Is Your Company In Good Company?

Before making any significant investment, all sensible companies will do their due diligence and check for references. Reference checking is a crucial stage of the evaluation – a confirmation that you are making the right choice. The software vendor should be able to point you to companies in your industry that make similar products and are around the same size. 

If the vendor claims thousands of customers and cannot provide you with at least three companies that match your criteria, walk away! Insist on talking to your counterpart at the reference company, who will better understand the challenges and opportunities you may face when dealing with the vendor and during the implementation. 

The software vendor should provide you with a list of relevant references for you to phone or visit. If you decide on an onsite visit, make sure the software salesperson does not chaperone you. The reference company is more likely to be forthcoming if the vendor’s representative is absent.

1. Can the software vendor provide relevant references to your company?
2. Do you recognise the names of the companies on the list?
3. Will the software vendor allow you to contact the references without their representative being present?
4. Would the reference company repurchase the software?