Right communication, at the right time is the sole aim of Investor Relationship Management. There are different layers of recipients for this business communication, which includes investors, analysts, shareholders at the first layer, customers, regulators, and employees are at second layer, and government, media, and others in the third layer- however, the entire transaction flow can be extremely tricky. Needless to mention that, IR is an ultra-significant area of business management, which cannot be neglected at any cost. 7 important steps are discussed here, which can help an organization in achieving Investor Relationship at par.
An Overview Helps In Planning
The total graph of communication needs to be overviewed first. How the communication is floating and which are the recipients for receiving these communications are one of the major points to discuss here. The slip in strategy can lead to losing your target audience, even at the worse the revenue generating process can get hampered, or supports from investors can be adversely affected. Right IR strategy helps in forming a team, that’s the whole idea of managing business on the tight rope of balance.
Identifying The Audience
All together it is a complicated and controversial process and here IR works closely with marketing and public relation department for identifying the right audience segment. Although this identification process may vary from one company to other, general steps are followed here:
- Conducting market survey
- Market analysis
- Collection of customer feedback
- Launching interactive marketing campaign
Understanding the consumer will help a company to plan further his business development strategy as well as it improves communication with investors with interactive data support.
Identifying Shareholders’ Active Interest
Identifying stakeholders interest is a crucial issue of Investor relationship management implementation. This helps in identifying the active voters so that the forecast about company’s strategy development can be assessed. The main ways for identification process are:
- Identifying the active contribution of the stakeholders
- Determining the right agenda
- Implementation of business strategy
- Introducing voting right plan
- Tricky acquisition of the acquirers
Determining The Right Issues
This is a preset process of identification of the right issue, which includes steps like:
- Analysis of corporate governance process under a critical analytical view
- Conducting interactive meetings with stakeholders
- Placing an interactive approach for anticipating needs in investors’ cycle
- Diplomatic avoidance of pushing company’s agenda for short term benefits
- Making transparent communication about company’s fiscal policies in accordance to market
Learning The Most Important Requirement
This is a meticulous process of reviewing of company’s business management policy according to market demand. The need can be fulfilled by:
- Focusing on the major concerns of the niche constituency
- Reading the mind of major stakeholders by interactive data exchange
- Releasing press release
- Using the exposure of audio visual media
Seeking Help From Proxy Advisors
Professional advice from proxy advisors can really make marked difference in a company’s IR management. More than arranging a proxy campaigning, these professional can help in:
- Analyzing voting trends
- Evaluation of latest market trend
- Providing expert service in identification of key persons with every shareholders (institutional only)
Nurturing Company-Investor Relationship
Nurturing company-investors relationship is one of the most important aspects of IR implementation. Although the aim can be achieved by different ways, some of the most common nurturing strategies are:
- Nurturing add on acquisitions
- Promoting organic growth of the company
- Tracking shareholders’ grievances, if any
- Incorporating new business schemes and approaches for enhancing company’s investments portfolio, etc.
These are the 7 ways for implementing skillful IR management; however, the priority of programs can be changed as per the business requirement.