What Are the Best Ways for Issuers to Communicate with Retail Shareholders?

While the rise of retail investors is no doubt welcomed by issuers, it presents a new challenge for them: how to communicate with and engage this emerging breed of shareholders most effectively.

Of course, in an age where more communication channels exist than ever before, figuring out the right mix can be tricky.

For many organizations, the best approach involves trying out multiple mediums—including investor relations (IR) websites, social media, digital proxy tools and email, SMS text and phone outreach—to understand what works best for different groups of retail shareholders.

Which platforms should issuers use for communication?

With the number of online tools available to build interactive and compelling IR websites, they can be valuable for disseminating information. However, unless time and effort are devoted to building an online community or forum, they’re not usually the best channel for shareholders that have questions. 

To achieve true engagement, many issuers are supplementing IR websites with strong presences on social media platforms including Twitter, Reddit, and even Clubhouse. In an age where people opt for social networks to connect with individuals and groups they care about and use those networks as a key source of information, issuers need to meet these shareholders where they are already spending their time. Just be warned: 76% of social media users expect a response to their inquiries within 24 hours, according to The Sprout Social Index.

In addition to these two mediums, a comprehensive shareholder communications strategy includes other methods, including digital proxy tools and email, SMS text and phone outreach. These channels enable issuers to maintain regulatory compliance as they keep shareholders in the loop about upcoming votes, annual general meetings, and other important company milestones—all in a convenient manner.

Creating a strategy that fits your company culture

Some issuers may need to modernize their communications strategies to best engage retail shareholders. Even so, a one-size-fits-all approach to what an effective strategy looks like does not exist. Traditional companies might decide to use social media sparingly, preferring to drive investors to their IR websites. While others could opt to lean on social media heavily and use it to start conversations with investors. 

Ultimately, each issuer needs to build a strategy that aligns shareholder preferences with its unique culture and values.

Ask yourself the following questions as you begin crafting your strategy:

  • Is our messaging reaching the bulk of our retail investors?
  • Are we being proactive enough with shareholder communications?
  • Is it easy for our retail investors to find relevant information about our company?
  • Are we communicating in a way our retail investors will understand?
Once you’ve built a strategy that works for you, it’s important to remember that you don’t need to manage your communications entirely on your own. Mediant offers extensive solutions to help drive shareholder engagement―both during proxy season, with Mediant Engage™, as well as year-round, with Stockperks.

Contact us to learn more about Mediant’s investor communications solutions.