A VC in Vacationland

Many start ups are afraid that industry analysts at AMR, Gartner, ARC, among others will not interested in their ideas or technology.  On the contrary.  These analysts thrive on the new, new thing. They are eager to introduce their clients to the latest and greatest software and solutions, provided, of course, you have a few success stories at your early customers to share with them.  And they are also very interested in having you subscribe to their services. 

But the big news is that analysts can be an inexpensive sales channel for new companies who are developing solutions to increase supply chain efficiency and effectiveness.  For the cost of a modest subscription, often less than $50,000 per year, you can:

• access knowledgeable supply chain analysts (and their research) in your space,
• keep abreast of competitor product development plans,
• ask the analysts to recommend your solutions to their clients,
• get the latest industry gossip and competitor dope quickly,
• be up-to-date on possible M&A activity, often before it happens,
• have them write flattering analyst articles and notes about your solutions,
• have them sponsor research showing how your solutions can reduce supply chain costs/whatever,
• have them keynote your webinars and conferences, and
• serve as a reference when you need one at a potential client. 

Where else can you get that kind of combination of PR, marketing, product and sales assistance for such a small amount of money? The answer is nowhere. You will have to invest a goodly amount of time and energy in developing and maintaining these relationships.  Often, analysts require a significant amount of "education", especially around new and innovative solutions.  Patience is important in dealing with analysts as they may not understand right away how your solutions are superior to those of competitors.  Although analysts tend to jump ship fairly often and move to competitors, that is generally good news as you will have a friend at the new firm, while the existing firm usually goes out of their way to make sure existing clients have a comparable analyst taking over your space.

Here are a few thoughts on maximizing the collective value of your relationships with the analysts:

1. They can be your best Brand Managers.  They can help you position your product in the right space and help develop your sales strategy to correspond to key industry trends. They will review your marketing plans and give you insights into how best postion your product for the sweet spots in your space.

2. Make it their idea.  It’s not that you just call them up and tell them you are the best thing since Kim-chi, however. You have to let them come to that conclusion.  Analysts always like to discover  new things themselves.  Why else would they call themselves analysts?

3. Get them to be your best advocate. Analysts can attract a lot of the right professionals to your webinars, seminars and conferences.  They generally participate at minimal cost if you subscribe to their services. They are flattered to be invited to participate in your client-related activities because they can learn what’s going on inside of these companies and also hit them up for a subscription.