“Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.
Today’s column is written by Marc Johnson, general manager and CMO at Bombora.
In a saturated technology marketplace, it is becoming harder for vendors to differentiate themselves. A competitive environment means using all methods available to win over buyers. One time-tested way is via industry analysts.
Birthed as a way for IT buyers to make sense of – and justify – massive tech purchases, research and advisory services (Forrester, Gartner, IDC, etc.) have long held outsized influence in decision-making. Ostensibly, these firms objectively guide enterprises toward ways to evaluate solutions while helping vendors better shape and translate their offerings to match market needs. And they make money from both sides.
Today, the role of industry analysts is both increasingly important and frustrating for vendors. Modern businesses make buying decisions via committee. These committees self-educate about various offerings, and analyst research remains a prime source for that information.
Unfortunately, most companies that are new to analyst relations have a skewed view of the process. These vendors focus solely on earning positive coverage from analysts or receiving the highest scores within comparative (quadrants, waves) reports. This approach is a sure path to disappointment.
To get the most out of the vendor-analyst relationship, vendors need to understand the outcomes that are possible and the inputs needed. This value may include support for recruiting initiatives, investor materials, strategic planning and validation, and materials for setting up sales pitches and decks. Even if it doesn’t result in glowing coverage, it is possible to extract the broadest value from the relationship in just five steps.
- Formalize analyst relations internally
Make analyst relations part of somebody’s job description. This way, all of the communication flows through one single individual who manages internal coordination and communication.
Like any good relationship, constant communication is key.
- Help analysts help themselves
A common perception is that analysts are neutral parties who know everything about their sector and measure success in terms of accuracy. While many analysts have worked (and will work) in their field of coverage, they do not always have their nose to the grindstone. They rely on those in the field for information.
Providing unbiased industry perspective, context and data points – sometimes off the record – will help keep analysts informed, build trust and deepen the relationship.
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- Avoid hyperbole
Every single executive believes their company or product is the best and that an analyst should sing their praises. And every analyst hears this from every single executive, every day. Marketing and PR hype doesn’t help. In fact, it undermines credibility.
Speaking objectively, backing up claims with data and allowing vulnerability is actually helpful because it gives analysts something they can use.
- Fit your story into theirs
Analyst teams must decide on a research agenda, coverage areas, specific reports and larger frameworks to organize their output. The degree to which a vendor can understand and slot into those frameworks makes it easier for analysts to cover them.
Presenting an entirely contradictory market view may convey passion, feel good and inform coverage, but it’s difficult to convince a whole research team to abandon their existing work. Read their research, graft onto it and move it forward.
- Pay to play?
Finally, let’s address the most controversial question: Does money equal positive coverage? Not exactly. All the major research firms have codified ethics guidelines, which are intended to prevent the kind of model where a company pays for an analyst to say good things.
Companies that subscribe have greater access to the analysts themselves. A company that speaks to an analyst two times a month for a year is going to be more visible than a company that connects with the analyst just once a quarter. Membership leads to access, which creates stronger relationships, and that leads to greater influence. Indeed, lobbyists don’t directly buy votes; they buy the access that influences those votes. Analyst relations have a similar dynamic.
In the end, the odds of being the winner in a report/beauty pageant are not great. Working with analyst firms means thinking broadly about expanded approaches and outcomes.
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