Analysts and their share of influence

For the record, I’ve never said that analysts are no longer influential. (Some of my best friends are analysts…) What I have said is that the share of influence has shifted away from analysts towards a plethora of other influential categories, some new (eg. bloggers) and some old (eg. consultants, regulators, academics). In fact, what’s most relevant is that it is now possible, using sophisticated search capability (plus a good deal of research diligence) to detect influence (if you know where to look and don’t prejudge the answer).

I’ve also stated, in the book and elsewhere, that analyst influence is often overstated. Analysts are influential, but they are not at the top of the influence hierarchy. Indeed, I don’t believe there is an influence hierarchy.

HP, and now SAP, confirm that view that analysts are just one of multiple groups of influencer. It’s interesting that Don at SAP detected this 18 months ago and reacted by establishing an Influencer Relations division. What’s surprising is that so few companies have followed this lead. But I know many are watching this trend closely.

Who really influences customers?

Hot on the heals of HP’s survey results on who influences their customers, Don at SAP has released figures of a survey conducted 18 months ago. The post, with Don’s observations on the data, is here.

A couple of immediate observations of my own:

1. How important peers and colleagues are. This is consistent with many consumer-focused surveys too. But I’m not convinced this is helpful from a marketing viewpoint: after all, it still poses the problem, how do you get you message to those peers and colleagues?
2. Our customers’ customers are major influencers. This is really interesting, and rarely picked up on. It means that what customers buy must add value to what they in turn sell. So we, as marketers, must know what our customers are selling, and to whom.
3. The importance of your competitors (in SAP’s case, Business Software vendors). Often downplayed, or ignored, but competitors are trying desperately to influence your customers. What do you do about it?
4. Confirmation that analysts are most influential in the 2500+ employee bracket. This mirrors Forrester’s own research into the influences on small and medium firms.
5. Blogs are low in influence. Don suggests this may have changed in the past 18 months. I’m less convinced.
6. Where are the events? This contrasts with HP’s figures, but match Influencer50’s research findings that events are rarely influential.

This is good insight into the share of influence that exists in the IT industry. I hope more firms will share their results.

Analysts influence, as measured by HP - update

I admit I didn't expect a reply to my post on HP's measurement of analyst influence, but a reply I received (see the comment on the post). Hats off to Bob at HP for disclosing the rankings of their survey.

The question is: what influences HP's customers’ decisions to place a vendor on the short-list when purchasing products and services. The rank is:

1. Experience with Vendor
2. TCO
3. Price [statistically significant gap between top 3 and next 5]
4. Analyst Reports
5. Events
6. Vendor Internet
7. Analyst Verbal [statistically significant gap between top 8 and rest]
8. Financial Analyst
9. Marketing Collateral
10. Blogs/Social
11. Media Coverage
12. Direct Marketing
13. Advertising

Inital observations:

- how powerful vendor experience is. We always see competing vendors as strong influencers in any market, but I didn't expect them to rated top.
- financial considerations are key, but not necessarily the financial performance of the vendor itself (if the low ranking of financial analysts is indicative).
- events are much higher than I'd have expected.
- interesting difference between analyst reports and analyst advice in forming a shortlist.
- social media and blogs are on the radar, but still low.
- very low showing for the media
- why does any firm bother with direct marketing and advertising these days?!

Also, I'm surprised at the absence of advisory consultants and players in the supply chain (VARs, SIs, etc). It may depend on the markets being surveyed.

Still interesting stuff and valuable contribution to the wider influence debate. Thanks to Bob for sharing the info.

Bob asks the community to share its data - we're currently putting a paper together on the Influencer50 research. Anyone else?



The original HP announcement is here.