As an investor relations professional, it's important to have solutions that don't depend on one brokerage company. That way, you can maintain relationships with all of your investors, no matter where they choose to invest. In this primer, we're going to run through what Brokerage-Agnostic actually means, why it should be important to you, and some products that follow this mindset.
A brokerage firm is a company that helps investors buy and sell stocks, bonds, and other securities. They typically charge a commission for this service, and can offer a variety of investment options.
There are many different brokerage firms out there, each with their own strengths and weaknesses. For example, some may have lower fees but offer fewer investment options. Others may have higher fees but provide more personalization and support. Many modern day retail investors use newer brokerages like Robinhood that have no commission fees. Many other brokerages have also dropped fees in an attempt to compete.
For example, TD Ameritrade recently dropped its commission fees to $0 in order to compete with Robinhood. Charles Schwab and E-Trade have also followed suit.
Some brokers are beginning offer investor relations products like communications tools built for retail investors. This is great news, but comes with a potential downside.
The potential downside is that these solutions become brokerage dependent, which can limit your ability to maintain relationships with all of your investors. For example, if you use a communications tool that's only available on TD Ameritrade, what happens when one of your investors moves their account to E-Trade?
This is where brokerage-agnostic solutions come in.
A brokerage-agnostic solution is a product or service that is not tied to any one particular brokerage firm. This means that it can be used by investors no matter where they choose to invest.
There are many benefits to using brokerage-agnostic solutions, including:
Now, we'll take a look at some examples of brokerage-agnostic solutions for investor relations professionals.
The ShareClub Shareholder Verification Service (SVS) is a great example of a brokerage-agnostic solution. It's a service that helps you verify shareholder ownership and push them into authenticated platform, so you can better engage with them.
The SVS is not tied to any one particular brokerage firm, which means that it can be used by investors no matter where they choose to invest. This makes it a great solution for investor relations professionals who want to maintain relationships with all of their investors, regardless of where they choose to invest.
ShareClub Fireside Chats are another great example of a brokerage-agnostic solution. They're online events that allow you to interact with your shareholders in real-time.
Investor Relations and company officers can use Fireside Chats to provide updates on the business, answer questions, and build relationships with shareholders. And because they're not tied to any one particular brokerage firm, they can be used by any investor.
ShareClub Q&A is a question and answer platform that gives retail investors a voice. It's a great way to interact with your shareholders, get feedback, and provide transparency into your company.
If you're looking for ways to better engage with your all of your shareholders, consider using a brokerage-agnostic solution. It doesn't make sense tying yourself to one single brokerage firm when there are so many great solutions that can be used by investors no matter where they trade and invest!
Retail investors are the new force in the stock market. According to data from Charles Schwab, retail investors now account for almost one-quarter of total U.S. trading volume, up from 10% in 2019. Retail investors are also more diverse, younger, and tech-savvy than ever before, with 15% of all U.S. stock market investors being new in 2020.
For public companies, this presents a huge opportunity to tap into a large and growing segment of the market that can provide many benefits, such as:
However, reaching your retail investors can be challenging, especially in the digital age where retail investors have more access to information, tools, and platforms than ever before. How can you effectively engage with your retail investors and build a strong relationship with them?
In this guide, we will share some best practices and tips for reaching your retail investors, covering the following topics:
The first step to reaching your retail investors is to know who they are and what they want. Unlike institutional investors, who are required to disclose their holdings and activities, retail investors are often anonymous and hard to track. However, there are some ways you can identify and segment your retail investors, such as:
Once you have gathered some data on your retail investors, you can segment them into different groups based on their common characteristics, such as:
Segmenting your retail investors can help you tailor your messages and offers to suit their needs and expectations, and increase your relevance and appeal to them.
The next step to reaching your retail investors is to communicate and educate them effectively. Retail investors are hungry for information and insights, but they also have limited time and attention spans. Therefore, you need to deliver clear, concise, and compelling messages that can capture their interest and trust. Here are some tips for communicating and educating your retail investors:
The final step to reaching your retail investors is to reward and incentivize them. Retail investors are not only looking for financial returns, but also for emotional and social benefits, such as recognition, appreciation, belonging, and fun. Therefore, you need to offer them some rewards and incentives that can make them feel valued and motivated to invest in your company and spread the word. Here are some examples of rewards and incentives you can offer to your retail investors:
If you are looking for a simple and effective way to reach your retail investors, you should consider creating your own shareholder club with ShareClub. ShareClub is a platform that helps public companies create and manage their own digital communities of retail investors, and offer them various benefits, such as rewards, communication, and education.
Shareholder clubs are a win-win for both public companies and retail investors, as they can help:
Creating your own shareholder club with ShareClub is easy and affordable. All you need to do is:
Reaching your retail investors can be a game-changer for your public company. Retail investors can provide you with many benefits, such as long-term loyalty, alignment with management, low-cost engagement, and brand awareness. However, reaching your retail investors can also be challenging, as they are often anonymous, diverse, and demanding. Therefore, you need to follow some best practices and tips, such as:
If you want to make your life easier and reach your retail investors more effectively, you should also leverage ShareClub to create your own shareholder club. ShareClub is a platform that helps you create and manage your own digital community of retail investors, and offer them various benefits, such as rewards, communication, and education. Shareholder clubs are a win-win for both you and your retail investors, as they can help you increase your retail investor base, retention, and loyalty, improve your stock price and stability, enhance your brand awareness and reputation, and save time and money.
Ready to reach your retail investors with ShareClub? Sign up for a free trial or a subscription plan today, and start creating your own shareholder club. If you have any questions or need any help, feel free to contact us at [email protected]. We'd love to hear from you!
At ShareClub, we believe that retail investors are the future of the stock market. They are more than just numbers on a screen; they are real people who care about the companies they invest in and want to be part of their success.
That’s why we created ShareClub, the first platform that helps public companies create and manage their own shareholder clubs. A shareholder club is a digital community of retail investors that companies can leverage to improve communication and engagement with their individual shareholders.
In this post, we’ll explain how ShareClub works and how it can help public companies grow their retail investor base and reap the benefits of having more loyal, informed, and active shareholders.
ShareClub is a web platform that integrates with a company’s investor relations (IR) website. It allows companies to offer exclusive rewards, communications, and community to their retail investors who enroll in the club and verify stock ownership.
Rewards are incentives that companies can offer to their retail investors to reward their ownership and loyalty. Rewards can include things like free samples, product/service discounts, swag bags, merchandise, loyalty points or status, etc. Rewards can help companies drive sales, increase brand awareness, and create emotional connections with their shareholders.
Communications are ways that companies can share information and updates with their retail investors in a more direct and engaging way. Communications can include things like AMAs, fireside chats with executives, consumer-friendly newsletters, a data room for easy access to SEC filings, etc. Communications can help companies educate their shareholders, increase transparency, and showcase their vision and values.
A community is the network of retail investors who share a common interest and passion for the company they invest in. The community can include things like forums, polls, events, contests, etc. The community can help companies foster loyalty, advocacy, and feedback from their shareholders, as well as create a sense of belonging and fun.
ShareClub helps public companies grow their retail investor base by providing them with a turnkey solution to create and manage their own shareholder clubs. ShareClub handles the technology, compliance, and customer service aspects of running a shareholder club, so that companies can focus on creating value for their shareholders.
ShareClub also helps public companies benefit from having more retail investors. As we’ve explained in a previous post, retail investors are a valuable asset for public companies because they:
Retail investors tend to buy and hold stocks for the long term, which reduces the supply of shares available for trading and increases the demand and price of the stock. Retail investors also provide liquidity to the market by trading smaller quantities of stock, which makes it easier for other investors to buy and sell the stock.
Retail investors tend to trust the company’s management and vote with their recommendations in shareholder votes. This can help the company counteract activist institutional investors who might have a conflicting agenda and try to influence the company’s decisions for their own benefit.
Retail investors have a much lower carrying cost than institutional investors, which means that they require less time and money from the company to maintain their relationship. Retail investors are also more likely to be customers or potential customers of the company, which means that they can generate more revenue for the company.
ShareClub is the first platform that helps public companies create and manage their own shareholder clubs. Shareholder clubs are a powerful way to improve communication and engagement with retail investors, and to grow the retail investor base. ShareClub makes it easy and affordable for public companies to launch and run their own shareholder clubs, and to benefit from having more loyal, informed, and active shareholders.
If you’re a public company and want to learn more about how ShareClub can help you create and manage your own shareholder club, visit us at corporate.shareclub.dev or email us at [email protected]. We’d love to hear from you!
Environmental, social, and governance (ESG) criteria are a set of standards that measure the sustainability and social impact of a company. ESG factors can include things like carbon emissions, waste management, diversity and inclusion, human rights, board independence, and more. ESG performance is becoming increasingly important for both companies and investors, as it can affect the company’s reputation, risk, and long-term value creation.
According to the Global Sustainable Investment Alliance, sustainable investing assets reached $35.3 trillion in 2020, a 15% increase from 2018. This represents 36% of all professionally managed assets in five major markets (US, Canada, Europe, Japan, and Australia/New Zealand). Moreover, a survey by Morgan Stanley found that 95% of individual investors are interested in sustainable investing, and 85% of them believe that ESG practices can potentially lead to higher returns and lower risk.
Clearly, ESG is not a passing trend, but a fundamental shift in how companies and investors approach business and finance. However, many companies still face challenges in integrating ESG into their strategy, operations, and reporting. Some of these challenges include:
There are dozens of different ESG rating agencies, methodologies, and disclosures, which can create confusion and inconsistency for both companies and investors. For example, a company might receive a high ESG score from one agency, but a low one from another, depending on how they weigh and measure different ESG factors. This can make it hard for companies to benchmark their ESG performance, set clear goals, and communicate their progress to stakeholders.
Many companies, especially smaller ones, may not have the capacity or expertise to collect, analyze, and report on their ESG data. This can limit their ability to identify and address their ESG risks and opportunities, and to demonstrate their ESG impact to investors and other stakeholders. Additionally, some ESG data may not be easily quantifiable or comparable, such as social and governance issues, which can pose challenges for measuring and reporting on ESG performance.
Many companies may not have a clear understanding of their investors’ ESG preferences, expectations, and concerns, or how to engage with them on ESG issues. This can lead to a disconnect between the company’s ESG strategy and the investors’ ESG interests, and a missed opportunity to build trust and loyalty with investors. Moreover, some companies may not receive sufficient or constructive feedback from their investors on their ESG performance, which can limit their ability to improve and innovate their ESG practices.
Shareholder clubs are digital communities of retail investors that companies can create and leverage to improve communication and engagement with their individual shareholders. Shareholder clubs can provide various benefits to retail investors, such as rewards, community, and real-time communications.
But shareholder clubs can also provide significant benefits to companies, especially when it comes to ESG performance. Here are some of the ways that shareholder clubs can help companies improve their ESG performance:
Shareholder clubs can help companies raise awareness and educate their retail investors on their ESG strategy, goals, initiatives, and impact. For example, companies can use shareholder clubs to share their ESG reports, highlight their ESG achievements, showcase their ESG stories, and explain their ESG challenges. This can help companies increase their ESG transparency, credibility, and accountability, and also help investors gain a deeper understanding of the company’s ESG performance and potential.
Shareholder clubs can help companies solicit feedback and input from their retail investors on their ESG performance and priorities. For example, companies can use shareholder clubs to conduct ESG surveys, polls, and quizzes, and to invite investors to share their ESG opinions, suggestions, and questions. This can help companies gain valuable insights into their investors’ ESG preferences, expectations, and concerns, and also help investors feel more involved and valued in the company’s ESG journey.
Shareholder clubs can help companies encourage engagement and action from their retail investors on their ESG issues and opportunities. For example, companies can use shareholder clubs to offer ESG-related rewards, such as discounts, donations, or carbon offsets, to investors who participate in ESG activities, such as voting, volunteering, or purchasing. This can help companies align their ESG incentives with their investors’ ESG interests, and also help investors contribute to the company’s ESG impact and value creation.
ESG performance is becoming more important than ever for both companies and investors, as it can affect the company’s reputation, risk, and long-term value creation. However, many companies still face challenges in integrating ESG into their strategy, operations, and reporting, and in engaging with their investors on ESG issues.
Shareholder clubs are a powerful tool that can help companies overcome these challenges and improve their ESG performance. By using shareholder clubs to enhance ESG awareness and education, solicit ESG feedback and input, and encourage ESG engagement and action, companies can create a more transparent, collaborative, and impactful ESG relationship with their retail investors.
At ShareClub, we believe that shareholder clubs can benefit both companies and retail investors, and that ESG is a key area where shareholder clubs can make a difference.
If you’re a retail investor and want to join the waitlist for ShareClub, sign up at the top of this page.
If you’re a public company and want to learn more about how ShareClub can help you create and manage your own shareholder club, visit us at corporate.shareclub.dev or email us at [email protected]. We’d love to hear from you!
As a public company, you know how valuable your retail investors are. They provide long-term stability, voting support, and low carrying cost to your stock. They also are often loyal customers, brand advocates, and potential influencers.
However, you also know how challenging it can be to reach your retail investors. They are dispersed across different platforms, brokers, and geographies. They have diverse preferences, interests, and goals. They are hard to identify, track, and communicate with.
That’s why we created ShareClub. ShareClub is a platform that helps public companies create and manage their own shareholder clubs. A shareholder club is a digital community of retail investors who own your stock and want to engage with your company.
With ShareClub, you can:
By using ShareClub, you can reach your retail investors in a scalable, effective, and engaging way. You can increase their satisfaction, loyalty, and retention. You can also boost your brand awareness, reputation, and sales.
ShareClub is more than just a platform. It’s a movement. It’s a way to empower retail investors and reward them for their ownership. It’s a way to democratize investing and make it more accessible, enjoyable, and rewarding for everyone.
If you’re a public company and want to reach your retail investors with ShareClub, visit us at corporate.shareclub.dev or email us at [email protected]. We’d love to hear from you and show you how ShareClub can help you grow your retail investor base.
Customer loyalty and retention are key metrics for any business, especially in a competitive and saturated market. Customers who are loyal and repeat buyers tend to spend more, refer more, and provide valuable feedback and insights. But how can businesses increase customer loyalty and retention in a cost-effective and scalable way?
One possible solution is to leverage shareholder rewards, or special benefits and perks that are available to customers who also own shares in the company. Shareholder rewards can create a win-win situation for both businesses and customers, by aligning their interests, increasing engagement, and rewarding loyalty.
Here are some of the benefits of shareholder rewards for customer loyalty and retention:
Shareholder rewards are not only beneficial for customers, but also for businesses. By offering shareholder rewards, businesses can:
Shareholder rewards are a powerful tool for businesses to increase customer loyalty and retention, and to create a competitive advantage in the market. Shareholder rewards can also create a positive feedback loop, where customers become more loyal and satisfied, and businesses become more valuable and profitable.
ShareClub is a platform that makes it easy for businesses to offer shareholder rewards, and for customers to verify and redeem them. ShareClub connects customers' brokerage accounts to the businesses they own shares in, and allows them to browse and claim rewards in various categories, such as coupons, vouchers, discounts, loyalty points, status, access, meetings, swag, and more. To learn more about ShareClub and join the waitlist, visit shareclub.io.
