Wednesday, September 3rd, 2008: Being a Reference

“Dear CloserQ- I am a client of a mid-sized software firm. Several times, the firm uses me to come in a close the deal for them with a new client. What should I expect in return for my company?” Anonymous

Anonymous, thanks for the question. So far all of my questions have come from sales people, sales managers, HR, and business owners. I am excited to give my first response to a client asking a question about working with sales. As with other posts, I have some qualifying questions before responding. Is ‘several times’, a month, a quarter, or a year? When you are brought in to a deal, is this on the phone, at your business, at the prospect locally, or at the prospect via a plane? The goal of both of these questions is to determine how much of your time is spent to support your partner / vendor.

As I have mentioned in previous responses, I am a big fan of reference selling and having prospects speak and meet with current clients. I believe being a reference is an important part of the business relationship, as long as both parties are meeting commitments and there are no financial (aka unethical) dealings involved in either direction. If your vendor is supplying your company with quality support, products, and services, being a reference is a fair exchange for your employer, as long as the time does not affect your productivity. Also, as the client giving the reference, you need to be a believer in the solution and it would be unethical for you to be a reference because you personally or your employer was compensated. This should be obvious, but you need be honest when speaking with your vendor’s prospects.

With all that being said, if you are spending a lot of time being reference and in the spirit of partnership, I do believe there should be benefits for your employer that also makes sense for your vendor. These benefits could be a product or service discount; access to the vendor’s senior management or development teams; participate in beta programs, strategic planning meetings; other. I would contact your vendor to see if they have reference program and if they don’t, I would make reasonable recommendations on what you would like to see in a reference program. In another post, I answered a question about putting together a reference program.

As with most people, when I make significant purchases both personally and professionally, I like to talk with current customers to get their feedback both positive and negative on the solution and vendor. Also, as a client, I like to help our quality vendors by being a reference.

As I progress in my career, I have learned, sometimes the hard way, that the vendor / client relationship is just as important and often more important than the vendor’s solution. The core of these partnerships are trust, commitment, and openness on both sides. If your vendor is doing quality work for you and you have the time, I think it is great you are assisting them win business.

Good Referencing and let us know how it goes! Reader Feedback, please click the comments below to give ‘Anonymous’ additional information on ‘Working with Vendors’ and I want your feedback on my response. Shaun Priest aka CloserQ.

Comments

Outdoor Steve said…
Closer Q: I am a client, and I enjoyed your response. I believe by doing references for my vendor the vendor responds to me with VIP preferences such as quick turnaround on service calls, opportunity to comment on their developments and software updates. This gives me an inside track to direct vendor developments towards the needs of my organization.

Plus, the vendor needs to make sure I am satisfied so they will get the best comments from me. I always tell the visiting prospoects what I think about the vendor. I firmly believe a client - vendor relationship is a partnership and their should be a frank and candid discussion.

Thanks for your wonderful feedback - and your CloserQ. It gives me perspectives that forces me to step back and view my sales vendor relationship.