How do clients use Substantive Research market data services?

On average, clients discover that they are over the benchmark with 50% of their market data providers with an average potential saving of $360,000 per provider (in relation to the top 5 providers of customer budgets). They use Substantive to understand how their payments to market data providers per product compare vs peers for like-for[like services.

Key benefits include:

  • Identify opportunities to save money through mitigating price increases
  • Increase access/service as you identify where you are missing out
  • Demonstrate efficiency to internal stakeholders
  • Scenario analysis on changes of use case – what should we be paying if we change in size or data requirements?
  • Gain transparency on spend vs the peer group/market.

How do you determine the market data peer groups?

Peer groups are dynamic, meaning we pull from 80+ comprehensive market datasets and formulate peer groups at a granular level. Broad client peer groups are still considered in the initial formation of the price benchmarks – methodologies then focus on precise pricing drivers delivering benchmarks per vendor per product. (e.g. locations may be a driving factor for some products, user bands for others, and AUM for others.)

We are unique and not like other firms so how can you benchmark our market data use case?

Our dynamic benchmark work is down to the granular level – your specific use case per product per provider is what captures your uniqueness, not an arbitrary definition of “firms like you”. 

How am I supposed to negotiate with market data vendors where I have little or no leverage? What benefit would I get given this dynamic?

Where there are few realistic alternative providers, price negotiation is always a challenge, so the focus switches to minimizing price increase and ensuring that you are optimizing your use case with each vendor.

Our data shows that even in these cases, robust and knowledgeable negotiations make material differences, especially over multiple years. And with other parts of the market data budget there are alternatives and the buyers’ leverage is higher, and savings are realistic and highly achievable.

How long does it take to run the market data analysis?

Most benchmarks are delivered within 3-4 weeks once we have received the data. Deliveries and updates then happen throughout the year, including alerts on important changes in pricing models across the market.

Do you conduct the market data negotiations on our behalf or simply provide the analysis?

No, we provide the benchmarks and insights so you can leverage it in your negotiations. After each vendor meeting more questions inevitably will come up, so our account management structure allows us to deep dive into each step of negotiations with clients.

Do you run a trial of your market data services?

We offer a high level “try before you buy” feature available on our Market Data Product Page on our website – go check it out here!