How an Investor Relations CRM Can Boost Investor Engagement

Investor relations has changed. 

A recent report, Corporate Access I, indicated that investors were overall more likely to request virtual meetings with IROs. It also found that the buy-side prefers remote conversations more than the sell-side. 

Furthermore, per MiFID II, there is an enforced separation between investment research and the execution of corporate access services. Previously, both were offered as part of a service bundle. As a result, many research providers and investment managers have seen a steep decline in research spending. This means IROs are struggling to interact with premium investors and must cast the net wider to a larger base of investors, which adds to the workload. 

Add in the rise of retail investors and it is easy to see why this requires IR teams to rethink how they manage and streamline their workflows to effectively engage and identify investors. 

Using an investor relations customer relationship management system (CRM) is the answer to this tricky issue. This article explains how to use one productively. 

How an IR CRM helps

Replaces spreadsheets with centralised analytics 

When internal stakeholders save different versions of spreadsheets in different locations, they become confusing, out-of-date and potentially damaging to the company. A CRM updates for all users as soon as anyone makes changes. Version control is no longer an issue. 

In addition, it is easy to search for the exact data you need from the database, helping streamline roadshow preparation and other shareholder engagement activities. 

Automates mundane tasks

With the IR workload growing, ridding yourself of those time-consuming and repetitive tasks frees you up for more high-value work. Use your CRM to automate emails that invite an audience segment to a forthcoming event.

You can also use the data on the platform to prepare targeted presentations for certain investors. 

Makes roadshow preparation faster

Use the CRM to create and distribute agendas for roadshows. 

In addition, use the data you hold on investors to create effective briefing notes for your executive team. This helps them tailor their approach and deliver the message more effectively. For example, you can provide them with data on which peers shareholders are also invested in to inform how they lead discussions. 

Helps you keep track of communications

The CRM holds all information about your communication history with shareholders. This allows an overview of how the relationship is developing, as well as providing insight into the most effective method of communication for each investor. 

Reduces time for investor prospecting

Some investor relations CRMs, such as IR.Manager, collect extensive databases of investment world contacts. This saves IROs time researching potential shareholders. With IR.Manager, you can filter the list based on relevant attributes to more easily find those who fit your target investor criteria. 

Helps you understand your shareholder base

The data in a CRM helps you identify shareholding gaps as well as track the activity of current investors. This helps you target new investment and encourage reinvestment by engaging current shareholders in a more focused manner. 

Enables you to optimise your processes

You can see how effective your investor outreach is by accessing the data in your CRM. Track the activity of your contacts and see how events and communication programmes have impacted that activity. This helps you improve your processes in the future. 

Helps you evaluate market conditions

Advanced IR CRMs like IR.Manager Premium allow you to monitor your stock performance and how it aligns with your peers. You can also see the consensus of analysts on the valuation of your company and its peers, as well as investor sentiment about your business. This is invaluable in understanding where you stand and what the competition looks like when developing strategies.