Investor Engagement: Building long-term relationships with stakeholders

• Investor engagement builds trust, creates long-term relationships and improves ESG performance.
• It involves regular communication, inputs on ESG issues and collaboration with key stakeholders.
• It leverages technology, such as investor websites, emails, social media, video interviews and webcasts.

As you know, investor engagement has always been vital for companies. However, it has become even more critical in recent years. Thanks to the accelerating focus on environmental, social and governance issues (or ESG) as well as the growing importance of building long-term relationships with shareholders.

Effective investor engagement includes regular communication and involvement on ESG matters with key stakeholders. Companies are also using technology to better understand their stockholders and tailor their engagement strategies accordingly.

Dig deeper on why investor engagement is becoming increasingly crucial for companies like yours. Find out what it entails and how your business can use technology to improve your engagement tactics.

1. Why investor engagement is important

Investor engagement is imperative for establishing trust and solid relationships with your stakeholders. It is essential for improved corporate governance and ESG direction of your company.

• Builds trust. Constant communication and transparent reporting builds trust between your business and your investors. As you attract and retain shareholders, you get access to capital, and maintain a positive reputation in the financial district.
  
  
• Creates long-term relationships. Developing lasting relationships with investors is pivotal for your venture as you look to secure funding over the long-term. A stable stockholder base will more likely invest in your future offerings and back you up through difficult times. Giving you the means to weather any short-term market volatility.
  
  
• Improves ESG performance. Engaged investors provide feedback on your company's corporate governance and other ESG concerns to identify areas for improvement and help develop policies for addressing them. They can also support you in meeting expectations of regulators and certain stakeholders to advance your position in the industry.

Investor engagement builds trust and long-term relationships.

2. What investor engagement involves

Effective investor engagement integrates consistent communication and transparent reporting. It needs inputs on ESG challenges and collaboration with key stakeholders. Here are some ideas to start with:

• Regular communication and transparent reporting. Share updates on your company's operations, ESG metrics or any material changes that may impact your business. Deliver accurate and timely ASX announcements, financial reports and presentations that allow investors to stay informed about your endeavours. Shareholders will appreciate being kept up-to-date on your current game plan.
  
  
• Inputs on ESG issues. Present information about your approach on ESG affairs and seek feedback from investors. Develop ESG-centred surveys to gather insights from stockholders on their ESG practices and priorities. Conduct ESG-focused meetings to discuss your activities in this area and give updates on new initiatives.
  
  
• Collaboration with key stakeholders. Take a synergetic approach with shareholders, analysts and regulators, like participating in regulatory discussions or teaming up for industry-wide ESG initiatives. Consider how to incorporate their ideas into your company's decision-making process. In this way, you will more likely have a loyal investor base, which can help protect your organisation’s status and minimise risk during times of uncertainty.

Investor engagement involves regular communication and collab with stakeholders.

3. Using technology to improve investor engagement

Evidently, technology plays a significant role in improving investor engagement. Stakeholders are more tech savvy now and expect companies to easily furnish information at their fingertips. But are you implementing the right digital tools to enhance your engagement methods? Check out some ways you can gear up:

• Investor websites. An investor website will grant stakeholders with easy access to information on your company's financial results, including ESG metrics that are pertinent to your business. This dedicated portal will offer your ASX announcements, annual reports, presentations, and specific documents that are relevant to their investment decisions. It can also have interactive features that invite shareholders to connect with your management team, like email alerts subscription or contact forms.
  
  
• Emails. Obviously, not all stakeholders go to your website to check updates regularly. So the ever reliable email is another means to leverage for better investor engagement. Maintain an up-to-date subscriber list of your stockholders to efficiently distribute important announcements directly to their inboxes. Make sure you send your news fast! Be the authority on your corporate news, such as your financial records, product launches or changes to your executive team. Consider sending a frequent newsletter to give the big picture and proper context to recent developments.
  
  
• Social media. Social platforms like Twitter and LinkedIn produce opportunities to engage your investors in real-time, sharing news while also building stronger relationships with them. Be strategic in your approach and identify the networks that are most relevant to them. Focus on creating content that is informative and timely. Respond to comments or questions promptly and maintain a consistent brand voice across all channels.

Investor engagement leverages technology, like websites, emails, webcasts.

• Video interviews. Fast becoming popular, video interviews allow executives to communicate their message to investors in a more personal and interesting way. By speaking directly to stakeholders through a video interview, your C-suite execs can convey their passion for your company and their commitment to its success. These dynamic recordings can also bring further information or address specific concerns shareholders may have. Additionally, video interviews can be distributed through a variety of channels, including your website, social media, and email newsletters. Giving stockholders a better understanding of your leadership team and their approach to business. 

• Webcasts. Whether live or pre-recorded, webcasts allow your venture to reach a larger audience than traditional in-person events. Investors can access your webcast from anywhere in the world, making it easier for them to participate and engage with your company's message. Likewise, Q&A sessions and other interactive features in webcasts allow stakeholders to ask questions and get immediate answers from top executives. Helping to build trust and strengthen the relationship between your organisation and its stockholders.

When all is said and done

Investor engagement is becoming doubly important for companies as they seek to build long-term relationships with their shareholders. This involves regular communication and transparent reporting, inputs on ESG issues and collaboration with key stakeholders. Businesses are also using technology, including investor websites, emails, social media, video interviews and webcasts, for their engagement strategies.

Over to you

Need to ramp up your technology for more investor engagement? Get IRM’s expertise for your investor website and news delivery to enhance your online communications. We can also arrange a video interview of your executives with Proactive or set up event management for your webcast.

Check out our many ASX-listed clients here. Let’s get you started on +61 2 8705 5444 or clientrelations@irmau.com today.