They work well, but you need to mount them right at the encoder for best effect.
Single-ended encoder signals in - you may need pull-up resistors there.
Differential output: you will need screened 8-core cable from the encoder to the driver. 2 wires for power and ground, 2 wires for A, 2 for B and 2 for I.
Put a 0.1 uF cap across the supply at the chip.
Cheers
Roger