• Recent Posts: Influencer Relations

    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 […]

    Take the 2016/17 Analyst Value Survey

    Take the 2016/17 Analyst Value Survey

    The Analyst Value Survey is open! Each year several hundred users of analyst research tell us which analyst firms they use, and which are most valuable. In exchange, they get access to our results webinar, where they discover which firms are delivering the most value in key market segments. You can take part too. Go to AnalystValueSurvey.com and click on […]

    Guess Who’s Looking for Top Talent in Analyst Relations?

    Guess Who’s Looking for Top Talent in Analyst Relations?

    Looking for a new direction in your Analyst Relations career? October is a time when new opportunities pop up in the field. From IBM to Google, we gathered the top US Analyst Relations firms with vacancies needing to be filled. If you’d like to learn more about the opportunity and to schedule an interview, contact these firms directly. However, if […]

NCVI are the four most important letters in the English alphabet for a Gartner sales rep

icon-budget-cuts-105w.jpgKnowledge is power when it comes to purchasing decisions about analyst firm contracts. Unfortunately, too many contract managers do not understand many of the underlying behavioral drivers when it comes to dealing with Gartner sales representatives, which puts those managers at a disadvantage. 

For instance, an important piece of information is that Gartner reps are measured on NCVI, net contract value increase. NCVI is calculated based only on the total syndicated research revenues, seats, and clusters. Other purchases such as event sponsorships, consulting or SAS are not included in the calculation.

Gartner sales reps that achieve NCVI are golden. Those reps whose client contracts are less than the prior year’s amount are in danger of termination. That is why Gartner sales reps start getting desperate when it looks like contract renewals are going to be less than the previous contract.

It is possible to reduce spending – notice we did not say “save money” – with Gartner without damaging the ability to access analysts for influencing purposes. However, it is not as simple as trying to negotiate a better discount from the sales rep, which is quite difficult because of the pricing discipline mandated by Gartner’s CEO. Rather it takes intelligence about Gartner’s business and sales practices to know what cuts are possible and how to distinguish between which sales representative’s dire comments are real versus which are just FUD.

SageCircle Technique:

  • Contract managers need to seek out information about Gartner’s business model
  • Contract managers need to obtain and understand intelligence about what motivates Gartner’s sales reps
  • AR and contract managers (if contracts are not part of AR duties) need to collaborate to ensure that contract cuts do not impact access to tools (e.g., inquiry) needed for influencing efforts

Managing Your Gartner and Forrester Expenditures is SageCircle’s new webinar that provides information, intelligence, insights, and actionable advice on how to manage what you spend with Forrester and Gartner to ensure that you have the access you need without spending more than necessary. This 90-minute session is a bargain at only $95 and will be held on April 21, 2009 at 8 am US Pacific Time and April 29, 2009 at 12 pm US Pacific Time. Click here to learn more and register.

Bottom Line: It is possible to reduce the spending with Forrester and Gartner, but traditional negotiating techniques are not effective. Rather, negotiators need to take into account changes in the marketplace and deep insights into the analyst firms’ business models to prevent wasting money on contracts with the Big Two duopoly.

Question: Analyst contract managers – Do you know how analyst firms’ sales representatives are compensated? Do some sales reps seem to act illogically?

What additional information does it take to negotiate effectively with the analyst firms?

  • Knowledge about the firms’ research methodology and analyst culture
  • Knowledge about the true business value of Forrester’s and Gartner’s service offerings
  • Insights from tracking all the interactions the firms’ have with Wall Street and investors (e.g., earnings calls, investor days and participation in financial analyst conferences)
  • Intelligence from AR managers around the industry
  • Experience as contract negotiators
  • The right attitude (i.e., all business is personal, but don’t take it personally)

SageCircle has all of the above bullets covered, which is why the process of 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.

One Response

  1. Actually, traditional negotiating techniques can be wonderfully effective, as long as you remember who is the customer. We just reduced our spending at Forrester to $0 for 2009. The value we got last year is by an odd coincidence equal to the money we are spending this year.

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