How to measure the success of an Investor Relations Program?

August 16, 2021
Pristine@admin
Blogs, Uncategorized
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How to measure the success of an Investor Relations Program?

Investor and public relation programs are at the heart of an organization’s success; they gain more prominence in case of organizations looking to grow and diversify. A successful IR/PR program aims to do three things –

Communicate with existing and potential investors
Capture new capital through institutional and retail investors alike
Create and maintain a brand image for the business in the financial markets

However, while the work of an IR/PR program is clear, what is unclear is the way to measure the success of such a program. Different departments in an organization have different metrics to judge their performance; for example, the sales department can be judged based on the sales figures while the production department can be judged based on quality and turnaround time. But, in case, of an IR/PR program, there are no such standard metrics.

Some professionals look towards the stock prices as a metric to measure the success of an investor relations program; however, it is not accurate in any way since stock prices are vulnerable to several elements that fall outside the scope of an IR/PR program. Stock prices and similar metrics are always dependent on a variety of external factors.

Hence, the best way to measure the success of an IR/PR program is to –

Spell out your goals

What is your expectation from your IR/PR program? What do you aim to achieve? It is important to list out your goals. For most organisations, an investor relation program aims to communicate with stakeholders and attract further capital. Determine the goals of your organisation’s IR/PR strategy.

Determine benchmarks

Once you have listed out your goals, determine appropriate benchmarks for each of them. For example, if your IR/PR strategy is aimed at creating an image of your business in the market, then a probable benchmark can be to check for brand awareness among target audiences. Similarly, determine benchmarks for all aspects of your IR/PR strategy.

Measure results against benchmarks

Periodically, review your IR/PR strategy and measure results against benchmarks. This will help you understand how well your program is functioning and whether or not it is able to generate the required results. You can also make appropriate changes as and when required.

It is important to review, measure and change

It is important to develop a consistent review plan for your IR/PR strategy. More often than not, a certain inertia sets in and IR/PR programs and teams get used to functioning in a set pattern. However, the ever changing nature of markets today calls for a dynamic IR/PR strategy. And, the first step to creating a successful program is to consistently review it and make appropriate changes whenever needed.

Hope this has been an insightful read.

Wishing you health and success.

Patricia Baronowski-Schneider

President

Pristine Advisers

Tel: 631-756-2486 | Fax: 646-933-0177

E-mail: pbaronowski@pristineadvisers.com

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