Investors

Product sales might even benefit from a well-designed retail IR program. Better Investing found that 96% of investors prefer to buy products from companies in which they own an interest. A simple equity story is also an important factor, as individual investors are often less sophisticated than their institutional counterparts. Over time, some of the challenges associated with servicing retail shareholders have lessened. The Internet is making it increasingly easy and cost-effective to send proxies, annual reports, and other shareholder materials electronically. Online delivery mitigates some of the expense and effort necessary to keep large numbers of individual investors on a company’s shareholder roster. However, a successful retail IR program means a company’s IR department must be prepared to receive many more phone calls, among other resource demands that come with a growing retail shareholder base.

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