Buying business software isn’t like choosing a $0.99 app. You’ll likely spend thousands of dollars and if you are unsatisfied, with either the company or the product, that’s a big loss. I recently spoke with Cyndi Brandt of Roadnet Technologies (formerly UPS Logistics Technologies) who explained that in addition to evaluating your business needs and the benefits of different software products, there are certain things buyers must consider about the software companies on their short list.
Here are Cyndi’s five must-haves:
1) Experience
When you are searching for software that will support one of the main functions of your business, finding an experienced software vendor is important. For example if you are a distributor, a malfunction with your dispatch software will immediately impact the core of your business and your bottom line. You need to know that if anything goes wrong you’ll have the resources you need to fix it quickly. You’ll probably place a higher value on a software company experienced in writing, supporting and implementing software for businesses like yours. You should ask how long they’ve been in business, how many customers they have, and what type of support resources they provide.
2) Financially Stable
This goes back to the previous point, that if the software will support mission-critical business functions then you need to be reassured that the software company itself isn’t going anywhere. Don’t be afraid to ask about it! If they want your business then they will show you what you need to know. For SaaS and cloud based applications, you should ask about what happens with your data and software access if the software company closes its doors.
3) Industry Knowledge
Your business is unique and it’s your responsibility to make sure that you’ve explained your particular needs to a software company. Once you explained your needs, make sure that they can deliver. Ask if they have customers similar to you and ask them to explain how their software works for those customers. If you have a rather unique specialization such as a pig mover, then ask the software company to explain how they understand your business and how they will be able to support it. Even if they don’t have a customer with your particular specialization, the software company should be able to explain how your needs actually are similar to client x.
4) A Solid Number of Customers
There is no set number that is a good or safe number. But something more than 100 should definitely make you feel comfortable. This doesn’t mean that you shouldn’t consider a newer company. It just means that you should ask. There can be some great advantages of a newer or smaller company and as long as you get great answers to all of the other questions on this list then go for it.
5) Excellent References
Find out what others are saying about the product regardless of how little it costs. Look for recent customer reviews from both new and long term customers. If the software is going to cost you more than $10,000 ask for at least two or three references at minimum! Make sure you ask for customers who are like you in industry function and in tech ability.
Evaluating the software company whose product you are considering is important, but the smaller the purchase the less emphasis you can put on this part of the process. If you are considering inexpensive survey software then, besides asking for some references, a lot of the above points probably won’t matter that much. And before you ask these questions to a software vendor, first ask yourself whether the answer to any of these questions matters to you. If they do then decide what the right answers are for your business and your needs.
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