6 Investor Marketing Tips to Master Shareholder Engagement
Investor marketing is essential to gain and retain shareholder trust, which can lead to positive long-term outcomes for companies. According to Edelman, 63% of investors said they would be willing to pay a premium to invest in companies they trust. But how can companies build and maintain this trust?
Here are six investor marketing tips to master shareholder engagement.
#1 Know Your Audience And Tailor Your Messaging
84% of institutional and retail investors expect companies to communicate their long-term strategy and vision (NIRI 2019 Annual Investor Survey)
Actionable tip: Research and understand your shareholders' motivations and interests to align your messaging better. Use their preferred communication channels to connect and interact with them, in-person or on select forums (perhaps an interactive online hub?).
Mistake to avoid: Failing to consider your audience's specific concerns and priorities when crafting your messaging can lead to disengagement and distrust.
#2 Keep Shareholders Informed And Updated
89% of individual investors consider corporate transparency important or very important in their investment decisions. (Edelman Trust Barometer)
Actionable tip: Share regular updates on financial and non-financial performance, provide transparent and accurate information, and respond promptly to questions and concerns.
Mistake to avoid: Not providing timely and accurate information can lead to uncertainty and erode shareholder trust.
#3 Use A Mix Of Communication Channels To Reach And Engage Shareholders
68% (likely higher) of individual investors use mobile devices to access their investment accounts. (2021 Mobile Financial Services Survey)
Actionable tip: Use a mix of communication channels to engage shareholders, including email, social media, webinars, and video updates which can be done through an Investor Hub. Make sure your content is accessible and optimised for various devices.
Mistake to avoid: Failing to adapt your communication channels to your audience's preferences and habits can lead to missed opportunities for engagement.
#4 Be Transparent And Authentic In Your Communications
90% of individual investors said that a company's reputation for honesty and transparency is an important factor in their investment decisions. (Edelman Trust Barometer)
Actionable tip: Be honest and transparent in your communications, even when discussing difficult topics. Share both good and bad news, and provide context for financial and non-financial performance.
Mistake to avoid: Failing to provide full and accurate information, or spinning the truth, can quickly erode shareholder trust and harm your reputation.
#5 Focus On Long-Term Value Creation
90% of institutional investors believe sustainability and ESG (Environmental, Social, and Governance) factors are important in investment decisions. (BlackRock Sustainable Investing Survey 2021)
Actionable tip: Develop a long-term strategy to create sustainable value for all stakeholders, including shareholders, employees, and the broader community. Communicate this strategy clearly and regularly to your shareholders (ODA Case Study).
Mistake to avoid: Focusing solely on short-term financial performance can lead to missed opportunities for value creation and damage your reputation.
#6 Use Storytelling To Connect With Shareholders On An Emotional Level
People are 22 times more likely to remember a fact when it has been wrapped in a story. (Harvard Business Review)
Actionable tip: Use storytelling to connect with your shareholders emotionally and make your messages heartfelt. Videos are a great way to connect with investors, as you can communicate your story face-to-face.
Mistake to avoid: Make sure you're genuine. People have a great nose for fake content, so ensuring it's genuine avoids any issues.
Putting These Into Practice With InvestorHub
So there we have it. Knowing your audience. Keeping your shareholders informed. Diversifying your channels. Being authentic. Focusing on value creation. Using storytelling.
Don't know how to get started? We've got you with InvestorHub by combing enhanced shareholder data and interactive engagement tools into a streamlined offering you can use in your day-to-day.
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