{"id":5135,"date":"2022-01-21T15:05:04","date_gmt":"2022-01-21T15:05:04","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/21\/real-story-on-martech-beware-of-vendor-bullying\/"},"modified":"2022-01-21T15:05:04","modified_gmt":"2022-01-21T15:05:04","slug":"real-story-on-martech-beware-of-vendor-bullying","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/21\/real-story-on-martech-beware-of-vendor-bullying\/","title":{"rendered":"Real Story on MarTech: Beware of vendor bullying"},"content":{"rendered":"

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Let\u2019s say you work in martech for a large, well-known enterprise. It\u2019s a global firm, a recognized brand. Ideally, you\u2019d want to follow a structured, test-based approach for how you bring new technology into the enterprise, and you\u2019d expect participating vendors to follow your lead in the vetting process \u2014 out of respect, if nothing else.<\/p>\n

Well, reality can prove itself quite different. In Real Story Group\u2019s role as a buyer\u2019s advocate for martech stack leaders, we\u2019ve noticed a recurring trend where larger software companies often disrupt well-reasoned martech selection strategies through aggressive and frequently questionable tactics.<\/p>\n

Of course, none of this is new, and perhaps vendor bullying today is more subtle than in years past \u2014 but it remains just as persistent.<\/p>\n

A typical scenario<\/h2>\n

Imagine this scenario: You and your team go through a proper technology selection process. You do everything right<\/a>. Your team comes to an educated consensus decision. Based on empirical testing, you are on the verge of selecting a platform not sold by, say, Adobe, Microsoft, Oracle, or Salesforce.\u00a0 However, these are aggressive, publicly-traded companies, not used to getting turned down.<\/p>\n

So they approach a board member or senior exec at your firm, trying for an end-around your process. Unfortunately, there\u2019s a long history in software sales of \u201cselling up the chain.\u201d\u00a0 Back in the day, this meant deals on the golf course; more recently, it\u2019s cajoling over lunch, at executive councils, and boardroom get-togethers.<\/p>\n

Now it might seem anachronistic to talk about a supplier bullying a customer. As the buyer, don\u2019t you have power in this situation? But that\u2019s just the point. Large martech vendors employ specific methods to disempower enterprise selection teams.<\/p>\n

How it works<\/h2>\n

Here\u2019s what I often see:<\/p>\n

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  1. High-ranking executives from the major software vendor demand a meeting with your boss\u2019s boss or a C-level executive. Given that this vendor may work with other parts of your enterprise and everyone wants to maintain this relationship, they typically get the meeting. Or they have already networked with your leadership at industry events.<\/li>\n
  2. The vendor touts traditional, one-size-fits-all analyst rankings to prove they are \u201ca leader.\u201d If you select anyone other than a leader, it means a risk to the customer\u2019s business (and, by implication, valuations and careers).<\/li>\n
  3. They belittle the enterprise selection team: \u201cThey\u2019re not strategically thinking like you need to do\u2026\u201d<\/li>\n
  4. They belittle the selection process: \u201cThey got lost in the weeds and focused too much on functionality.\u201d (This is a particularly ugly allegation because the most bully-prone vendors tend to carry the most technical debt, so they often want to avoid test-based selection processes.)<\/li>\n<\/ol>\n

    If all else fails, the vendor may dramatically slash their pricing at the last minute as a defensive move or even give something away cheaply or for free. This isn\u2019t exactly bullying, but it warps the process for sure. Just remember, technology is never truly free.<\/p>\n

    A tale of two enterprises<\/h2>\n

    Recently, I\u2019ve witnessed two dramatically different outcomes to these tactics taken by one of the most notorious of these vendors. (If you\u2019re an RSG subscriber, contact me to hear the gory details.)<\/p>\n

    The vendor bullied Enterprise #1 into selecting an ill-fitting solution against the wishes of an interdepartmental selection team, persuading a senior executive sponsor that only that vendor\u2019s array of platform offerings would prove robust enough. The implementation was so difficult and expensive that it did not launch after two years. They\u2019re now engaged in a multi-million dollar lawsuit.<\/p>\n

    Enterprise #2 said no to the same bully. The alternative system they selected has recently launched, and while no technology is perfect, the reception has been positive so far. The losing vendor\u2019s calls and threats haven\u2019t stopped completely. But when questions come from upper management, because the process was grounded in user-centered design thinking<\/a>, the activation team can prove that their choice will lead to the best adoption and drive better business value.<\/p>\n

    Ultimately the fate of your enterprise is often going to depend on the strength of your leadership and, by extension, your ability to connect your decision to strategic business objectives<\/a>. If you can cast your decision in terms of key metrics you\u2019re trying to move, it becomes less susceptible to outside manipulation.<\/p>\n

    What you should do<\/h2>\n

    First, recognize that often the biggest martech vendors carry the biggest risks<\/a>.\u00a0 That doesn\u2019t mean you should avoid the \u00fcber-players in these markets, but it does mean you have to prepare for them to try to bulldoze over you should you not tip things their way.<\/p>\n

    Since the bullying is real \u2013 and so are the long-term consequences of making bad technology decisions \u2013 you need to give your team and leadership the ammunition to push back. Let me know if I can help. In the meantime, feel free to share your experience with this phenomenon via the hashtag #VendorBullied<\/strong> on LinkedIn<\/a> or Twitter<\/a>.<\/p>\n

    Real Story on MarTech is presented through a partnership between MarTech and\u00a0Real Story Group<\/a>,\u00a0a vendor-agnostic research and advisory organization that helps\u00a0enterprises make\u00a0better marketing technology stack and platform selection decisions.<\/em><\/p>\n\n

    Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here<\/a>.<\/em><\/p>\n\n

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    About The Author<\/h3>\n
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