Exploring the Big Opportunity: Personalization + Investor Relations
Plus Stakeholder Labs meets NIRI - Los Angeles
This week the Stakeholder Labs team had the opportunity to attend the NIRI - Los Angeles chapter dinner with organization President and CEO, Matt Brusch. NIRI is the largest professional investor relations association in the world with members representing over 1,500 publicly held companies and $12 trillion in stock market capitalization. In Mr. Brusch's post-dinner remarks, he mentioned that "investor transparency" is one of the top challenges facing the IR industry today and the strength of the NIRI community plays a unique role in supporting thoughtful regulation and the evolution of the profession. Stakeholder Labs is proud to be a NIRI chapter sponsor and is looking forward to participating in future events.
This week’s roundup is focused on marketing personalization and the opportunity to bring similar strategies and tools that are successfully increasing digital sales and applying them to retail investor acquisition and engagement. Since the explosive rise of digital marketing and automation tools in the 2010s, personal data has transformed the customer experience and driven business growth and loyalty in new ways.
Personalization Highlights:
91% of consumers are more likely to shop with brands that recognize, remember, and provide relevant offers and recommendations (Accenture)
76% of customers expect consistent interactions across departments, yet 54% say it generally feels like sales, service, and marketing teams don’t share information (Salesforce)
76% said personalized messages were essential in enhancing their consideration of a brand, and 78% said such communication made them more willing to repurchase (McKinsey)
90% of customers are open to disclosing their behavioral data in exchange for extra perks that make purchasing cheaper or simpler (SmarterHQ)
The need for digital tools to support more personalization has also begun impacting wealth management and client services: (Deloitte)
Executives who took the survey overwhelmingly believe that wealth managers who are adept at technology (84%) and increase personalization of products (82%) will succeed.
64% of executives in wealth management said they are able to create distinct client profiles for highly personalized service
86% said artificial intelligence is important or highly important in delivering data analysis and personalized insights
The rapid growth of data-driven personalization has faced challenges penetrating the retail investor experience. Digital attribution and measurement are the foundations of personalization and the lack of adoption in IR is in part because securities issuers have been slow to offer ‘direct to investor’ stock purchasing experiences for a variety of reasons. While retail investor apps such as Robinhood, Cash App and Public.com provide important onramps and consumer acquisition for the broader financial industry, these platforms do not have same the incentive structure as issuers, particularly when it comes to promoting longtermism or customer loyalty. The opportunity to offer a ‘Shopify’ like digital experience for issuers and introduce personalization to retail investor communities is an important step in this new frontier. Stakeholder Labs is excited to be exploring this opportunity and to be offering tools that enable more digital personalization and retail investor engagement.