As you probably know, investor targeting is at the core of a winning IR program. Of the 600 dedicated Investor Relations Officers (IROs) surveyed by IR Magazine’s Objectives and Challenges Report, the majority admitted that investor targeting was one of their primary goals. That’s why you need the right strategy and must avoid the following mistakes. 

Mistake #1 Don’t Ignore Professional Help

You need a full-service investor relations tools & solutions provider if you want to engage and target quality investors and take your IR game to the next level. The best thought leaders in the industry can offer the following services: 

    • Investor relations websites: Take advantage of a result-driven platforms tailor-made to engage and convert potential investors. 
    • Investor relations webcasting: Use the right tools to connect with your investors to share essential information and answer any questions or concerns.


  • Investor relations CRM tools: With the right CRM, you can better manage your interactions with your present and potential investors.
  • Investor relations intelligence: Gain critical insight so that you’re proactive rather than reactive. 
  • Investor relations strategy: Work with experienced and qualified experts to develop the right plan for your organization.


Mistake #2 Don’t Exhaust Your Limits

While it’s certainly tempting to go on long investor roadshows across the world to engage with asset managers and the like, the expenses can go out of control for any IR team. From travel costs to marketing materials, roadshows aren’t cheap. 

In a shaky economic climate, it’s critical to conduct a cost-benefit analysis of any action before you push the limits of your IR budgets and time. 

Mistake #3 Don’t Use a One-Size-Fits-All Strategy

A one-size-fits-all strategy rarely works nowadays, thanks to the developing nature of today’s investor in a challenging market. It would help if you asked yourself the following questions to understand the nuances of your investor’s psyche: 

  • Why would an investor want to own your stock?
  • What type of investor are they?
  • What are their investment goals?
  • What drives the shape of their portfolio?

Mistake #4 Don’t Forget MiFID II

When targeting investors in the European Union (EU), you must learn about MiFID II. Revised in 2018, the financial industry reform legislation regulates financial markets and enhances protective measures for investors. 

Please remember that under the revised measures, investment research payments must separate from dealing commissions. You must budget for the services of brokers and research houses to reach investors rather than take on the extra tasks internally. Although the external help can be pricey, the extra work will push your internal team to its bandwidth limits.

Mistake #5 Don’t Rush

A good philosophy is to align your targeting plan with your annual schedule. Ensure that your biggest targets are part of your timetable. Match your critical targets with the ideal speaker. Develop the right map to ensure you’re in front of the right investors at the right time. 

Remember, when it comes to investor targeting, it’s a marathon and not a short race. Cultivate relationships and realize that it’s unusual to convert potential investors days or even weeks after a meeting. 

These are five mistakes you must avoid when targeting investors. Use the right strategies, tools, and professional assistance to engage and target the ideal investors.