Making good purchasing decisions is very challenging for any IT buyer because it is a world full of inconsistent pricing, uncertainty, and overspending. Recently, buyers have started to use social networking as a way to gain more objectivity and level the playing field with vendors. Through social networks, they are able to access the necessary benchmarking data as well as other vendor insights to aid in complex negotiations.
But, can social networking really help IT buyers make better purchases? Many say yes, as these survey results from a recent Forrester Research study called “IT Purchasing Goes Social” suggest:
60 percent of IT purchasers surveyed have made decisions influenced by social networks
73 percent say they have engaged with a vendor using social networking
58 percent use social networking to learn from trusted peers
Top reasons to use social networking sites for IT purchasing also include:
To locate information fast
To gain insight to interact with vendors
To gain access to a broader network
Some sites are even starting to help make this type of interaction easier for buyers by offering specialized forums. A LinkedIn Group called IT Spend Management provides a platform for purchasing professionals to share insights on vendor pricing, terms, negotiations and other relevant issues.
Overspending most often occurs because IT buyers are not able to determine fair market value for new technology. Vendors don’t make this easy when their prices change frequently for no apparent reason. When buyers are able to compare prices with their peers on a social networking site, they gain much needed leverage for negotiations.
Social networking has evolved a great deal from its early days as a simple way to connect to others. Businesses are finding more ways every day to use these sites to grow their revenues and reduce costs. IT purchasing has certainly benefitted and will likely continue to as social networking reduces vendors’ advantages in the marketplace.
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI Financial to learn more about telecom expense management