• Recent Posts: Influencer Relations

    Fersht: some IIAR award-winners “just tick the boxes”

    Fersht: some IIAR award-winners “just tick the boxes”

    Some of the firms mentioned by the IIAR’s analyst team awards fall short of excellence. That’s the verdict of several hundred analysts who took our Analyst Attitude Survey, and of the CEO of one of the top analyst firms. Phil Fersht left the comment below on our criticism of the IIAR awards. We thought we’d reprint it together with the […]

    Do the IIAR awards simply reward large firms?

    Do the IIAR awards simply reward large firms?

    The 2016 Institute for Industry Analyst Relations’ awards seem to be rewarding firms for the scale of their analyst relations, rather than their quality. In a blog post on July 6th, the IIAR awarded IBM the status of best analyst relations teams, with Cisco, Dell and HP as runners-up. Together with Microsoft, which outsources much of its analyst relations to […]

    Unmaking fruit salad: 6 ways to help analysts segment markets

    Unmaking fruit salad: 6 ways to help analysts segment markets

     It’s a common challenge for providers: some new or fast-changing market contains very different solutions. Clients want either apples or oranges, but the analyst research reads more like fruit salad. As new solutions come into old markets, or as analysts try to squeeze hot new solutions into their less-exciting coverage areas, it’s increasingly hard for users of analyst research to make […]

    Control in Analyst Attitude Surveys

    Control in Analyst Attitude Surveys

    Because a lot of analysts take part in our Analyst Attitude Surveys, we are able to offer clients what we call a control group. In the language of research, a control group is a group of people who don’t get the treatment that we want to measure the effectiveness of. For example, most firms might be focussed on a top tier […]

    Time for a new direction in AR measurement?

    Time for a new direction in AR measurement?

    Worldwide, Analyst Relations teams are committed to fostering the best information exchange, experiences and trusted relationships with tightly-targetted global industry analysts and influencers. Sometimes the targeting is too narrow and analysts are treated inhumanly. However, the technology buying process is transforming and so must the benchmarking of analyst relationships. There’s already a long-term transformation of analyst relations. Over one-third of technology […]

Are you in a “contract renewal trap” when it comes to Forrester and Gartner contracts?

icon-budget-cuts-105w.jpgAs we work with clients on helping them manage their analyst spending, one major problem that keeps popping up is what we call the “contract renewal trap.” This occurs when the analyst contract manager (e.g., analyst relations, market research or IT manager) lets the analyst firm control the renewal process by starting with last year’s contract. The previous contract then becomes a de facto floor to build upon. It is a seductively easy trap to fall into because it appears to have minimal work involved and there is little likelihood of not renewing. Of course, this trap benefits the analyst firms immensely. 

The contract renewal trap is likely costing the average vendor or end-user client of the analyst firms tens of thousands if not hundreds of thousands of dollars of unnecessary spending every year.

SageCircle Technique:

  • Contract managers, whether end user or vendor, need to determine if they are in a contract renewal trap
  • Contract managers need to take a “sacred cows make the tastiest hamburger” mentality and approach renewals as if Forrester and Gartner might not get any contract
  • Contract managers need to seize control not cede control to analyst firm sales representatives
  • Contract managers need to invest the time and effort needed to do a zero-based contract negotiation

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 not by starting with last year’s contract.  AR team, market research managers, and other analyst contract managers need to scrutinize every service purchased in the last year to see if true business value was obtained and then ruthlessly cut unproductive spending. This is one of the techniques to prevent wasting money on contracts with the Big Two duopoly.

Question: Analyst contract managers – How do you approach analyst contract renewals?

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.

2 Responses

  1. […] 4) Falling into “contract renewal trap” […]

  2. […] AMR clients should take a zero-based approach to contract renewals, exploring offerings from other firms and not just signing up with Gartner (avoid the automatic contract renewal trap) […]

Comments are closed.

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: