Core KPIs to Measure for Your Retail Investor Strategy | Equity Animal

A company's retail investor strategy is crucial to attracting and retaining individual investors. But how do you know if your strategy is working? Key Performance Indicators (KPIs) are essential metrics that can help you measure the success of your retail investor strategy. By tracking the right KPIs, you can gain insights into how your marketing efforts are performing, and take data-driven actions to improve your results. In this article, we'll explore the most important KPIs to help better understand what retail investors are listening to and how we improve your company’s messaging.

Net New Investors on NOBO List

The number of net new investors on your Non-Objecting Beneficial Owners (NOBO) list is critical to see the churn and addition of new shareholders. A NOBO list comprises shareholders who hold shares through a brokerage account, rather than directly in their name. By tracking the number of net new investors on your NOBO list, you can determine the effectiveness of your marketing efforts in attracting new investors. This KPI is especially important for smaller companies looking to establish a broader shareholder base and increase their market capitalization.

In Q1 of 2021, E-Trade reported that net new retail accounts increased by 1.2 million, which is up 266% from the same quarter in the previous year. Since E-Trade customers are NOBO list shareholders, reviewing and analyzing this data is becoming an important step in the process of understanding your shareholder base and reporting KPIs back to management.

Social Media Impressions

Impressions on social media can be a useful tool in seeing shareholder engagement in the open. Impressions refer to the number of times your brand or message is viewed by potential investors on social media platforms. By tracking impressions, you can get a sense at an individual post level of what messaging is resonating with each audience. Organic impressions are a valuable KPI for companies looking to attract new investors, build brand equity, and compound marketing efforts.

One way to effectively measure social media activity is to create a dashboard that aggregates data from various social media platforms. This dashboard should be shared with the company's management team on a regular basis to help inform decision-making and ensure that the company is effectively engaging with its retail investor base.

Audience on Earnings Call/In-Person Events

According to a study by IR Magazine, the number of companies using webcasts and earnings call transcripts has increased significantly in recent years. The study found that 85% of companies now use webcasts to communicate with investors, up from 76% in the previous year. By tracking audience engagement during these events, companies can gain valuable insights into what statements from management are resonating with investors and take action to improve their communication strategies.

In addition to seeing which message resonates with each investor group, management can be more transparent with shareholders by hosting earnings calls on new mediums in tandem with landline events. Management can also engage with shareholders one on one by opening up the conversation in a Q/A style or taking questions using written forums.

Shareholder Retention

Monitoring shareholder retention is critical for companies looking to build a loyal and engaged retail investor base. One way to do this is to track changes in the company's Non-Objecting Beneficial Owners (NOBO) list on a monthly basis. By doing so, companies can identify changes in their shareholder base and get a better understanding of how shorter-term and longer-term shareholders are interacting with the company.

Additionally, companies should consider using surveys and other engagement tools to gather feedback from their retail investor base. This can help companies identify areas where they can improve their investor relations strategy and build a stronger relationship with their shareholders.

Shareholder retention is a crucial factor in long-term shareholder value. The study found that companies with high levels of shareholder retention tend to outperform their peers over the long term, according to a study by McKinsey. By tracking shareholder retention, companies can gain insights into how well their investor relations team is engaging with their investor base and take data-driven actions to improve their retention strategies.

IR Website Analytics

IR website analytics are essential KPIs for your retail investor strategy. They measure the performance of your investor relations website and provide valuable insights into the behavior of your investor base. By tracking IR website analytics, you can determine which pages are attracting the most visitors and which content is resonating with your investor base. This KPI is especially important for companies looking to improve their digital presence and attract new investors.

Tracking the right KPIs is essential for measuring the success of your retail investor strategy. By tracking net new investors on your NOBO list, social media impressions, stock volume, audience engagement, shareholder retention, and IR website analytics, you can gain valuable insights into how well your marketing efforts are performing and take data-driven actions to improve your results.