I’ve heard many stories about executives that hire a marketing consultant to execute projects, yet only receive a simple report or partial deliverables for their five-figure engagement. That might not be a big issue for the Fortune 1000, but it can sour an SMB business leader’s view of the entire marketing consulting field.
“Consultants” is already an amorphous term, used by coaches, service firms, great consultants, weak consultants and front-line workers looking for a contract job. As the economy continues to slow, more and more displaced workers will surface as consultants.
How do you make sure you get what you’re expecting?
More importantly, how do you avoid the consultants that embody these sad industry adages?
“Know just enough about everything to sound like an expert.”
“If you can’t solve the problem, there’s money to be made in prolonging it.”
The key to consistently get good results from your consultants is to clearly define your project, thoroughly screen your candidates, ask detailed questions to clearly understand deliverables and agree to a deliverable schedule.
Marketing Requires More Due Diligence
Since “marketing” isn’t a standardized field, spend extra time discussing deliverables so you understand exactly what you’re getting. For example, there are many web designers that will deliver a new design template that is deployed on their test servers, leaving clients to create the site architecture and content, secure the hosting and handle the DNS changes. That’s quite a surprise for a client that was expecting a “turnkey” website.
It’s up to you to determine this beforehand. To start, research marketing vendors and create your list for your vendor selection process.
Then, narrow your field of candidates to weed out those that don’t fit.
- Within which discipline(s) does she specialize?
- Ask about training and accreditations.
- What’s her specific area of expertise?
- What tools does she use to complete the work?
- What’s her current client load?
Determine your final candidates by picking out the consultants with the greatest track record for success.
- Ask for references from the past 6 months and the past 3 years. Contact both recent and not-so-recent clients to identify those consultants with a long-history of success.
- How many long-term relationships/clients does the consultant have? Clients who are truly happy come back for more! Hire the consultant that you can grow with.
- Ask both the consultant and references why they were successful. It’s easy to say, “She did a great job,” but “why the job was great” determines if your expectations will align well with the consultant’s style.
Before you make your final selection, have an honest conversation with your top candidates about expectations. Discuss deliverables so you have a clear understanding of the end product you’ll receive.
- What will the consultant deliver? Differentiate between coaching (giving high-level advice and success tips), consulting (taking responsibility for specific recommendations and completing some work), and execution (creating and delivering a completed work product).
- Who will be responsible for what? Determine who will manage the project and who will execute the work.
- How will you measure success? Ask your consultant for her goals for the project. Together, decide how you will measure the success or failure of your working relationship together. If possible, tie these measurable objectives into your contract for services.
A lack of planning often causes failure. Plan for success: Clearly define and communicate your needs and expectations up front. It eliminates surprises and gives you peace of mind that your consultant will deliver.
And if you’re a consultant, make it easy for your client to understand what you’ll deliver. It’ll lead to happy clients and longer engagements.
Today I’m continuing Thursday’s post about finding good marketing vendors. In that post I walked through the first few steps in the process:
1. Know what you need
2. Identify your prospects
3. Think carefully about your success criteria
4. Make your first cut
At this point you should have a manageable list of companies or individuals who’ve made your first cut. They’ve answered your first set of qualifying questions and you know there’s strong potential to work together. And don’t rule out your gut – if something doesn’t jive, there may be a very good reason. Focus your energy on other prospects.
The next steps:
5. Analyze your prospects. Now you can invest more serious time in your discussions with your short list of vendors. You’ll probably meet in person or schedule a lengthy conference call to evaluate their services and your needs.
It’s easy to get sidetracked or overwhelmed with information at this stage. To keep things as simple as possible, keep your list of success criteria handy. Your mission is to evaluate each vendor against specific criteria, so keep the discussions focused on the items you need to address.
To better compare apples to applies, you could set up a rating sheet for each vendor. List your success criteria and rate their importance on a scale from 1-5. Then rate the vendor objectively on each criteria.
6. Request proposals. If appropriate, this is the time to ask each vendor to submit a formal proposal. If you’re looking for simple, straightforward services, you can ask bidders to provide their own proposal and quote.
But if it’s a more complex or intangible project, it’s better to create your own Request for Proposal (RFP) and ask bidders to respond to very specific questions in a consistent fashion. A standard RFP is especially helpful when
- The vendor is providing a comprehensive service
- The project is intangible or has many elements, such as a website
- You have very specific evaluation criteria and need to compare apples to apples
- You’re evaluating a large number of bidders (more than four)
Here are some tips for issuing an RFP:
- Ask bidders to answer specific questions – your “success criteria” – so that you have those responses in writing for easy evaluation.
- Ask bidders to respond in your desired format. Many vendors have standard proposal templates that address typical questions, but it can be time-consuming to find the answers you need. Do the same with your pricing sheet – you want to be able to compare prices from different bidders, so ask them to standardize the way they bid.
- Ask for suggestions on alternative or new ways to solve your problem. If it’s wildly outside the scope of your RFP then you may have to start the process over from the beginning. However, if the new approach can save you substantial time and money, it may be worthwhile.
- Share as much information to potential vendors as possible during the bidding process. Let them know your timeline, budget, desired payment terms, needs in detail, your desired results, the reporting methods required, and penalties for failing to meet those results.
- Be respectful of your bidders’ time. Yes, you’re the client, but if you’re overly demanding, confusing or scattered during the bidding process, the vendor may decide that you’re troublesome and bid a higher amount as a result. People want to work with people they like and respect, so treat your potential vendors just as you want to be treated when you’re pursuing a new business opportunity. Don’t waste their time if you have no intention of working together.
7. Evaluate, negotiate & award the project. If you’ve used an objective rating method, you should have a fairly clear ranking of your final bidders. If a few of them are close, negotiate terms and pricing with your finalists.
As you finalize your decision, pay special attention to these issues:
- Accessibility. How easy is it to get ahold of them? Keep in mind, the way they interact with you before you buy is a great indicator of how it will be to work with them.
- Credit and payment terms. Do they offer credit? Do you find their terms acceptable and reasonable?
- Long term value. Does this company seem concerned with establishing a long term relationship with you or are they looking for a one-time quick sale? Especially with projects that are detail-oriented or new, you’ll want to work with someone who is supportive, knowledgeable, and truly vested in your overarching success.
- And finally … price. Remember the adage “You get what you pay for.” Don’t just choose the lowest bid – choose the vendor that best meets your criteria for success.
Choosing the right vendor can make or break your project, your budget, and your sanity. Put the time in, select a partner that can support your needs throughout the process, and you’ll set your project up for success!
Want more info on this subject? You may want to also check out these posts:
New website project on the horizon? Looking for a new printer or designer? A PR firm? Copywriter? CRM consultant?
Whether you have a rolodex full of contacts or you’re beginning a totally new project in the dark, finding the right vendor for the job is a project in itself. You need to find the best person/company for the project, but when the process starts taking too much time, it’s too easy to just throw up your hands and potentially hire the wrong team.
If your company needs to hire a new vendor this fall, here’s a process to help you identify & analyze them efficiently and effectively.
I’m going to split this post over two days – first, here are tips for creating a list of qualified companies. Tomorrow I’ll write about RFPs, comparing apples to oranges, and making the final selection.
1. Know what you need. If possible, determine what you’re looking for before you start your search. You may want to set an initial budget, then develop a timeline for your search, especially if you have important dates to hit. You don’t want to run out of time and make a selection before you’ve finished your evaluation.
2. Identify your prospects. Don’t know a slew of people or companies already? Here are a lot of ideas for developing your list of potential vendors. Make sure you have enough to talk with – if you want 3 bids, you may need to review 10-20 (or more) companies.
- Ask for referrals! Not only do you get a contact name and number, you get an endorsement that’s meaningful. Ask your colleagues, friends, family, and customers for referrals. Don’t forget your other vendors, too. For example, if you’re looking for a mail vendor, you can ask your graphic designer or printer for their recommendations.
- Look on industry websites including trade organizations, associations, guilds, regulatory boards, and certification agencies. For example, on the American Institute of Graphic Artists website, you can search their member database for a vendor in a variety of specialized categories.Also check out message boards and forums on your favorite industry sites. If you post a question to the community, you’ll often get a slew of emails from potential vendors for your project.
- Get specific with Google. Let’s say you are looking for a CRM software consultant. The word “CRM” will deliver different results than “CRM consultant.” Then try adding your city and see what happens. Try a variety of very specific phrases. And pay close attention to the paid ads on the top and right side of the page – those companies have paid to show up for the term you entered, so they probably provide the service you need.
- Check out your favorite industry publications, email newsletters and websites. Pay special attention to the articles, ads and resource listings.
- Call your local associations or Better Business Bureau. Most cities have some type of economic development organization or professional resource center. These types of sources will not only offer vendor listings, but often include background information, historical data including any previous complaints or grievances, and other details to help you get a better picture of potential vendors.
- Who has your company worked with in the past? If you’re new in your position, ask around! You can also check with your Account Payable or Purchasing departments to see if they have an approved vendor list.
3. Think carefully about your key success criteria. You don’t want to spend an hour talking with 20 people or companies. Instead, the first call is about pre-qualifying. What do you absolutely need for the project?
Make a short list of pre-qualifying questions that will give you a good flavor for the vendor’s experience and ability to handle your project.
- What is your true specialty?
- Who are some of your current clients?
- How do you normally handle this type of project?
- What’s your general cost / fee structure?
- Do you have any special expertise or specialty offerings that may help my project?
4. Make your first cut. You may find a lot of your initial answers on those companies’ websites. If not, spend 10 minutes on an initial intro call. Explain the scope of the project, asking the same 3-4 pre-qualifying questions. Your goal is to narrow down to a manageable list of companies that deserve more time & energy.
From this point it’s time to evaluate in more detail – I’ll post my thoughts on that topic tomorrow! If you have any questions or issues you’d like me to address, please post a comment below.
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