2010 Q2 Vendor Selection Process
What do you consider the most important criteria in the selection of a vendor? More importantly, what do your customers and prospective customers consider most important to them? Invariably there is a gap between what you think and what customers think is most important. During a recent blind market survey of customers and potential customers conducted by SPG for a client, we wanted to determine the most important criteria used by customers and prospects to select vendors. In addition to the obvious criteria, i.e. product quality and price, there were several other criteria to be examined. They included, product availability, selection, discounts, ease of use for ordering on line, customer service capability, sales relationship, etc.
Another objective in addition to the importance and performance rankings compared to competitors, was to assess the recognition of our client’s name in an unaided response. How many times was our client mentioned vs. other companies when asked to name vendors that come to mind. Coupled with the awareness level, we wanted to learn potential customer perceptions of our client – both strengths and weaknesses.
The client wanted to use the findings to formulate strategy during their strategic planning process. Armed with this information and with our assistance, the general manager was able to translate the information gained in the marketplace into clear and actionable plans. The bottom line in any market research on vendor selection is the ability to gain competitive advantage and thus lead to increased sales and profits, something increasingly important during these adverse economic times.