All around the world companies are going digital in their workflows, including in their investor relations (IR) efforts. Adopting digitalisation as an essential part of IR was fast tracked by the pandemic and the progressively global nature of capital, according to a recent industry report.
Embracing this new face of IR enables businesses not only to gain smarter workflows that promote efficiency. It also empowers them to thrive during tough times, particularly in the past two years wherein working remotely and on mobile have become commonplace.
Companies are answering the call to digitalise their IR for more competent engagement with investors. As part of the latest IR evolution, this trend towards digitalisation has become indispensable and is expected to continue. What with the enhanced productivity businesses have experienced as a result of using digital channels and technologies.
Nowadays, most investor interactions are digital, bringing about a daily surge of virtual communications in the market. Companies are boosting their investment in online IR tools to improve their connections with investors. They are stepping up their digital arsenal to be effective with communications and rise above peers as they share their equity story to investors.
What are the top 3 communication channels companies are using in this evolving IR environment? Let’s break down the leading platforms businesses have taken on.
1. Company websites
Company websites remain as one of central online tools businesses use for stakeholder engagement. After all, corporate and investor sites are the number one go-to for facts and figures about a company, right?
Businesses are not only attending to the information demand from regulators and stock exchanges through their websites. Companies are also equipping their sites to address investor clamor for data to make informed decisions in both local and global capital markets. As communications are shifting to accommodate the international capital market, having multilingual websites are becoming conventional too.
That’s why businesses have amplified their assets in their websites as they are using it more now than in previous years. Not surprisingly, companies are likely to keep strengthening their sites as they have proven to be a valuable means of getting through to stakeholders.
Company websites are one of the main online tools for stakeholder engagement.
2. Online investor meetings
Virtual meetings have risen as one of the primary approaches companies utilise to achieve engagement with investors. Plans to maintain such events online are shaping the future, even as some businesses choose to employ the hybrid method, with on-site and online setups.
As multiple online meetings are easier to host across time zones, companies find these virtual events very convenient to operate in ramping up stakeholder involvement. Some businesses have likewise spent a lot on video content and media production teams to make their events as good as watching in-person presentations.
Events like virtual AGMs have been established to generate more views on real time and on demand webcasts. Consequently, participation in the number of votes garnered and questions raised have multiplied as well. Other companies further observed that shareholders were directly getting in touch with them.
Online meetings have become a primary tactic to generate engagement with investors.
3. Social media
In pre-pandemic times, businesses were not so keen to jump on the social media bandwagon. However, despite being a hot topic in IR, most investors of late have been found to be regularly tapping into social media. News gathered through this network have been recognised to affect investment decisions, making an impact on how investors perceive, think and act.
This explains how social media use has now bumped up as companies have launched their presence in this digital space, such as via LinkedIn or Twitter. Though not all are comfortable with this social platform, businesses have set up their company pages with the intent to push forward in this network, so they can amplify messages and widen their investor audience reach.
Social media use has bumped up as companies raised their presence in this space.
Put your best digital foot forward
In this changing IR landscape, companies are discovering new digital platforms to encourage investor engagement. Most businesses are advancing their company websites in efforts to increase stakeholder connections. Companies are implementing virtual events and hyping up their social media presence as well.
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How are you managing IR’s digital-first shift? You’ll need pros to help navigate this fast-evolving space.
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