Investor Relations

IMPLEMENTING BEST PRACTICES IN INVESTOR RELATIONS 153Interviews with executives discussing important announcements;Ever-greater interactivity of documents posted to the Web site, with differentmeans of viewing and extracting data.Optimal use of technology can also allow companies to reduce:Production and distribution costs (particularly for the annual report),especially now that changes in regulations and accounting standardsare requiring companies to provide an ever-larger quantity ofinformation;Lead time for making information available;Asymmetric information.3.7 ENHANCING SHAREHOLDERLOYALTY AND RETENTIONJust like customer relationship management (CRM) helps companies understandand anticipate customers’ needs, a core aspect of Investor Relationscan well be compared to a shareholder relationship management (SRM).The goal there is to improve shareholder trust, loyalty, and retention. Mostshareholder relationship management tools that are developed by certainsoftware companies seem to be primarily used at companies with a largebase of individual shareholders. Yet SRM should apply to institutionalshareholder relations as well.3.7.1 Extracting Value from the Shareholder BaseCompanies can extract value from their shareholder base in several ways: Cost savings and efficiencies. For example, they will be able topromote and accelerate take-up for online shareholder communications,which will undoubtedly reduce printing, mailing, and telecommunicationscosts. Also, by better educating shareholders and turning them into dedicatedfollowers, the company may be able to rationalize the number ofsmaller shareholders and see an increase in their average position in thestock. This will result in more efficiencies. Increased share loyalty. Faithful shareholders are more likely toparticipate into a capital increase, to help drive positive change at the companyor to help withstand a crisis.