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Chuck_Hemann_bio_thumbWhen it comes to social media and making finance more interactive, an area that seems to be getting a lot of attention is investor relations. Making IR social is still a new concept and the list of companies actively pursuing bringing social media to IR is short. The list of companies doing it well is even shorter. The impact and implications of turning IR into a social space is huge. As a result, we’re starting a series here on iFinance that discusses bringing social media to investor relations, what companies are doing well and how companies can benefit from putting together an effective and efficient social campaign.

In the first part of this series, iFinance had the opportunity to sit down with Chuck Hemann, manager of research and online reputation at Dix & Eaton. While a lot of focus for Hemann has been in the B2B space, there tends to be some similarities across the broad spectrum of IR – most notably, the fact that the majority of companies lack compelling content inside their IR space.

“Overall, from an IR standpoint, most company sites are poorly done. They’re mostly basic – not sharing technology, not interactive, no video,” Hemann said. “Cisco and Sun Microsystems are two that stand out in terms of having a real understanding of making their IR sites interactive. But they are definitely the exception to the rule. We’re starting to see more conversations, but we’re a ways away from adoption.”

While social media and investor relations seem like a natural partnership, we’re a long way from using social media as a primary disclosure tool. Outside of eBay and Dell, Hemann doesn’t see many companies jumping into the social space when it comes to earnings. Instead, he and his team are focusing on using social media as a marketing tool for IR.

“We have a natural inclination to be social, but we’re a long way from seeing companies tweeting earnings,” Hemann said. “Most are just now coming out of the cave. IR is light years behind when it comes to being social, so you really have to think outside the traditional frame of mind. There are a lot of ways businesses can use social media to reach current and potential investors/shareholders.”

Here are three key takeaways from our discussion with Hemann:

  • Make it a complimentary tool.
  • Give access. Make the reader feel like they’re getting more [info].
  • Engage more than 1 quarter. Make your IR site active all the time, not just during earnings.

What it boils down to, is for companies to utilize social media as additional tool. While a lot of focus around IR and social media tends to focus on earnings and finding additional ways to distribute financial information, there’s a lot of other opportunities for IR to become interactive. Our economy is run by small businesses, and social media can be the deciding factor when it comes to reaching potential investors and ensuring the public is well-informed about your businesses’ vitality. We may not be there yet, but we’re definitely on the right path.

For more information, visit Hemann’s blog, Measurement PR-spectives