One of the biggest challenges marketing pros are running into (with their jobs on the line) remains how to measure an AR program's effectiveness when times are tough? Unlike PR, which can be quantitatively measured via top-of-mind awareness or number of mentions, AR is a completely different beast. AR is about relationship development and management. It is about multiple one-to-one relationships. How do you put a tangible measurement on the intangible aspects or strength of relationships?
In today's economy Buy-Side or End-User Technology buyer (ETB) focused Industry analysts are wielding increasingly more influence over purchase decisions. Vendor executives realize that their companies must positively influence these influencers but budgets, headcount, and resources are being scrutinized and cut. Every program and every business unit must justify its purpose, its return on investment, and hence, its existence. If they are unable to show the true value AR brings to the organization, the program is dropped.
First it is important to understand your goals and what you want out of your AR program. The long-term goal for every AR program should be to develop relationships with the leading industry analysts in the company's market space to the point where the analyst's recommendation of the vendor, or their inclusion of the vendor in their published works and press quotations leads to
additional revenue for the vendor. In the short-term, companies should look at AR as a way toimprove their competitive intelligence, to receive tactical assessments for product development, to obtain "expert" analyses of, and recommendations for their product or corporate strategies, and to build buzz about their product and company. Without the support of executive management, an AR program will be relegated to corporate road kill. Similarly, without clearly identified and documented goals, objectives and plans, an AR program cannot be measured.
So the question remains: how does one measure the effectiveness of communications with key analysts, the development of positive working relationships with those analysts, and the internal maximization of the knowledge generated from the company's relationships with the analyst
community? Start with the basics:
Targeting & benchmarking top analysts
As we are asked to do more with less, it is important to focus your resources on the key analysts in your space - so the following questions need to be answered. Who are the key analysts that cover your space? Have you created a ranking of your analysts by business initiative? When was your target list last updated?
Once you identify and rank your top analysts it's necessary develop a calendar for outbound interactions based tier (your tier 1 analyst list should not be longer than 3-7 analysts and you should contact them at least 3-5 times per quarter). Develop a process for triaging inbound requests based on the "incoming" analyst so you can ensure you are not letting anything slip through the cracks and more importantly not spending too much time with non-influential
analysts.
Getting a baseline of your analyst relationships and research coverage
Once you identify and tier your top analysts you need to understand how often are you mentioned in their research, in what context, and by whom? Does your competition get more coverage than you? Is there movement on the firm's signature research deliverables (e.g.:Gartner's Magic Quadrant)? Honestly assess the reach and influence of the firms with whom
you have contracts or relationships. Just because you have a great relationship with an analyst does not mean their firm has the clients that let them provide your organization with any value or influence at the point of sale. Ask whether your organization gets value out of research and inquiries. Do you actually use their services, or are you paying for more than simple access to their analysts?
Advanced Metrics
Measuring individual relationships is a qualitative exercise. Periodic analyst perception audits can provide valuable insight into the health of your relationship with each analyst. Perception audits can help vendors identify what customers are hearing, what the analysts are saying, and where both are getting their information. When conducting a perception audit ask your key analyst specific questions about your relationship with them versus your competition. Some common AR effectiveness metrics include the number of interactions the company has with individual analysts, how the analyst perceives you in effectiveness, responsiveness, efficacy of communications, differentiation, access to executives, where they learn about the vendors and
marketplaces, and most importantly what is their their likelihood to shortlist or recommend you.
However, before you audit your analysts make sure you understand each analyst firm's survey policy as many firms have very stringent, difficult and ever-changing policies for surveying their analysts - even if you are a client.
The success of an AR program is the sum of multiple tangible and intangible events, some that can be quantified, others that are difficult to measure, even from a qualitative vantage point. In difficult times each organization must determine not just what type of relationship they wish to have with analysts, but how to get the most from those relationships. AR managers that are
committed to partnering with analysts can use both quantitative and qualitative metrics to measure their Analyst Relations program's effectiveness, will realize substantially greater value from their analyst interaction and analyst firm subscriptions and will be able to show the true value of AR at budget and planning time.
