Not too long ago, we talked about the resurgence in traditional public relations, something that initially fell by the wayside as marketers put more emphasis on digital marketing. However, in today’s world of digital saturation (and increasing cynicism about claims made online), PR has once again become fashionable as a way to build credibility for companies and products.
Another traditional practice that can still be important for some companies is analyst relations. If your company sells a B2B technology product or service aimed at mid-size to enterprise-level businesses, and if you have the budget, such relationships might be worthy of consideration.
Companies benefit from these relationships in two ways:
Analysts can serve in an advisory role. Analysts spend their time researching and learning about specific segments of an industry. They’re familiar with and talk to your prospects as well as your competitors, and they have their fingers on the pulse of industry trends and pain points. For these reasons, they’re in an excellent position to advise their clients on multiple facets of their business, from product development and positioning to go-to-market strategies.
Analysts influence customer purchases. Analysts not only talk to your prospects; your prospects greatly value their opinions since they are perceived as knowledgeable providers of objective, third-party advice. The Institute of Industry Analyst Relations reports that 40 to 60 percent of all technology-purchasing decisions are influenced by analysts. Getting included in an analyst report, or getting an analyst quote for use in a press release or marketing collateral, can go a long way in building credibility.
So, is an analyst relationship right for your company? For many technology providers, a lot of it comes down to budget. The typical small-vendor contract with a large, marquee-name firm can run around $40,000, making it out of reach for many smaller companies. If such cost simply isn’t feasible, there are a few things you can do to still reap some analyst benefits:
Attend their events. Many analyst firms offer forums, symposiums, and webinars that can be advantageous for your business. Gartner, for example, offers a number of conferences that are focused on different market segments, such as data analytics or supply chain. Attendance can provide education, networking opportunities, and exposure.
Do an analyst briefing. It’s possible to get an analyst briefing without being a client. This process often begins by filling out an online request form. Just be aware that such sessions are primarily intended to introduce your product to the analyst. While they may offer some high-level feedback, the conversation will mostly be one-way. Still, these briefings can get you on the firm’s radar and maybe even included in a newsletter or report if they find your offering to be especially innovative.
Consider smaller research firms or consultants. There are firms and consultancies that are much smaller than Gartner, Forrester, or IDC, and they often specialize in specific market segments. Paid relationships with these firms typically cost less and can still provide market credibility and exposure to prospects.
If you are considering a paid relationship with an analyst firm, do your research to find the right one for you. Areas of focus, name recognition in your market, and the types of prospects they’re talking to are key to finding the proper fit.
Finally, make sure you have someone to manage your analyst program, whether it’s someone internal to your organization or an outside resource. After all, such a relationship is a major investment, so you want to get the most from it. A big part of this is staying on top of potential opportunities the firm is offering, and keeping in regular communication with them. Analysts cannot advise you effectively if they aren’t kept abreast of your product vision and roadmap.
If you need help in finding the right analyst for your company, or if you need someone to manage your analyst relations, we can help. Our team has experience working with such firms to ensure the most beneficial relationship.