- Who are our potential customers?
- Who are our target customers?
- How can we serve our customers' needs the best?
Traditionally, these questions are asked by personnel from marketing, sales, or customer service departments. However, as part of the investor relations (IR) department today, you should ask yourself these questions. The only difference is that, in IR, you need to replace the term “customers” with “investors.”
Opportunities pass by quickly, and resources are often scarce. In the past, money that was made internally or was borrowed through stable banking channels was sufficient. Today, however, additional funding is required to establish a new business or to expand current business. Companies need to compete in the capital market first to raise enough funds to further compete in the product market. Rich funding and strong support from investors help companies significantly perform above the competition. Therefore, identifying how to obtain funding sufficiently and efficiently becomes one of the key elements of business success. The IR team can create value for the companies by achieving this goal.
Today, investors do not face many challenges in acquiring information. Technological advances, access to the Internet, search engines, and other online social networks help investors obtain vast information every day. Therefore, investors may not be interested in learning about one particular firm unless the IR team of the firm provides them with information that is extremely useful. The product or service offered by the IR team is information. As part of the IR team, it is essential that you answer three vital questions:
- Who are your potential investors?
- Who are your target investors?
- How can you provide the information they need most in an efficient way?
The course Fundamentals of Investor Relations offers insights that help you answer these three questions so that you are able to provide the most pertinent information to investors.