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The Truth About Customer References

The Truth About Customer References

CIOs who accept favours in return for saying good things about vendors are putting themselves and their careers in jeopardy. And so are the CIOs who listen to them

SIDEBAR: Reasons Not to Trust a Customer Reference

  • The vendor will offer only the references who have had good experiences.
  • References get extra attention and support that you won't - unless you become a reference.
  • The customer might be receiving services - or even cash rebates - in return for serving as a reference.
  • References don't like to admit multimillion-dollar mistakes or bad-mouth crucial vendors.
  • No two big software projects are the same. The reference's success offers no reason to believe that youwill be successful.

SIDEBAR: Five Ways to Get Value from a Customer Reference

According to the IT Services Marketing Association, 52 per cent of IT buyers make purchase decisions based on referrals from colleagues. Which makes sense. Who knows your problems better than your peers do? But, as you've read, the customer referral process is fraught with conflicts of interest, and the information you derive needs to be taken with a few pounds of salt. Here's some advice on how to season the data you need with wisdom.

  1. Put the software through its paces as much as possible. (You've heard the expression "buying a pig in a poke"? It's never a good idea).
  2. Before taking the word of a CIO you don't know, try networking with CIOs you do know. (Another reason you should make a practice of regularly getting out of your office to hobnob with your fellow wizards).
  3. When a vendor lists a company as a reference, you can presume that that company had a good experience with said vendor. But that presumption should not dissuade you from calling and finding out for yourself. (In other words, don't be lazy; do your homework).
  4. When you call a reference from a vendor's list, it's wise to ask what exactly the company got in return for agreeing to be a reference in the first place. (It's also fair. But the question doesn't get asked as often as it should).
  5. Be specific. Don't ask, How's their service? Ask, How long does it take them to get back to you? (What's good for one CIO may be wholly inadequate for you).

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