Understanding the investor journey

• The investor journey is personal for each individual.
• Investors will use touchpoints as they move through the stages.
• Investment decisions will be based on both information and impressions.

 

From not having a clue about your company to becoming one of your committed long-term shareholders who tells others about you.

That’s how an ideal investor journey looks like when making investment decisions regarding your company.

But it’s not such an easy process. There are several stages investors move through in their journey. Stages where they learn and make evaluations as they progress along the way.

That’s why getting a grasp of this journey investors take is important. After all, how would you be able to relate with investors when you don’t know the process they go through?

Here are 3 pointers to better understand this journey investors engage in.

1. Each investor journey is personal.  

No two investors will take exactly the same journey. Each will be different.

Some may take the freeway and advance quickly through the stages.

Others may wander the back roads and dilly-dally. Still others will decide not to continue or get lost.

So, the more investors you can attract in the initial stage, the better the progression rates between stages. And the better the progression rates, the more you’ll eventually lead them to the final stage – becoming a committed shareholder.

The investor journey is personal for each individual.

2. Investors will use touchpoints throughout their journey.

Touchpoints are forms of communication that enable investors to interact with your company. Investors will choose the touchpoints they want to use – offline or online. They’ll certainly decide when they want to access it too.

Online touchpoints are more commonly used nowadays. These include your company’s investor website, email alerts and third-party sources, like the ASX or broker websites. Social media is also becoming more widely used for investor purposes.

You’ll need to be effective at all your online touchpoints to improve investors’ progression rates. Whether these touchpoints are accessed through desktop or mobile devices.

Investors will use touchpoints as they move through the stages.

3. Investors’ decisions are based on a mix of information and impressions.

You read that right. Facts and emotions, both.

Investors will research all the latest about your company to help them decide if they should step up to the next stage of their journey. They will expect you to be there at the time they’re ready. To deliver the facts and impressions they want.

It’s possible to meet this need. Just make your online communication strategy relate to them at each stage. Use messages, furnish data and be available at their chosen touchpoints, such as your website or annual report.

Because if their specific needs are not met at each stage, they may not move forward. Or they may just move away.

Investment decisions will be based on both information and impressions.

The long and short of it

In summary, the investor journey is personal for each individual. Investors will use touchpoints as they move through their journey. And their investment decisions will be based on both information and impressions.

It’s essential to know where and when investors might use certain touchpoints. And what they want to know and feel at each stage of their journey. So that you can be there for them and provide directions for the next stage.

If you need a helping hand

Click the blue links for further discussions about “The Investor Journey” and “Touchpoints” used by investors. You may also want to read the “Success Factors” for best online investor engagement here. Or download a full white paper on each of the topics on this page.

Should you need more assistance, please feel free to reach us. As online investor engagement specialists, IRM understands the success factors in best assisting investors to make their journey to a favourable investment decision.

IRM helps provide online investor touchpoints – websites, news delivery, annual reports – for hundreds of ASX-listed companies. Chat with us on +61 2 8705 5444 or clientrelations@irmau.com about your questions.