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As I mentioned in a previous post, the vendor selection process can be very similar to hiring someone. After the screening interview (RFP), and the in-person interview (demo), it’s now time for the reference check of our top two candidates.
SPM Vendors are usually quick to provide the required references. I think that in general they are pretty honest, but be concerned if they tell you that the entire implementation was very smooth and if they have nothing bad to say about the solution at all. When applying for a job, I never provided a reference who would say anything bad about me, and I’d usually prep them about what they should say. I’m sure these arranged references could be scripted as well.
To avoid the potential for a biased reference, many choose to talk with other companies who implemented the solutions being considered. Whether you are looking at the vendor’s press releases, or if they provided a client list in the RFP, figuring out who is leading the implementation, or who is responsible for compensation at a certain company is usually not such a hard task. Conferences are also a good way to meet people who have been through the implementation process, with all the pains involved.
Some reference call questions…
The goal of the reference call is to find out if the experience of others is as rosy as what the vendors may have described it.
This is your chance to find out more about the product, if they are happy with the functionality and usability, some of the pros and cons, upgrades, etc. It is also a great opportunity to find out more about the actual implementation of the solution; how long did it take (and how long was it supposed to take), any lessons learned, etc. Finally, a very important piece if to find out how well the vendor is supporting the application post implementation; can they resolve issues and answer questions in a timely manner, where there many issues, how was the experience in general? Finally, after the RFP and demos, there are probably some areas in which you would like to confirm or validate what the vendors mentioned; is the plan communication tool really worth while? Are the upgrades really THAT easy?
Evaluation
Some people like to factor in the reference calls in the total evaluation score. Others use it to validate that a vendor/solution is as good as they think it is. I don’t think there is a good or a bad way, but there is a risk to think “the reference check will be worth 5% of the overall score and the highest score wins”. Why? Because if every person you are calling complain about a horrible product and a horrible experience, it could be a deal breaker!
Next Steps…
The next step is to negotiate pricing with the two vendors. Usually, the top two vendors are still in the process, because obviously pricing can be a major decision factor, but also because a vendor might be more willing to negotiate pricing and other factors knowing that they still have a competitor.
That’s it! Smile! At the end of the negotiations, you should be ready to draft a contract with that vendor to provide the incentive compensation solution!
In my next post I will talk about how to get ready for the implementation of the solution, and where to get help for the entire vendor selection process.
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