How to efficiently engage investors online today?
IR (meaning investor relations of listed companies in this context) has changed somewhat only over the past few years. Yet the core principles such as building relationships and regulatory communications of course remain, however, new ways of engaging investors are here to stay.
What to consider when engaging investors in the online world?
#1 Shortened newscycle & investor expectations
Back in the days when stock exchange releases and websites were enough, today’s shorter news cycle has changed the news landscape quite profoundly – and there is no turning back. In addition to this, from a company’s perspective, there is often more to say to investors than just the regulatory releases and CEO’s quotes in releases, not that there is something wrong with them, on the contrary, however, it’s just that investors also expect information from companies, whether comprising more about general business news rather than investor news. Content must also be made available in a wider range of media. Also, not everyone is on social media or has time to surf around webpages.
#2 Shareholder matrix has changed
Did you know that there are more and more investors out there who are not covered by information via analysts or media? These investors typically make their own investment decisions, do their own research, and do not depend on analysts’ views on whether to buy or sell. Also, the financial literacy of retail investors has increased, and many of them making their own analyses as well. A diverse shareholder base is typically beneficial for a company, however, reaching and especially engaging different groups of investors may require not only the right content but also the right medium.
#3 People call for sharp and short content
Correct, nowadays every one of us does - also investors. When your day as an investor is filled with calls, webcasts, conferences, and an endless flow of releases or emails, it is easy to understand that the one thing a person appreciates is sharper and shorter content. This may require a bit more work inside IR Teams to pull up this content, however, might be worthwhile to consider how to do this consistently in a way that fits your company’s communications style.
+1 Innovative approach – online!
According to the study Investor Relations: Key Drivers in 2023 and beyond by the London Stock Exchange, only in two years, the actions taken by companies to adopt new technologies have risen from 45% in 2022 to 62% in 2023 – and counting. Innovativeness and new ways of doing things also in IR are here to stay.
The writer is the Founder & CEO of Blue Berry Share IR APP.