Investor Relations Packets Do's & Don'ts
Mailing out investor relations (IR) packets was a popular IR tactic. It was viewed as a way to introduce companies to prospective investors. That was all before the green movement (no more paper!), growth in internet use, and now social media.
I recently received an investor packet and what I saw motivated me to write a blog post.
Send your IR packets with a cover letter
While I did not request a packet, I appreciate the ones I receive in the mail. I was surprised to not see a cover letter. A cover letter could tell me what the company decided to send me an investor kit and include a call-to-action for my consideration.
Send IR packets via regular mail unless express mail is requested
Not sure if there was an urgency for me to receive this packet by express mail. It got me to open the packet innediately so it did not go stale on my desk. Maybe that was the point. The packet had just earnings releases on Q1 2011 results summary (August 2010), Q4 2010 results (May 2010), and Q3 2010 results (February 2010). All these items could have been pulled off the internet if I were in a hurry and needed the information right away. Saving dollars matter because the economy has prompted clients to tighten their budgets. Since I did not request the packet and there was no urgency for this information, the company could have saved these dollars. This leads me to my next point...
What your IR packet says about you
Maybe money's not an issue for this company. Given their FY 2011 results, money was definitely not an issue. They could afford to send unsolicited investor packets via FedEx any time they wanted. The question for me is - what kind of message does this send to investors? What would investors think when they get these unsolicited kits with no cover letter via overnight mail? What would they say about your IR expenditures?
FYI - This company is unnamed in my blog post because the lesson is more relevant than the source.
Send out IR packets with more than just earnings announcements
Let me go back to the contents of the packet for a moment. I'm a big believer in optimizing the investor-packet mailing by including other useful information about your company. Use this opportunity to let someone get to know your company. When and where will management be speaking? What other deals and news happened in between these announcements? Where's the one-page Company Profile fact sheet? To me, there was just not enough information in this packet for me to know what the next step was between me and the company. Make it easier and more appealing for recipients of the IR packet to want to stay interested. Speaking of next steps, have a "next step" in mind when you send out IR packets. For instance, a "Call-to-Action" that requests my permission to join your email list would be appropriate.
Often times we only have one shot to make an impression and that goes both ways.
What do you think? How can your IR packet be improved? Do you feel the same way?
If you like an honest opinion about your IR packet, then send us an email or just mail us a kit (regular mail is fine with us). If you mail it to us, be sure to include a cover note asking our opinion and we will send you our thoughts and not share them with the world. It's on the house so there is no charge.
On a separate note, you can always try to take your IR packet/materials and go digital - which requires a completely separate blog post. Until then, you can learn more about companies that do this, like Q4 Web Systems (not an affiliate link; just my honest opinion) that can help you.
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