Understandably, many B2B tech firms contact industry analyst firms in their domestic market before interacting with those abroad. The cultural and language barriers are low, and the domestic clients of firms that provide technology solutions or telecommunications will have more significance to a local analyst.
However, the US is the engine room of the global analyst industry. According to ARinsights, in July 2023, 82 of the 100 most influential analysts worldwide were in North America, and 80 were in the USA.
The ARinsights model is the tip of the proverbial iceberg. If you want to develop business in the US, it’s important to understand the crucial role industry analysts play advising large tech buyers and helping critical media determine the trends worth reporting.
It’s very hard to succeed in the ultra-competitive US marketplace, home to two-thirds of the market capitalization of the world’s largest 100 companies, without the help of the right analysts. Yet, numbers only tell part of the story. There are several other reasons that a solid AR strategy is needed to grow your presence in the US.
- Visibility with intermediaries. The highest-profile analysts are generally based in the US. These analysts are the experts most cited by intermediaries, including in equity research and regulatory research. They are often involved in due diligence and channel negotiations.
- Media coverage. The analyst profile in the media is astonishingly high. Journalists can contact thousands of experts in almost any topic or industry through a tiny number of analyst firms. Like it or not, analysts also read when their peers are cited in the media. Analysts like Charlene Li, Maribel Lopez, Mike Gualtierra, and R ‘Ray’ Wang, followed by hundreds of other analysts, serve as thought leaders in their peer community and the wider industry. US media are deluged by unsolicited pitches. They have more US companies they could cover than humanly possible so international companies are already at a considerable disadvantage. When it comes to top-tier reporters at outlets such as the WSJ and Bloomberg/BusinessWeek, at least 95% of the pitches those reporters get are ignored. It’s very hard to get them to include companies they have no frame of reference on. And they rarely include non-public companies or companies that aren’t backed by Tier -1 US VCs or institutional equity like Bain. The good news is that a US analyst can make an international firm more newsworthy.
- Market-making. According to the Analyst Attitude Survey, US analysts tend to be market makers more than market-breakers. They are twice as likely as European analysts, for example, to recommend that a client adds a potential provider to a short list. US analyst firms are also much more likely to produce comparative evaluation charts like Magic Quadrants, Waves and Marketscapes, which spotlight high-reputation players in B2B tech markets.
- Market insights. This is one of the key benefits that is often downplayed. US analysts are generally more vocal in briefings and more likely to react with helpful suggestions than those outside the US. It’s the fastest way to learn where you fit in the US marketplace, and identify things like underserved niches, potential partners, etc. That doesn’t mean that US analysts’ insights are better: some assume too readily that international markets will replicate US tech trends. However, others have unequalled access to the demand and supply side, which allows them to understand customer needs and pain points.
- Product and service development. Analysts can turn those customer insights into actionable opportunities for product managers, sales managers and solution owners. They can spotlight new solution spaces before they mature and even define totally new market spaces.
- Sales enablement. Analysts have often helped sales teams better understand customers, and analyst content has always helped marketers create great leads and move them along the sales funnel. That’s especially important for international firms trying to export into the US market, since US buyers might have different preferences from those in the domestic market.
CCgroup’s expanding team of communications consultants in the United States have feet on the ground to help your company boost the awareness of analysts, journalists and other influencers in North America. To find out more, contact us.
