TALK TO ME
As the market continues with its ongoing turmoil, I’ve been surprised that some of the companies with whom I have accounts have not engaged in a regular dialogue with me.
This lack of communication started to bother me when I received my third-quarter statements—and very few of them included any type of relevant update or consoling messages. Since then, things have trickled in, but I’m still not satisfied. And if I’m not satisfied, I’m certain some of your shareholders may be feeling the same way.
Being part of the industry, I understand that things have been moving so quickly that it’s hard to know what to say. And given the demands of our compliance-driven environment, trying to do the right thing in a time-sensitive manner can seem crippling at times.
So, what can we do?
- Jump at every opportunity to talk to your shareholders.
This means statements, emails, websites, conference calls, and special mailings. And if you’ve already done these, do them again. Once is not enough in today’s environment.
- Address their emotional reactions, but speak to them on a rational level.
Many of us are psychologically spent. We’re tired of hearing about the market decline, the rise of unemployment, and the growing budget crisis.
Here are two factors to consider as you frame your communications.
- Give your reader a historical perspective. How is this environment similar to or different from other recessionary cycles? What were the outcomes? What lessons were learned and how do they apply in today’s environment?
- Start swinging attention to other pieces of information that help complete the big picture. What’s going on with various balance sheet items? Or trends in labor costs? Or changes in competitive cycles? We all know that the analysts and investment teams analyze dozens of factors in running the portfolios. Perhaps highlighting additional considerations may point to a few positive correlations and help reestablish trust and credibility.
- Give your reader a historical perspective. How is this environment similar to or different from other recessionary cycles? What were the outcomes? What lessons were learned and how do they apply in today’s environment?
In a time of unprecedented market activity and heightened anxiety, we need to communicate and express what we’re doing and how it affects shareholder accounts. Communication at its most basic level is the process of connecting with people and establishing a dialogue. So the more we talk to people, the more they see us as trusted advisors who will help them get through whatever challenges the future might bring.