They include: 1) Based on the vendor's representation, how well did the product / service meet your expectations? 2) On a scale of 1 (extremely dissatisfied) to 10 (extremely satisfied), how satisfied are you with the product / service? 3) On a scale of 1 (none) to 10 (great), has the product / service made a positive impact on how your organization interacts with customers?
 
These three questions talk to expectations, satisfaction and ROI. Of course, these are not the only questions and I encourage you to share questions that are important to you. I'll summarize those questions later this week.
 
Gary Lemke, Publisher
(Share your thoughts)
 
9/6/06 - Talking to a Reference
Often a vendor will provide the name of a person that can be contacted for a reference. It is a logical assumption that this person speaks for the company they represent. But that might not always be the case, or at least the whole story.
 
The point of contact may indeed be the primary point of contact for the vendor. In many cases, it may actually be the decision maker. A decision maker has a vested interest in the reference and may not be motivated to tell all. For instance, the decision maker's career might be tied to his vendor selection. So talking candidly about what doesn't work may not be in the decision maker's best interest.
 
Therefore, one piece of advice is to get input from multiple people from a particular implementation. I suggest you talk to people that have first hand experience including users and IT folks involved in the implementation.
 
Gary Lemke, Publisher
(Share your thoughts)
 
9/7/06 - Drilling Down with References
Accepting the first answer from a reference might not always tell you the whole story. Many of you wrote that the key to researching a good reference is asking the secondary questions.
 
One reader suggested, "The key to using references is to drill down when you ask questions. Questions like 'How do you like the system' are good icebreakers, but tell you very little. Get into more detail and more objective questions to find out how the system is really functioning. Find out what happens when things don't go well."
 
For instance, you might ask how often the system goes down. What type of help do you get when the system is unavailable? How often do you have to call for technical support? Things often go wrong. An understanding of what to expect during crisis can tell you plenty.
 
Gary Lemke, Publisher
(Share your thoughts)
 
9/8/06 - Visiting a Reference
If you are making a strategic buy, a visit to the reference might be in order. When should you consider a visit versus a phone call? There may be many reasons that apply to each situation. However, going 'deep' with a particular reference means that you will probably go 'less wide.'
 
Logistically, it is difficult to visit as many installations as you can contact via the telephone. But it doesn't have to be one or the other. A two-step approach can often be very effective. Step one is to contact a range of references via the telephone. Step two is to take the most appropriate reference from step one and set up an on-site visit.
 
One reader suggested that a reference visit might "help sell the senior management team. They can discuss issues and benefits with the reference's senior management."
 
Gary Lemke, Publisher
(Share your thoughts)
 
9/11/06 - Developing References is Hard Work
I spent many years on the vendor side of things. And I can tell you that developing references is hard work. Very hard work. Our sales reps wanted more references. They wanted the case studies written up. They wanted the success stories publicized in the press. They wanted permission to contact these happy customers. To be more accurate, I would replace the verb "wanted" with "demanded." They were simply echoing the demands of their prospects.
 
Interestingly, sales reps wanted all this as long as it didn't involve their accounts. Why? It's hard work getting permission. And, more importantly, they know that once they provide access to their customers, fellow sales reps will overuse the privilege of contacting that precious reference. It's additional work for everyone that doesn't really benefit the people that have to put out.
 
So the few sales reps that do offer up their customers as references find their customers get over-used in a hurry. Customers are typically good sports about being references. At least for a while. The attitude of benevolence can change when they feel taken advantage of. So when you contact a reference, be sensitive to the fact that this person is doing you and the vendor a favor. There's probably nothing in it for him.
 
Gary Lemke, Publisher
(Share your thoughts)
 
9/12/06 - Reference Incentives
Yesterday, I mentioned that references often provide their services to the benefit of the vendor and prospective buyer. In short, there is nothing in it for the reference.
 
That is typically the case and that is what you want in a reference. However, you should be aware that some vendors have reference programs chalked full of neat incentives. These incentives might be simple thank-you gifts, more valuable perks like vacations, or even discounts on maintenance agreements or future purchases.
 
Although well intentioned, incentives could have a consequence that doesn't work in your favor. Might the incentives condition a response more favorable to the vendor? Is the customer willing to say nicer things or omit harsh statements in anticipation of those incentives? You might want to add a question about what incentives a reference has to be a reference. Just so you know.
 
Gary Lemke, Publisher
(Share your thoughts)
 
9/13/06 - Are Negative References More Valuable
If you are really diligent in checking out a reference, you will most likely get the good, the bad, and maybe even a little bit of the ugly. In fact, if you only get the good, I can almost guarantee that you didn't push hard enough.
 
Why do I say that? I was taught that no one is perfect. And I also believe that no implementation goes perfectly. But if you do your homework and dig deep enough to get negative input, how do you weigh the positives and the negatives? How do you weigh the negative aspects of vendor A versus the negative aspects of vendor B?
 
It is hard to give a short answer to that question but I can say this. As you inventory reference input, refresh yourself on your needs versus your wants. Understand annoyances versus showstoppers. In short, apply the positives and negatives in the context of the core problems you are trying to solve rather than justification for making an emotional decision.
 
Gary Lemke, Publisher
(Share your thoughts)
 
9/14/06 - Keeping it Real with References
I just returned from the Gartner CRM conference and I hope to use this column to share some insights with you. If you attended the conference, please take a moment to let me know what you learned at the conference. For the past week or so, we've been talking about references and I thought I would share an observation from the Gartner conference in relation to references.
 
Even if you didn't attend the conference, you got the feel that it was geared towards addressing our collective desire to know the difference between the hype and the reality. Many of the most popular sessions focused on best practices, case studies and success stories.
 
By my count, 20% of the sessions fell in that category. I find that a bit refreshing especially for a conference typically dominated by analyst presentations. I imagine feedback will tell the Gartner people that maybe next year the conference should have even more focus on what is real.
 
Gary Lemke, Publisher
(Share your thoughts)