Social media investor relations: Friend or foe?

As recent events have shown, a single negative tweet can turn into a PR crisis firestorm with lasting impact on a brand’s reputation. Companies that respond quickly and with savvy are more able to weather the storm, which is why social media investor relations can be so powerful.
But you can only respond quickly if you know the conversation is happening. “Anybody can start a rumor about you, and if you aren’t listening, you won’t know,” Business Wire’s Director of Social and Evolving Media Serena Ehrlich told me. “And if it takes hold and a reporter gets a hold of it and it becomes news, you’ll be caught off guard, and you can’t fix it or respond properly.”
Greenwich Associates study stated that 80 percent of institutional investors use social media regularly, with 30 percent reporting that “material from social media had influenced their investment decisions.” Additionally, 37 percent passed along information from social media to senior leadership.
And yet, 72 percent of investor relations professionals say they do not use social media, according to a 2016 study by the National Investor Relations Institute.
Here are some tips for social media investor relations to bridge this gap:

Whatever you do, stay tuned in and leverage social media. Yes, it takes time, but the price of not doing so is too high, as companies continue to learn the hard way. What you see about your company on social media and how you respond to it (or don’t) could affect your company’s stock price and bottom line — as well as your relationships with potential investors.
This blog was originally published on Investis. For more click here.