Are you tweeting your investors?

How companies communicate with investors is changing. 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 – You Tube

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36 Responses to “Are you tweeting your investors?”

  1. polfeck Says:

    I tweet posts and article for the websitesblogs I have built for clients. I find those in financial corporate services are pretty nervous about social sharing.

    I think these companies need a Social Network policy driven from the top
    My recent post Bonsai and Tai Chi in harmony!

  2. catarinaalexon Says:

    Don't we all tweet articles Paul?:-) But the issue here is that a study at Stanford has found that in the US part of investor relations is done by tweets. And it works. Do take into account that Europe is behind the US when it comes to using social media.

  3. Jeannette Paladino Says:

    Catarina — every company needs to be using social media to reach investors. For smaller public companies Twitter can be an essential tool if they attract the right followers who could be larger public companies who retweet their content. Those companies are followed by large equity and institutional investors so it will be possible to get on their radar screens as the RTs go viral.
    My recent post The 12 Elements of Employee Engagement

  4. catarinaalexon Says:

    Glad you agree with me, Jeannette.

  5. Vrindavan_Rao Says:

    Although I’m not running a company Catarina, I am looking to provide a service. This was very informative. Thanks!
    My recent post the art of work

  6. Doreen Pendgracs Says:

    Hello Catarina: I love Twitter and use it to communicate with colleagues, as well as current and potential clients, and in the case of my crowdfunding campaign, donor or "investors." It has been working quite well for me in driving home my attributes, services and goals.

  7. catarinaalexon Says:

    Doreen, glad to note you use Twitter to communicate with donors/investors.

  8. catarinaalexon Says:

    Glad you found it informative, Rao.

  9. yearwoodcom Says:

    Good reminder about how valuable Twitter can be. It is a tool that I use for my day job, though I need to give it more careful thought. I am embarrassed to say that while Facebook, LinkedIn and YouTube are top of mind for me when I'm thinking about social media, the Twitter feed has not ranked high in my considerations. I tend to use it at work as an after thought, rather than a deliberate approach to reach my audiences. I think my bias comes from seeing too many silly tweets from folks in the public eye who should know better. I'm going to get over it. Thanks. :)
    My recent post Remember Your Manners – A True Story

  10. becc03 Says:

    As a blogger, Twitter is a must have for me to build a community. I would think it would be the same in the investment area to build trust and another avenue to get information out.
    My recent post Travelling with Children Is Not tough – Parenting Is

  11. catarinaalexon Says:

    Good points Debra. Personally use Twitter to inform about new articles I have published as well as news. But to use it to inform investors is a great idea I had never thought of for the simple reason that I don't need to do investor relations:-)

  12. catarinaalexon Says:

    Glad you use Twitter and find it useful for building a community, Rebecca.

  13. GuyW Says:

    Properly used, Twitter is a great tool for companies. The problem is that few use it properly – they see it as a way to just push out company information, not realising that it is truly a conversation medium and they need to both listen and put information out – information not just from the company itself, but from other sources that would be of interest to its audience. That's how companies build strong communities…

    The fact that it is of increasing importance to investors, too, was underscored by the SEC last week giving permission for companies to use social media sites like Twitter and Facebook for distributing their news (including financial results).

  14. catarinaalexon Says:

    Great information, Guy, about the SEC in the US giving permission for companies to use social media sites, like Twitter for distributing news, including financial results. Agree with you that few use Twitter properly.

  15. Trinidad Says:

    Twitter is great way to get to really talk to your audience. It's good interact AND share articles. People like to know they are dealing with a real person. Great post!
    My recent post How to Add a “Pin It” Button to Your Images

  16. JeriWB Says:

    Beyond a doubt, Twitter is a valuable tool as I find my way as a 21st Century author. Beyond that, I often tweet about the places I eat and tourist sites I visit.
    My recent post The Allure of Magnetic Poetry

  17. findingourwaynow Says:

    I do agree. I think that the power of twitter is overlooked by the fact that you're limited to a short message. However short messages, when well thought out, have great power in the world of tweets. As for me, I am still growing my followers in food, wine and short story writers. It has greatly impact my conversations and blog presence for the positive. :-)
    My recent post Award Winning Blog Wins Yet Again

  18. catarinaalexon Says:

    Yes Jeri, Twitter really is a useful tool, isn't it.

  19. catarinaalexon Says:

    Well said about Twitter being overllooked due to the short messages, Susan. But that's the beauty of it. Who reeds long texts online?:-)

  20. catarinaalexon Says:

    Glad you find Twitter useful Trinidad.

  21. Kelly Wade Says:

    You always give really good advice about social media and online marketing for your business. Twitter is definitely becoming a key player in building a brand and communicating with others about your business; both customers and other important contacts.
    My recent post How do you know if Your Hormones are in Check?

  22. Susan Oakes Says:

    That is interesting about investor relations. I must do a search to see if any Australian companies are doing that. With growing acceptance of Twitter and other networks I think we will find companies will get creative as to what they share.
    My recent post Get Reacquainted To Grow Your Business

  23. catarinaalexon Says:

    Yes it is, isn't it Susan. Twitter is a great and easy way for investor relations. The rest of the world will no doubt follow in the US footsteps.

  24. catarinaalexon Says:

    Thank you, Kelly. Glad we agree about Twitter.

  25. Karen Says:

    This is great advice. I don't use Twitter as much as I probably should to promote my blog. I feel like…do I really have something interesting to say?? But then I see that people and brands are just tweeting pictures of food or their product placed in a pretty vignette. I could do that! I just took a blogging seminar that taught us that when brands look to sponsor bloggers, they look for your Pinterest and Twitter influence first and foremost…not even your blog stats. Interesting stuff.
    My recent post Host a Tapas and Sangria Party

  26. catarinaalexon Says:

    Use Twitter more Karen. It's a great tool and works very well.

  27. Christian Says:

    Of course twitter is important in today's marketing. From my perspective social media is already a standard when it comes to communicating online, so basically old news. We need to focus on new ways of getting the word out and staying in touch with our customers and investors, because frankly, having a twitter account and facebook page its not enough by a long shot any more.

    Twitter and other social networks are also very limited, from every perspective possible, this is why I always considered that a strong online presence can only be achieved by having a main websites, with feed updates, customer support as well as all the info a potential customer needs.

  28. catarinaalexon Says:

    Thank you for letting us know your opinion, Christian.

  29. Leora Says:

    My understanding is small business have an advantage over larger ones when it comes to social media such as Twitter. A small business can make decisions easily on how to utilize these new tools. Larger businesses are hampered by needing more social media rules and in some cases legal issues. The larger businesses also are slower to learn the value of social media.

    Personally, I have grown my business through social media as have some of my clients.
    My recent post Make Your Website into Home Base

  30. catarinaalexon Says:

    Good points that I agree with Leora. But now the SEC in your country has determined that it's OK for businesses to use Twitter, and other social media. for investor relations. So that should make a difference.

  31. madlemmings Says:

    TWitter like all social media is part of the future. Bloggers, companies and anyone looking to reach a crowd or customers must get on the wagon.

    Thanks Catarina for sharing this very interesting video
    My recent post 4 Tips for your Perfect WordPress Theme

  32. catarinaalexon Says:

    Glad you agree that Twitter is an important tool and it's important to use it, Ashley.

  33. keepupweb Says:

    Catarina,
    Thanks for sharing this video. Twitter is undeniably an effective (and inexpensive) tool for businesses to use to build awareness. It also can be used to help a business connect on a more personal level.
    My recent post Do NOT Delete Your Google FeedBurner RSS Feed Migrate It

  34. catarinaalexon Says:

    Yes Twitter is great, isn't it Sherryl.

  35. Geek Girl Says:

    Twitter is just one avenue for the new marktet place these days and it works. If businesses don't use it, they are missing out. It seems that most firms have begun using social media and even have plans to expand their use.
    My recent post Best Business Tech Upgrades for Your Office In 2013

  36. catarinaalexon Says:

    Yes, and that's good news, Cheryl.

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