• 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 […]

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) […]

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