Investor Relations Outlook: Transforming Trends into Opportunities for 2024

Capital markets professionals have navigated through a year of ups and downs in 2023, facing regulatory complexities and a range of challenges. Despite these hurdles, investor relations teams have emerged as strategic players, guiding companies through uncertain times. 

In our final webinar of the year, we brought together a panel of experts to share their perspectives on the evolving landscape. As we reflected on 2023, our experts shed light on the trends anticipated to influence the market and industry in 2024 and explored how investor relations teams can leverage these trends for sustainable growth.

Keep reading for the key trends you should embrace for a successful year ahead.

Understanding Evolving Investor Expectations

What are the expectations for the coming year, and how can companies adapt to meet them?

Meaghan Montegari, Head of Investor Access at ICR, underscores the importance of strategic planning and building a curated list of top-priority investors. Reflecting on the surge in conference activity in 2023, Meaghan advises companies to assess the effectiveness of their engagements, pinpointing key decision-makers and ensuring impactful interactions. Her recommendation is to strike a balance between conference participation and targeted outreach through brokers or independent efforts.

Cassie Cornell, Director of Investor Relations at 10x Genomics, highlights the importance of being strategic about event participation, considering a mix of conferences, non-deal roadshows, and facility tours. Cassie emphasizes the need for a dynamic approach, constantly evolving and seeking feedback to refine strategies for the upcoming year.

Less Conferences, More Targeted Engagement

A noticeable trend suggested by both panelists points toward a shift to targeted engagement and strategic planning. Both Meaghan and Cassie hint at a potential move towards attending fewer conferences, opting instead for selectivity and creativity in outreach efforts. Strategies gaining prominence include non-deal roadshows, facility tours, and a mix of event types, reflecting the evolving dynamics of investor interactions.

Harnessing Technology for Differentiation

Another overarching theme for 2024 is the need to stay ahead of the curve and leverage technology for a competitive edge in the evolving IR landscape. 

Emily Geer, SVP, Senior Director, Corporates Business Unit, FactSet, emphasizes the shifting paradigm in the use of technology for investor relations teams. Gone are the days of considering technology as an afterthought; now, purpose-built technology is sought after. Personalization will emerge as a significant factor, with CRM systems playing a pivotal role in tailoring marketing and outreach efforts to specific investors. 

Internal efficiency is another crucial aspect, and IR teams should seek integrated technology in 2024 that connects data across all systems, ensuring transparency and facilitating turnkey integration with visualization tools.

Cassie underscores the importance of leveraging social media platforms for broadening reach. Twitter, LinkedIn, and Instagram become opportunities to showcase various aspects of the company. A well-maintained website becomes the hub for all IR-related information, offering press releases, event details, presentations, and webcasts. 

In 2024, virtual events and webcasting will continue to emerge as a trend in engaging a broad audience, emphasizing the need for visually appealing content.

Building Trust in Investor Conversations

In a challenging business landscape, Meaghan emphasizes the importance of transparency and open communication as a trend for 2024. Acknowledging hurdles openly fosters effective communication, and Meaghan highlights the effectiveness of forthright discussions. Active engagement with investors, even in a virtual environment, becomes crucial to convey narratives directly and develop a sense of connection.

As we learned in 2023, managing expectations and delivering clear messaging are vital to building trust during challenging times. The need for thoughtful communication and an adaptable strategy should be a focus area in 2024. Cassie also stresses the importance of finding the right balance of time spent internally versus externally with investors, ensuring strategic pivots can be made as needed.

Strategic pivoting means being flexible in your approach. While a solid marketing plan is crucial, the unpredictable nature of the investment community may necessitate adjustments. The ability to pivot in response to investor needs, inquiries, or market shifts is essential for effective IR. Meaghan advises considering the investor's viewpoint and adjusting schedules accordingly.

Leveraging Data for Strategic Decision-Making

As the financial landscape grows more complex, the importance of accurate and reliable data cannot be overstated. The strategic use of data will be key to anticipating market trends, understanding investor sentiment, and tailoring outreach efforts in 2024. Meaghan suggests leveraging historic meeting data—it's a key asset providing deeper insights into investor dynamics. When planning roadshows or conferences, IR would also be wise to lean on data-driven insights to allocate management's time.

If defining key metrics to measure and track is on your roadmap for 2024, Cassie underscores the value of using a CRM as a powerful tool for monitoring outreach and capturing relevant data. Driving investor engagement and converting meetings into shareholder positions requires detailed tracking and follow-up strategies. While it is not a perfect science, the ability to perform is made easier by a CRM. 

The Role of AI in Investor Relations

The role of AI in investor relations is a conversation that will not disappear in 2024. 

Emily highlights FactSet's focus on leveraging AI for efficiency and accuracy, including the use of generative AI for document summarization, allowing for time-saving and enhanced productivity. The landscape of information search and discovery will continue to change, enabled by AI-driven conversational experiences. However, IR professionals must exercise cautiousness in using AI, ensuring accuracy in data and complementing AI-generated information with human-powered quality assurance.

Discussions about AI’s strategic applications will continue to permeate the investor relations landscape in 2024. From data-driven decision-making to the potential of AI in meeting summarization, the discussion underscores the need for a cautious yet forward-thinking approach. The integration of AI presents opportunities for enhanced efficiency, productivity, and strategic engagement, paving the way for a new era in investor relations.

Shaping Investor Relations in 2024

As we look ahead to 2024, these insights paint a clear picture for investor relations professionals. It’s about strategic planning, engaging purposefully, and embracing tech without losing the human touch. Transparency and adaptability are non-negotiable, data is our guide, and AI, used wisely, could be a game-changer.

We predict that 2024 will be a year where practical strategies meet innovation. Here’s to a year of resilience, meaningful connections, and navigating the evolving landscape with confidence.

To watch a full replay of our trends webinar, please visit: https://www.niri.org/professional-development/online-learning/webinars/archived-webinars/webinar121423