Investor is a human, too, Or a common-sense approach to investor relations

Professional press more and more often touches on the subject
of Human-to-Human communication as a new quality which is to replace B2B and B2C
marketing. Investor relations unfortunately are left behind.

In most Polish companies the perception of the
investor is a little bit worse than that of the customer. Unlike the buyer, who
has already paid his money and if the business continues to develop, he is not
very likely to withdraw his cash. Thus, caring for the buyer requires a
confirmation, from time to time, that the company generates profits.

Relations with investors are treated like nothing more
than online publishing of tables with figures and a short commentary from the
president, who confirms that everything is going fine. Even if it’s not and the
company can barely make ends meet.

What is the purpose of existence?

Marketers have noticed some time ago that a buying experience
is becoming more and more important when building long-lasting relations with
customers – Walker research shows that by 2020 this will have become the most
important selection criterion, even more important than the price or quality of
the purchased product.

Therefore, investor relations specialists should ask
themselves a question – what buying experiences can we deliver to our
investors? Is information about development, income growth and hiring of new
employees the best the company can offer? Is profit making the only purpose of
the company’s existence and is keeping money where it is multiplied the only
purpose of the investor?

The Human2Human communication assumes this is not the
case. Naturally, financial matters are critical in investor relations but the
added value is something that may evoke the customer effect or, in this
particular case, the investor excellence effect.

Good examples from Scandinavia

Two Scandinavian companies are perfect examples of
brilliant communication with investors: Cybercom, operating in IT, and a world
giant of energy and oil, Statoil.

Reports of these companies, in addition to figures and
most important information about company operations, contain multiple
additional materials such as articles about company’s ordinary day, employees’
comments or major events from the organisation’s life.

Cybercom’s annual report contains multiple educational
materials. The company specialises in delivering sophisticated technological
cybersecurity and internet of things solutions. The 2015 report explains these
issues using a simple language and demonstrates how Cybercom contributed to
these areas in that year.

Another example of well-performed investor
communication is Norwegian Statoil, a state-owned oil company which went public
in 2001. An extensive report is written in a very simple and comprehensible
language, friendly both to individual and institutional investors.

Brilliant communication that could also be set as an
example to follow in investor relations is that of IKEA, a non-public
corporation. In its reports, IKEA dedicates much attention to stressing how
important, in the corporate policy, is ecology and positive approach to each
employee, regardless of their gender, ethnicity or views. Why not? After all,
stock exchange socially responsible indexes were introduced over twenty years
ago. It is high time certain things become standard solutions. Maybe there is
no point speaking of investor relations, CSR, corporate communication, when we
actually communicate with a human? Growing awareness of consumers/ investors –
humans – forces companies to become genuinely committed to building their
business by satisfying actual needs, resolving true problems and performing
social activities.

Something more

The companies mentioned above make their investors or
Customers feel that their money is something more than the growing bar on a
graph. With that investment the money became a tool to build a better world. In
the case of IKEA – a more open and environment-friendly world, and in the case
of Cybercom – a modern and innovative world. In this way the company formulates
a message with which the investors or Customers are willing to identify themselves
or even become proud of contributing to building something profitable and
valuable.

It’s the awareness of co-creating a better tomorrow
that constitutes the “added value” or “investor experience”, which should be
carried by contemporary investor relations.