No one deliberately sets out to create a message or presentation that investors find dull, boring, or confusing however, research tells us that almost 90% of investor marketing is simply ineffective.
Given the relatively high probability of creating and deploying an ineffective message, and the high costs associated with investor relations and investor marketing, Investor Testing is just responsible risk management.
Investor Testing Matters Because It Is Affordable
Testing is often viewed as a luxury that only large companies with big budgets can afford.
However, it is especially valuable for companies working with limited investor marketing budgets. More effective messages will require less distribution while generating greater results paying for the test many times over.
When you consider:
- The huge financial investment involved with creating and deploying investor marketing campaigns..
- The impact that effective investor marketing has on a the liquidity and valuation of your stock.
- The knowledge that 9 out of 10 investor marketing messages tested show very low levels of effectiveness.
Why you would choose not to test!
Investor Testing Matters Because It Helps You Understand
Investor Testing reveals the investor’s reactions to any presentation, the ideas communicated in the message and their significance. Testing highlights how compelling your message is and the way it makes investors feel about your company which is strongly linked to purchase intention.
Testing measures both implicit and explicit communication. It will predict the effectiveness of your investor relations budget, provide rich diagnostic information about the strengths and weaknesses and give clear direction to help you craft messages and presentations that will influence investor behavior.
Investor Testing Matters Because It Saves You Money
Investor testing saves you money! Ineffective presentations and marketing material can be discarded before precious media dollars are wasted, while ideas with potential can be further developed, improved and ultimately meet or exceed their objectives.
For example, just last week a client used insights from Investor Testing to redesign their website and improve the copy and design of the landing page they were using to attract investors. The newly designed landing page increased the average time on page from 2:08 to 5:38 and drove more traffic to the website. As result liquidity increased from an average of 53,039 shares a day to 197,005 shares a day and the valuation is up.
Investor Testing matters because it will help you increase results and save money. The reason most IR budgets are so high is because the message simply doesn’t resonate with investors.
The simple truth is, if your stock is undervalued and under recognized it’s either because it deserves to be, or it’s because somewhere between what you know and what investors know, something is broken.
Find it and fix it and everything else will fall into place.