The role of social media in business management has abruptly changed since last few years. What was once used as a platform for corporate communication between target audiences and existing clients, has now become a platform for global interaction. However the increased use of internet and enhanced portability of internet corporate communication has changed its facets, so is Investor relationship management has taken new dimension with the power and support of socializing, that is by using social media.
If we close view investor relationship we will find it is all about the valuation of the company in terms of its financial strength and market comprehensiveness. Via social media feed a company can display the piece of information that may reveal the potential part of the company in two ways:
- Social media can represent a corporate story with the best authenticity
- Social media can exaggerate some facts and figures for presenting a rosy picture of a company
Therefore by using social media definitely corporate investor communication may turn extra potential but that should be done honestly and maintaining the authenticity of the picture, which has been projected in front of investors and common people.
Social Media For Investor Relationship Management
In the first phase of virtual relationship internet had changed the face of communication radically and now with the reach and power of social media investor communication can be more vivid and to-the-point. Presently, the role of social media is:
- Opening up a discussion on public forum and accumulating public response on it
- Regular interactive communication with investors on social media platform
- The social media network provides instant feedback for the social image of an organization
- Social media emphasizes the achievement of a company for offering latest updates of the financial strength for attracting new investors/retaining existing investors
How Social Media Works For Investor Relation Management?
Social media channels are now being watched and followed by common people, market analysis, as well as potential investors, for finding new business opportunities. After the announcement of SEC (Securities and Exchange Commission) that companies now can use social media for sharing investor related information. From this standpoint:
- Social media can highlight the recent business achievement of an organization
- Social media can bring public response against a corporate issue/financial project
- The immediate feedback social media provides can help a company anticipate challenges and prepare appropriate responses
- Social media also can allow for the ability to correct information and provide more context and color to the overall corporate story
Social media has the power to present business challenges today which can be potential business leverage for the investors as well as it can be well researched by market analysis for identifying next financial growth of the company. In all aspects, social media platform works as an interactive forum.
Although social media mobilizing strategy for IR management varies from one company to another the general process for using social media is almost same. These are:
- Establishing single branded presence in social media platform for publishing IR linked content: opening one social media account is adequate
- Taking sincere initiative for publishing authentic and quality content, and keep on doing it
- Collecting response from public forum about the company
- Establishing a bridge between public opinion, investor’s expectations, and business administration strategy of company’s top management
Proper coordinating and analysis are the buzzwords now for enhancing the impact of IR communication, and achieving this all round result is the professional expertise of an IR professional.
Nitin Lahoti is the Co-Founder and Director at Mobisoft Infotech. He has 10+ years of experience in Design, Business Development and Startups. His expertise is in Product Ideation, UX/UI design, Startup consulting and mentoring. He prefers business readings and loves traveling. Follow him @nitinlahoti