When it comes to investor relations, you should never stop seeking out ways to improve. Let’s run through 5 quick strategies that can help IR departments of all shapes and sizes.
The primary goal of any business is to grow, and investor relations plays a critical role in that continued growth. Perhaps nothing is more dangerous to the health of a company than complacency or overconfidence — every seasoned veteran of the investing world knows there is always more to learn, that you can always improve, and that all things inevitably change.
With that creed in mind, here are five simple ways to avoid stagnation and improve the performance of your IR department.
1. Maintain Clear Communication
Communication fosters trust in any relationship, and nowhere is trust more important than when people’s investment dollars are at stake. Not only do investors want to be updated with important information as soon as it’s available, but they also want to understand how a company generates its value and income, explains Financial Management Magazine. Obviously, being able to regularly and clearly explain how your organization fits into the broader competitive landscape is key to meeting those expectations. Today, that also means building out a solid mobile policy.
2. Increase Board Involvement
For many big companies, only a limited number of directors on the board are involved in investor relations activities, which can result in less than dynamic IR strategies. But according to Laurence Stacker of the accountancy firm UHY Hacker Young, “The whole board must be committed to a proper IR approach.” Directors should be actively discussing IR at board meetings, and IR directors themselves should regularly attend those meetings. This keeps investor relations where it should be — as a central focus of company leadership.
3. Harness Data
Today’s business world is driven by hard facts, so the fact that IR is an inherently data-heavy practice should come across as a major selling point for your department. Better analysis, tracking, and predictions help ease investor uncertainty, but only if that information is delivered clearly and effectively. While PowerPoints have long been a staple of business presentations, both investors and analysts expect better ways to digest the data — increasingly through visual reporting.
4. Develop a Social Media Strategy
Although the idea of using social media in IR is still relatively new (and not without its challenges), it offers a powerful avenue of communication, particularly as it becomes even more ubiquitous. 80% of institutional investors have integrated social media into their workflows, while 30% have used information gathered on these channels to guide their investment decisions. Beyond making it easy to share company-specific news and facilitate two-way interactions, it also serves as yet another resource for gathering market intelligence.
5. Share More
Social media also makes it easy for companies to disseminate their expertise and establish themselves as prominent players in the field. Take advantage of media like blogs and LinkedIn’s Slideshare platform to demonstrate the knowledge that exists within the ranks of your organization. Not only does this garner new interest in your business, but it also provides yet another way to show current shareholders the direction in which the board is taking the company, as well as how they plan on getting there.