Through the use of advancing technology, Investor Relations teams are communicating directly with the larger investment community on a more frequent basis allowing IR teams to report more efficiently to their boards/management teams about investor interest, buying and selling.
The traditional face-to-face shareholder meetings are being scrutinised by an increased demand for virtual events e.g. webcasts, video conferences etc. The Investor Relations industry is being revolutionised by the likes of social media, online investor targeting tools, data analytics, financial technology platforms and even artificial intelligence. Whilst there are mixed views over certain aspects of the use of technology, they are clearly creating new opportunities for this space.
Investor Relations has traditionally lagged behind the use of technology but this is something that is now at the forefront of many teams with an increasing amount of investment. Prior to the introduction of all these new technologies, Investor Relations was quite a reactive industry. However, with the help of new tools and platforms, the industry is evolving to become more proactive as these technologies are now used to predict situations.
Today, Investor Relations Officers can tailor messaging to target their audiences more effectively by understanding what investors are looking at. The use of technology such as data analytics can help determine and measure investor interests from specific regions making investor targeting more effective. This can result in improved roadshows and possibly accessing new institutions and analysts that previously were not on an Investor Relations Officers radar.
Social media is another good example where a company can have greater control of their messaging. It allows them to get information in front of their audiences rapidly, and enables greater, engaged dialogue with the wider Investor Relations community. It is highly recommended that companies have a social media strategy fully embedded within the Investor Relations plan.
Investor Relations teams also need to adapt to the speed with which investors, in all sectors, expect information. One way to do so is by integrating technology. According to a 2018 research done by Citigate Dewe Rogerson, the top 4 technological tools that are shaping the way Investor Relations professionals communicate with their investors are online investor targeting tools, video content, social media and CRM tools.