The Worst Reason to Buy Procurement Software

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Hi readers,

Today I want to show you how a “deadly book” written in 1774 contains the secret to better business outcomes when purchasing ProcureTech software.

It might sound surprising, but powerful lessons hidden in this historical story reveal how you might be buying the wrong procurement software…

I suppose history has lots to teach us about how to deal with the present in general… 😉

Onwards!

📰 In this week’s edition:

• 📋 5 procurement jobs that caught my eye

• 🏆 The Road to the ProcureTech Cup : Episode 21

• 🌙 The Worst Reason to Buy Procurement Software

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Come see it in action!

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The Worst Reason to Buy Procurement Software

Before I get to the worst reason to buy procurement software, I must ask you a critical question…

Do You Think a Book Can Kill?

In 1774, a novel swept across Europe with such force that it didn’t just move readers… It seemed to claim hundreds of lives. The Sorrows of Young Werther by Johann Wolfgang von Goethe told the tale of a deeply sensitive young man, Werther, whose unrelenting despair over unrequited love drives him to end his own life.

Werther wasn’t just a character… He was an archetype. He was intelligent but emotionally fragile, romantic yet isolated, endlessly idealizing love while feeling alienated from the rigid expectations of society.

For some readers, Werther wasn’t fiction. He WAS them.

In the wake of the book’s release, young men across Europe, often artistic, melancholic, and yearning for meaning, began to dress like Werther, speaking in his poetic, sorrowful tone. And, in disturbingly high numbers, they died like him.

The reports were hauntingly similar: young men, often idealists disillusioned by the world, taking their lives in ways that eerily mirrored Werther’s final act.

Authorities, fearing the novel was fueling a deadly trend, banned it in several regions. But the pattern was undeniable…. The idea that a story could inspire real-world tragedy became impossible to ignore...

Scholars later gave this phenomenon a name: The Werther, or “Copycat”, Effect.

At its core, the Werther Effect is social proof in its darkest form… It’s the idea that when people are uncertain, they look to others who resemble them for cues on how to act, even in matters of life and death.

More than two centuries later, we see its imprint everywhere, from sales tactics and sensationalized news reports to viral social media trends…

…And we also see it in ProcureTech 👀

The Dark Influence of Social Proof in ProcureTech

There’s another domain where social proof can have adverse consequences (although less severe than The Sorrows of Young Werther 😅) → Sales References.

It’s been proven time and again that we look to others like us for answers to our problems, and businesses take advantage of “social proof science” to drive our behaviors.

When used positively, it can create cool outcomes:

• Bartenders' Tip Jars. Bartenders “salt” their tip jars with a few bills to encourage patrons to follow suit.

• Amazon’s “Bestseller” Label. People are more likely to purchase books or products labeled as bestsellers, trusting that the popularity of an item means it’s of high quality or value.

• Hotel Towel Reuse Signs. Guests are more likely to reuse towels when told that most previous guests did the same, leveraging social proof to promote environmentally conscious behavior.

But social proof isn’t always a force for good… It can also lead us to poor choices:

• The NYC Bystander Effect. In an emergency, when no one reacts, others assume it’s not urgent and fail to act. This inaction perpetuates the belief that someone else will step in, leading to collective indifference.

• Stock Market Bubbles. Investors, driven by the actions of others, often buy into overheated stocks, assuming they’re a safe bet because everyone else is doing it. This behavior inflates bubbles that eventually burst, leaving many with losses.

• Or, as in the case of our buddy Werther, the Copycat Suicide Phenomenon. Publicized suicides can lead to a tragic ripple effect, as vulnerable individuals mimic the behavior of those in the spotlight, mistakenly seeing it as a solution to their pain.

Now, in the world of procurement technology, we can easily fall into the trap of relying on social proof when making software buying decisions…

Just because other companies in the same industry are using a particular system or that glowing sales references point to its popularity, doesn’t mean it’s the right fit for your business.

Like the Bystander Effect, relying heavily on what others do without critically evaluating your organization’s unique needs can lead to poor choices.

Sadly, I still see this happen ALL. THE. TIME.

Following the crowd in procurement tech can result in implementing a system that doesn't align with your specific context, long-term objectives or strategy.

To avoid this, there are 2 fixes:

1. Internal Fix. Before taking a single look at a sales reference, take a more strategic approach:

   • Educate yourself on the “art of the possible” in ProcureTech, reading articles, case studies and watching demos to understand the possibilities (consult a market expert as a shortcut).

   • Craft a strategy and technology roadmap based on your specific context and objectives. Your specific mix of org structure, operating countries, culture, existing system architecture, team size, etc. will all influence the “correct” answers for you compared competitors.

   • Then, when you have a system-agnostic vision of what you want to accomplish, approach the market in “purchasing mode.”

2. External Fix. Once its time to get down to brass tacks, considering sales references is indeed essential. However:

   • Realize that “social proof science” is at work on you. Seeing a known logo on a slide is interesting but confirms nothing… Not yet.

   • Follow up and invest in your reference calls. Don’t just ask if existing clients like the solution… Ask them about all the elements I listed above (org structure, operating countries, culture, etc.)

   • If you can, go spend a day on-site at the reference client to see how they operate with the system. This is a low cost insurance policy against a failed project…

This may seem like a lot of hassle but, as many wise men have said in the past, who you get married to is the most important decision of your life… And buying enterprise software is pretty much the business equivalent of marriage 😅

Social proof can be helpful, but it shouldn’t be a driving force behind important decisions in procurement, especially for mission critical software.

Measure twice, cut once.

What do you think? Do you have other examples of social proof gone awry?

I just love this stuff…

Let me know in the comments 👇

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