This week we analyzed recently published articles on the biggest trends seen in IR in 2022, and those expected for 2023. Last year was undoubtedly challenging as IR teams worked to keep investors committed to their companies while global markets and geopolitical tensions created an increasingly uncertain environment. 2023 could potentially be even more complicated for IR efforts, which is why we think these trends are relevant.
The IR trends that most characterized 2022 were:
- A growing interest in ESG: a greater number of clients, investors, and analysts started asking questions circling around companies’ initiatives on the sustainability front.
- Reconnecting with the market in person: IR teams returned to hosting in-person conferences and roadshows after a very long haul of virtual events. Many also looked to reconnect with their stakeholders on a more personalized level, with some even sending investors updates through text messages.
- Getting other executive members involved in the company’s communication and engagement with investors to offer deeper and more specialized insights on how businesses are being run. These efforts included Planning & Analysis leaders, Business Development teams, Chief Technology Officers, Risk managers, among others.
We believe these trends are likely to stick around in 2023. Considering the current outlook, we believe IR teams should be prepared for:
- A balance of in-person and online interaction. In-person meetings are expected by many investors, but some people still like to optimize the use of their time through technology. Thus, we think going forward it is key to have a strong hybrid IR system. Using different channels could be beneficial to reach a wider audience.
- ESG is here to stay. Investors are very likely to continue to look into sustainability efforts as part of their due diligence process. IR teams are also broadening their reach across their organizations, which allows the C-Suite to be more present with investors and promotes transparency.
- Managing uncertainty and geopolitical change. We are heading into another heavily unpredictable year. The ongoing threat of a potential recession, continued supply chain disruptions, rising interest rates, inflation, as well as political shifts are all constantly affecting investors´ outlook. IROs will be expected to offer as much guidance as possible on the company’s operating and financial expectations for the year, shifting messages when necessary.
- Leveraging new tools and technology. This includes data analysis tools (focused on investor behaviors), social media integration with IR, artificial intelligence (investors will increasingly rely on it to gain insights into companies), and the use of technology to improve communication. This could include “Video Storytelling”, which according to IR Magazine, “will reign in 2023”.
- Engagement efforts will be crucial. IR teams will have to be strategic about who and how they target to raise capital or even just to attract attention. Making sure that guidance metrics and shareholder lists always remain up to date will be very relevant.
As we mentioned before, we believe this year will bring headwinds that will require companies to have robust communication strategies in place. But as usual, rough waters can become great opportunities to make an impact and be more visible.
Miranda IR – and for social media our Digital Marketing agency, Sacapuntas- are available to help with all your IR needs, including the development of storytelling strategies, script drafting, Q&A preps, call hosting, perception studies, videos, and more. We would be happy to help you find your stride as you face 2023.
Contacts at Miranda Partners