The importance of analysts -or- I never met an analyst group I didn't want to eat...

So, why the analyst angle? Aren’t they just looking for my money so I can download some 400-page report on the future of some industry I’m not really interested in? Aren’t analyst reports for the old fuddy duddies in the crusty suits and ties in the corner office of some zillion-dollar mega corporation? Don’t those pesky analyst sales reps call me once a week to buy or upgrade my account? What gives?
 

Know thy analyst

Having spent a fair amount of time both participating in and leading various corporate and specific channel analyst relations teams, I feel I have a good idea how best to utilize their services. I understand how a good analyst relationship can bring value to your company. Conversely, I also understand how a sour one can work to your disadvantage. I believe the value of analysts is well illustrated by this scenario.
 

A prime example

Consider a young or start up company whose main clients are early adopters.  Groovy, on their way to being profitable. Now what sets them apart from the competition? Where do they go from here? Why do bloggers, and the media, lump them in with every Tom, Dick and Harry company of the same ilk?

While early adopters give a company a quick start, they do not sustain them. In order to raise their business to the next level, our young company should be focused on the critical next step in the life cycle: selling the early majority. This group takes more care and effort than those seeking to be on the bleeding edge. As a product or service starts to reach maturity, characteristics such as competitive differentiators and smart marketing yank a company out of the pool of challengers, emulators and copycats.
 

After crossing the Chasm

While competitive separation and smart marketing are key, being considered a thought leader plays an important and complimentary role. “Thought leader” isn’t just a buzzword; it opens doors for your salesfolks. When your company is recognized for its vision and innovation, it is a beacon. Getting your firm on the short list of companies to call is a quintessential byproduct of thought leadership. Gaining trust as a thought leader comes from many places. It comes from consultative sales relationships, third party awards/recognition and, wait for it…… analysts.

Early majority C-level executives doing their shopping, after the early adopters have signed on, absolutely read and rely on analyst reports, statements, briefings and other tools of the trade. Shel Israel wrote a groovy blog post that touches on how younger execs will be entering the enterprise decision-making seat in the next 2-5 years. However, I believe this will have little impact on the decision-making process and the value of the analyst. Why?  Every business leader appreciates a renowned and well-informed voice to help them in their choice. If the younger exec isn’t already an early adopter, he/she will most certainly want to hear what the experts have to say before signing that multi-million dollar contract.
 

Not only in the corner office

Analysts not only influence the executive decision-maker, they also impact the public at large. How often have you heard a Gartner, Forrester, IDC or Frost & Sullivan analyst quoted on the front page of a cutting edge news aggregator or seen their handiwork depicted via pie chart in your hotel’s copy of USA Today?

With information flowing so fast and free, sometimes the analysts’ voices simply reinforce what early adopters already know and have been proselytizing as the accepted truth.
 

Long story short

Are analysts the secret sauce to get your business into the spotlight? No, but they add the right amount of spice to every recipe for success. Analysts have a powerful voice.  The choice to relate to them is yours and your competitor’s. While sales relationships and differentiators are strong tools, positive analyst recognition can be a meaningful and defining element of your business.