How To Evaluate Your Investor Relations Campaign
Larger audiences convert into more shareholders – here’s how to use leading and trailing indicators to evaluate your investor relations campaign.
Marketing is often a game of numbers. Investor marketing is not much different. A successful investor marketing campaign will rapidly build a large, qualified audience of potential investors. By qualified, what I mean is that that these investors have made some type of commitment to learning more about your company, for example opening an email, clicking through on a social post, etc. They know the name of the Company and are in a position to act on the right piece of news.
With strong positioning and a clearly articulated value proposition, we intuitively know that you will convert a certain percentage of that audience into shareholders. So by that reasoning, the larger the audience, the more new shareholders you will gain. Additionally, with strong messaging and by giving audiences constant reasons to stay interested in your story, you are also more likely to retain the shareholders you already have, and potentially even convince them to increase their position.
In the chart above you’ll notice significant jumps in audience size around news and media events. These events always introduce your company and content to new audiences, so we typically see a jump in audience size around these times. That’s why more news is better than less news, and why frequency matters.
Leading and trailing indicators
So is your investor marketing program working? If you can determine how big your audience is, and the rate at which it is growing, that is a great leading indicator of program performance. Pulling a shareholder count report every 2-3 months can provide a trailing indicator of whether that audience growth is translating into shareholder base growth. In our experience, these are the best high-level metrics to gauge whether a program is working.
And why do you want more shareholders?? So you trade more! More liquid stocks tend trade at a premium because investors are more willing to buy something they feel comfortable they can exit. Once they’re in, you just need to keep them!
Client Example: Josemaria Resources
Leveraging these strategies, we increased Josemaria’s shareholder base from approximately 850 to over 1400 in only 6 months.
Client Example: Eclipse Gold Mining
We increased the shareholder base from just 298 at the time of their IPO to over 1,100 in just 8 months. Additionally, we built their email database from zero to over 3,500 in that same timeframe.
To learn what your shareholder count is, you can request a ‘Sharerange Report’ from Broadridge. They’ll give you a number for both US and Canada, and it’s important to note that there may be overlap, so for accuracy, we tend to focus on the primary exchange. Doesn’t hurt to track both, but you can add them up.
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