Debunking Five Myths of Analyst Relations for Startup CEOs
If you're a Startup CEO, you've likely heard a lot about the importance of analyst relations (or AR for short). But it's also likely that much of what you've heard has been mired in misconceptions. Let's clear up some of the most common myths about AR so you can move straight to making the most of this critical channel for your startup's success.
Myth 1: Analyst Relations is pay-to-play
This is a widespread belief - often repeated with an eye-roll. The kernel of truth here is that spending money with analyst firms is one surefire way to spend more time with analysts, and high quality time spent with analysts helps you understand their thinking and improve your offerings. That said, Analysts deeply value their reputation for impartiality and make efforts to maintain it - expenditures absolutely do not equate to favorable coverage. Savvy startups with a strong point of view can earn valuable analyst facetime by offering a compelling and targeted briefing aimed at helping analysts do what they do best - deliver accurate insights to their clients. Your goal should be to help them understand your product and its unique value proposition and place in the market better - you can do this regardless of your client status.
Myth 2: AR efforts should start once your market and/or company is mature
I would argue the opposite of this is true. Initiating AR early in your startup's journey can provide valuable industry insights, help shape your product, and strategize your go-to-market approach. It's not about getting featured in a major analyst report right away; it's about gaining an understanding of the market landscape, nailing your value proposition, and having influential analysts be able to articulate your sweet spot to potential buyers.
Perhaps just as importantly, the best analysts are always on the lookout for new approaches and technologies that their clients can benefit from - if you’re not shaping those viewpoints and creating that inspiration, someone else in your space will be.
Myth 3: AR will drive immediate ROI
While it would be fantastic if AR efforts immediately translated into a surge of new customers or massive brand recognition, AR is a game you play for the long term. Your startup AR game plan should aim to systematically add value to the most influential analysts in the space such that they willingly engage with your company, which allows you to use those conversations to influence your strategic decisions, product development, and market positioning over time.
Myth 4: AR is basically Public Relations aimed at an Analyst audience
While PR focuses on gaining publicity and managing public perception, AR is more about strategic learning and influencing via two-way relationships with influencers. Your interactions with analysts should be less about "selling" your product or even about “educating” them, and more about fostering trust with your company and a mutual understanding of the market. This requires a fundamentally different (and much more strategic and nuanced) approach vs. what you might employ for PR.
Myth 5: Gartner and Forrester are the whole game
While Gartner and Forrester are well-known and very influential, they are not the only players in the analyst firm game. Especially in less mature markets, other industry influencers may have a more significant impact on your actual buyers, and they can also be easier for a startup to engage with.
I consider third-party review sites like G2 and TrustRadius to be a critical part of startup AR strategy as well - these are playing an increasingly important role in shaping buyer perceptions (which probably explains why Gartner has snapped up a total of four of these companies over the past few years!)
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I hope you’re leaving this piece feeling better equipped to understand what AR can and can’t do for your startup, and with a clearer sense of where to start. If you need help further demystifying the process, I offer AR strategy and planning services aimed specifically at helping startups navigate this process as cost-effectively as possible. Grab some time here and let’s chat!
Upward (and to the right!)
-Elena
