Direct-to-investor (D2I) marketing is a framework that allows public companies to effectively engage every investor at scale.
D2I marketing combines best-practice IR, capital raising processes, and digital marketing tools to give companies more control over their on-market performance and capital raise outcomes.
Traditional investor relations focuses on a small portion (5% or less) of the registry that comprises “top” shareholders (high-net-worth individuals and institutions) who own disproportionate amounts of available stock.
Traditional investor relations ignores the majority (95% or more) of the registry that comprise of “retail” shareholders (individuals and everyday investors) who own individually small amounts of available stock.
In 2023, a record 13% of ASX300 companies received a strike against their remuneration reports, representing record numbers of shareholders voting against a company’s Board.
Not all retail is the same. Every register has a segment of shareholders who, whilst representing 24% of the register, are accountable for 49% of all trading value. We call this segment "the mid register" and they are increasingly influential on market cap, liquidity, and capital raise outcomes.
D2I marketing is the same approach that online businesses use (direct-to-consumer marketing) when selling products online following the digitalisation of customers. It solves a similar problem that we can learn from in the listed place.
InvestorHub's experience with thousands of capital raises and 100+ clients allowed us to create an evidence-based set of best practices for public companies to scale their IR, effectively engage retail shareholders, and raise capital on good terms.
Most investors don’t make a buying decision on a single announcement or interaction with the company.
Instead, it’s more like a traditional marketing funnel (pictured right) which represents stages of the journey.
Buying decisions are an outcome of an investor journey that’s progressed strategically over time through multiple interactions (e.g. announcements, emails, events) to create awareness and increase buyer intent, before converting.
Public companies should own and influence this investor journey but they don’t because of the intermediaries and “middlemen” who sit in the middle.
Third parties distort messaging, add conflicting interests, and gate access to investors that should be yours to begin with.
Examples of these middlemen include trading platforms and digital media websites. In both examples, these companies incentivise the investor to act outside of your company's best interests (i.e. trade and click through to other articles).
Your company might start the investor journey by releasing the initial announcement or company update, but the rest of that journey (e.g. researching, buying, distribution, community) is handled by third parties, monetised, and owned by them.
This distance between investors and companies is the default and it’s why most public companies don’t even realise that an investor journey exists in the first place
We’ve covered how potential investors don’t buy off a single interaction or update.
Instead, they need to be nurtured through multiple interactions that form a strategic investor journey more akin to a traditional marketing funnel.
By implementing strategies that generate awareness and build buyer intent, we maximise the likelihood of investor conviction that transforms into new buyers, capital raise participation and reduced selling.
The direct-to-investor marketing flywheel is a visual representation of the direct-to-investor marketing strategies public companies are utilising at each funnel stage to progress the investor journey at scale.
These strategies are represented as a flywheel because while they’re distinct, they complement each other to create value that compounds exponentially to scale far beyond the original input.
We’ve structured these strategies such that the result of utilising these strategies are data insights and learnings that can be used to optimise your direct-to-investor marketing strategy as a whole, meaning the flywheel spins faster and gets better over time.
The distinct strategies for each stage that cumulatively form your D2I marketing strategy.
These top-of-funnel strategies focus on attracting potential investors by amplifying your reach and visibility in the market by investing in uplifting company announcements, newsflow and access to the leadership team.
These mid-funnel strategies increase shareholder engagement with a focus on building investor intent over multiple interactions by building active communications channels where you can engage directly with potential investors to progress their understanding and relationship with the company.
These whole-funnel strategies focus on 'optimising direct-to-investor marketing' by measuring the impact of your top, mid, and bottom-funnel strategies. Identifying improvements can increase the speed and effectiveness of your flywheel.
These whole-funnel strategies focus on 'optimising direct-to-investor marketing' by measuring the impact of your top, mid, and bottom-funnel strategies. Identifying improvements can increase the speed and effectiveness of your flywheel.
Learn how Altech Batteries consistently increase their investor reach and engagement with all investors to create demand that's activated during a capital raise.
Learn how Dean Tuck (MD) and the leadership team deliver value to thousands of investors at scale, for the same time and effort as talking to a single individual.
Learn how the leadership team at SUVO leveraged key engagement tools to generate shareholder attention and maximise raise participation for their capital raise.
Learn how Amanda Buckingham (CEO) did a seamless job in communicating the company's streamlined exploration focus and new name as part of the journey that started in a big year for the business.
Here's what you've learned so far and the role that D2I marketing plays in investor relations strategies.
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Whether you're looking to acquire more new investors, increase shareholder conviction, improve liquidity, or raise capital, InvestorHub's integrated suite of tools can help. Enquire today for an introduction to InvestorHub.