RENEWABLOG

Don't Just Choose an Analyst Firm, Choose an Analyst

Many clients turn to us when they are about to engage with their first analyst firm and ask for recommendations. The questions we in turn ask: "What are you looking for from your firm? Market sizing data for the next round of funding? Lead generation? Feedback on messaging and market strategy?"

Most of the discussion heads down that path about which firm is the perfect fit based on focus, cost, support and what the competition is doing. Is it Gartner? IDC? Burton?

Unfortunately, this where the client vetting process often stops. Companies often assume that all analysts at a firm are the same and that they, the client, will get the same level of service, expertise and support from every analyst at that firm. This is a bad, bad assumption.

Most of the time when we meet with a prospective client, they request a follow-up meeting with the entire proposed team. Why? Because most savvy marketing people realize that a firm's reputation is important, but that in a services business it is all of the people doing work on the team that matter. That is why repeatability is the single most important element in a successful services business. The comfort of knowing that whenever you go to that restaurant or hotel, fly that airline or work with that law firm, that you can expect a close facsimile of good service that you have experienced in the past.

This extends to analyst firms. The best analyst firms have a repeatable service model and have built a solid reputation by servicing a large percentage of their clients well. That said, I am sure that every company has worked with an analyst in the past who didn't meet the standard of the firm's reputation. This is not an indictment of big firms or brand-name firms, but of poor analysts at any size firm. So what do you do?

Every company should ask their PR firm to arrange a briefing request with the analyst that covers their space. During that initial conversation, the company should actually interview the analyst about their professional experience, past coverage areas, planned research for the coming year, how they support their clients and what they consider to be a successful analyst firm/client relationship. During the conversation or (preferably) in-person meeting, they should also get a feel for the personality and work style of the analyst. Is this someone who will be open to our view of the market? That's important. Are they willing to challenge our views at the risk of offending a prospective client? Even more important. "Yes man" analysts lose their credibility quick and with it, any return you may have gotten from that relationship. 

At the end of the day, you have to be confident that you will get a return on investment from that relationship because you work hard to get that budget. The firm name and reputation are important, but a dead weight analyst is dead weight no matter which firm they work for and it can seriously impact ROI.

Bottom line? Find what you want in an analyst and then focus on the firm. Weigh firm name and influence as one of many factors in the decision.

Posted by Jason Morris on November 26, 2007 at 10:30 AM