Industry Analysts: To Play or Not to Play
Young B2B tech Company X develops a product for which there is no Gartner Magic Quadrant or Forrester Wave. Maybe its executives have done a few briefings with no resulting coverage. So, Company X CEO decides not to work with analyst firms because it hasn’t, and likely won’t, get coverage and after all, that’s why companies work with analyst firms, right? Is this a smart business decision or is Company X missing a big opportunity?
The answer may be both – because the answer depends entirely upon how one approaches industry analyst engagements. On the one hand, if you plan to show up, demo your amazing technology and then, throw your hands up when no coverage results, best to stay home and not play. You’ll only get hurt, and sometimes spend a lot of money doing so. However, if you have a technology that may potentially define a new market, and want to engage analysts thoughtfully and skillfully, it could become your greatest business growth lever.
Analysts and influencers have points of view, and yet they constantly seek out new ideas to which they can apply those points of view – and to test them to see if they remain accurate. That’s how they stay current and valuable to their end customers – companies that may potentially buy your products. It’s also how they maintain their reputation for being on the forward edge of technology. Without entrepreneurs and their new ideas, technology markets stagnate. It is a two-way street. You bring them your market, industry and technology knowledge, and they share theirs with you. You’ll learn about end-user preferences, trends, and other new technologies. You’ll find out how your products are perceived and positioned by those outside your sphere of influence. Together, there is potential for greatness.
Such mutual understanding and relationship development won’t be an overnight nor a short-lived success. If you plan correctly and stay the course, and, yes, modify your approach when necessary, you stand to reap the benefits of helping to define a new market, and in the future, showcasing your customers as the cornerstones of success. So what if there isn’t a Gartner Magic Quadrant or a Forrester Wave? There are many opportunities to both learn and get recognized outside of these influential reports. Most importantly, when you engage early and well, you just may get to help define what future reports should look like. And that kind of success leads to magnitudes of more opportunities, more sales and shorter sales cycles.
It’s also key to understand that there are many analyst firms and individual influencers who impact your market or help to build new markets. Independent and smaller firms focus on particular areas of technology or end users, or focus their efforts in specific areas. For example, IDC (owned by IDG) has grown to prominence by developing what it calls market intelligence; it’s well known for providing market sizing reports. Today it focuses in on six specific end-user verticals, from energy to retail. Constellation Research defines itself as a “futurist analyst firm,” and positions solidly in the digital transformation arena. Independent influencers may also be some of your best friends, with industry knowledge and connections gained over decades. In the CRM market, for example, Paul Greenberg of The 56 Group is considered to be one of the most influential independent influencers, often called the “godfather” of CRM.
Should you pay to play?
Paying subscription fees to analyst firms simply provides you with more time with the analysts, time that you need to plan to use well. Time during which they will better know you, your executive team and and your technology, your go-to-market strategy, roadmap, etc. And they’ll provide you with valuable feedback informed by highly specific experience and relevant interactions.
But here we get back to the coverage debate. Please don’t expect coverage in analyst reports (or referrals to prospects) just because you pay subscription fees. Yes, the fees will buy you more time, and this often leads to more coverage and more referrals, providing your positioning and messaging, and your analyst strategy, are on-target. But it is not pay-for-play.
However, subscriptions aren’t the only way to play. It is also possible and a good strategy at certain times to partner with analyst firms to create thought leadership reports and other marketing assets that align your brand with those of the firms, and which will also provide you with the opportunity to work more closely with the analysts.
Bottom line, it’s not simple and it’s not a short-term initiative. You’ll need to engage analysts – always with relevance – consistently over time, to reap the greatest reward. You’ll need a well-crafted strategy, the right messaging, and intelligent execution. The end goal – market leadership recognition – will be worth the investment.
What are your best practices for engaging industry analysts and influencers? If you are an influencer, what recommendations do you have for young, B2B tech companies to engage with you?