How to Enhance Your Investor Targeting Efforts

Enhancing your investor targeting efforts is critical when it comes to planning your investor relations strategy. 

Last week, the National Investor Relations Institute (NIRI) hosted a webinar sponsored by Investis Digital on the topic of ‘enhancing your targeting efforts with investor intelligence, content and reach’. The webinar featured a panel of industry experts, moderated by Shannon Potter, Vice President, Professional Development at NIRI.

Meet the Panel

Irwin Co-Founder & COO Mark Fasken joined industry professionals Rachael Zahn - VP, Marketing Optimization at Investis Digital, and Gregg Castano - Founder & CEO of News Direct.

Investor Intelligence

Finding the right investors for your company is like finding a needle in a haystack. In a recent survey Irwin conducted, we found 89.5% of buy-side professionals think issuers do not do enough due diligence before conducting outreach. So how do you ensure you’re targeting the right investors? The answer is data.

Mark Fasken outlined tips for IROs to follow when working on refining their targeting efforts: 

1. Define a target investor profile that can guide you in your targeting efforts; 
2. Understand and analyze your own shareholder data; and
3. Craft a strategy on how to assess investor gaps and identify potential opportunities for targeting.
   

To learn more about how to analyze shareholder data, read our blog on identifying & understanding your shareholder base. ‍

However, many IROs do not know where to access or how to analyze the right data. Irwin works with thousands of IR professionals and has seen first hand many of the common mistakes being made when targeting investors:

Mistake #1: Targeting and prioritizing investors based on “relationships in your rolodex'' or based on size

We often hear people say “I have a lot of relationships already” or “I know everyone in the industry.” Although you may know many people, you don’t know everyone. There are plenty of small investors out there that are often overlooked.

Mistake #2: “I don't have peers” 

Peers don’t have to have the exact same business model as you - get creative and think outside the box. Start analyzing companies that aren't the typical peers you look at everyday. Ask yourself, who is investing in them? Where are they located? What's their style? 

Mistake #3: Scheduling your C suite in a meeting with an activist

IROs need to be aware of and understand whether an activist is getting into your stock. Look at data to target non-activist investors in your outreach, and track any activity associated with an activist. To learn more, read our blog post on how to spot and manage activist investors.

Mistake #4: Overlooking and underutilizing available datasets 

NOBO lists (non-objecting beneficial owners) are often overlooked and under-utilized. They are an increasingly important dataset that allows companies to access frequent insight into their non-reported shareholder base, which includes retail investors, family offices and some hedge funds.

Irwin found that it is 9x easier to get a current shareholder to buy more stock than to acquire a new shareholder. Companies can use NOBO list data to enhance their targeting efforts within their own shareholder base. 

NOBO lists also allow companies to:

1. Increase visibility into ownership data
2. Build stronger relationships with shareholders
3. Inform digital marketing and targeting tactics  
   

To understand more about the importance of NOBO lists, read our blog post on why you should track your NOBO shareholders

Mistake #5: What you don't measure, you can’t manage

Tracking data is a continuous requirement to understand the success of your targeting efforts. Set goals, revisit, measure, and keep score. 

An IR software can not only help you to avoid these mistakes, but significantly improve your targeting efforts and overall IR program. If you're interested in learning more about Irwin, request a demo.

So now that you know how to find the right investors, how are you going to engage with them? That's where content marketing comes in. 

The Value Of Content 

The first impression an investor will have of you is based on your online presence. The very first thing they will interact with is your content.

Institutional and retail investors like to consume different kinds of content. Institutional investors are focused primarily on ESG & sustainability content, Covid-19 response, and corporate purpose, mission, vision, and value. Retail investors are primarily interested in getting a good return on their investment. But what these investors have in common, is that they are both digital consumers.

Rachael Zahn outlined common mistakes companies make when it comes to leveraging content:

Mistake #1: Random acts of content

Creating content-based on impulse without knowing what you already have. Start with a content audit, then create a hub & spoke plan. 

Mistake #2: Booking your earnings webcast a week out 

Reduce the margin of error on major content releases planning and working backward. This will tell you what content you need to create, and when. 

Mistake #3: All quality, no quantity 

Quantifying efforts demonstrates measurement, management, accountability, and growth. 

Mistake #4: “It's our story to tell” 

There is importance in third-party validation - from employees to rating agencies, and special interest groups. This bolsters investor trust when word of mouth won't. 

Mistake #5: “That’s marketing's job” 

Own what you can. Whether it's your vendor supplier relationships that help you with your IR website, video, and content, that will get it done when you need it done. 

Find out more about how Investis Digital can help you leverage your content.

Reaching The Right Audience

Any investment spent on the story should be equally matched making sure it's heard. It’s important to first identify the appropriate channels in which to communicate and adapt to those environments.  Gregg Castano outlined the common mistakes made when it comes to reach:

Mistake #1: Using every medium in every communication

Deploy content in the format that best delivers the message to your target audience with the greatest impact. 

Mistake #2: Just posting news and updates on your owned properties 

Use all relevant channels for greatest amplification: online news platforms, print & broadcast channels, targeted email, and alike. 

Mistake #3: “We’ll figure it out along the way”

Don’t embark on a new channel campaign without expert advice (in- or out-of-house), especially for social media, podcasting, and email. 

Mistake #4: Inviting stakeholders to engage when you aren’t prepared for it

Know your audience. Do your research. Don’t invite stakeholders to engage unless you are prepared to engage with them.

Mistake #5: Short-term expectation, long-term strategy

Don’t expect immediate results. Developing an engaged audience on a new channel is a long-term strategy and takes time - anywhere from 6-12 months. 

Find out more about how News Direct can help you define your reach.