Making an Investor Day a Success

A couple weeks back we had the honor of attending an "Analyst Day" for one of our clients at the production facilities of one of their largest subsidiaries.  It was a great event, well attended by the sell side analysts that cover the company and the industry, and we had a nice opportunity to see some of the latest products and business lines for which we've been writing press releases all this time!

This great event got us to thinking, in all the Analyst Days and investor events we've attended over the years, what makes a good one?  Are there formulas for success in this often expensive and time consuming effort?  Well, there may not be one set recipe for success, but there are certainly steps that every company can take to ensure their investor event is as successful as it can be.

1. Give Investors a Reason to Show Up!  Most analysts on the buy side and sell side who are familiar with your story will want to attend an investor event, but why not make it easier for them to decide to attend?  Give them a great reason why this is the one event this year they should not miss!  From a practical standpoint that means providing something new, whether it's access to a new product or service line, access to a broader group of management team members or even touring facilities that are seldom viewed outside the company.  The worst events are usually those which provide investors the opportunity to ask the same old questions to the same group of managers as they would on a quarterly earnings call.  If that's all you're providing, then most investors would save the plane ticket and pick up the tab for a 45-minute call.
2. Make it easy to attend.  Yes, technology has made the investment world much more egalitarian, and there are now institutional investors and analysts in all corners of the globe, but let's face it, New York City is still the center of the financial universe, particularly for the sell side, and Boston is a close second, with a bigger concentration of buy side folks.  If you are planning an event that's outside of your own facilities, try doing it in close proximity to one of those centers.  It may cost you a little more for a venue, but it will pay off handsomely in terms of broad based attendance.
3. Make it a fun day!  Yes, it's important to get your message out to investors, and this is a very serious investment in your company's resources, but if you plan a fun day it can really show the passion and commitment of your management team to investors, and make it a really memorable day for them.  Interactive events are particularly well suited for this purpose, as experiences can often have the biggest impact on analyst and investor perception of your company, products and brands.  Some of the most exciting events we've participated in have involved really unique experiences, from driving a 42-foot motorhome to climbing into a 30-ton armored military vehicle to trying out the latest jet ski models!  These experiences make and impression and leave a lasting impression on your guests that can reverberate among the investment community for years to come.
4. Think outside the box.  Often investor relations professionals and event planners get stuck in familiar patterns when determining how best to execute an investor day, but this can lead to a stale, cookie cutter event.  Don't be afraid of new ideas, and certainly try to think of unique things that your company can bring to an event.  If you are a retailer, do you have any stores near the event location where you can arrange a tour?  Nothing shows management's passion like showing off the best parts of a retail location.  Is there an R&D facility that you can use to highlight new products?  Some of the biggest missed opportunities come when trying to convey what's great about a new product, when managers so familiar with the products take basic information as a given, and fail to explain to investors that have little experience with the product's new features.  As a food company, are there ways to more easily show how your products are made? Showing a drive for high-quality, healthy ingredients can make a huge difference in investor perception about your company.

These are just a few hints that we've learned over the years which can help make your investor event a success.  And remember, don't be afraid to enlist extra help to plan and execute the event, as the investments you make on the front end will pay off with a successful event in the end.