The Most Underutilized Strategic Advantage

You have been chasing this account for six monthsasked of the sales person to see if there is a
and feeling optimistic as the buying process is comingdifference in response. Other times, they ask specific
to a conclusion. The sale is between you and twoquestions relative to their needs that may not have
other firms. The competition is fierce, but you feel youbeen shared with the sales person. For the prospect,
are ahead. At 11am, the Procurement Agent asks forthis is their most critical evaluation step of a supplier's
three references to be provided to her by the end ofexpected performance.
the day. In a panic, you send a company-wide email inIt is the little things that winning sales people do that
search of these referenceable clients. At 4:58pm, youmakes them winners. So, if all of the competing sales
get the three references from your colleagues andpeople are going to provide "good" references, can
quickly send them out to the Procurement Agent.you provide the "best" references? You most certainly
Whew! Mission accomplished! They wanted threecan! However, there is a process to do so as "best" is
references and you got it done. And so did everyonedifferent for each prospect."
else. You see the finish line, forgetting that many aThe first step is a conversation with the Procurement
sales person has fallen one step short of winning.Agent. "I received your request for references and I'm
This scenario plays out in companies every dayhappy to provide them. So that I can provide you with
across the country. It doesn't matter if the company isthe references that best support your initiative, what
big or small, nor does it matter the type of industry.are you hoping to learn from our clients?" If you can
The request for references is a standard part of anygather that information from the Procurement Agent
buying process. However, few sales people use the(don't say it can't be done until you try it), you have the
reference stage of the process to their strategicroadmap to identifying references. Even if they can't or
advantage. They simply desire to provide a quickwon't provide you with this information, you have at
response to the prospect with their requestedleast shown that you care. And "care" can be the
references. In the mind of the sales person, the speeddifferentiator that pushes you across the finish line. All
of the response communicates supplier performance.is not lost if you can't get that information either.
While somewhat true, the discussions the prospect willGoing forward by taking a step back, think about the
have with the references carries more weight in theaccount and what is important to them. Reflect on
selection decision than the speed of the responsewhat was learned during the needs analysis
from the potential supplier.discussions. Thinking about that, imagine a different
When I talk to sales people, one of their most commonapproach to responding to the request for references.
gripes is that they are selling a product that is viewedIf they were concerned about implementation, you
as a commodity in the marketplace. They cite "price"provide an account that your company recently
as their biggest bugaboo. Right behind that they lamentimplemented. Perhaps, the decision is being made by a
about their inability to differentiate their product. (TheCFO, and you provide a reference of a CFO from
truth is that price and differentiation are directly related,one of your clients that can speak to your
but that is a topic for another article.) When I ask salesperformance. For the third reference, you provide a
people if they would like to learn of an easy way toclient that is purchasing the same amount of the same
get a competitive edge, they are all ears. After I shareproduct. From the prospect's perspective, how great is
with them that they have the ability to differentiatethe opportunity to speak to three clients who can
themselves through managing the reference selectionrelate to their needs. They are able to gather the
process, they look at me in shock as they can't believeinformation they desire from someone with whom
they have been missing this opportunity. Then thethey share something in common. They feel confident
stories start to come out. "Yeah, I lost a deal becausein their ability to perform due diligence on their potential
they called the reference and we had just screwed upsupplier. They can make an informed decision.
their order. I should have checked before I used them"To take it a step further, imagine rather than simply
The stories just continue from there.sending the contact names and phone numbers to that
But why do prospects ask for references? Webster'sProcurement Agent, you provide a brief narrative
defines "reference" as someone who can make aexplaining to what each client was serving as a
statement about a person's qualifications, character,reference. How many sales people are doing that?
and dependability. Interestingly, there is a perceptionStill raising the bar, imagine contacting each of the
disconnect on references between sales people andthree references and informing them that a call was
prospects. When I talk to sales people, I usually hearcoming their way to discuss your performance as a
that references are just a standard part of duesupplier. During that call, you share that this prospect is
diligence. Some use the term "rubber stamp" of ancalling to discuss particular areas of the business. Thus,
award. However, when I talk to buyers, I hear a verywhen the prospect calls the reference, the reference
different message. Many buyers look at the referenceis expecting the call and is prepared for the
step of the buying process as their opportunity toconversation. What a great experience for your
validate the message that they have been hearingprospect and your client. Keep in mind, one great way
from the potential supplier. In essence, prospects areto burn a relationship with a happy client is to surprise
searching to ascertain whether a supplier can deliverthem with a reference phone call. No one likes to be
on the promises made during the buying process. Canblind-sided or unprepared. I've seen more than a few
the supplier really handle this size account? Are theyopportunities lost where the prospect cited the
really that fast? Or that accurate? Is the service asreference experience as the deciding factor. An
good as they described?unprepared reference reflects negatively on the
In many cases, the change of provider carries with itsupplier.
the ownership of the supplier's performance. If theIn a competitive marketplace, every opportunity that
new supplier does not perform to the expectationsyou have to demonstrate value to a prospect is critical.
that have been represented, there is risk for thoseLeveraging the reference step of the process can
who selected it. Heads will roll! Sometimes, prospectsgive you just that little edge that pushes you over the
ask the same questions of the reference that theytop.