Customer Satisfaction: The New Battleground for ERP Vendors

In an era when Enterprise Resource Planning (ERP) has become a commodity, vendors must now compete on customer satisfaction like they have never done before. Robert Fayle, the research director for enterprise applications at Info-Tech Research Group believes technology is no longer the true differentiator; it is the customer experience from the first contact to the daily use. 

I spent more than twenty years as a software developer and manager, and for many of those years, I thought I was “customer-focused.” I was not, nor were most Enterprise Resource Planning (ERP) vendors. We felt that new technology and more widgets would make our customers happier. When I saw my first Net Promoter Score (NPS) and double-digit negative, I figured there had to be a mistake. There was, in that we were not really customer focused.

This year’s Enterprise Resource Planning Emotional FootprintOpens a new window from Software Reviews shows that companies have finally seen the light of the NPS and truly become customer-focused. Yes, technology and functionality are still important, and there are many more important things a vendor must do. For example, it was not uncommon for a sales representative to sell ‘vapourware’ from my anecdotal experience. Vapourware is functionality that does not exist in the software, yet the customer has been promised it is there. As a developer, I would spend months building out the new functionality so the client could go live on the promised software.

The Core Truth of ERP

One of the unique differentiators of Software Reviews’ Emotional Footprint is the sentiment analysis. It’s encouraging to see words such as “trustworthy” and “respectful” being used to describe the software vendors in the ERP space. All great relationships are built on a foundation of trust and respect. Sadly, vapourware still exists, as revealed by the sentiment “over promised” along with “vendor’s interests first” and “greedy.” Fortunately, there are also bright spots in the current landscape including sentiments of “reliability,” “integrity,” “efficiency,” and “effectiveness.” Those are all excellent traits to find in a partner providing something as integral to your organization as an ERP.

Contract negotiation, implementation, and support are the three key areas that ERP vendors can and should differentiate themselves. To get to the table, the vendor needs a good product that addresses the client’s needs, and contract negotiation is the beginning of what will likely be a long relationship. Nobody wants to start a long-term relationship feeling the other party is deceptive and focused on their own interests to the exclusion of all others. This applies to both sides. As a client, do you really want to play hardball with the company that will help run your organization for the next decade?

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ERP Success Demands Customer Satisfaction

The next stage of the relationship is the implementation, which is possibly the most challenging part for the client. Money is flying out the door, making demands on the staff needed to run your organization while waiting to realize any benefits of this new ERP. This is not where you want to realize that your vendor is a bureaucratic organization that does not treat you with respect leading to a very frustrating experience. Your ideal vendor will over-communicate and ensure that your staff is leveraged effectively and efficiently to deliver value at every implementation stage. 

And the final piece of the journey is the on-going service and support. The worst possible experience is when the vendor hides behind their Service Level Agreements (SLAs) and takes forever to respond to you. A good vendor understands that a good relationship with clients increases customer retention rates and increases customer value. In other words, to be a successful vendor, treat your customers well, and they will reward you.

And technology is still important. A strong product strategy backed by innovation will continue to deliver a product that delights the customer and further increases customer satisfaction with both the product and the vendor. ERP is not a short-term investment by anyone, client and vendor alike. 

So why the switch to this new, truly customer-focused vendor attitude? It is the commoditization of the ERP landscape. Around 80% of the functionality in any ERP can be found in its competitors. The remaining 20% focuses on customer needs that make or break an ERP success story. As vendors can no longer truly compete on a technology basis, the only thing truly left is how they treat the customer. The technology problem has become a people problem. 

Are ERPs really customer-centric? Let us know your thoughts on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We would love to hear from you!