Why it is a really bad idea to cut AR, even in a recession

icon-budget-cuts-105w.jpgIt is common for tech vendors to cut marketing spend in a recession. Because Industry Analyst Relations (AR) is typically in the marketing department, AR is often asked to shoulder part of the cost cutting burden by cutting spending, freezing hiring, or even cutting head count. As a consequence, AR often cuts back on the total number of interactions it conducts with key analysts. This can be short sighted for a variety of reasons:

  • Analysts interact with many communities on a daily basis – As we pointed out in involving the analysts early and often, analysts do a significant number of touches each and every day with IT buyers, reporters, financial analysts and others. Providing analysts with a continual stream of information about your company, customer stories, and so on ensures that the analysts will properly position you with IT buyers, press, investors, et cetera.
  • Top-of-mind presence is ephemeral – Because the analysts have so many interactions and gather so many data points, it is easy for a vendor to get pushed lower in the analysts’ consciousness unless […]

Notes on managing your budget in a recession — SageCircle’s Coffee Talk

icon-budget-cuts-105w.jpgOn Tuesday April 1 SageCircle conducted a web-based Coffee Talk around the potential impacts of budget cuts and how AR teams can best handle them.  We began with a few slides to review the techniques for managing a budget and then opened the session to questions from the participants.

Often when resources are trimmed certain areas experience across-the-board and significant cuts.  While some of these areas can be quick to recover in the future analyst relations is generally not one of them.  Developing relationships that can truly provide a positive revenue impact takes sustained effort over time.  Once your program begins to slip the effort required to […]

Budget cutting part two — Alternate solutions for analyst contracts

icon-budget-cuts-105w.jpgLast week (see Budgeting cutting can help AR focus and innovate) we suggested that potential budget cuts may have the effect of causing AR teams to prioritize and innovate in their programs and might not always be as negative as when first viewed.  Another way to deal with the possible cuts in funding that follow any economic slowing is to look to alternative solutions.  These techniques obviously take precious time and effort that AR teams also don’t have, but may be reasonable choices when money is not available.

Analyst seat holder contracts

Review each analyst contract for usage and determine business group seat holders who need to be eliminated.  Then contact the high value and high usage seat holders to see if the business group can pick up some or all of the cost.  Be prepared to justify the cost as the business group […]

Will the analysts drive down IT spending? Not if you talk to them.

In Saturday’s New York Times Business Day section there was a reassuring article by Steve Lohr called Belt-Tightening, but No Collapse, Is Forecast in Technology Spending. Reassuring because the IT executives and industry analysts interviewed all indicated that there was less likelihood that IT spending was going to be slashed like during the 2001 recession. Whew, it looks like the IT market will dodge the bullet this time! However this relief could be short lived if the IT analysts turn negative and start counseling their IT buyer clients to be conservative and cut spending.

What could turn the IT analysts negative on spending? The analysts could flip their opinion if all they hear are the concerns and fears of budget cuts from nervous IT executives. As explained […]