The believability of tech ROI claims
Promises of ROI and increased productivity are a classic marketing hook for B2B tech companies.
Should you believe these claims? Not automatically. Nor should you outright dismiss them. When considering a tech purchase for your business, start with an investigative mindset and think of only two words: prove it.
The investigative mindset
This isn’t about being cynical or hostile. Using an investigative mindset simply means refusing to take any claim at face value and instead asking the vendor to substantiate what they say with concrete evidence.
Bold claims work because we, the viewer, immediately picture how much better off our lives would be if we too could double productivity and drive growth. Bit by bit, repeatedly seeing this type of messaging nudges our mental anchor and normalizes these claims. And that’s the goal.
What’s the power in ‘prove it’?
“Prove it” flips the burden of proof back onto the vendor. Your duty as a buyer is to dig deeper on ROI and productivity claims. Here’s the key: proof needs to be backed by rigor. Approach this like a scientist would. They’d use the scientific method.
Structured before-and-after analysis. Multiple subjects. And controlling for external variables. Only then can anyone really make claims of causation.
Without this type of scientific approach, the best you should hope for, or the best anyone can guarantee, is correlation.
Beware of correlation
A vendor might say, “After implementing our system, this client increased revenue by 25%.” Let’s take that at face value. What that statement says is, “during a window of time our client implemented our system and saw revenues grow.” In our minds we instinctively create a cause & effect relationship. But it may not be so.
The reality is that two things can be true at the same time and not be connected. Perhaps that increase was due to hiring two excellent salespeople, or a competitor shutting down and moving business, or a favorable market shift that helped unexpectedly generate new business.
Here’s an easy rule-of-thumb: assume most ROI and productivity claims are correlations. Then move towards asking the vendor to show causation.
The lure of customer testimonials
There’s nothing inherently wrong with customer testimonials. I’ve used them. Just remember that testimonials are broad stroke references that have been cherry-picked and likely massaged. If a testimonial references specific details, ask for the underlying data. If it exists the vendor should be glad to share it.
Assume the best. But verify. Always verify.
What questions should I ask vendors?
If you’re in the process of buying technology right now, ask for your vendors to back-up their claims.
Can you prove that claim, and how?
Is this result causal, or just correlated with using your product?
How do you define “increased productivity” in a way that fits my environment?
Where in my revenue-generating process does this improvement occur?
Do you have structured before-and-after data or proper studies to back this up?
This certainly isn’t an exhaustive list. But these questions help you separate marketing messages from measurable value and will hopefully help in the decision making process.
