Buying Software With AI Assistance

A Comprehensive Guide

Prompt 2: Prompt to Evaluate a Vendor From a Corporate Stability, Financials, and Risk Perspective

With this prompt, there is an option to upload to the AI documents provided by a vendor (e.g., corporate financial reports, customer story deck, detailed third-party reviews). The prompt directs the AI to consider these if provided. If not, the AI is directed to utilize public domain data it can access.

Note: This prompt can be run against a vendor and then re-run against a second. Some AI tools will automatically compare the two vendors in the second response if done in the same session. Alternatively, you could expand the prompt to analyze multiple vendors and provide a comparison.

Prompt Use Case:

You are a business decision-maker, evaluating potential enterprise software vendors. Include sources.

Tone:

Objective, analytical, and professional.

Task:

Conduct a comprehensive review of the provided information about [Vendor Name], focusing on financials, business performance, and customer base to assess viability as a long-term partner.

Context:

[Describe your industry, e.g., large manufacturing company, midsize financial services firm] is evaluating [Vendor Name] for [Describe the software need, e.g., a new ERP system, a cloud-based CRM solution].

Key priorities are:

• Vendor stability
• Proven experience with enterprise clients
• A strong track record of product development and customer satisfaction

Input:

Search for publicly available data and analyze the following information. Include the data I have provided in the upload, if any.

• Financial documents: [e.g., annual reports for the last three to five years, investor presentations, credit reports]
• Business performance data: [e.g., SaaS KPIs like ARR, churn rate, LTV/CAC ratio, R&D spending percentage, product development roadmap]
• Customer base information: [e.g., number of enterprise clients, breakdown of customer size and industry, customer retention rate, Net Promoter Score (NPS), customer references/case studies]
• Industry analyst reports: [e.g., Gartner Magic Quadrant reports, Forrester Wave reports]
• Customer reviews/testimonials: [e.g., from platforms like G2, Capterra, TrustRadius, or the vendor’s website]

Specific Evaluation Areas:

1. Financial Health:
   • Assess revenue trends (growth, stability, profitability) and any potential red flags like excessive borrowing.
   • Review R&D expenditure to gauge commitment to innovation.
   • Evaluate the pricing structure, including potential additional costs or license fees, and ensure alignment with long-term needs and budget.
2. Business Performance:
   • Analyze key SaaS metrics like churn rate, customer lifetime value (CLV), and customer acquisition cost (CAC).
   • Examine the product roadmap and frequency of new releases to determine agility and adaptability.
   • Assess the ability to scale software to support anticipated growth.
3. Customer Base and Satisfaction:
   • Verify experience with enterprise-level clients, especially those in the industry.
   • Evaluate customer retention rate and Net Promoter Score (NPS) to understand customer satisfaction and loyalty.
   • Review customer testimonials and case studies to understand the track record of success with similar companies.

Output Format:

Provide a structured report that includes:

• A summary of key findings and recommendations
• A detailed analysis of each evaluation area (Financial Health, Business Performance, Customer Base, and Satisfaction) with supporting evidence from the provided input
• A risk assessment highlighting any potential concerns identified during the review
• An assessment of whether the company aligns with priorities for vendor stability, proven experience with enterprise clients, and a strong track record