If you want to expand your company’s liquidity, visibility, and shareholder base, you must enhance your investor targeting. Of course, developing a successful investor targeting strategy isn’t a straightforward task. You may face challenges such as resource limitations and an evolving investor psyche.
Fortunately, there are ways you can enhance your investor targeting strategy without breaking the bank. You’ll need to adopt some cutting-edge tools and different approaches.
Here are some ways you can enhance your investor targeting strategy:
#1 Take Advantage of Technology and Data
You might be sitting on a large pool of useful data without knowing it. Advanced data analytics tools that leverage a subset of Artificial Intelligence (AI) called Deep Learning (DL) can analyze investor behavior to help you improve investor targeting. For instance, you have people right now visiting your website, watching your webcasts, and downloading content. You also have investors attending conference calls.
Analyzing visitors who exhibit an interest in your value proposition is an excellent way to discover potential investors.
The smartest technology can transform investor targeting with analytics that collects behavior from across the following venues:
- Websites
- Earning Calls
- Any other digital engagements correlating to ownership data and stock price.
Despite its sophistication, an engagement analytics tool is quite intuitive and user-friendly. It also offers much more than investor-targeting optimization. In just one application, you can identify fresh or targeted investors who consume your story, report on the effectiveness of your strategic touchpoints, and even enhance your response to activist investors.
#2 Evaluate the Low Hanging Fruit
Take a deep look at your shareholder base and identify underweight shareholders. Such shareholders may have familiarity with your narrative and industry but are underweight compared to their peers. Engaging with them may motivate them to change their position.
#3 Modify Your Themes
You need to isolate themes that are propelling your business and match those with the interest of investors. You can use this strategy to learn which investors are buying stocks based on identified themes and react accordingly.
#4 Analyze Geographical Positions
Analyze the geographical positions of your investors to begin a geographical targeting strategy. For example, if there’s a vacuum in a capital centre, you can use that as an opportunity. Add your narrative to the valuation gap to gain investors.
#5 Develop a Better Investor Conference Strategy
A common mistake many companies make with their investor conferences is to stay in their comfort zones. An investor conference, especially a virtual one, is an excellent space to share your story with current and potential investors. Do more than attend your financial institution’s annual conference — find fresh prospects that are potentially outside your industry.
Modern investors aren’t as narrow as they were a few years ago. Even if they’re not knowledgeable about your industry, they may appreciate your business themes.
Of course, you must use your time effectively when experimenting with conferences. Plan attendance around your existing schedule to target potential leads in the area.
#6 Think Long-term
Your investor targeting strategy is an enduring practice that may take years to bear fruit. Don’t give up if an investor doesn’t buy stock immediately. Your targeted relationships will take time to nurture.
These are six ways to enhance your investor targeting strategy. Adopt the best practices and technology to develop a more effective approach.