Get References!

References aren't just for employees.  You can - and should - get references for potential vendors as well.

For many services such as exchange, indices, and news services, customer references aren't really necessary - you know what you're getting, and you can probably get a sense of the functionality just from a simple trial.

But what about more complicated products and services?

Things like:

• Analytics platforms such as Eikon, FactSet and S&P Market Intelligence
• Products that integrate content with workflow applications like deal rooms and CRM portals;
• Outsourcing providers like SG Analytics for which human capital is critical part of the deliverable;
• Workflow automation applications for things like contract management, access control, usage monitoring and finance & accounting
• Big Data, AI, and NLP applications which will require ongoing iteration / feedback between you and the vendor (again, relying on human capital deliverables from the vendor)

In these instances, service level, client support and reliability are important variables you need to pin down. And you want to get real-world feedback from people who've been using them "in the wild".

So why not ask for a few references from other companies that are similar to yours?

Often times vendors will advertise on their website some of their clients - take a look at which companies are your closest competitors. They're likely to have use cases similar to yours.

You can't just take it on faith when the vendor says several of your competitors are "using" the service. A useful datum as far as it goes, but you want more qualitative feedback on what their experience has been like and how their use cases align with your expected use cases.

More likely than not, a good vendor will have a couple customers they can connect you with - with the understanding that confidential terms will not be disclosed. And you can tell the vendor you'd be happy to stand as a reference should you end up subscribing (if your Legal department agrees to it!)

What should you ask about?

• Customer support
• Reliability
• Responsiveness 
• Troubleshooting
• Uptime
• Usability
• Etc. 

You can ask for pricing and licensing info - there's nothing stopping you - but don't expect an answer - companies are almost always prohibited from sharing commercial details about their contracts.

To make an informed decision on whether to engage with a vendor that offers human capital-based services or complicated implementation scenarios you need as any qualitative inputs as possible. Customer references can be a great source of intelligence on whether the vendor is worth doing business with.

- Kevan Huston