VP/Research, Nucleus Research Inc.
36 Washington Street, Wellesley MA 02481
781.416.2900
The Wind-Up
It won't be like the tech famine of the last few years, of
course, but for PR execs pitching technology products and services
2004 is shaping up to be a fairly lean year. Rebecca Wettemann, a
founding partner and VP/research at Nucleus Research, which
provides CFOs, CIOs and their staffs with the financial/technology
expertise they need to make sound investments in technology, says
despite an improving economy most companies are keeping their
powder dry when it comes to IT spending this year.
Wettemann should know. A recently released survey by Nucleus of
Fortune 150 IT directors, found that IT spending is unlikely to
increase in 2004 compared with 2003. More specifically, 67% of
respondents indicated that their IT budget would remain the same
from 2003 to 2004; 3% percent said their IT budget would decline in
2004 and 30% expected some (albeit limited) increase in IT spending
in 2004.
"People are still being cautious," says Wettemann, who is often
quoted in both the North American and European business press.
"That doesn't mean people aren't spending money. What it means is
that they're taking a measured approach to the way they spend on
IT. We see a lot of people spending on technologies that enable
them to leverage their existing investments and make them more
productive in terms of return."
Since Nucleus' (Fortune 150) clients are buyers of technology,
Wettemann regularly communicates with tech PR execs, who try to
convince her on the merits of their technology products and/or
services - and whether any of Nucleus' clients would be interested
in purchasing any of the technologies.
The Pitch
IT spending may be flat but that hasn't changed the volume of
pitches from vendors. What has changed is tone. Pitches are getting
more concrete in terms of talking about business value, ROI and
making sure customer satisfaction is high. "A pitch today that's
interesting to me is someone who says, 'Here's a business problem
that actual companies are using my technology to solve' or, 'Here's
a problem that everybody has and we have a unique way to solve
it,'" Wettemann says.
The two biggest problems Wetteman confronts when getting pitched
by tech vendors: being too vague and trying to follow some message
in the market that doesn't really fit. "If you're not CRM (Customer
Relationship Management) you shouldn't call yourself CRM," she
says. "It's OK to not fall into a bucket an analyst already knows
as long as you can articulate your place in the marketplace and how
you distinguish yourself from competitors."
Nucleus tries to separate itself from the research pack by not
charging for an initial briefing. "You don't have to have a
business relationship with us to come in and brief us, which sounds
amazing to some people, but we don't walk their way," Wetteman
says. We're looking for clear business values in areas that are of
interest to our users."
E-mail is the best way to pitch initially because you can
include details on the technology product. If you want a briefing,
remember two essentials: common courtesy and clear, crisp messages.
If you're looking for an analyst to help you refine your message as
well as get media coverage, say so. "A briefing is an opportunity
for both sides." Wetteman says. "For us, to learn about what you're
doing and for vendors to get sanity checks on how they fit in the
market. It should be an open dialogue...If you have analysts who
like you they will bend over backwards to provide quotes and
support your clients."
Maximizing ROI from your analyst outreach
Here are five key strategies to keep in mind to ensure your
relations with analysts keep you on the right track:
Do your homework. Who's the analyst you want to talk to,
and what does he or she cover? Searching press quotes, recent
reports, and media resources will help you identify the right
person. If you're not sure, call and ask - or call the analyst you
know and ask them to point you in the right direction. Make sure
your source knows the analyst's experience, coverage, and hot
buttons - if any - before the call.
Stay in touch. Sure, announcements and press releases are
important. But you're doing your clients a disservice if you only
talk to analysts when your client has a big announcement. Analysts
can be really helpful in providing feedback on market and customer
decision trends, what your client should be considering, and
whether or not a potential strategy is worth pursuing. If you're
talking to them on a regular basis, you can also get insight on
what they're covering - and be proactive in either keeping your
clients visible in their research or giving your clients valuable
insight on how analysts view them.
Keep it real. Be honest about your client's pitch and
product. If they're lemons, the analyst may be able to help - and
will respect you when you call the next time. Marketing and
technical documentation, customer success stories, and even better:
live customers to talk to can help make the case for analyst
coverage. Clear positioning against competitors helps, too.
Respond to bad press. If an analyst writes something that
you don't like, don't go silent - talk to them about it. An open
dialogue - even if you agree to disagree - will ensure they're
listening when you have good news to tell.
Timing is everything. Analysts like to be ahead of the
game; pre-briefing them on important releases is a great way to
make friends. If you're scheduling briefings, giving yourself as
much lead time as possible will increase your chances of getting
analysts interested and available.
Source: Rebecca Wetteman, Nucleus Research