Common Mistakes When Dealing With Analysts
Analysts hold the power of life and death in their hands. Okay, maybe not. However, they can have a big influence on your company's success or failure. Here are the most common mistakes businesses make when dealing with analysts -- and how your business can avoid them.
Like it or not, analysts influence the way your company and your products are perceived in the marketplace and within your industry.
A good relationship with analysts translates into good PR for your business. An ineffective relationship with analysts, on the other hand, can stall your efforts to generate positive buzz about your products.
When it comes to analyst relations, one of the biggest mistakes small and medium-sized business leaders make is to neglect the creation of a comprehensive analyst relations strategy. Successful analyst relations specialists wouldn't dream of approaching the task of analyst relations without a plan and neither should you.
Here are some other ways you can drop the ball when dealing with analysts:
- Lack of relationships. The field of analyst relations is built on relationships. Analysts relations is not PR -- an invitation to a press conference simply won't cut it with truly influential analysts. Instead, the best analysts are interested in building long-term relationships with serious industry players.
- Hiring an inexperienced analyst relations firm. Some business owners opt to enlist the help of a professional analyst relations firm. If you don't have an analyst relations expert on staff, a competent analyst relations firm can make a big difference. Just make sure the firm you hire has experience in your industry and solid contacts with the analysts you have targeted for relationships.
- Disconnected analyst relations team. Whether you're relying on an analyst relations firm or an in-house expert, it's always a mistake to have an analyst relations team that is disconnected from your organizational needs and development processes. Effective analyst relations demands an informed perspective about your company's current condition.
- Appointing a low-level spokesperson. Briefings and informal meetings are opportunities for your company to shine with analysts. With so much on the line, why would you trust these events to low-level, dispassionate spokespeople? Instead, put your best foot forward with qualified and fully-prepped representatives.
- No quid pro quo. It's unfortunate, but business leaders frequently approach the analyst relationship as a one-way street rather than as an opportunity for creating a dialogue. It's completely acceptable and appropriate to solicit analysts' input at briefings and other events.
- Cash for reviews. Most industry analysts take their job as an objective third-party very seriously. The idea that you can buy positive reviews for your company is both inaccurate and offensive to professional analysts.
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