Mind the Gap: The Growing Divide in Analyst Relations
Duncan Chapple
Analyst Relations lead for Elisa IndustriQ & Elisa Polystar @ SageCircle | Research Associate @ UEBS | LBS MBA | INSEADer
The industrialization of analyst relations has created an ironic problem: while AR teams have more tools and processes than ever before, many influential analysts feel increasingly disconnected from the vendors they cover. However, as my 'Rich get Richer ' article discusses, recent SageAnalysts survey data reveals this isn't a universal trend – some vendors are bucking it by taking a more nuanced, personalized approach to analyst engagement.
The Communication Divide
Analysis of recent Analyst Attitude Survey data shows a growing polarization in how technology vendors engage with industry analysts. Some firms are improving their analyst relationships through targeted, consistent engagement, while others are falling behind with generic or minimal communication approaches.
Success Stories
IBM stands out as a clear example of positive change, after some difficult changed in their AR team several years ago. The company has shown a 5% annual improvement in analyst satisfaction scores, driven by what analysts describe as improved access to relevant experts and more personalized engagement. For example, one analyst noted how the team took the initiative and set up a one-on-one (with a hard-to find Asia Pacific leader) based on queries during the analyst sessions – demonstrating responsive, targeted engagement.
Amazon Web Services (AWS) has maintained strong analyst relationships through consistent communication and personalized service. Analysts particularly praise their ability to provide "personalized service/agenda for annual analyst summit" and their improvement in internal advocacy of analyst services.
Growing Gaps
In contrast, some vendors appear to be losing ground. Post-pandemic, several analysts report deteriorating relationships with previously strong AR programs. Even some major vendors face criticism, with one analyst noting that at one vendor, "AR is code for you'll waste your time to help AR with their internal KPIs. They've been this way for 20+ years."
The Regional Reality Check
The data strongly supports the importance of regional differentiation in AR approaches. While UK-based analysts cluster around London and German analysts concentrate near Frankfurt and Munich, their US counterparts scatter across multiple time zones and tech hubs. This fundamental geographic difference shapes how analysts prefer to interact with vendors.
Survey data shows that EMEA-based analysts report higher satisfaction when vendors maintain local presence and engagement, while North American analysts often prefer flexible, virtual engagement options. This isn't new: it was well documented in DARA research on analyst relations in Germany , as long ago as 2008.
Beyond Generic Tiering
The research reveals a clear correlation between communication frequency and positive AR scores. However, it's not just about quantity – quality and relevance matter significantly. Successful vendors are moving beyond simple tiering approaches to develop more nuanced engagement strategies. And the opposite is true. While I am big fan of ARInsights Power Index, too many companies are using ARchitect's generic influence scores and not using the data more thoughtfully.
What's Working
Vendors showing improvement in analyst satisfaction scores typically demonstrate:
What's Not Working
Common pitfalls identified in the survey include:
Bridging the Gap
The data suggests several key strategies for improving analyst relations:
Listen First
Survey responses show that analysts value vendors who take time to understand their specific needs and preferences. As one analyst noted about 埃森哲 : "They ask great questions" – demonstrating the value of understanding before engaging.
Personalize Engagement
Successful programs like IBM's show the value of matching analysts with relevant experts and information. Their improvement in scores correlates with more targeted, personalized engagement approaches.
Maintain Consistency
The survey data shows a clear correlation between regular communication and positive AR scores. Vendors maintaining consistent engagement (even if less frequent) tend to score better than those with sporadic, intensive bursts of communication.
Looking Forward
The future of effective analyst relations isn't about more automation or standardization – it's about bringing back the personal touch where it matters most. The survey data clearly shows that vendors who invest in understanding and catering to individual analyst needs see better results than those taking a one-size-fits-all approach.
For vendors looking to improve their analyst relations, the path forward is clear:
The growing gap in analyst relations quality presents both a warning and an opportunity. Vendors who recognize and address these challenges now have the chance to build stronger, more effective analyst relationships, while those who continue with generic approaches risk falling further behind.
Postscript
I have written a follow-up post to summarise comments on this post and relate it back to the survey findings. It's at: https://www.dhirubhai.net/pulse/beyond-simplicity-complex-reality-modern-analyst-duncan-chapple-llwac/?trackingId=thQAXJn4Tf%2BYxGfEdElynA%3D%3D
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Analyst Relations Manager
1 周What a great article - thanks!
Senior Director, Analyst Relations at Alteryx
1 周As someone who worked AR for many years on several large-vendor teams, and more recently for a much smaller company, I believe that taking a "large vs. small" segmentation is a bit simplistic. Simplistic on several fronts. 'Digital AR' is Simplistic: Honestly, the same tenets apply to successful AR (outlined in this piece; no need to repeat) no matter what vendor team size you work for. Analyst relations has been, currently is, and will reman a people & relationship business, full stop. Things like automation, mass communication, AI, etc. are TOOLS that aid and optimize AR efficiency, but should NEVER be employed by themselves to replace human-centered AR engagement. Analyst Tiering is Simplistic: I agree that "tiering" should no longer be a strict construct for analyst engagement. Again, it's a tool or technique, but should be one of a number of overall considerations. 'Rich gets Richer' Concept is Simplistic: Being a large AR team doesn't automatically guarantee AR success. Focused and prioritized efforts, even with relatively low resources, small teams and/or expert consultants, can have greater impact & results than AR teams with high FTE counts.
Strategic Insight | Technology Transformation | Revenue Growth | Strategic Planning/Execution | Organizational Design | New Business/Line Incubation
1 周As a recovering analyst, I view the challenge in how to scale AR programs at vendors while also not creating an assembly line of non-differentiated briefings and content for analysts. Ultimately, analysts take the content and put it through their own judgement and filters for the end analysis, but if everyone has the same inputs, this will dilute the variety of outputs in the long term.
Leading Analyst Relations @ Shopware
1 周I will speak for myself, but many other AR pros who are a one-person team are in the same boat, too - it's a balancing act between bandwidth and actual influence. I intentionally don't work with all analysts who cover our market categories because I can't justify spending the time and effort without seeing any tangible influence they have on our buyers. AI can help extend our capabilities, but a human's time and effort are still required. After attending a few AR conferences this year, I've seen a lot of praise toward the big AR teams out there and very few stories from successful AR programs that I can relate to - that don't have 60 AR people supporting the goals, all the infrastructure, etc.
Technology business executive and strategist
1 周It feels slightly anachronistic to practice the very personalized, high-touch analyst approach that my team strives for, while the company itself is driving things like Product Led Growth and intelligent agents that reduce human engagement. But as in all things we try to follow (or set) the market. We rely on analysis like yours, and survey data, to guide our strategy, so keep it coming, Duncan Chapple .