Investis Ltd.

06/09/2021 | Press release | Distributed by Public on 06/09/2021 13:30

How Websites Can Support Communications Executives in 2021

Communications executives face a multitude of challenges today. New generations of clients, employees, and investors are holding companies accountable not only for their performance but also for their values. A global pandemic has forced businesses to shift their entire communications functions online. A company's websites play a central role in sharing a company's narrative. But those sites need to do a much better job supporting communications executives.

Websites Are Not Aligned with Communications Needs

Investis Digital recently collaborated with the National Investor Relations Institute (NIRI) to survey communications executives about what they need from websites. Investis Digital also performed our own proprietary assessment of corporate sites to see how well they deliver on their priorities. The communications executives represented a cross-section of industries ranging from retail to healthcare; most specialized in corporate communications or investor relations. Here is what we found:

  • 59 percent said that their corporate websites have either a large or major impact on their efforts.
  • But only 18 percent believe those sites reflect their efforts very well. About 43 percent believe that their sites reflect their efforts only 'moderately well.'

What exactly do websites need to do in order to improve? How can they do a better job sharing their own narrative in a way that builds a stronger emotional bond with their customers, shareholders, and employees? Here is what communications executives told us:

1. Share Great Investor Content

The top priority is to share great investor content. We're talking about the nuts and bolts of building an investor case such as an explanation of the company's investment proposition, key financial data, integrated investor relations content, real-time share price, and a robust archive of investor presentations. This finding underlines how investors' priorities during the pandemic have become more important to the overall communications agenda. The Dow and Standard & Poor's 500 reached record highs in 2020, and initial public offering around the world skyrocketed. But only the businesses that shared a compelling investor case benefitted. In 2021, institutional and individual investing activity continues unabated, thus underlining the need for corporate websites to respond to the uptick in investing. Investors have many sources of information to research your company - some of which may surprise businesses. It's never been more important for a website to share a compelling business case.

When we analyzed the websites of publicly traded firms for our report, we noticed a common thread. Every public firm shares the same compliance and disclosure information, such as share price, results presentations, share ownership, capital structure/debt, and other fundamental financial data. But only 37 percent actually share an investment proposition - a clearly articulated reason why investors should choose a company. There is room to grow here.

2. Discuss ESG/Sustainability

ESG/sustainability is the second-highest priority for communications executives, and no wonder: the COVID-19 pandemic put more pressure on publicly traded firms to demonstrate how truly purpose-driven they are. We've known for years that the Millennial and emerging Gen Z generations place a premium on companies whose values align with their own. And the social unrest of 2020 made it clear that businesses need to demonstrate their commitment to making society better, especially in the area of racial justice. As a PWC survey of CFOs' 2021 priorities put it, 'A diverse workforce and deliberate inclusion efforts help drive better outcomes and elevate growth. Diversity is more than just doing the right thing-it's good for business. And driving business value is always top of mind for CFOs.'

One finding is also clear from our analysis: companies that tell a compelling ESG/sustainability story enjoy business benefits - similar to the 'sustainability premium' that BlackRock CEO Larry Fink described in his 2021 letter to CEOs. This holds true for both companies that have the most and least to lose not investing in these efforts, from minimal impact to those with business models in direct conflict with climate change. Yet, the impact of great ESG/sustainability-related content is clear. While 'climate risk is investment risk,' (per BlackRock) those companies most at risk have found incomparable ways to make it right and tell that story.

3. Articulate a Growth Strategy

Communications executives also told us they need their sites to articulate the company's strategy better. A company's Strategy section should articulate its long-term vision for success - and, even better, demonstrate how it will attain its strategic goals. In 2020, the short-term strategy for many businesses was defined by their response to the COVID-19 pandemic. But the companies that performed exceptionally well stated a clear case for how their business growth was a byproduct of their long-term vision, for example how Target and Walmart executed brilliantly on contact-free shopping services such as curbside pick- up and home delivery that they had put in place years before the pandemic. Going forward, it is essential that businesses show they are defining, quantifying, and following through on their long-term imperatives.

What Businesses Should Do

There is no magic formula for connecting a corporate website more effectively to communications executives' 2021 agenda. The solution comes down to doing a fundamental audit of your site. But it's not enough to apply traditional analytics such as bounce rates and website traffic. Those metrics are as important as ever, but they are not enough. To deliver on the digital agenda for 2021, businesses need to examine the how and what more completely - for instance, asking what they're saying about ESG and sustainability and how they're delivering that narrative across the entire site. Asking the how and why is the first step to making a site more successful and relevant.

Contact Investis Digital

To learn how we can help you audit how strategic and valuable your corporate site is, contact us. We'll apply our proprietary Connect.IQ methodology to help you.