Frameworks For Developing Effective Investor Marketing Strategies
Effective investor marketing and shareholder engagement strategies are essential for companies to build trust and credibility with their stakeholders. In an increasingly competitive market landscape, companies need to leverage all the tools available to remain attractive for retail and institutional investors looking to justify their investment decisions.
To help with developing effective strategies, companies can leverage proven frameworks to explore and build their investor marketing strategies which aligns their business objectives to their target investors. Here are some frameworks to consider:
The SMART Framework
The SMART framework is a useful tool for setting specific, measurable, achievable, relevant, and time-bound goals for your investor marketing and shareholder engagement activities.
Specific: To focus your efforts and keep your goals clear.
Measurable: To track your progress and stay motivated.
Achievable: To ensure your goals are realistic but challenging.
Relevant: To maintain goals that matter to you and are aligned with your other relevant goals.
Time-Bound: To ensure a deadline you can work towards.
Use the SMART framework to define clear objectives and metrics for each communication channel and campaign, and ensure that all your stakeholders are well-aligned towards your overall investor marketing strategy.
The Four C's Framework
In today's digital age, using technology is mandatory to significantly improve investor marketing. 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 understand them and position yourself for feedback.
Customer: Identify what your investors need, and deliver on that.
Communication: Build the interactions between the company and the investor.
Cost: Enable investors to enter positions in the company with as little mental friction as possible.
Convenience: Make it easy for investors to continue as shareholders in the company.
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.
The LADA Feedback Framework
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 in the event of unresolved concerns.
Listen: Encourage your investors to provide refined and specific feedback.
Absorb: Seek to understand and clarify the feedback provided.
Decide: Gauge how actionable the feedback is and whether you find it genuine.
Act: Create actionable items to address issues raised when receiving the initial feedback.
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.
Putting These Into Practice With Fresh Amplify
Identifying what your investors want and need is an effective way to start an investor marketing strategy. Only by understanding your investors can you begin to build a robust strategy to target to and market your potential shareholders.
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.
Unlock the Secrets of Success: Join Australia's Elite Circle of Public Company Leaders
Business growth can be arduous. But, for public companies, the task is infinitely more demanding. That's where our community steps in. Comprising over 400 seasoned executives and directors from Australian public companies, we're dedicated to sharing our collective wisdom. Discover weekly insights to stay ahead, learn from our educational materials, and engage in stimulating conversations at our monthly gatherings. Exclusively for ASX issuers—regretfully, vendors and partners are excluded.