Dirk Lever, AltaCorp Capital Inc.
We suspect there is a whole world of internal politics when it comes to the company website. We leave the IRO to navigate internal politics, but provide some tips for the investor section. More and more, investors flock to corporate websites for information, so ensuring that the information they need is well presented is key. We have not seen traffic numbers for SEDAR but suspect they are falling, as investors are now more likely to go first to the corporate website. (And who can blame them; SEDAR represents a slow navigation process, and additional software is necessary to use EDGAR.)
Identify the Audience
Understanding the audience is a critical step in setting up a corporate website. Consider that customers, competitors, staff, investors, regulators, government and the general public may all visit for various reasons. And each constituency is looking for something different.
Partitioning the Site
A website should be able to meet the needs of many – and the many should easily find a home within the website. This is why many websites have rather clear demarcations based on the type of visitor. Consider that a customer is looking to browse or order products and that is very different from an investor looking to investigate the company. It’s best to partition the website in a manner that effectively directs a variety of user types to the information they need. This article will focus on the investor section of the website.
Too Many Cooks, or Avoiding the Pontiac Aztek
We all know the saying about too many cooks, yet it is amazing how often this concept gets lost during the development stage. Consider the Pontiac Aztek (which made a visual comeback in the television show Breaking Bad): an automotive failure that perhaps satisfied the aggregate desires of those involved in its development but fell well short of the demanding public. Do not create the website equivalent of the Pontiac Aztek. Once the look and feel of the website has been determined (perhaps by others), the IRO really needs to get involved in the content of the investor section and the first job is to reduce the number cooks in the kitchen. Just know that – for the investor world – content trumps art. Other sections of the website may be more focused on the style of presentation but the investor section should zero in on content and the ease of accessing that content.
The Average Person is not Necessarily Tech Savvy or Current so KISS
We have all been there – visiting websites that left us lost and frustrated or required the latest software. Unless you work for a technology company, make it easy for almost anyone to navigate the investor site with technology that is at least two ‘Moore’s generations’ old. (Moore’s law states that processing power for computers doubles every two years.) So maybe a corporate website does not have to be Commodore PET compatible but you get the point. The IRO’s key focus should be to deliver materials as quickly and easily as possible to current and potential investors. Navigation should be simple, clutter and dead ends should be eliminated and all information an investor wants should be simple to access. In plain business language your motto should be ‘keep it simple stupid’ (or KISS).
Minimize ‘Deports’
Another simple rule of thumb is that if information can be found on SEDAR, you should have it on your company’s website. Never send investors to SEDAR to gather information on your company. The simple reason is that once you have a visitor’s attention, you should control the experience. If you ‘deport’ the visitor to another location, you cannot be sure that he or she will get the desired information. Think about the requests for information that you have received and make the necessary material available on your company’s website. Consider offering past presentations as well, as you would not believe how often people refer to these.
Upcoming Events and Key Contacts
When are you reporting next? What are the conference call dates? When will your AGM be held? What upcoming conferences are you attending? How can investors contact you? Investors want responses to all of these questions.
Provide Five-Year and Operational Summaries
Many companies provide divisional and operations summaries (with photos), which are often very helpful and informative. We have also seen five-year operational summaries that are financial in nature, including key performance indicators. In addition, a short summary of key business trends would be helpful.
Industry 101 Teach-in
Consider that not every investor will necessarily understand the industry or industries in which your company operates. Why not include a description of your industry, its size, key drivers, major performance indicators (explaining why they are used and how they are computed), historical references and the size of your company in relation to the industry. If your firm is the only industry participant that does this, people may actually visit your site just to get informed and your battle for eyeballs will be half won based on this alone.
Keep Information Current
Once the website is up and running, the ongoing job is to keep materials current; when it comes to time sensitive information (such as press releases and quarterly reports) this means updating information on your website simultaneous with all public distribution. Always check your information on the website; download and print it personally to make sure the process works. Ensure that all data in the investor section has been updated immediately to avoid unnecessary confusion.
Test Drivers
Once the website is completed, why not have testers (company staff, for instance) try to navigate it and print some materials (yes, many people still print, because they like to make margin notes). When it comes to printing material, make sure the print version is not an ink hog; have simple print versions available. There is nothing worse than printing reams of black pages with white typeface. Have the testers make notes on what did not work well and then simplify as necessary. It’s better to get complaints from your colleagues before the website information goes public; otherwise some visitors will leave in frustration.
Track Usage
Once the investor site is up and running you should track usage, as this could prove invaluable in updating and refining the website. And – though we seldom see this – why not have a feedback link for investors? If you make it easy for them to let you know about issues with your website, they just may tell you. Then always follow up quickly on comments; if someone is having trouble getting a file, send it to him or her, and thank visitors for their recommendations. Most people will judge your company based on how you respond to them.
Good Luck, We Will be Looking In
Look around at other websites to get ideas regarding layout and content. Always remember that others will be looking at your website so make it simple in design and navigation, simple to gather and print information and simple to get up to speed on your industry and your company. A website is now the calling card of your company: make it a good one. We will be looking in.
Dirk Lever is Managing Director, Institutional Equity Research, AltaCorp Capital Inc.