October 4, 2022
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How ShareClub Helps Public Companies Grow Their Retail Investor Base

By ShareClub
green plant on brown round coins

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.

How ShareClub Works

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

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

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.

Community

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.

How ShareClub Helps Public Companies

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:

Are “sticky” and help with efficiency

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.

Frequently vote with management recommendations

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.

Are much cheaper investors

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.

The Bottom Line

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!

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