Checking potential suppliers’ references should be part of any major business purchase decision. Seeing samples or portfolios is great, but speaking to current and former clients can give you a more complete picture of the vendor. Most references will be happy to speak with you. If they’re truly happy with the vendor, they’ll eagerly send along more business. If they’re unsatisfied, you may get an earful of complaints.
The first few references a company provides are likely to be hand-picked, i.e., very satisfied customers who may even have been prepped in advance to answer your questions. Take those references, but don’t be satisfied with those alone. You should request references to clients in businesses similar to yours, both in industry and size.
This accomplishes two things. First, interviewing companies who share your similar concerns and needs can provide you with more detailed information than speaking to people in unrelated industries. Second, asking for more specific references can help you avoid those hand-picked references and introduce you to more discriminating customers – and customers with a specific complaint or two can provide you with more valuable information.
The process of checking references is fairly straightforward. The supplier you’re evaluating should provide a contact name and phone number for the customer. You can handle the interview process in a couple of ways. For fairly standardized products, a phone interview is probably sufficient. For more customized or expansive products, you may want to set up a site visit to see the work for yourself – you’ll be able to get a better sense of how well the product is integrated into their business.
Whether by phone or in person, try to speak with more than one person. The contact name you get will often be a manager in charge of making the purchasing decision, and their input on the purchasing process and general impressions of the vendor is certainly relevant. But the people you really want to speak with – the ones with the detailed understanding of the strengths and weaknesses of the product in question – are those who use it every day. Ask to speak with someone whose job brings them in contact with the vendor’s solution and you may start to get much more detailed answers.
Here are some questions you may want to ask when contacting references. Note: All questions may not apply to every situation, so try to adapt them to your particular needs and concerns.
Don’t let one unhappy customer derail your entire purchasing process: anyone who’s been around for a while will have a few customers sour on their business. For your evaluation, it’s valuable to hear both the problem and its resolution from the point of view of the customer and the supplier.
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