Investor Communication: Less is More!

Investor Communication: Less is More!

 

Recent research shows that investors increasingly prefer short, concise communication over lengthy texts. This is confirmed by a recent survey conducted by Coalition Greenwich among 173 institutional investors. While 79% of investors still prefer written communication, there is a strong demand for brevity. A remarkable 90% of investors want reports to be limited to fewer than five pages, and many – 50% in fact – prefer documents under three pages.

This preference for brevity extends to multimedia content as well. Today, investors expect short and concise videos and podcasts. The survey shows that 53% of institutional investors want videos and podcasts to be under 15 minutes. No one expressed interest in content longer than 30 minutes.

The implications for IR?

As investors increasingly prefer shorter report content, it makes sense for IR professionals to adjust their communication strategies accordingly. Here are some approaches that can help:

1. Present key messages clearly and concisely

  • Highlight important information: Focus on the key points that matter most to investors, such as financial results, corporate strategy, and future outlook.

2. Enhance visual content

  • Use infographics and charts: Data and trends are often easier to grasp through visual representations. Charts and tables provide a quick overview.
  • Incorporate videos or short presentations: Multimedia formats like short videos or interactive presentations are increasingly in demand, as they deliver compact information in an engaging way.

3. Modular reporting

  • Offer summaries and detail layers: Provide a short overview that summarizes the key points, and allow interested readers to dive deeper into the details if they choose (e.g., through links to more detailed reports).
  • Streamlined executive summaries: These should offer a clear and concise summary of the most important information.

4. Regular, but brief updates

  • Micro-updates instead of lengthy reports: Rather than occasional, comprehensive reports, regular short updates on key developments can keep the information flow steady without overwhelming investors.

CONCLUSION

By focusing on brevity, clarity, and visual communication, IR professionals can ensure they meet the expectations of investors without sacrificing the informational value.