• Recent Posts: Influencer Relations

    Why KCG’s analyst relations awards beat the IIAR’s

    Why KCG’s analyst relations awards beat the IIAR’s

    We used 18,777 data points from the Analyst Attitude Survey to compare the two leading awards for analyst relations teams. Although we found that KCG‘s awards are more useful than the IIAR‘s, both primarily reflect corporate performance rather than that of the AR teams. As a result, there’s very little that AR teams can do better or worse in these […]

    Netscout continues unwise Gartner suit

    Netscout continues unwise Gartner suit

    Netscout and Gartner have scheduled their trial for next July. The case stands little chance of improving Netscout’s value. It does, however, risk harming the reputation of both analyst firms and analyst relations professionals. Over the last weeks, pressure has mounted on Netscout’s lawyers. Netscout claims Gartner’s Magic Quadrant harmed its enterprise sales and that the truth of Gartner’s statements […]

    Is this how the Quadrant lost its Magic?

    Is this how the Quadrant lost its Magic?

    Gartner’s Magic Quadrant is the most influential non-financial business research document. In the late 1980s, it was a quick and dirty stalking horse to provoke discussions. Today it is an extensive and yet highly limited process, based on the quantification of opinions which are highly qualitative. The early evolution of the MQ tells us a lot about the challenge of industry […]

    Saying farewell to David Bradshaw

    Saying farewell to David Bradshaw

    A funeral and celebration for David Bradshaw (shown left in this 2000 Ovum awayday photo, arm raised, with me and other colleagues) is to take place at West Norwood Crematorium, London SE27 at 2.45pm on Tuesday 23rd August and after at the Amba Hotel above London’s Charing Cross Station, on the Strand. David considered that that Ovum in that incarnation was […]

    David Bradshaw 1953-2016

    David Bradshaw 1953-2016

    David Bradshaw, one of the colleagues I worked with during my time as an analyst at Ovum, died on August 11. He led Cloud research in Europe for IDC, whose statement is below. David played a unique role at Ovum, bridging its telecoms and IT groups in the late 1990s by looking at computer-telecoms integration areas like CRM, which I […]

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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