4 Valuable Shareholder Engagement Habits for Companies Optimising Their Capital Raising

Adrian Lee
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Shareholder engagement is critical for companies seeking to raise capital successfully. We’ve seen time and time again that companies who prioritise shareholder engagement not only experience greater raise outcomes, but they also maintain a resilient shareholder registry in times of market volatility.

Just like any skill, developing effective habits is a crucial aspect of successful shareholder engagement, and the following habits can help you achieve that goal.

#1 Focus on Building Relationships

Markets have been chugging full-steam ahead for a number of years, and while that’s been advantageous for companies raising funds, it’s also relegated shareholder relationships as a secondary goal. 

As we’re starting to see now as macroeconomic conditions shift and funding becomes more scarce, shareholder relationships are more important than ever to secure funding for companies, as well as maintaining a robust shareholder register throughout the year.

We recommend providing opportunities for investors to regularly connect with you (digital or in-person), to provide updates on the company’s performance as well as address any concerns they may have. It’s a common error to think that investors are only invested in the financial aspect of the business, when they’re often interested holistically.

#2 Leverage Technology

In today's digital age, using technology can significantly improve shareholder engagement. The majority (if not all) of investors use digital media, and online tools to research and maintain knowledge on their investments. To connect with your shareholders, you need to be in the same channels they’re in. 

That’s why we recommend leveraging digital tools like virtual meetings, webinars, webcasts and online communities to engage with your shareholders (especially for those without the opportunity to meet you face-to-face). 

It’s very inefficient to leverage a one-size-fits-all approach when communicating with your shareholders. Even a little versatility on your end can pay substantial dividends for your investors and their experience.

#3 Practice Active Listening

Investors deserve to be listened to, and often feel like their concerns aren’t genuinely addressed by the companies they’re investing in. The rise in activist investing in recent years demonstrates that investors are willing to take action on their own.

We recommend you have a feedback mechanism, which enables shareholders to provide input and ask questions. This aligns closely with building deeper relationships with your investors through the use of digital tools, as you can address all of these needs with a single solution.

#4 Encourage Shareholder Collaboration

Collaboration with shareholders can provide valuable insights into the company's performance and identify areas for improvement. 

An actionable tip is to hold focus groups or roundtable discussions with shareholders to gain a better understanding of their perspectives, which in turn can inform a number of improvements on the company side.

One could think that this would be time-consuming and thus unproductive, but digital tools and products have opened up this aspect of shareholder engagement.

Putting These Into Practice With Fresh Amplify

In conclusion, developing valuable habits can help companies improve shareholder engagement and optimise capital raising. By building relationships, leveraging technology, practising active listening, and encouraging shareholder collaboration, companies can enhance their engagement strategy and achieve their capital-raising targets. 

Don't know how to get started? We've got you with Amplify by combining enhanced shareholder data and interactive engagement tools into a streamlined offering. The Investor Hub provides your shareholders with an online community to provide feedback, view company updates and announcements, and interact directly with the company.

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