What is the primary job of investor relations personal?
Investor relations definition describes it as someone that is a professional in financial communication with the investors, and this effective and honest communication with the investors is what keeps them coming back, and helps in maintaining a sustainable relationship for long-term. Every major company has an investor relations IR department, and the size of the team varies for any company, it could be a single person or a team of 12 people. Major companies such as Microsoft, IBM, Google, and Ford have a prominent IR department, and these companies let the investors order an annual financial report and look up the stock prices, and other financial information.
Usually, the company’s website is used to provide financial information that is relevant to the investors and stakeholders.
An investor relations manager takes care of tracking the financial information of the company and providing the relevant information in written form to the stakeholders. An IR professional must have good communications skills, both verbal and written. It is a no brainer that an IR professional must have a degree or specialization in finance and accounts. The primary role of the investor relations professional includes taking key insights from the company’s management, overseeing stock prices movement, and create the company’s annual financial report, help in building a rapport with analysts and investors, also keep the shareholders updated and provide them with accurate and transparent information regarding finances.
He/she utilizes financial tools and metrics to monitor weekly, monthly and quarterly financial reports.
Effective communication is a vital part of the job, as the Investment Relations professional or manager has to give clear and concise presentations to the investors. The building of rapport and trust between the executive of the company and the investors is the major job of an IR manager. Any investor seeking company information usually contacts the IR department. Social media giant, Facebook, displays its financial information online that is relevant to the stakeholders and investors; it includes financial reports, quarterly earnings, press releases, and schedule of conferences, meetups, and events for the investors. The company’s website is regularly monitored and updated for the IR information.
It’s two-way communication, the necessary information is gathered from the investment community and conveyed to the top-tier management.
Effective ways of keeping up with your investors
J.P Morgan and Goldman Sachs are investment banking companies and rely heavily on their investor relations team for progress. Goldman Sachs had 150 years of history and reputation, regards IR as a major component of their company. Investors, shareholders, bank creditors, are important constituents of the company, and the company sustains a lasting relationship with them with the help of its PR and Investor relations department. Financial reports, press releases, and presentations are regularly updated on their website. Investor relations deck is the most important component for this company.
There are a few tried, tested and effective ways of communication with the investors:
- Encourage dialogue with the investors, and be open about your company’s vision and mission.
- Emailing newsletters regularly as an effective way of communication, this will be a part of your investor relations plan - to keep investors in the loop.
- Blasting monthly emails to the investors, and it should contain all the information of the use of investment, what milestones your company has achieved and the problems it has faced.
- Meetings are a good idea to discuss the challenges, problems, and accomplishments of your company with the investors. It may include profit and loss summary, industry news, and trends and problems to resolve.
- Annual reports are only published by bigger companies who have been there for many years, and these financial reports are summaries of budget, expenses, achievements and other relevant news.
- There are times to communicate with the investors on an urgent basis; if a challenge arises, something unexpected happens, yours is a startup, or your company is going through major changes and developments.
These are some of the usual and effective ways of communication that the investor relations team utilizes. Remember, investors need to be well-informed about the company’s dynamics and developments, as they are your business allies and partners, even when you face problems in your business, a good business-investor relationship can go a long way, and a sustained and long-lasting relationship with the investor is what you seek and thrive on.
Turn your investor relations to a mighty tool in your customer relationships
As investors almost always being valuable buyers and customers of the companies they are invested, it is the absolute logical step to turn your mostly numbers driven investor relations department to a customer insights tool.
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