Social media is not the only place where people can share their thoughts. Every tweet and conversation can have a tangible impact on the real world. This includes influencing which film is honored at the Oscars or causing a 2500% rise in app downloads. Social media is crucial for investor relations because of its ability to influence markets. Social media’s impact on the world will not fade. This powerful communication channel offers investor relations professionals the opportunity to transform their engagement strategies. Let’s look at how social media can help improve investor relations strategies, from publishing investor messaging to understanding perception and the path to the market.
“Investor presentations, facts, and investment information were available to institutional money managers around the globe ten years ago. Jason Rechel, Head of Investor Relations Firm and Corporate Development at Sprout Social, says that this information has been made available on social media to enable all investors to make informed decisions and empower them to make the best investment decisions. “IR leaders can now see the impact that a small group of investors can have on a stock price.
Social has billions of data points available in real-time to keep IR leaders updated about brand health, employer brand strength, competitive changes, and consumer product sentiment. Investor sentiment can also be accessed through social. This information can be used in the right way to help senior management avoid potential crises and effectively manage investor Q&A. Jason says that IR leaders must have a social media strategy. Understanding that your audience is actively seeking out investment information via social media means that IR leaders must proactively reach this audience through social media with relevant financial information, messaging, and KPIs to democratize investment.
You’re missing out on the opportunity to reach new investors if you don’t have the same channel as them. Social media can listen to future investors’ conversations, understand their motivations and find out what content resonates with them.
Listening allows you to spot conversations and sentiments that could impact your company or its stock, and then you can act in line with the market. Jason tells us that IR leaders can use social listening tools to keep a pulse on investor sentiment and external events that could impact the corporate brand or the foundations of the business. Social listening is a powerful tool that allows you to keep up with market changes and quickly adapt to them.
A tool is necessary to use social listening effectively. Sprout Social’s listening tool gives you a 360-degree overview of the most important topics to you and your investors. Collaboration between your IR team and Sustainability team is the key to a strong ESG story and strategy. It’s mutually advantageous for IR and Sustainability teams to provide investors with a fair, transparent, and accurate account of the company’s exposures and opportunities. IR is ultimately responsible for the relationships with investors. They can see the strategy through a financial lens. Sustainability teams, however, have a deeper understanding of the company’s ESG management.
