Innovative strategies in shareholder analysis: Insights from the Q4 London breakfast event

shareholder analysis

The Q4 hosted event, “Shareholder Analysis – Best Practice, Options Beyond the Broker, & Strategies for IR Planning,” held on November 21, 2023, focused on shareholder analysis, best practices, and optimal strategies for IR planning. It offered an opportunity for an open dialogue among IROs regarding the targeting of shareholders and analysis strategies for 2024. 

The discussions were tailored to accommodate various company specifics, such as market capitalization, sector, company performance, and overarching strategies. The primary objective was to distill common themes and strategies that could be instrumental in shaping the shareholder analysis approach for the upcoming year.

Diversity in shareholder identification providers

Notably, most companies attending the session track their shareholders from the Shareholder ID (SID) received from their IR providers and brokers. Using both meant that the reports supplemented each other to maximise analysis and insights. This approach indicates a growing recognition of the need for a more nuanced and comprehensive method of shareholder analysis.

By synthesising information from these two sources, companies can achieve a more comprehensive understanding of their shareholders. This includes insights into the motivations behind investment decisions, patterns in buying and selling, and the overall composition of their shareholder base. Such an approach is particularly beneficial in identifying and understanding existing and potential investors, thus enabling more targeted and effective investor relations strategies.

CRM usage optimization

The event also highlighted a significant gap in utilising Customer Relationship Management (CRM) tools within investor relations. Many participants expressed that they felt they were not fully leveraging their CRM systems’ capabilities primarily due to time constraints involving data management. 

This underutilisation indicates potential for efficiency improvements in investor relations practices. One of the best methods to understand current and potential investors’ positions and sentiments was using a CRM that integrates data from their SID, which cuts down on time an IRO would normally spend manually incorporating this information.

Shareholder targeting

Another topic of discussion was the challenges faced in targeting both potential and current investors. Participants voiced a need to find more sophisticated services beyond traditional peer targeting methods. The interest was particularly strong in thematic targeting, which could provide deeper insights into investor behaviour and preferences. 

They also shared the complications involved in gaining deeper insights into why certain investors choose not to invest, underlining the complexity of investor targeting. One IRO emphasized that they felt the best way to accomplish this was by defining the different investor types and their drivers to invest in the company’s shares and comparing those to the company’s peers. 

ESG SID challenges

The group shared their difficulties in comprehending the ESG factors among their shareholders, highlighting a need for deeper analysis and targeted resource deployment. Participants discussed challenges in understanding ESG drivers within shareholder registers and the importance of integrating ESG data to engage investors effectively. There was a consensus on the increasing significance of ESG metrics beyond compliance, influencing investor perceptions and decisions.

The event highlighted a gap in effectively utilizing technology, like CRM tools, for ESG data management. The need for more focused ESG analysis in investor relations was emphasized, with suggestions for future events to include sessions on ESG best practices and regulatory changes. The discussions concluded that understanding and integrating ESG factors are essential for companies to maintain and grow their investor base in an ESG-conscious market.

Conclusion and Recommendations for Future Events

The event was marked by active engagement and valuable knowledge sharing among IR professionals. It was clear from the discussions that there is substantial value in harnessing the full capabilities of an integrated and streamlined CRM tool in investor relations. This approach offers a strategic advantage by enabling more effective management and analysis of investor data, leading to enhanced investor engagement and decision-making. Additionally, the discussions underscored the need for innovative approaches to shareholder identification and targeting strategies.

Suggestions for future events include organising a dedicated event focused on CRM best practices, which could greatly benefit IR professionals. Additionally, emphasising innovative shareholder identification and targeting approaches could provide new perspectives and solutions in investor relations.

Don’t miss the opportunity to be part of these game-changing discussions. Register your interest now and stay at the forefront of IR innovation. Let’s collaborate to redefine shareholder analysis in 2024 and beyond!

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