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.
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.
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.
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?
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.
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.
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.
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.
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.
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.
The B2B SaaS landscape is crowded, with competition emerging constantly. Your competition, like you, is hoping to connect with analysts that can boost their brands and help them build credibility.
Successfully connecting with them requires following important best practices to stand out from the competition, enhance visibility, build credibility, and gain access to the kind of invaluable insights and feedback that can help drive your business forward.
Effective AR strategies are built on strong relationships. That requires a thorough understanding of key analysts' research agendas and areas of focus. This ensures that your communications are targeted and accurately focused on their interests and needs.
AR isn't a one-and-done endeavor. Success requires ongoing briefings and interactions to keep analysts informed of company developments and to keep your messaging consistent and up to date.
Staying relevant and building credibility requires transparency, honesty, and responsiveness. That means being forthright about not just your company's strengths, but also its weaknesses--and being open and honest when responding to questions, especially tough questions. Your transparency will boost the odds of receiving positive coverage and analyst recommendations.
Monitoring key metrics as part of your AR efforts is another critical best practice. These efforts take time and resources, and you'll want to know that your investments are making a measurable difference. You'll also want to be able to proactively identify opportunities for improvement.
What should you track? Some key metrics include:
Each of these metrics reveal unique insights; together they paint a picture of the effectiveness of your AR efforts on your sales and marketing success. Continually tracking how analyst endorsements influence buyer decisions, lead generation, and conversion rates will help you ensure that you can deliver maximum ROI in support of overall business objectives.
It's also important to avoid some common mistakes in analyst relations.
Integrating analyst relations into your marketing strategy can be a game-changer for your business. Analysts can help you understand your target market better and identify your unique selling points. Working with analysts improves thought leadership and establishes companies as industry experts. Analysts generate more qualified leads and improve conversion rates. AR professionals can work with sales and marketing teams to develop aligned strategies. To integrate AR into your marketing strategy, use report mentions and ranking research for credibility, get analysts talking to your existing clients, gain analyst insights to inform your marketing strategy, and use marketing automation to streamline analyst relations efforts.
Using analyst relations to drive business growth requires a strategic approach. Identify the right analysts to target based on their influence and relevance to your business. Provide valuable content and resources to analysts to build relationships. Be responsive to analysts’ questions and needs to establish trust and rapport. Monitor and act on analyst feedback to refine product messaging and identify market opportunities. Long-term relationships with analysts are crucial for ensuring they are familiar with the company’s strategic vision and market differentiation. Attending industry events and fostering meaningful dialogues with analysts is essential for effective AR.
It is absolutely critical to understand analysts' research agendas and areas of focus. Failing to do so can lead not only to misunderstandings, but to missed opportunities. By tailoring your communications to align with analysts' key interests you'll stand out and build a reputation as being a go-to source of information for analyst research.
Strengthening analyst relations also requires prompt follow-up and responsiveness. Failing to be accessible and responsive can lead to falling out of favor with the very analysts you're attempting to influence. Demonstrate your commitment by keeping analysts informed and being responsive when they reach out with questions or requests for more information.
Taking the time and making the commitment to keeping analysts informed of new developments, and monitoring and responding to their coverage can help you remain top of mind. Your efforts, when aligned with both analyst needs and business objectives, will provide measurable benefits to your organization.
Analysts play a critical role in helping B2B SaaS companies, and especially scaleups, to generate awareness and build a reputation of influence with potential buyers. Building solid relationships with the right industry insiders and experts leads to both opportunities and insights. Both serve to drive innovation and excellence, establishing the foundation for a competitive business edge--even in an increasingly competitive landscape.
For B2B SaaS firms, investing in AR isn't an option--it's a mandate.
Contact us to learn more about how we can help you accelerate your business success.
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