Investor relations is a term that is used to encompass the organised efforts of a publicly traded business to keep investors informed of what is happening within the company and with their investments in that company. Many businesses create a structured investor relations programme that serves as the mechanism for communicating with and receiving feedback from investors. When this type of programme is truly effective, shareholders have what they need to decide if they want to maintain their current level of investment, buy more shares of stock or bonds issued by the company or sell off their holdings, based on current and projected returns.

Putting together an effective investor relations programme calls for understanding the most efficient ways to connect with shareholders and making sure those mechanisms are in place. This often calls for a combination of proactive contacts with investors, in which the company provides relevant data in the form of regular financial reports by means of postal mailings or electronic delivery by email. At the same time, the investor relations programme provides the means for investors to check on current progress when and as they like. For example, the Apple investor relations approach involves setting up a website especially for investors, which shows the current stock price as well as housing all Apple press releases for easy retrieval.

Along with maintaining a regular flow of information to investors, which is both consistent and informative, companies will also ensure that investors have easy ways to connect to company personnel who are tasked with responding to questions or concerns about their accounts. The Royal Bank of Scotland, along with Hewlett Packard, are good examples of providing several ways for investors to make contact when it is convenient. Both HP and RBS offer telephone and email contact information that can be used to reach a representative in real time, as well as providing the ability to email requests for assistance. Not to be outdone, institutions such as HSBC and Santander also offer this type of support, along with an easy messaging option that an investor can access while logged into his or her investment account.

The hallmarks of a truly effective investor relations programme will also make use of conferencing to involve shareholders in quarterly earnings meetings and other gatherings relevant to them. Most take into consideration the demographics of their investors and structure these meetings to make use of web or video conferencing, along with audio conferencing for investors unable to access or use a computer. Recording and offering the meeting for replay via the IR site is also often a feature that serves to support investors and aid in ensuring their continued loyalty. Thanks to today’s technology, a company can hold a live meeting, streamed online, that will accommodate investors from around the world, with the replay option making it even easier for them to review the content of the meeting at their leisure.