• Recent Posts: Influencer Relations

    IDC overtakes HfS in 2017 global Analyst Firm Awards

    IDC overtakes HfS in 2017 global Analyst Firm Awards

    Gartner and Forrester’s leadership is no surprise, but this year IDC has won back third place in our annual Analyst Firm Awards, pushing HfS Research into a still-impressive fourth place. PAC and Ovum have also risen substantially this year, rounding out the top six. In last year’s awards, we saw that firms that could create business leads for their clients […]

    Analyst Value Survey shows deeper frustration with industry analysts

    Analyst Value Survey shows deeper frustration with industry analysts

    I’ve been in New York this week discussing the Analyst Value Survey with both Kea clients and industry analysts. The 2017 report will be available early in January, but the responses show that many users of analysts’ services are reaching out to more firms than before, and are gathering quite uneven value. Firstly, the good news is that many users […]

    Webinar: Survey shows new risks for analyst relations

    Webinar: Survey shows new risks for analyst relations

    A first glance at the Analyst Value Survey shows new risks emerging for analyst relations professionals. We’re hosting a webinar on November 30 to hear how leading AR professionals are responding to them, and what the best practice is for your analyst relations program. Three risks stand out massively. First, there a big gap between the firms that vendors think […]

    Vendors’ five key thoughts about analyst firms

    Vendors’ five key thoughts about analyst firms

    Five things stand out from vendors’ responses to a survey we conducted after our Analyst Relations roundtable at the English Speaking Union. Analysts (including analysts who call themselves consultants or advisors) are often thought to have bias, especially if most of their revenue comes from vendors. Sometimes the effort put into staying informed makes analysts seem very process-driven but less […]

    Join us for the Forum in San José on November 17

    Join us for the Forum in San José on November 17

    Should someone you know be at the year’s most important discussion on analyst relations? We’ll be at the free ARchitect User Forum 2016 in San José, CA, on November 17. Professionals from industry leaders will introduce the sessions: Lopez Research, Digital transformation; IBM, AR in large organizations; Cognizant, Managing analyst events;  Capgemini, AR knowledge management; Wipro, Intelligence-driven relationships; and ARinsights, AR […]

Saving money on your Gartner and Forrester contracts is a year round activity

icon-budget-cuts-105w.jpgSageCircle is handling more and more client inquiries about how to reduce the cost of Forrester and Gartner contracts.  One aspect jumps out: too many purchasing managers (e.g., AR, market research, or procurement.) focus on managing costs mainly at contract renewal time. The reality is that saving money needs to be a focus each month of the contract, both to manage incremental spending but to also set the stage for the next contract renewal. 

What many vendors do not recognize sufficiently is that the Big Two account teams are scouring the vendors for additional budgets to tap with a sale of an Advisory seat here or some Service Units there. In some cases, the incremental purchases can easily add up 50% of the original contract. This can be very wasteful if the individual doing the purchasing does not how to be a good research consumer (very likely), does not use the resource after the initial couple of weeks (more likely) or buys something this already available in other parts of the company (regrettably likely). Because there is rarely a line item in the chart of accounts for analyst services, it can be very difficult to track these purchases.

Contract managers need to constantly work on monitoring actual utilization of the services in the prime contract. This includes making sure that individuals are using their assigned seats, Service Units or prepaid analyst consulting days. If individuals are not making full use of the resources, they should be reassigned to some else and eliminate a “nickel and dime” incremental purchases.

SageCircle Technique:

  • Put polices into place to manage the purchasing of incremental seats or services
  • Require your sales reps to report monthly on incremental purchases in the pipeline
  • Require your analyst sales reps to provide monthly reports on which of your seat holders scheduled analyst inquiries and read research
  • Review the reports for resources that are being under utilized
  • Talk with services holders to determine if they are getting value from the services. If not, then reallocate the services

Bottom Line: Analyst firm sales teams will likely protest that monthly reports are not practical and that vendors cannot reassign services once the contract has started. Do not believe them. If necessary, escalate your requests up the analyst firm hierarchy. Maximizing your company’s spending efficiency will not damage your company’s relationship with the analysts who are largely unaware of contract issues.

SageCircle has all of the above bullets covered, which is why how to go about negotiating with Forrester and Gartner is such a common inquiry from our clients. SageCircle has developed a flexible – and currently unique – packaging and payment framework that permits vendors and IT managers to acquire the services that makes sense for their particular situation. As a consequence, buyers of Forrester and Gartner services (e.g., analyst relations, market researchers, procurement managers, corporate librarians and IT managers) can purchase as little as two hours of Advisory time to obtain insights and advice that will help them maximize analyst contracts while minimizing expense. Click on SageCircle advisory options to learn more about how SageCircle can help you reduce your analyst contract spend.

SageCircle Advisory and Online SageContent Library clients have received a SageInsight with practical and actionable recommendations for negotiating with the Forrester and Gartner duopoly.

Question: Who owns responsibility for managing analyst firm contracts in your company? Do they use year-round best practices to maximize business value while controlling spending?

2 Responses

  1. […] Saving money on your Gartner and Forrester contracts is a year round activity […]

  2. […] could be contributed by the messaging team or other parts of marketing. In addition, there might be unused or underutilized existing analyst services that could be reallocated to the messaging […]

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