Perhaps the overlap between investor relations and public relations seems obvious because both roles are key communication functions within a company. But what about the relationship between the two functions? Strong coordination of a public company’s image and messaging to investors and the public can help drive valuation, sales and overall image.
In an ideal scenario, the IR and PR teams collaborate and bring together brand awareness, product value and key business differentiators for investors and customers. Yet the quarterly reporting process often proceeds independently from an annual PR plan. Unfortunately, as timelines accelerate or resources diminish, IR and PR teams typically focus on their own deliverables and deadlines without any thought of how to help each other. The truth is, there are an increasing number of opportunities to “get the message out” beyond the standard conference call and press release. A regular dialogue between IR and PR can strengthen and clarify a company’s message while increasing visibility, resulting in more sales and stronger partnerships.
This is especially true for small-cap companies. Here are several quick and easy ways IR and PR can benefit from closer coordination.
Leverage coverage and placements.
A successful PR initiative typically goes beyond issuing press releases. It yields placements and articles in trade publications, newsletters and even highlights in social media platforms such as LinkedIn. These pieces are traditionally used for marketing purposes and sales introductions. They also present equally good opportunities to use for introducing your company to a potential investor or getting in front of a current one again. Consider sending links to the pieces to your investor target list and shareholders as an “FYI.” You can also post links on the News section of your website and point investors there in quick emails and conversations. These news pieces add reminders throughout the quarter and are great for adding fresh perspective to aspects of your business that you want to highlight.
Note: Be sure that, at the very least, you’re included in the PR distribution list so that you are aware of any coverage, regardless of if you decide to pass it along.
Track trends.
Investor relations teams are often on the frontline, responding to investor and analyst inquiries about the company and trends in the industry. Collaborating with the PR team can help you be better prepared to comment on things that could have an impact on your business. An open dialogue with the PR team about what they are hearing “in the field” and from their constituents can help you leverage information gathered on latest industry trends, better positioning you and your management team as experts and thought leaders in the sector. The investor relations staff is often buffeted by news items that cause investors to demand how the company plans to address a new trend or a perceived weakness in a current product offering. Communicating with the PR team can help IR staff be better prepared for such encounters.
Note: Check in with the PR team regularly and especially after industry events and sales meetings.
Share timelines.
IR is driven by the quarterly reporting cycle. Everything seems to lead up to the report date and then the open window for conferences and NDRs. PR also maintains a timeline, likely driven by an annual plan and product launch dates or other major milestones. In some cases, it might be an option to shift an announcement up in order to be able to comment on it in the next conference call. Similarly, the conference call can be an opportunity for the CEO to highlight an event that is PR driven. Each team can benefit by knowing the other’s key dates, in order to ensure content under development is available for multiple purposes. Sharing timelines also leverages potential marketing-related travel for IR purposes. If your PR team has planned a session with a KOL at an industry tradeshow, use the opportunity to carve out time for analysts at the event to meet with your management team. Similarly, if they are in Boston for a tradeshow, they may be able to take an extra day to meet with local investors.
Note: Sharing timelines is a great way to leverage exposure and reduce potentially redundant efforts.
Conclusion
Collaboration between IR and PR decreases uncertainty while building credibility and trust through consistent messaging. This includes identifying issues and events of interest to potential sales contacts which will ultimately result in increased visibility and awareness in the investment community.
Leigh Salvo, Managing Director
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