Five Ideas to Leverage Social Media for Investor Relations
By Marcio Agnelo - Partner, Technological Innovation, MZ Group
Social media networks are tools that already form part of the routine of investor relations areas; the difference in the manner how these tools are used these days is that, basically, we could classify publicly held companies into two broad groups:
In other words, it is no longer a question of choice whether companies participate or not in social media, for social media networks have become the most powerful weapon on the Internet, with the ability to elect candidates or even bring down brands. To address this issue in an objective manner, adequate assistance is needed initially to understand how one communicates in a versatile and competent manner, especially in order to generate positive results for the company:
As in any other area, first of all you should know the path your company will take. When they decide to use social media most companies tend to make the maximum use of them which, however, is not appropriate especially when they don’t have in-depth knowledge of the subject. Choose one media network that is perceptible to your audience according to the content you will make available. Learn thoroughly about the media selected before publishing anything.
Always provide information that is related to the core business of the company and its peers. Avoid as much as possible addressing issues that are not related to your company’s operations or strategy. Think of the company as an individual communicating with others and transform this into the closest possible experience for your reader/investor.
the current fear about the possible dissipation of information in social media happened also when the following tools were launched:
In other words, this fear is common and has existed since the onset of business communication. What is needed is planning:
- "How are we going to deal with this new technology?"; and
- "What approach will we adopt?"
If your company knew how to deal with the initial information technologies, it will easily survive this. The boom in corporate websites (1998) happened only two years after the birth of the Internet because companies were scared of the excessive exposure brought on by the new technology.
There is nothing more reassuring for investors and/or users than knowing that they are getting due attention as this transmits confidence to them and, consequently, a part of the job has already been done by the company.
It is very important for you to be concerned about your reputation in social media. The lack of concern about it could generate highly negative results for the company. With social media, information reaches people very quickly and hence it is essential that strict control is exercised over the influencing power of each publication. Such control could be in the form of monitoring these networks, that is, what is being commented about your company in the web, controlling campaigns according to the company’s behavior.