• Recent Posts: Influencer Relations

    Your pitch to analysts isn’t just about your solution

    Your pitch to analysts isn’t just about your solution

    In pitches to analysts, there are many conversations going on. At one level, there’s a communication about the business solution. There’s also a conversation about the wider market and about the personal credibility of the participants. Sometimes the slides used in pitches are just excuses for the interaction. The slides are used to assess both the market vision of the firm and the […]

    KPMG pushes out 451 in 2017 Strategy Analyst Firm Awards

    KPMG pushes out 451 in 2017 Strategy Analyst Firm Awards

    For the strategic heavy lifting, executives are reaching out to a very wide range of advisors. Gartner heads up the list when we look at the Analyst Value Survey data to find the analyst firms most valued by people who work on strategy. It creates almost 19% of all the value being produced by analyst services around strategy (If CEB, […]

    Save the date for our Analyst Firm Awards

    Save the date for our Analyst Firm Awards

    This year we’re publishing our analyst firm awards more or less monthly. Please put the dates in your diary. If you’re a subscriber to the Analyst Firm Awards, you can also access a webinar for each of these events, held on the final Thursday or each month. January – Global January 18 – Outstanding reports February 17 – Strategy March 15 – Internet […]

    IDC could flourish after IDG’s sale to Chinese consortium

    IDC could flourish after IDG’s sale to Chinese consortium

    As we predicted in our April Fool’s Joke last year, IDC has been sold as part of a Chinese-led purchase that leaves CEO Kirk Campbell at the helm. IDG Capital will take control of the IDG Ventures; China Oceanwide will control IDG and most of IDC, and an independent trustee will take control of IDC’s High Performance Computing (HPC) practice, […]

    Kea Company acquires UK analyst relations consultancy Active Influence

    Kea Company acquires UK analyst relations consultancy Active Influence

    Merger consolidates Kea Company’s position as world’s largest analyst relations consultancy January 19, 2017. London — Kea Company, the world’s largest analyst relations consultancy, today completed its acquisition of Active Influence. Founded in 2010, Active Influence has helped many of the world’s largest technology companies to gain measurable business benefit from their relationships with analyst firms. Founder Richard East has become […]

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.

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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) […]

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