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Software as a Service (SaaS) companies have become quite prominent over the past several decade. It's a competitive landscape where companies, especially scaleups, can find it hard to stand out in meaningful ways--ways that attract the attention of beleaguered B2B business buyers.
Standing out in what is a very, very crowded field, is critical. One strategy scaleups often overlook is investing in analyst relations (AR) early to help establish the kind of credibility and visibility that can influence B2B buyers' decisions.
Industry analysts, such as Forrester, Gartner, and IDC, have insights and networks that can help companies position themselves for growth and innovation but doing so requires an understanding not only of the market, but also of analysts' interests and needs.
What is Analyst Relations (AR)?
Just as companies seeking media coverage find a strategic focus for media relations, companies hoping to influence key analysts focus on Analyst Relations activities (AR). These strategic engagement practices are designed to identify, connect with, share, and influence those who have market insights and well-connected in relevant ways with key decision makers.
One of the important things that analysts do is provide valuable insights and influence market decisions through their independent evaluations, research and advice on industry trends, technologies, and vendors. The volume and quality of these analyst advice and engagements is valuable to companies offering SaaS products and services and, as I have said, especially to scaleups.
Scaleups, of course, because of both their size and newness, can be challenged to break through the clutter to make a meaningful impact. Establishing an AR function—even in very small organizations and scaleups—companies can influence evaluations in a positive way while also gaining important insights into product development, product marketing, strategies, and competitive positioning. Implementing an analyst relations programme (AR program) is a strategic tool to enhance business objectives and connect with key industry analysts.
The goal: to provide key analysts with a thorough understanding of their companies’ products and services so these products and services are top of mind when they publish reports or otherwise provide recommendations to potential buyers.
Definition and Importance:
Analyst relations (AR) is a crucial function in modern business, serving as a guide to navigate market volatility. AR professionals engage with industry analysts and other B2B influencers on behalf of technology vendors. The Institute of Industry Analyst Relations (IIAR) defines AR as building relationships with the analyst community and driving conversations about vendors and their solutions. ARInsights defines AR as an important marketing and communications activity to educate and influence industry analysts. AR is about forging relationships with industry experts to gain insights, educate them about your solutions, and use their research and content for marketing purposes.
Top Industry Analysts Firms:
I have mentioned a few familiar names already in the industry analyst space. Two that I consider among the most reputable, and that I have worked with for more than 15 years, are Forrester and Gartner. The reports produced by these two firms are highly anticipated and highly relied upon by business leaders of all kinds and in multiple industries. These reports have come to be especially relied upon by B2B tech buyers.
Industry analyst reports play a crucial role in the purchase decisions of B2B tech buyers, with a significant percentage citing these reports as a top influence. Being included and well-positioned in major analyst reports, such as the Gartner Magic Quadrant or Forrester Wave, is a measure of corporate success and a tool for driving sales and lead generation.
What makes these two firms so reputable and relied upon?
- Forrester has a strong reputation for innovation and forward-thinking research, with a specific focus on technology. They’re particularly known for its customer experience (CX) research and consulting, and its digital transformation strategies.
- Gartner is known for its Magic Quadrant reports which take an in-depth look into various tech markets. Gartner identifies specific companies and products that have both a complete and compelling vision, and are able to executive on that vision, placing them in a four-box matrix to indicate which perform best on both factors.
As SaaS has advanced and proliferated, AR has become an increasingly important element for companies to leverage to solidify their market positions and perceptions. Cultivating these relationships has the potential to significantly impact B2B SaaS companies’ business potential.
Here I look at five ways investing in establishing and sustaining these relationships can have a drive sustained growth and market leadership.
1- Establishing a Strong Brand and Solid Product Positioning:
It can be challenging, if not impossible, for scaleups to build awareness and brand reputation in a market that is dominated by major players with solid track records and years of service. But technology is an evolving landscape and the prize (in terms of positioning and preference) can and does sometimes go to small, emerging firms that can demonstrate innovation and excellence.
They can’t do it alone, though. That’s where respected analysts firms like Gartner or Forrester come into play. Then they “tip” their hats to your company by including you in market reports, it matters to key decision makers. On the flip side, analysts’ insights can help SaaS companies better position their messaging and products by recognizing what matter most to potential customers and to what extent these attributes matter.
Analyst relations professionals play a crucial role in this process. They facilitate communication between technology vendors and industry analysts, educating analysts about their companies and seeking to influence their perceptions and evaluations. This not only enhances vendor visibility but also fosters beneficial knowledge exchanges.
For instance, while working at Neolane, a cross-channel campaign management solution that eventually secured a $600 million exit to Adobe, we credited our engagement with both Gartner and Forrester to much of our success. Through these critical connections we were able to set ourselves apart from the competition in meaningful ways. We engaged with these market influencers when our business was very new in North America. That, we believe, laid the foundation for long-term success and growth.
2- Influencing Buyer Decisions:
Ultimately, your AR strategy should be designed to help you reach and influence B2B SaaS buyers. They turn to analysts to help them make what can be both costly and risky decisions. Analysts influence and sway these decisions in ways that buyers trust. Based on their advice and recommendations, buyers feel confident their decisions are sound and well-informed.
Analyst interactions play a crucial role in measuring the effectiveness of AR programs. By quantifying and enhancing the quality of these interactions, organizations can provide a more comprehensive assessment of AR's impact on business outcomes.
During my time working with analysts, I have discovered the impact of these relationships first hand. Relationships with firms like Gartner, Forrester, Constellation Research, IDC, and other boutique firms with very unique and specific areas of focus, I was able to position our products favorably with potential buyers to drive sales and expand our market research.
3- Gaining Valuable Analyst Insights and Feedback:
The value of analyst relations, as I’ve already alluded to, goes beyond their ability to reflect favorably on your products and services. These relationships also provide you with access to valuable insights and feedback that you literally would not be able to gather—or access—on your own. These are the insights you need not only to understand how to capture market attention, but also to understand what product and service modifications or verifications could prove most valued—and most profitable.
For startups, these insights can help you stay ahead of the curve, and well-positioned relative to the behemoths in your space. AR specialists play a crucial role in managing these relationships, as their expertise is often necessary to effectively establish and maintain connections with analysts.
At both Neolane and Adobe, and with other B2B SaaS companies I lead in running AR programs, the feedback received has always been measurably valuable. It’s feedback that has allowed us to anticipate market trends and shifts early enough and accurately enough to tailor our offerings to meet shifting B2B buyer demands. These are also critical inputs to help strengthen the strategic planning process.
4- Building Thought Leadership:
Thought leaders are individuals or companies that others listen to or turn to for trusted advice on a range of topics. Thought leaders have deep knowledge and expertise in specific areas that others value and, by and large, follow. As a thought leader, your company will stand apart from its competitors.
Influencer relations are also crucial in AR strategy, as non-analyst influencers like industry insiders, bloggers, and experts can significantly impact the sales cycle and enhance your company's market visibility and credibility. You’ll also benefit from forming relationships with recognized industry influencers who can further support, enhance, and amplify your own thought leadership efforts. Your AR strategy can help make this happen.
I have seen this happen, firsthand. The efforts to engage with the right analysts allowed me to position companies I have represented as leaders in their fields. Those strong reputations and alliances led to tangible results.
That kind of recognition does more than simply differentiate–it can also help shape industry trends and direction. That’s what influence is all about.
5- Fostering Long-Term Relationships:
At both Neolane and Adobe we were able to achieve a leader position in Gartner's Magic Quadrants and in Forrester's Wave reports. That was a milestone for the brand and products I was in charge of, and our ability to gain awareness, recognition, and to establish ourselves as leaders in our fields. But, despite the value, our ability to cultivate trusting relationships within the analyst community proved to be even more rewarding. It's the trust and collaboration with experts that provides invaluable insights and connections that continue to fuel long-term growth and innovation.
By now it should be apparent how valuable it is to forge relationships with analysts who can help build awareness, credibility, and support for your B2B SaaS brands. But how, exactly, can you do that most effectively. Here are some best practices that I have found to be most effective in establishing and sustaining these relationships.
