Posted by: AmberRoberts in: Financial Services -
So why are some companies still hesitant to utilize social media as part of their IR program? Investor relations professionals broached this very topic at the NIRI conference this week.
Here is a quick chart from the conference outlining the top reasons IR departments give for avoiding use of SM, and the counter argument:
|Legal barriers||Legal can pre-approve content|
|Stock is institutionally held||Improve response time and reach new retail|
|Time constraints||Scale; amplify conversations|
|Too small of department||Leverage content from marketing, PR, sales and HR|
|Unclear rules (Reg FD)||A good reason to partner with legal and make a new friend|
|No proven ROI||Your time is priceless! And SM can be measured in some ways|
|Unsure where to begin||Initiate with a pilot project|
Coincidentally, just a few days ago Forrester released its report affirming that financial services in particular should be using social media: http://www.nlcsocialmedia.com/forresters-reports-financial-services-marketers-should-use-social-media
The bottom line: no more excuses for not leveraging the impact and reach of social media on your investors and other audiences. We can’t blame SEC rules either. If you aren’t using social media, statistics show you are missing out on an important and direct communication channel to reach very important audiences.
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