Digitisation has altered almost every aspect of our lives. Digitisation is driven by our demand for more information, more transparently and more quickly. This movement has only increased since COVID-19 as businesses were forced to navigate the hairpin turns of entire sectors and even countries locked at home.
This digital evolution has had a revolutionary impact on companies and the investment community. It wasn’t long ago that the investment community was hesitant to embrace the digitisation of communications and investor relations that are now standard. Investors now expect a variety of enhanced digital communication channels; in response, company websites have been redesigned to accommodate these expectations with improved navigation and interaction, dedicated sustainability and investor pages and far greater disclosure of decision useful information. Investors use these digital insights to shape a view of economic markets, company strategies and investment prospects.
Naturally, digitisation impacts have changed the way investors perceive, think and act. Investors are increasingly using digital media in their investment decisions and problem analysis. Furthermore, as information retrieval becomes easier, so does the internationalisation of investing. With investors looking to invest globally, companies will need to embrace digital communications to break free from a dependency on domestic investors.
This year, we conducted digital research on the websites of the largest 40 companies by market capitalisation in the FTSE 250, which focused on three chapters:
The findings help capture the priorities and expectations of digital IR and contain unique insights into how companies meet those expectations.
Key findings
Research from the company websites reveals a lot of variety in how the 40 companies examined approach digital IR and what is to be considered best practice.
Brand and Communications
User experience
Content
Our best-practice considerations
This initial research shows that companies have a way to go when it comes to the animation and interaction of their websites. Videos and more ways to interact with the website will enhance communication and keep viewers on the website for longer. Animation can bring awareness to the purpose of the company and help convey a brand story.
The sampled websites show a strong focus on the user experience; simplifying navigation and communication allows the website to provide a positive experience and define user journeys on the website that are most conductive to business success. Company websites failing to fulfil the user’s needs will therefore struggle.
Despite the shift towards greater ESG/sustainability disclosure and transparency, companies are struggling to know where to put content. Some companies will put all their sustainability information on one page or within the sustainability report, but this can lead to a siloed sustainability experience that may be ineffective. A company that is genuine about sustainability will have the story integrated throughout the website and show that all stakeholders are being considered.
Next steps
Falling behind means getting left behind in a digital world. A digital approach to investor relations brings costs and opportunities; thinking globally, knowing your audience, innovating, and leading on communication will allow company websites to control their narrative and communicate directly with investors. Digital IR has the potential to enhance and streamline the work of engaging with investors if managed efficiently.
The full findings from our digital research will be released later this year alongside insights into the possible future of digital communication and interaction, the metaverse.
For more information, contact Paris Mudan or Stephen Butler.