7.1 Market Monitoring

In order to find out how the company is perceived, IR officers have to monitor the market and especially the investor community on a continual basis.

This can be done using investor surveys and analyses. A company’s reputation on the capital market is generally determined by a relatively small number of networked investors who possess instructive information. If they are willing to provide the information (which is not always the case, however), these individuals can be asked about the current market situation and the company (see ➔ Chapter 7.3). Maintaining contacts with small shareholders can also be worthwhile, as they form a stable survey group thanks to their long-term approach to investments.

Totally independent of the scope in which surveys are conducted, every IR officer is advised to keep up-to-date data material easily at hand. Quantitative key performance indicators, as described in the next ➔ Chapter Measuring Success, provide pointers for assessing the IR work. These can be compiled for evaluation in a report sheet and analyzed every three to six months.

IR officers should be able to guarantee that the market is being monitored and the relevant key performance indicators can be announced over a period as long as possible. Constantly reselecting the key performance indicators to achieve a positive image is not recommended. Using a range of measurement values that can be combined well together is additionally recommended when selecting the key performance indicators.