By Holly Singer, HS Marketing, and Hedge Connection’s Director of Content
While we are all experiencing truly unprecedented times filled with much uncertainty, some professionals in the alternative investment community are adjusting to a ‘new normal’ landscape by communicating with greater strength, candor and empathy. How can you harness these opportunities? What are some key tips to improve the impact of your communication with investors? Whether you are seeking to raise new capital, minimize redemptions, or maintain and improve pre-existing relationships with allocators, building trust is paramount. Yet this objective can be particularly challenging during a crisis. We encourage you to apply these three key takeaways:
- Take a more pro-active approach.
- Do not wait to respond to tough questions. Increase the frequency of your outbound communication vs. the prior reporting approach. Instead of risking probing questions that may leave you on the defensive and perhaps unprepared on the spot, offer more timely and detailed explanations of your process and results. Communicate from strength.
- Share the why and how. Can you provide lessons learned from a drawdown? Or did your astute research lead to successful investment re-allocations? Take more initiative today. Communicate more pro-actively to build investor trust. Articulate the attribution of results and your own investment thesis, whether or not it worked. Candor is an edge.
- Embrace communication technology tools. For example, use screen sharing and video to discuss your investments. Replace restrictions on scheduling in-person meetings over a meal or beverage with more than a basic phone call.
– Screen sharing enhances your impact. This tool enables you to easily present your materials featuring process, portfolio changes, performance and other relevant information with visual props viewed during live discussion.
– Integrate video. In addition to its use with individual and group meetings, an overall video marketing component when developed creatively and professionally provides an impactful means of communicating. High quality video helps create a personality for you and your brand. Planning and scripting are crucial as less is more. Viewers may have short attention spans and are unlikely to watch as long as you expect or hope. Succinct messaging is a communication edge.
– Upgrade your firm’s online presence. Focus on the website’s aesthetic appeal, mobile responsiveness and timely content. Especially in the absence of in-person meetings, your web presence provides a critical first impression and communication hub that should offer lasting brand value.
2. Apply transparency beyond investment reporting.
Investors need to trust your team. People invest in people. During times of heightened challenge, your back-up plans including business continuity, outsourcing protocols and service providers are particularly critical. Communicate the operational aspects of your business transparently and share relevant information with investors as pro-actively as possible. Provide a deeper dive.
3. Present and lead with empathy.
Considering the widespread risks and realities of this pandemic, everyone knows someone whose health has been compromised in this environment. Our families, friends and business colleagues are all impacted as everyone’s lives have been disrupted. Each of us is finding different ways to cope. How do we begin a conversation in this environment? Before the pitch or investment update, try asking: How are you doing? or How is your family coping with this disruption? or What could I [we] do for you?
We are all in this together. Lending a hand for a well-deserving front-line group or a social justice cause will make a positive community impact and enable you to lead with strength, candor and empathy.
Communication Alpha® = Capability and willingness to create and deliver clear, consistent, frequent and targeted communication. Communication Alpha® is a registered trademark of HS Marketing, LLC
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