The Best Ways for Issuers to Reach and Engage Retail Shareholders

Rising numbers of retail investors is a welcome trend for the wealth management industry, but among issuers, it entails a new challenge: how to build effective communications and engagement among today’s more demanding cohort of shareholders.

In an age of multiple communication platforms and ever-shifting manners and preferences in how they’re used, it can be tricky to find the right mix of channels and approaches to messaging. Options include investor relations (IR) websites, social media platforms, digital proxy tools, more traditional email, SMS text and telephone outreach.

For many listed companies, the best strategy is to try out multiple mediums and gain some insight into what works best for different groups of retail shareholders.

Which platforms maximize shareholder engagement?

Issuers can now choose from a range of online tools to build interactive and compelling IR websites. These can be an effective and efficient platform for disseminating information and proxy materials. 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 X (formerly Twitter), Reddit and Discord. 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 be ready to meet shareholders where they already spend 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 may include digital proxy tools, email, SMS text, and telephone 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

Issuers that have only used traditional channels may need to consider modernizing their strategy to better engage today’s retail shareholders. Even so, a one-size-fits-all approach is rarely effective, and the culture of the issuer is also a factor.

Issuers that have more conventionally minded shareholders might decide to use social media sparingly, preferring to drive investors to their IR websites. Firms that attract more next generation shareholders might opt to lean on social media more heavily and use it to start conversations with investors. For many firms, a blend of platforms and approaches may be needed.

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:

• Do our communications reach 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?
• Are we seeing responses and inquiries that suggest an engaged shareholder base?

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. BetaNXT offers extensive solutions to help drive shareholder engagement ― both during proxy season, with Mediant Engage™, as well as year-round.

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