When confronted with a different way to do things, our first reaction is often to tell ourselves “What we are doing is just fine, I don’t want to change.”
The problem is, this self serving bias some experts call “vain brain”, (which every human is hardwired with) keeps us blind to new possibilities and business outcomes often suffer as result.
Because we want you to get on board with investor centered marketing and all the benefits that come along with it, we have created this awesome list of reasons the “vain brain” will try and use to put off Investor Testing and why the vain brain is wrong.
* Warning - We have nothing but love and respect for anyone reading this. If you are feeling attacked or uncomfortable, that’s your vain brain trying to do its thing. Stay strong and keep an open mind.
18 Bad Reasons To Put Off Investor Testing.
1) “We don’t use our website to attract and engage investors.”
Then you are making a monumental mistake.
Your website is your most important investor marketing tool for 3 reasons:
- Your website is the only place where you control every aspect of how your story is told.
- Your website works 24/7/365
- Your website is the easiest place for you to collect interested investor contact information so you can develop relationships and nurture them along.
According to PR Newswire 56% of investors will visit a company’s website so while you may not be using your website to attract investors, a majority of investors are using your website to see if they are attracted to you.
2) “We already tell investors a clear and compelling story.”
88% of companies believe they tell investors a clear and compelling story, the problem is only 4% of investors researching those same companies agreed.
Savvy CEOs are sure they tell a compelling story but are smart enough to test just to be sure.
3) Investors invest based on fundamentals and technicals, we just need to concentrate on building our business.
Emotion drives the decision making process, not facts and data and an explosion of new research on the subject of the impact of emotion on decision making. Help investors see why owning your stock will result in a positive outcome.
4) We don’t need Investor Testing, we use Google analytics.
When it comes to increasing investor engagement and improving conversion, analytics & big data may tell you what, but video shows you why, and when you know why, you can fix things.
5) The C-Suite doesn’t think investors care what our IR website or investor presentation looks like.
Your website, pitch deck or presentation may be the only impression investors have when deciding to become a shareholder or not so you will want to make sure it is a good one.
Spending a little now to be sure investors see your full potential will save you a fortune trying to convince them it’s true. Insight based Investor marketing decisions are made based on what investors think, not what the C-Suite thinks.
Investor Testing Tip for Talking With The C-Suite.
When speaking with the C-Suite on the subject of Investor Testing, be sure to speak their language. Instead of talking about feelings, emotion, and the investor experience talk about how Investor Testing leads to measurable improvements in key metrics, meeting business goals, increasing conversion, and reducing costs. That’s what gets the C-Suite excited.
6) Institutional investors already have their own research tools, they are not coming to our site.
According to Nasdaq, 84% of institutional investors WILL visit a company’s website during the research and evaluation phase of the decision making process.
7) We get investor feedback from our current shareholders.
Current shareholders are a great source of insight on many matters but asking them how clear and compelling your message is, isn’t one of them.
They already get you.
To improve, learn why most don’t, then fix that.
8) We can’t afford investor testing.
Market research used to cost a fortune and was only available to those with huge marketing budgets. Technology has changed all that.
Investor Testing costs so little, companies test every touchpoint along the investor’s journey to discover ways to optimize the investor experience and save even more money.
9) Our stock is already liquid, there is no need to change anything.
Even if your stock is already liquid there are still reasons to test how clear and compelling your story is. Research also shows that shareholders are more likely to purchase your products and support your brand so making sure more investors become shareholders will not only impact the success of your investor marketing efforts but will drive top line revenue as well.
10) Our IR firm firm told us our website is fine.
Telling a potential client that their baby is ugly may lead to bruised egos and no retainer check so IR firms just convince themselves they will do a good job anyway.
Reduce costs and meet goals faster. Help your IR firm help you. Give them the tools they need to get the job done.
11) I won’t get solid data using so few testers.
According to JAKOB NIELSEN, the father of usability testing and partner of Nielsen Norman Group when it comes to testing usability, “Elaborate usability tests are a waste of resources. The best results come from testing no more than 5 users and running as many small tests as you can afford.”
12) We don’t need help with conversion optimization.
Unless you think your stock is perfectly priced and you have met every business goal, you need help with conversion.
Think of each opportunity to improve clarity, connection, and conversion as stepping stones investors use to get from interested to invested.
13) My stock is not a product to be tested.
No, but how you present it to investors is.
Testing improves clarity and understanding, creates a better investor experience, and increases connection and commitment which is exactly what you need when you want investors to become shareholders.
14) We need institutional investors, not retail investors.
If your stock is not liquid, change your focus and target retail investors. They are easier to attract and engage and they will provide the liquidity the institutional investors need.
15) Too many individual investors will take up too much of my time.
Then hire more staff. Retail investors will buy your products, support your brand, share your story, and vote with management. Investors are customers of your most valuable corporate asset, ownership in your company.
16) The SEC have an issue with it.
The SEC has been urging companies to improve clarity and understanding for investors for decades. Check out this 1999 Handbook on improving clarity. Warren Buffett, helped write it. A Plain English Handbook How to create clear SEC disclosure documents
17) We already have an IR firm.
Great. Investor Testing does not compete with IR firms, we make their life easier by uncovering the sticking points that block investors from becoming shareholders.
Think of IR firms as big advertising agencies. Their job is to get your story in front of investors. Think of Investor Testing as the focus group you use to be sure they like it when they do.
18) We need money. That’s our focus.
Then you have the cart before the horse. If investors struggle to see your upside potential, and your stock trades by appointment, then your ability to raise capital will suffer.
Every investor that interacts with your message and presentation will form an opinion that moves them closer to buying in or tuning out.
How many investors will find your content clear compelling and memorable?
What percentage will be impressed? What percentage will convert?
How do you know?
With so much riding on the success of your investor marketing efforts and given the high probability that investors don’t find your story clear or compelling, Investor Testing is just smart risk management.