How companies communicate with investors has changed. In this short video Elizabeth Blankespoor, assistant professor at Stanford, explains how smaller firms can benefit from using Twitter:
Got some news that the market should know about, tweet it. According to Elizabeth, it works and is actually an effective way of reaching investors.
Twitter should be taken seriously
A lot of new technology is being dismissed because it’s not the way it used to be done and definitely not the normal way of communicating with investors.
A study done at Stanford, however, shows that Twitter works very well indeed. The more invisible your company is to media outlets the more important Twitter is for you. So if you are a start-up or an SME that media hasn’t paid much attention to, you have a lot to gain from using Twitter.
Whether companies like it or not, new technologies are changing the way businesses communicate. And don’t forget that it’s also altering what investors expect from companies. Social media can hence not be ignored, but should be used in ways that benefit your company as much as possible.
Twitter is a great way of delivering company news directly to investors, improve market liquidity and enable you to compete with bigger companies with access to media outlets.
All this obviously depends on who your followers on Twitter are. You have to start by building up the right kind of followers. Then Twitter will be a great tool for reaching not only your investors but media outlets, customers and potential customers as well.
Do you use Twitter? If so, do you have followers that are of importance to your business? Are you tweeting news about your company? Have you had great response? What reaction have you had from investors? Do they like the fact that you are up to date and communicate in innovative ways? Do you agree with Elizabeth Blankespoor that Twitter is a useful tool for reaching investors?
Video: stanfordbusiness – Picture: Matt Biddulph