Investor Marketing vs. Marketing
Investor Marketing is the combination of Investor Relations and Marketing. Many companies have Investor Relations functions and marketing functions, however, they don’t take Investor Marketing into account.
This is a huge mistake.
Marketing So Investors Invest and Prospects Buy
An inherent synergy exists between customer and investor outreach and can be intertwined into your marketing strategies. A paper posted in the Social Science Research Network provides a little back up to my thesis:
“Attention is a scarce resource (Kahneman (1973)) and advertisements are designed to attract attention, particularly from consumers. However, a company’s customers are also more likely to invest in that company’s stock (Keloharju, Knu ̈pfer, and Linnainmaa (2012)). This overlap in customer and investor groups, combined with investors’ attention constraints, suggests that product market advertising can attract attention to a firm’s financial information. Specifically, ads for a company’s products or services may trigger investors to seek information about the stock’s recent performance”- excerpt from Is Investor Attention for Sale? The Role of Advertising in Financial Markets- SSRN
How can you use marketing functions to attract investors?
Here are a few examples that ring especially true for small and microcap companies with limited budgets:
- Great content- When prospects research a company’s products or services they like to find confidence building content across the web. CFOs and IROs still think all an investor is looking for is your chart, news, and financials. This couldn’t be further from the truth; great content will serve both functions.
- Position company expert as a thought leader- If your CEO or someone at the company is positioned as a thought leader in your industry, investors researching that industry will be more likely to come across your company, and be more likely to invest due to the knowledge of staff.
- A beautiful website- Again, most marketers realize a well-designed website should be optimized to convert prospects into buyers. The IR section should be optimized with the same goal in mind for investors.
- A comprehensive SEO strategy- Most marketers realize an effective SEO strategy will generate more leads and if done right, it can also generate more interested investors. Investor optimized SEO helps generate organic investor leads and has one of the highest ROI’s in investor marketing.
- Smart Social Media Marketing– People are learning about new opportunities daily on social media. Make sure your company is being talked about.
The real key to success in both marketing and investor marketing is keeping a consistent message that boosts credibility, trust, and desirability.