Issue #31: The Report Card Needs a New Grading System

In my last issue I listed as one of my top 30 industry secrets that ‘Everyone reads the vendor rankings. No one believes them. The biggest providers land in the top corner, and everyone rolls their eyes at it.’

My comment was timely, as a few days later Forrester came out with its new Wave for Loyalty Services. Seven providers assessed with two named leaders, and press releases went out soon after touting the rankings. This article isn’t just about Forrester’s assessment, but other provider rankings from Gartner and others for CRM, Digital, Loyalty and frankly any MarTech platform or marketing service. It’s not who they rank. It’s the methodology flaws and narrowness of the assessments that make them unhelpful to brands.

Most procurement teams use them, brand marketers feel forced to consider them, and providers feel handcuffed to participate.

After 20+ years on the brand side being the one evaluating, I did a 3-year stint on the B2B loyalty provider side where the tables were turned and I felt the pressure to have a press-release-worthy ranking. While there is no pay-to-play that I’ve ever been aware of, there is often internal pressure to remain in good standing with the reviewers, which each provider interprets differently.

You can submit your firm and hope to be accepted, or you can be invited to participate. But in some instances, if you decline they could still include you—meaning your silence is now ranked against firms that opened up their business and clients for wider transparency. It felt like a no-win, with our backs against the wall.

I’m back on the brand side doing the choosing and still don’t find all these reports that helpful, and here’s why:

Not only do brands keep these reports alive by paying for and reading them (despite not finding them helpful). They also play a part in why providers depend on them for positive PR. How? Too many brands are unwilling to give public support for their providers.

I experienced this first-hand on the provider side. Some of our biggest clients wouldn’t let their brand name or case studies be used in our sales materials or on our website. Reasons varied, but I often felt it hung over our heads as pressure to deliver certain enhancements, or we had to wait to see if their program was successful—even though much of that was in the brand’s control.

As a brand marketer at Starwood, BJ’s Wholesale, Dunkin’ and now Sky Zone, I’ve always felt comfortable publicly backing my partners and providers unless there is a really egregious situation, and in that rare case I’d be doing an RFP to switch. And I don’t back partners just because they do good work. It’s in your best interest as their customer to support them, because it’s a flywheel that benefits you:

Because a named client and a public reference from a brand are worth more to a provider than any wave or quadrant.

It’s not perfect, but at least Ad Age’s A-List Awards has more than two dozen categories, so small players aren’t up against behemoths and specialties are rewarded rather than shunned. I’d love to see something similar for our industry: one where a WPP can be recognized, but so can an Antavo, and where subscription platforms aren’t lumped in with points platforms.

Let’s also celebrate and highlight independent consultants who can be immensely knowledgeable and cost effective. With most brands tightening their budgets, there is a real need for greater awareness of options.

Finally, let’s have a published list of which programs are run and supported by which providers. This requires partnership from brands willing to publicly promote those helping deliver for the customer. Everyone is willing to have these conversations 1:1 or in small discussions at conferences, but why not in digital ink?

A ranking that leaves out most of the market isn’t a guide. It’s an exclusive guest list. It’s time for change all around.

If you’re a provider, how have the existing measurements helped or hurt your brand? Does any of this resonate?

If you’re on the brand side, what has been your most effective way in finding the best providers?