CAMBRIDGE, MA: Technology firm Prompt Communications launched an analyst relations practice that will provide a variety of services to build relationships between hi-tech companies and the analysts that cover them.
Services include helping with analyst presentations, issuing analyst newsletters, and negotiating contracts with research firms.
Prompt has offices in both Cambridge, MA, and London, and will provide the new analyst services in both offices.
“A lot of technology companies don't think about analyst relations enough,” said Hazel Butters, CEO of Prompt. “When you're selling technology, you're selling a very complicated business proposition.”
“That's where it's important for a hi-tech company to develop good relationships [with analysts and researchers],” added Mike Kane, Prompt's VP, North America and the lead of the new practice.
Kane and Butters emphasized the differences between analyst relations work and standard PR services. Tech companies have to be willing to speak in detail about their work, the market, and the sector they serve rather than just seek soundbytes.
“It's useful for clients to understand the different level of information they have to explain [to analysts],” said Butters. “They have to give a very deep level of information. Sometimes clients need a lot of hand-holding to show that kind of information to a third party.”
Besides recognizing the need for analyst relations services in the tech space, timing played a role in the firm's decision to launch the practice.
“Spending is tighter and people are thinking about how to use their marketing budgets,” added Butters. “[Executives] are concerned about how their PR and IR efforts are driving sales.”