The Challenge:
A highly regarded large-cap company that had used a quantitative and anonymous approach to perception studies in the past wanted to improve the sophistication and impact of its periodic studies. The company hired Alpha to perform an in-depth study with both qualitative and quantitative analysis based on direct, attributable feedback from meaningful buy- and sell-side investors and analysts.
Alpha’s Solution:
- Using Alpha’s experienced ex-buy-side consultants, the team conducted in-depth discussions with 15 of our client’s high-profile current, past, and prospective investors, along with a smaller sample of covering sell-side analysts.
- Our team ensured the phone survey was diverse and a fair representation of the client’s full investor constituency – core holders, underweight holders, recent sellers, buyers, and non-holding prospective targets.
- Likewise, an “open ears” approach to the conversations conducted by our in-house expert consultants allowed Alpha to delve into areas of investor focus that were not previously included in the formulated discussion guide.
- These conversations averaged over 30 minutes each and nearly half of the Wall Street participants praised Alpha’s team for knowing the company’s story intimately, and not wasting their time with meaningless survey questions.
- Here is a quote from a $500M+ Growth Portfolio Manager: “Thank you for truly understanding the strategy and fundamentals of the company. I get these survey calls all the time and give them five minutes because [the external party] doesn’t know the story. This was actually enjoyable and, based on the strategic nature of this conversation, I can see how the management team and board will derive strong value from this work.”
- Lastly, Alpha also conducted a quantitative survey of a broader set of Wall Street constituents to support the in-depth feedback provided from Alpha’s phone discussions.
Results:
- The perception study results were summarized through three main deliverables:
- A comprehensive analysis and PowerPoint summary of findings by key topic area, supported by attributed quotes and Alpha’s take on what the collective feedback meant to the overall IR strategy and needs.
- A layering of the quantitative survey results into the PPT deliverable to support and add context to the direct qualitative feedback.
- A profile on each in-depth phone participant and transcripts of complete conversations.
- Alpha’s analysis unveiled deficiencies in certain investor messaging with some in need of immediate improvement and clarification.
- Our analysis also offered key opportunities to improve the client’s overall approach to its investor relations efforts, engagements, and its core messaging and collateral.
- These results were presented in conjunction with the SVP of IR to the Board of Directors, and the results were very well received.
- One year later, the company’s stock price had appreciated ~30% and a subsequent “pulse check” of investors has shown significant progress in the overall understanding of the company’s core investment thesis.
