• Recent Posts: Influencer Relations

    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 […]

    Top ten global analysts: 2016’s outstanding research

    Top ten global analysts: 2016’s outstanding research

    2016 produced some outstanding analyst research. We’ve picked the best articles from each of the world’s ten leading analysts firms, as ranked in the 2017 Analyst Firm Awards. Together they show how diverse analysts’ most compelling content can be, including deep quantitative research into mature markets, like cellphones; pointed competitive insight into corporate changes, like Dell’s integration of EMC, and […]

    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 […]

What to do when you only have a few dollars for AR

rocket-for-startups.jpgThere are many IT vendors that are either launching or reinvigorating their AR program for the IT industry analysts (e.g., Gartner, Ovum and Yankee Group). It is typical for nascent AR programs to have a small budget to work with. This heightens the importance of spending decisions because when there is little money the margin for error shrinks considerably. 

The first priority for AR managers is that they demonstrate effectiveness early to get more support for AR. This requires a ruthless focus on the key success factors and how money spent can help achieve those factors. While there are many reasons why IT vendors invest* in AR, more often than not the initial reason is to obtain increased visibility with the analysts talking to their prospects. This post focuses on that premise.

First, spend your money with the right analysts. There are three primary types of analysts: end-user advisory, market research, and white paper for hire. It is the end-user advisory firms that have the hundreds of thousands of personal interactions with IT buyers every year. Thus, dollars spent with those analyst firms will have the biggest payback by obtaining relationship-building tools. Advisory firm contracts provide the ability to do inquiries on a frequent basis, which are invaluable for gaining insights into the analysts’ thought processes and research agenda, getting “top of mind” presence, doing spoken word audits, and developing a personal relationship. These types of activities will greatly enhance an IT vendor’s visibility with their primary analysts leading to analysts being more comfortable recommending the vendor to their clients.

Market research firms are less important because their clients are vendors and financial firms. The exception is when the market researchers are affiliated with an end-user advisory firm (e.g., Dataquest and Gartner) where a well-crafted and keenly executed “market driver” study can be used to influence the advisory analysts. In this case, the AR program might be able to leverage their company’s research/competitive intelligence’s market research budget for this project.

White paper for hire firms should NOT get any of your meager AR budget. These analysts’ primary clients are vendors’ marketing and sales departments, not end users. Thus money spent with these firms does not secure you access to analysts talking to buyers. This does not mean that these white papers with analyst logos are not useful. However, these white papers are really a tool for sales and marketing, their budgets should be paying for the white papers.

While spending money with an IT analyst firm will not guarantee coverage, it does guarantee non-briefing access via inquiry. As a consequence, AR managers with small budgets should concentrate their spending with the top analysts that talk to the buyers and thus impact a company’s top and bottom line.

* Yes, it’s true. Spending on AR is an investment, not an expense. SageCircle has developed models that illustrate that AR can easily have a return of 500% or more – pretty good return for any dollars spent.

SageCircle Technique:

  • Identify all uses for analyst services, focusing on ways to build AR’s credibility
  • Identify budgets to be tapped, both AR and non-AR
  • Specify how usage of analyst services will be maximized

Bottom Line: Whether an established company or a startup, an IT vendor launching an AR program often has a limited “starter” budget. It is important that a nascent AR program focus its dollars on what will help it demonstrate early success.

Question: Do you have a formal AR plan that incorporates analyst services spending requirements?

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