Oftentimes, IROs are part of small teams or even lone actors working with limited resources, seeking to maximize traction with new and existing stakeholders. Luckily, technology has significantly streamlined the workflows of IR teams – from updating websites to filing documents, uploading press releases, and scheduling investor meetings. With digital tools becoming a ubiquitous part of investor relations, technology allows even the smallest teams to be agile and enhance their investor engagement. Here are four IR technology building blocks that should be on every team’s radar to get the biggest “bang for their buck”.
4 Must-Have Investor Relations Tools for Every IR Team
1. Have a Current and Dynamic IR Website
We may be stating the obvious: your IR website is an invaluable communication tool and should be more than a static repository of regulatory documents. When investors and analysts are looking for information, make sure they can do so quickly and easily. If your IR website lacks critical data (or finding it is just too burdensome), chances are, analysts and investors will look to other venues to find the data they require – you may cede control of your own narrative.
Clearly display your investment thesis, material information, filings and news, and provide contact details for your team.
SIXT is a great example when it comes to interactive and informative IR websites.
2. Use a Reliable Newswire Service
Forget the saying “No news is good news.” Keep the financial and journalist community up to date on what is happening in your company. Outside of your regulatory announcements, inform stakeholders of other important company developments like product developments, strategic decisions, management changes, etc.
Using a newswire service helps to easily distribute your news to news agencies, financial terminals and financial media portals. Additionally, you can target regions (i.e. states, countries, metro areas), tap into specialized journalist databases, or focus on specific industry circuits to maximize the reach of your news.
3. Have a Great Webcasting Platform
Your earnings call is your opportunity to clarify and/or showcase company developments over past quarters. Increasingly, webcasts with PPT slide integration are the “best practice” standard. Providing visual touchpoints in webcast events is often more compelling and informative than a basic voice call. Individuals can either join the live webcast or watch the recording on-demand from your IR site at a later date.
Ensure that the platform is easily accessible from all devices, anywhere – for example, requiring participants to download additional Flash plug-ins to view your event can be troublesome when content is being accessed from strict firewall environments. Create an interactive exchange with participants via built-in text Q&A forms, or by providing instant downloads of key documents. When speaking to analysts and investors, put your best foot forward.
Rocket Internet uses webcasts to showcase its results.
4. Tackle Investor Targeting
Many companies do not (yet) engage in proactive investor targeting, i.e. identifying and approaching the right potential investors. This is one of the most important tasks for IR managers. Especially with the roll-out of MiFID II, investor targeting has come to the forefront of many IRO agendas.
Investor databases can simplify the management of your investor search and communication activities. With a targeting platform, you can gain access to investor data (also investor data of peers) and can develop a well-formed targeting strategy based on your findings. This data will help you evaluate the quality of investor contacts, which can result in better traction and engagement. With this, you have the ability to ensure that available resources are used thoughtfully, that outreach is productive, and that you communicate with investors that are a good fit for company objectives.
IR tools can help you to target the right investors for you.
Great IR Doesn’t Have to Break the Bank
In today’s technology-driven era, IR teams (irrespective of market cap, industry, or location), can leverage digital solutions to improve their IR activities. By having disjointed messaging, clunky sites, and sub-par information available to the financial community, is not attractive for investors.
By optimizing the four IR building blocks above, IR teams can create more investor touchpoints, streamline workflows, and hopefully boost engagement. Technology can make management of these components faster, cheaper, and more accurate – a win-win for any IR team.
Want to learn more about leveraging digital Investor Relations tools for better IR? Take a look at our solutions and contact a member of the EQS team.