Last updated on June 23rd, 2023 at 12:35 pm
The ever-evolving world of technology is becoming a key driver for the massive changes in investor relations. Hitherto, investor relations were a reactive function that responded to market fluctuations and customer needs as when they arose. Today, thanks to technological advancement, like Artificial Intelligence (AI), predictive analytics, machine learning and other smart technologies a company’s investor relations department is able to predict events before they arise and communicate directly with the larger investment community.
This paradigm shift from ‘reactive’ to ‘proactive’ means that your IRO can be consistently in tune with the pulse of the industry and the ever-changing market sentiments. Thereby redefining best practices and empowering IROs to stay ahead of the street and enabling them to report more efficiently and successfully to their management about investor interests, buying and selling.
The investor relations industry is being revolutionized by the use of social media, financial platforms, investor targeting tools etc. are clearly creating new opportunities. Even for traditional face-to-face shareholding meetings there’s an increased demand for virtual events like video conferences, webinars, webcasts and web conferencing. Earlier investor relations teams would report numbers as static set points throughout the year, but with today’s advanced financial models they can report the fluctuations in numbers real time and at the snap of their fingers.
The IROs are able to tailor messaging to their target audience more effectively by understanding what the investors are looking at. This enables them to possibly access new investors, institutions, analysts that previously were not on their radar.Social media is another aspect where they have greater control on and of their messaging. It allows them to present their information to their audience faster, as well as enables them with greater and more engaging dialogue with a wider set of investor community.
Besides by integrating technology, your IRO can also adapt to the speed at which, investors in all sectors expect information. But at the same time your IRO must understand the impact of these technological advancements and industry drivers, as they present both opportunities and risks. They have to become adept at using these technological tools effectively and efficiently to further the company’s business goals and reputation, at the same time use them smartly for any damage control to moderate misinformation and antagonism that may threaten the company’s name and reputation. Carefully constructed, strategic plan has the ability to reinforce the company’s key messages to cost-effectively promote the company’s brand loyalty.
In fact, with rapid digitization investor communications has become indispensable for companies. The investor relations teams need to be nimble, innovative and alert as technological advances allow them to develop one-to-one contact with the investor community which is so critical for business success.
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