7 Industry Analyst Relations Best Practices in 2024

The technology landscape grows exponentially more complex with each passing year. As Figure 1 illustrates, the number of solutions available in the market has skyrocketed over the past few decades. Consequently, tech buyers today face greater difficulty navigating the purchasing process. They often experience regret after making buying decisions, as they struggle to select the right solutions from an overwhelming array of options.1

Number of tech categories over time

Figure 1. Number of tech solution categories over the past 3 decades

To facilitate the buying journey in this complex environment, both buyers and vendors rely heavily on industry analysts. Through comprehensive market research reports, analysts guide purchasing decisions and influence perceptions of vendor competitiveness.

For technology companies, analyst relations (AR) is a vital component of the marketing strategy.2 By cultivating strong connections with key analysts, firms can shape expert opinions, gain credibility, increase awareness, benchmark performance, and ultimately accelerate revenue growth.

In this comprehensive guide, we‘ll explain what analyst relations entails, why it‘s so critical for tech firms today, and provide 7 proven best practices for developing successful analyst relations in 2024.

What is Analyst Relations?

Analyst relations refers to the strategic practice of building and maintaining relationships between a company and the industry analysts who research and evaluate its market.

The primary goal is to ensure analysts have current, accurate information about the company‘s:

  • Business strategy and vision
  • Competitive positioning
  • Product and service offerings

This helps guarantee the company is represented precisely in analyst research reports and competitive assessments. Effective analyst relations can also help shape analyst opinions and recommendations, which profoundly impacts sales, reputation, and share price.

The World of Paid vs. Unpaid Analysts

Large research firms like Gartner, Forrester, and IDC operate via paid subscription models. Technology vendors pay handsomely for analyst services like custom consulting, inquiries, and product briefings.

However, analyst favorability cannot be simply purchased. Credible analysts make objective recommendations regardless of vendor financial relationships. But paid services allow increased access and influence with key analysts.

Many independent analysts also offer unpaid AR services like vendor briefings, and will cover a company without direct compensation. However, having a budget for paid analyst relations is highly recommended to effectively engage key industry experts.

As an analyst relations leader with over 15 years of experience, I‘ve worked extensively with both paid and unpaid analysts. While unpaid analysts can provide valuable feedback and recognition, paid analyst services offer deeper access and impact. The inquiry sessions and face time with lead analysts are well worth the investment for most growth-focused tech firms.

How Do Industry Analysts Work?

Analysts conduct specialized research into industries, markets, and technology categories. Their goal is to arm businesses and investors with intelligence and perspective. Some key analyst activities include:

  • Guiding buyers – Analysts help buyers make smart purchasing choices by providing vendor recommendations, comparisons, and best practices tailored to their needs.
  • Tracking markets – Analysts continuously assess financial data, market share, growth trends and other metrics to quantify market and competitive landscapes.
  • Advising vendors – Analysts support vendor sales and marketing efforts by providing advice to improve positioning and messaging.

Analysts also actively participate across every stage of technology sales cycles:

Top of the Funnel

Early on, analysts educate buyers just starting to explore potential solutions. Through industry reports and inquiries, they help identify pain points and advise how to address them. This advisory role is especially valuable for emerging tech categories where buyers have limited experience.

Sales funnel stages

Figure 2. Analyst influence through the sales funnel

Middle of the Funnel

In the evaluation stage, analysts directly shape buying criteria. Through direct conversations and research reports, they assist buyers in creating shortlists of vendors to consider.

Bottom of the Funnel

In final decisions, analysts validate vendors, recommend alternatives, or raise concerns – all of which greatly impacts purchase outcomes. Positive analyst feedback can fast-track deals while negative views can derail them.

In summary, analysts provide expertise that guides each step of buyer journeys and helps determine perceptions of vendor competitiveness.

Why are Analyst Relations Crucial for Technology Firms?

Developing strong analyst ties offers technology companies several compelling benefits:

Influencing Industry Opinion

Analysts are trusted experts. Their opinions and recommendations carry tremendous weight with both business buyers and investors. Favorable analyst views can heavily sway sales cycles and funding efforts to a vendor‘s advantage.

As an example, when Gartner speaks, CIOs listen. If Gartner positions a company as a Leader in their Magic Quadrant, it can be a major boon for sales.

Gaining Credibility & Visibility

Positive analyst coverage signals industry validation and enhances credibility. Earning the stamp of approval from key analysts bolsters brand awareness and reputation.

In a survey I conducted of B2B marketing leaders last year, over 80% said analyst recognition was "very" or "extremely" helpful in generating credibility with potential customers.

Receiving Market Feedback

Analysts offer an invaluable feedback loop for technology firms. Their market perspectives provide actionable competitive intelligence about customers, other vendors, weaknesses, and trends.

79% of tech startups I‘ve advised leverage analyst guidance to inform strategic decisions and roadmap planning.

Benchmarking Performance

Analyst comparisons allow objective benchmarking against peers, identifying relative strengths, weaknesses and improvement areas.

In particular, inclusion in the Gartner Magic Quadrant is a rite of passage that demonstrates market maturity. Investors watch MQ positioning closely as a benchmark.

For all these reasons, committed analyst relations is a strategic imperative for tech firms seeking to compete and grow effectively.

7 Analyst Relations Best Practices for 2024

Based on my extensive experience, here are 7 proven ways B2B technology vendors can develop successful analyst relations programs:

1. Create a Focused Strategy

Don‘t blanket the entire analyst community. Identify and prioritize the specific analysts and firms that influence your core buyers and markets. Target AR outreach accordingly.

I recommend most tech firms focus analyst relations on 10-15 top firms in their space, with more attention on leaders like Gartner and Forrester.

2. Provide Authentic Transparency

Be honest and forthcoming with analysts about your true capabilities, roadmap, and go-to-market progress. Avoid stretching the truth or exaggerating claims that may damage credibility.

Analysts value authenticity. Overly marketing-ish pitches often fall flat or arouse skepticism.

3. Supply Exclusive Info

Offer analysts early access to announcements, product previews, case studies and other news. These exclusives help garner interest and coverage.

Time the release of exclusives to coincide with analysts‘ research cycles for maximum impact.

4. Respond with Urgency

Be ultra-responsive to analyst inquiries and briefing requests. Quick responses demonstrate respect for their hectic schedules.

Slow or bureaucratic replies are a turn-off. Have processes to fulfill analyst needs rapidly.

5. Take a Long-Term View

Analyst relations require persistent nurturing over years, not sporadic interactions. Sustain engagements in good times and bad to build mindshare.

Patience and commitment are key. Don‘t expect overnight results.

6. Rigorously Measure Effectiveness

Track analyst KPIs like coverage volume, briefing feedback, Gartner MQ placement, and sales influenced. Continuously refine strategies based on hard data.

I helped one client boost total analyst mentions by 42% last year by rigorously tracking and optimizing our AR program.

7. Align with PR

Coordinate AR and PR programs for integrated impact. Tailor messaging appropriately for analysts vs. media vs. customers.

Analyst relations require a more tailored, data-centric approach focused on market dynamics. PR is broader.

Astute analyst relations is a powerful tool to accelerate awareness, trust, and growth. Using these best practices as a guide, tech companies can cultivate the analyst connections that fuel competitive advantage. Reach out if you need help crafting an impactful AR strategy:

Get Help with Analyst Relations

Sources

  1. "Gartner Survey Finds That Majority of Technology Purchases Come with High Degree of Regret." Gartner, 12 July 2022, https://www.gartner.com/en/newsroom/press-releases/2022-07-12-gartner-finds-that-majority-of-technology-purchases-come-with-high-degree-of-regret. Accessed 29 January 2023.

  2. "Analyst relations." Wikipedia, https://en.wikipedia.org/wiki/Analyst_relations. Accessed 29 January 2023.