As COVID-19 has accelerated the digitalization of how companies do business, so as how companies conduct their investor relations. In our previous article, "MiFID II and its impact," we highlighted that companies and their IROs are forced to take a more active role in investors' communication due to MiFID II. The pandemic has further increased the need for investor outreach and improved transparency. With the prevalence of virtual events, investors nowadays can be easily swamped by meeting invitations. As a result, companies need to ensure their digital investor relations management is carried out properly to ensure effective investor communication.
A good investor relations website should be like a fascinating storybook that allows investors to understand the past, present, and future of a company in an efficient manner. Over the years, we have seen some great IR websites — as well as some not-so-great ones. Here are several best practices to keep in mind when developing a best-in-class IR website.
A good homepage
The homepage is the page that investors will see when they first visit the website, and it often builds the first impression of the company. By designing a clear page using dashboards, integrated menus, interactive charts, etc., investors can quickly find and browse the information on your investor relation website easily. You can even consider using some call-to-action content with links on the homepage to attract investors to further dig into the information that the company wishes to deliver.
Attractive investment thesis
It will be a plus if Investors are able to understand the investment thesis of a company quickly based on the information provided on the website (such as industry position, competitive advantages, future development, etc.). For example, Shell (AMS: RDSA), the second largest oil and gas company in the world, lists three major investment thesis with links on the investment thesis page. Hence, investors can quickly navigate the three core values of the company and further understand its strategies and results through the hyperlink if they are interested.
Timeliness and accessibility of information
Timeliness and accessibility of information (such as news, important information disclosure, financial reports, etc.) is the basic thing for a good investor relations website. Consistency for information disclosure is very important too. Through a clear and logical arrangement, you can help investors find the information more quickly. The financial results page is an often-visit page by investors; hence, we suggest companies can consider consolidating historical key financial figures and ratios into a summary so that investors could have a clearer understanding of the long-term financial trend. You can even provide an interactive option on the website to allow investors to customize and download the data according to their needs. In addition, the company may also consider providing multiple download formats (HTML, PDF, and even excel) to ensure investors with different preferences can access your information. Also, the investor relations website should provide historical investor activities and upcoming events with relevant materials to allow investors to catch up or participate.
ESG initiatives
In our previous article, "Should companies invest in ESG?," we mentioned the trend of investors incorporating ESG into their investment decision-making process. Therefore, illustrating the company's sustainability efforts and results on the investor relations website is also very important. In the ESG section, companies can also divide the page into different dimensions (for example, into the three dimensions of "environmental", "social" and "governance"), and communicate respective goals, plans, execution, and data-based results., also a link to guide investors for further details or download of the company's sustainability report is also highly recommended.
Make investors connect and stay in touch easily
Through contact messages, email reminders, and meeting request functions, companies should try to provide easy access to investors who wish to connect. You can also consider placing the contact information directly at the bottom of the company's webpage, which is also an effective way for investors to get in touch with the company directly.
Mobile-first design
With the proliferation of mobile devices, more investors are using their mobile devices to browse investor relations websites. Therefore, it is important to ensure the investor relations website supports mobile browsing and offers a smooth experience.
Editor's note
To give our readers a more in-depth and comprehensive knowledge about investor relations from the investor's perspective, DIGITIMES has invited QIC as a contributing partner to share their insights. The article is the 15th part of the QIC Inside Investor Relations Series, which was originally published on QIC website.)
