Social media for investor relations (IR) can be a great way to communicate if you do it right. In addition to sharing your company’s vision with investors, social media allows you to show them how you perform.
Social Media For Investor Relations Improves Communication
Social media can help improve the visibility of your company’s investor relations efforts. Recent studies show institutional investors use social media to identify companies to select for further research. In fact, nearly half of these analysts report taking specific action based on information found on social media. Read more about this report at: Social Media Influencing Investment Decisions at Global Institutions
Social media is an effective way to communicate with investors and build relationships with them. It’s also a great way to keep up to date with what’s happening in the market and whether any significant developments could affect your business or industry.
Engage With Your Fans and Followers
Providing information to your audience is a great way to build trust and credibility. This helps you become a thought leader in your industry, leading to more followers, better engagement, and ultimately higher sales. Younger demographics, including Millennials and Gen Z-ers are investing in stocks, reaching them on social platforms could boost your presence and diversify your investor base.
Social media also allows companies to engage with fans and followers in real time by responding quickly when there is a question or criticism about the company or its products or services (or even bad reviews). In addition, listening will help you learn what people are saying about you so that when it comes time for an investor relations effort on behalf of your company’s IPO filing documents or annual report filing materials (such as Form 10-Ks), you’ll already know what issues investors might have with them before they even ask.
Promote Investor Conferences and Events
Social media can be a great way to promote investor conferences and events. For example, if you’re hosting an investor day or quarterly earnings call, use social media to share news about your company and its products. Social media is also ideal for sharing information about critical corporate developments, such as new hires or offices opening up in new locations.
Finally, companies must also use social media during earnings season, especially when they have positive news to report! In this way, investors can follow along with what’s happening at the company without having any surprises come out during their conference calls with management teams (or even worse: after).
Don’t forget about local audiences
It’s important to remember that local audiences can be a great source of information, leads, and even employees. If you’re looking for new business partners or suppliers, your local audience may have the answer. Similarly, suppose you have a product that would appeal to consumers in their region (or even beyond). In that case, it may be worth reaching out directly through social media platforms like Facebook and Twitter.
Use Social Media for IR as a Forum to Answer Questions
The best way to address investor concerns and criticism is by using social media as a forum. Social media allows you to respond quickly and directly, which makes it easier for investors to get their questions answered and concerns addressed. It also allows you to engage in conversations with the public, who may be interested in learning more about your company’s products or services.
If any issues with your company are causing concern among investors, now would be a good time for management teams from different organizations within the same industry sector (or even different industries) to collaborate on setting up an online community where everyone can share ideas about how best practices might look moving forward into 2020 and beyond
Respond to Negative Posts Quickly and Directly
Responding quickly and directly is the best way to deal with a negative post. Responding publicly shows that you are listening while responding privately allows you to have an honest conversation without being attacked by other commenters or trolls. You must also respond directly: don’t delete the comment, and I hope it goes away! If someone has taken the time out of their day (or night) to leave feedback on your company’s social media account, we should appreciate their input and make sure they feel heard.
Be consistent with your tone across all channels.
You need to be consistent with your tone across all channels.
- Use the same language and tone on social media as in other communications. This will help establish a brand voice for your company, making it easier for investors, analysts, and journalists to identify when someone from your company is speaking on behalf of the business.
- Be clear, concise, and respectful when responding to comments online — just like any other communication! Don’t engage in arguments or flame wars; instead, focus on answering questions directly and politely (even if they’ve been asked many times before).
Know and Understand Your Audience
You have to know who your audience is. You need to understand what they want, how they think and feel, and how they respond to different types of information.
You should also be able to identify the most important factors that influence their buying decisions–what motivates them to buy or invest in a particular company? What are their biggest concerns when it comes time for them to make an investment decision? What do they value most when considering investments (safety, growth potential)?
Establish Goals to Achieve With Your Social Media for IR Efforts
Before you start, the first thing you should do is define your goals. This may seem obvious, but it’s crucial to executing any social media strategy. The reason is that if you don’t know what success looks like in the long term, it will be hard to measure whether your efforts are paying off–and if they aren’t, how can they be improved?
In other words, don’t worry about other people’s goals; just focus on yours! You might find yourself tempted to look at others’ numbers and use them as benchmarks for measuring success; however, doing so probably won’t help much because there isn’t one “right” way for everyone who uses social media (or even just investors) to measure their performance on platforms like Facebook or Twitter. Plus, since every company has its unique circumstances and goals when coming up with its strategy (e.,g., some companies might have specific needs explicitly related to investor relations), trying too hard at first may lead down an unproductive path later on down the road when finding out whether or not something worked well enough would’ve required more effort than was worth putting into something else instead.”
Create a Social Media for IR Policy
A social media policy is a set of guidelines for your employees to follow when using various forms of social media. It should include the following:
- Who can use the company’s social media accounts, and under what circumstances?
- What kind of language is acceptable in posts and comments?
- How often can employees post or comment on behalf of the company, and how much time should they spend doing so each day (if at all)?
Monitor Your Social Media Presence
You should monitor your social media presence for several reasons. First, it’s essential to know what people are saying about you. You can use this information to improve customer service or make changes to make customers happier with their experience with your company. Second, it’s good practice to monitor competitors’ activity on social media sites because they may be posting news items that affect stocks in the industry or otherwise relevant information for investors.
Last but not least: if any negative comments or questions are posted by users – especially those with a lot of followers – these should be addressed immediately by someone at headquarters or on-site who knows how to handle such situations professionally and diplomatically (and ideally without sounding defensive).
Keep the Content Relevant and Engaging
Social media is a powerful tool for engaging investors and the investment community. However, there are many pitfalls to be avoided when using social media as part of your investor relations strategy.
- Don’t post just for the sake of posting. You must have a purpose behind every piece of content you share on social media channels, whether it’s an article or video, image, or infographic, and that this purpose aligns with your overall objectives as an issuer or company. Your audience will quickly lose interest if they feel like they’re being bombarded by irrelevant information about topics that don’t matter much to them personally or professionally.
- Don’t post just because others are getting likes and shares from their posts. Don’t be one of those people who think they have something valuable enough to share but instead end up looking foolish by trying too hard; rather than trying harder next time around, just focus on creating great content first – then worry about how well it performs later down the road once things start rolling smoothly again.
Social media is a great way to engage with investors, but it’s not the only way. You must know that many investors may be interested in your company and its products or services. Your social media strategy should reflect this diversity by providing content that appeals to all audiences- from millennials looking for information about new products and technology trends to baby boomers concerned about retirement planning or estate planning issues related to estate taxes or property values.
Ready to take your Social Media program for Investor Relations to the next level? Lets talk! Contact Market Tactics today, we will help turn your followers into funders.