• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
Examiningbest in class featuresof FTSE 100 onlineinvestor centres
DIRECTIONSSUPPLEMENT
JANUARY /FEBRUARY 08
TRENDS AND ISSUES IN THE WORLDOF CORPORATE REPORTING
 
Online stakeholder communication is playingan increasingly important role in investorrelations. But the core aim remains the same:to communicate relevant and up-to-dateinformation to the investment community.Investor centres are not simply a repository offigures and financial data but neither shouldthey be approached purely as a marketing tool.The key is balance. The most successful sitesbecome portals through which companies caninteract with their stakeholders; communicatingstrategy, performance, direction and culture,in ways specifically intended to be moreaccessible for all stakeholders, large and small.
Research overview
In order to get a clearer picture of theapproach currently taken by leading companieswe reviewed the FTSE 100 online investorcentres. Our aim was to understand thedifferent stakeholder communication optionsavailable and to highlight the successfulfeatures across the sites that deliver the mosteffective user experience.We analysed all the sites against a numberof criteria, including: a clear overview of thecompany’s strategy; a strong investmentcase; content tailored to both private andinstitutional investors; good usability;appropriate use of technology; and clearlysignposted e-communications.Overall, all FTSE 100 investor centre siteswere good at what we might term basichygiene factors: up-to-date information;archived information to allow users to accessa company’s performance over time; andIR contact information with phone, emailor address details.All sites contained reports and accountswith 26% including basic PDF versions onlyand 65% also offering an additional HTMLversion for more convenient browsing online.(Of interest, 17% of sites provided sectionedPDFs as an alternative way of viewing andprinting large documents.)But while broadly speaking our research showsthat all the FTSE 100 provide similar onlinecontent, companies do differ widely in theway they choose to present information aboutthemselves – ranging from minimum levelsof statutory compliance to more creativeand engaging forms of communication.
Conclusion
In summary, over and above the statutoryrequirements, there is a marked difference inthe manner in which information is presented.The availability of new web technologies andchanges in e-communication are fundamentallyaltering the way companies can interact withtheir stakeholders. But these innovations areonly effective when used appropriately toenhance a stakeholder’s overall experience orunderstanding of the company. The sites thatwe have chosen to highlight as ‘best in class’all provide good examples of companies thathave achieved the right balance of providinguseful information in the most accessible andengaging manner possible. We hope you agree– but, as ever, let us know your views too.
Directions Supplement
January / February 08
“Investor centres are not simply arepository of figures and financialdata but neither should they beapproached purely as a marketingtool. The key is balance.” 
What makes a good investor centre, what purposeshould it serve and how should companies approachthis valuable communication resource?
Rob NewhamHead of InteractiveSalterbaxterrnewham@salterbaxter.com
Welcome to the new edition of Directions Supplement.
In thisissue we examine the emergence of the online investor centre asa point of contact between a company and the wider investmentcommunity. When done well an investor centre provides aninformative, clear and engaging communication channel for allstakeholders. But with a variety of audiences, changes in legislationand a bewildering array of new web technologies available howare the leading companies approaching their investor centres?Salterbaxter’s Head of Interactive, Rob Newham, reviews theFTSE 100 companies and identifies some ‘best in class’ features.
 
Company strategy / KPI overview 
We were interested to find that only 34% ofthe sites provide an overview of the company’sstrategy or aims. Although on furtherinvestigation this information was usuallyfound on either the main corporate sites,or deeper within the investor centre, we feltthat its usefulness was lessened.There was a wide range of ways in whichstrategic information about the companywas presented: ranging from text-heavydescriptions to more accessible overviews,which contain a mixture of text, graphics,animation, and even video, to explain thestrategy clearly. Cadbury Schweppes (OurPurpose and Values), Centrica (Our Vision) andImperial Tobacco (Group at a Glance) are goodexamples of sites that successfully combinesuch features to make strategy clear.
The Investment Case
It’s essential not to assume that stakeholdersalready know about a company prior to visitingthe investor centre. However we found thatonly 13% of the sites surveyed provided aclearly labelled case for investment. And whilemany companies do touch on the subject byincluding prominent positioning statements(such as Imperial Tobacco’s ‘We’re committedto creating value for our shareholders’) theydon’t go far enough.It’s not a case of the hard sell. In the bestexamples it’s used as a platform for a memberof the senior management team to communicateone-to-one with stakeholders. For instance,Aviva feature a clearly signposted and powerfulinvestment case on the homepage and give anoverview of the key reasons to invest in thecompany by the CEO, David Moss.
Personalisation
Online investor centres provide the ideal meansto cater for different audiences – privateinvestors, professional and institutionalinvestors, analysts, media, regulatory bodiesand government – through the provision oftailored information. Although only 14% of thesites currently provide personalised contentthere is little doubt that this will increase asWeb 2.0 technologies continue to be used.The sites using personalisation most effectivelycontain prominent homepage navigationfeatures to allow different stakeholder groupsto find information specifically relevant tothem more quickly. For instance, on Centrica’shomepage a button to prompt users ‘What doyou want to do?’ gives drop-down options forbrowsing deeper within the site. Other goodexamples of effective personalisation can beseen on the homepages of Cadbury Schweppes(‘I’m interested in…’), BT (‘Useful resources& links’) and ICI (‘Right Information For You’).
Centrica plc
‘Our Vision’: a clear and simpleoverview of the company’sstrategy and aims. It is contentdriven, using plain language toconvey its message, withoutrecourse to technologicalgizmos. This site also containsan efficient summary of thewider marketplace to allowinvestors to form a fair judgement about the company.
Also of note:
Cadbury Schweppes plc,Imperial Tobacco plc,Smith & Nephew plc
BP plc
‘Investing in BP’: a key featureof a consistently strong investorcentre. It contains all relevantinformation in one place andacts as a portal to greater detaildeeper within the site. The‘Learn about Investing’ tutorialcourses are a particularly usefultool for the retail investor.
Also of note:
Aviva plc
Aviva plc
‘Your Page’: the most powerfulexample of the potentialopportunities of Web 2.0 andpersonalisation. The site allowsusers to create their ownbespoke investor pagecontaining content tailoredspecifically for their needs.Other features include personalalerts, reading lists, bookmarks,calendar and notes pages.
Also of note:
BT plc, Cadbury Schweppes plc,Centrica plc
“Innovations are only effective whenused appropriately to enhance astakeholder’s overall experience.” 
AvivaAvivaICICadbury SchweppesBP plcCadbury SchweppesImperial TobaccoCentrica
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...