Many marketing teams are preparing to negotiate software contracts that expire on Dec. 31, or are already in the middle of doing so, and this in a climate where marketers are looking for quick wins, and vendors are more eager than ever to secure customer success and loyalty. How should martech purchase teams negotiate the best deals? Start at the top. âWe work primarily with global 2000 companies, and 99% of our subscribers think they are behind in technology; that point of view matters, and desperation can seep into your contract negotiations with vendors,â said Tony Byrne, founder of the technology analyst firm Real Story Group, which evaluates martech and CX technologies. âIt is not a new story, just one that has been accelerated a lot more during the time of COVID.â This desperation communicated by enterprise organizations with deep pockets can lead to proposal responses with increased pricing, including dramatic pricing increases on overhead and especially personnel. âIt is important to check in quarterly to make sure you are getting value in the different personnel roles assigned to your account and not just a bunch of overvalued account executives,â said Byrne. âRegardless of the vendor, or how long the relationship, identify what parameters and metrics are driving costs. Once you understand vendor architecture that increases costs, then you can understand the âwhat ifâ scenarios and you will get push back from vendors, but that is when you know you are doing your job.â Keep a close eye on costs: âThis is a good time to negotiate with large vendors like Adobe, Salesforce and Oracle, because they are trying to lock in multiyear large contracts to get capital before the end of the year,â said Byrne. âWe advise our clients to negotiate hard and use a test-based selection method.â Read More >> |