Leadership Strategies

The Top 5 Reasons the Analyst Relations Role is Vital for Emerging Vendors

Emerging vendors can increase revenue, secure investment funding, and strengthen strategy through analyst relations. Explore why this role is vital with IDC's Dave Reinsel.
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In today’s fast-paced, connected world, it is important for organizations to have the information they need to make informed decisions ahead of the competition and in sync with market and customer dynamics. Yet many organizations find there is a lack of information and coordination when it is time to hold a critical meeting with the next round of investors, or there is a need to size a particular market or to understand the latest customer needs or competitor advances. Successful companies have learned that there is a critical resource that they can leverage to help address these and many other needs – that resource is the analyst community.

Throughout its over 50 years of experience in servicing technology vendors and their customers, IDC has taken on this responsibility as an objective 3rd party source of industry leading data and insights to inform some of the most important decisions with which a company is faced, whether it be financial, product, or marketing related.

In this blog, IDC identifies 5 top reasons emerging organizations should establish and nurture relationships with industry analysts with a dedicated Analyst Relations role.

1. A Critical Conduit for Executive Information Flow

Executives are often faced with multiple tasks, not the least of which is to ensure the company’s vision is aligned with market needs. There is no one closer to the market than dedicated market research analysts. Having a relationship with the right analysts will help to ensure that executives have the information they need or get urgent critical questions answered quickly when representing their company to the outside world, especially the investment community.

2. Market Sizing and Share Projections to Keep Sales Informed and Focused

A sales organization is only as good as the goals and objectives upon which it is being measured. Whether it is market share across the competitive landscape or understanding the total addressable market, a market analyst will have the necessary insight and analysis to arm sales with the tools necessary to measure performance.

In addition, many sales organizations benefit from being armed with objective 3rd party insight that allows them to address their customers and potential customers successfully with valid messaging and enablement tools.

3. Message Testing, Control, and Proliferation to keep Marketing On-Point and Successful

As bad as it is to have a corporate message fall on deaf ears, it is worse to have it go viral and be misunderstood. Advanced planning and message testing with market analysts can help to ensure that corporate marketing is outfitted with a portfolio of assets that are aligned with the most salient market dynamics and fueled with the most compelling data and messages helping to eliminate market confusion and keeping vital messaging on point and readily consumed by a majority of partners, customers, and investors.

4. Objective Opinions that Serve as Validation Points for the Investment Community

Wall Street rarely bases its investment decisions on companies that fail to validate their value with 3rd party objective data on market dynamics, requirements, and trends near and long-term. With a proven voice of authority and credibility with the investment community, market analysts are often consulted to validate and substantiate the claims and projections being proffered by senior executives of emerging vendors looking for the next round of capital infusion or investment.

5. Direct Access to Expert Insight to Inform Product and Partnership Decisions

It would be nice if everyone was an expert on everything, but that is simply not reality. As line of business decision makers direct development of products and services, understanding the most important features, differentiating strategies, and ecosystem partners to tap into is vital. Market analysts are experts on these dynamics and can provide this type of information with a formal relationship. Oftentimes organizations engage in formal custom projects with the analyst community to help direct some of the most important decisions around partnerships, products, and services.

Decisions made at crucial points in a technology vendor’s formative years should be evidence based.  Information from the analyst community can provide objective assessments of market size, buying intent, and relative maturity. 

Beyond the information itself, the analysts that cover these markets bring extensive experience and knowledge that can provide an advisory relationship that sustains a big picture perspective that only magnifies the value.  Our clients from the investment community tell us that those vendors that engage industry analysts early and use them effectively have a higher success rate than those that don’t.  

Want to see a real-life example of the benefits that disruptive emerging tech vendors enjoy when they foster meaningful relationships with 3rd party experts? Read our latest use case to see how one innovative category creator used their IDC relationship to clarify their strategic narrative, increase revenue, and secure larger investment funding:

Co-Author: Bob Parker

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David Reinsel

Sr. Vice President, Global Datasphere, IoT, Mobility, Security, Consumer, Semiconductors, Telecom, Client Computing and Imaging/Print/Document Solutions