Why AR Is Essential During A Recession

Jul 28, 2022

AR Industry, AR news

Why AR Is Essential During A Recession

5 Reasons to Prioritize AR During Economic Uncertainty

During an economic downturn, it’s common for organizations to scrutinize budgets to ensure the return on investment of every strategic initiative, including analyst relations. 

Over the past 10 years, Spotlight has helped clients successfully maintain and accelerate their AR programs through two recessions. Here are the five reasons why AR matters just as much – if not more – during challenging times. 

  • Analysts are in high demand: The events of 2020 sparked more activity than ever between analyst firms and their clients. Gartner and Forrester both reported double-digit growth in a variety of client-to-analyst interactions. And this heightened reliance on industry analysts isn’t slowing as the world adjusts to a new normal. In Q1 2021, Gartner saw interactions with analysts and their content rise 26% year-over-year. At Forrester, Q1 2021 had 6% higher readership of content and 23% more inquiries year-over-year.
  • Brands are investing, just more cautiously: End-users still need to buy technology and services – but with tighter budgets comes great scrutiny. Smart buyers will ask an analyst’s opinion before making a big investment. 
  • Shortlist opportunities abound: Analysts are often tapped to create shortlists of vendors they trust and recommend. Vendors who don’t maintain their relationships with analyst advocates risk losing the analysts’ trust and confidence. 
  • Quitting the channel is costly: Firm subscriptions are multi-year deals. Abandoning AR before the end of your paid subscription would be a waste of money already spent.
  • Firms still publish evaluative reports: As evaluative research continues, it’s important to support and manage report processes. Devoting resources to these highly visible reports ensures accurate representation of the business, and is key for desired placement.

Regardless of what happens through the rest of 2022, it’s clear that your prospects and your competitors are highly engaged with analysts. Forrester CEO George Colony says we are in a “golden age of research,” driven by the numerous economic, social, and strategic factors of the times. “Companies and governments require a continuous stream of guidance and analysis to develop strategy and operate efficiently and that’s what we do,” Colony said in Forrester’s Q3 2021 earnings call.

No News Is Bad News

In the world of analyst relations, no news is bad news. When analysts see vendors going dark, they could assume it’s a sign of trouble for the business. To minimize negative perceptions, organizations need to continue to be proactive and own the narrative when it comes to communication with analysts. Not doing so puts analysts’ willingness to recommend any organization at risk for years to come. 

AR During A Recession

AR teams are the first line of defense in times of economic uncertainty. Capturing analyst insights and delivering them to stakeholders will help inform the difficult decisions in the months ahead – and making smart decisions will help your company come out of the recessions strong. For information on how Spotlight can help you prioritize your program initiatives and stay on track in an economic downturn, contact our team today.

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