Embracing the untouchables – communicating with those who don’t opt in

Puzzling isn’t it why investors don’t want to know what’s going on with their investments. The fact is though that whilst that’s how it can appear, choosing not to opt-in is not necessarily a rejection of what you have to tell them. It can be a de-cluttering thing. Or a time-poor thing. Or a feeling on the part of investors that the information they’re getting is not right for them. Or just plain inertia.

Plenty of listed companies take opt-in legislation at face value, and only send their annual report to those who have asked to receive it. But that in itself creates problems – problems that, we believe, can be simply and legally solved.

In future issues:

Is once a year enough these days?
Is an online presence enough?
Pushing and pulling: the new communications dynamic
What makes a good shareholder review?
Pitched just right: checking the tone
One-way communication – or a dialogue?
The rise & rise of social media. You can run, but you cannot hide
Starting the dialogue: Investor blogs and their cousins
Is your IR website good enough?
Yes, but is it an Investor Brand?
The megatrend of CSR

Previous issues:

Opt-in rates of 9 – 15% creates communication chasm
What are your opt-in rates? If they’re anything like our clients’ rates, you probably have 9 – 15% of investors choosing to receive your annual report. That means between 85 – 91% of your shareholders could be having no interaction with their investment in your company.

Can you rely on your website to plug the gap?
The counter-argument is almost always that the report is also available online, but indicative data out of the US suggests that the numbers of investors who directly compensate for not opting in by going online is much lower than you might think. Perhaps that’s not surprising, given that if shareholders are not motivated to receive information from you, they are probably less inclined to search for it themselves.

What else can you do?
We believe that listed companies have the absolute right to ensure they are understood. So don't ignore that 85 - 91%! Many companies now produce an annual Shareholder Review, a short form version of the annual report, but they still only send this to those who opt-in. We strongly recommend physically mailing this to every shareholder. It gets the vital information across and it’s perfectly legal. But take this opportunity to think outside the 'Annual Report' square: make the review more engaging, less formal, more magazine-style. Here's the chance to actually get your messages read!

If budget is an issue, then produce a Shareholder Newsletter. It may only be 2 or 4 pages but it can still be highly effective providing it’s well designed, inviting and structured to draw readers in, using typography, white space, callouts and good use of colour. in fact the shorter it is, the more chance of at least some key messages taking root with your shareholder base.

Integrate ‘Pull’ and ‘Push’ methodologies
Sometimes of course, it’s just a case of getting investors used to receiving information from you. We suggest you use any and all offline material, such as Shareholder Newsletters and Shareholder Reviews, to push readers to your IR website for more in-depth information, and to view the full, interactive annual report (see last issue).

You can also tempt them with case studies and videos of the Chair and CEO delivering their messages in a much more engaging way – to help them develop new online habits. And while they’re there, entice them to sign up for your email investor announcements, RSS feed, Twitter trail, and to start interacting with your blog. (More on this soon)

Investigate Insight’s IR Landscape methodology to plug the communication gap left by opt-in. And you’re welcome to view our case studies for Commonwealth Bank, Lion Nathan, Brambles and Air New Zealand on how they have plugged the gap.

Time’s up.

Is it time for you to take the step to best-practice annual report delivery?

Time’s up.

Mike Tisdall
Investor Communications specialist and Managing Director – Insight Communications

Next Issue: Embracing the untouchables – communicating with those who don’t opt in

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