Communication is extremely important in the corporate world. Publicly traded companies are subject to rigorous scrutiny, so much so that each of their communications has significant economic implications. Artificial intelligence can make a positive contribution to this aspect.
Because of that scrutiny, good communication has the power to positively influence investors, investment analysts and the general public; conversely, poor communication (even a small slip-up) can derail a corporate strategy and cause problems that require a lot of time and resources to resolve.
That’s why it’s vital for corporate communications teams to ensure they’re connected to shareholders and presenting a realistic picture of the company. In this article, we’ll delve into how you can improve your corporate communications—specifically, your letter to shareholders—so you can avoid mistakes that are hard to fix with the help of artificial intelligence.
Artificial intelligence for content
Investment management firms build their strategies based on dozens of data points, from macroeconomic factors (such as economic growth, interest rate risk, inflation exposure, credit availability, emerging market exposure, and monetary liquidity) to “investment style factors” tied to asset characteristics (such as value, volatility, momentum, and size) . The shareholder letter plays a significant role in crafting the narrative that will present that data and influencing investment managers.
It is important that in the letter to shareholders the company's leadership sets the right tone and conveys the right information to support the company's share price as much as possible . A letter should vp communication officer email list share the company's vision, explain the context, and be balanced to encourage shareholders to stay with the company. If the letter does not encourage shareholders, the company and its stock may suffer if the market loses faith in it and reacts negatively.
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How True Content can improve your communications strategy
Let’s take a look at how True Content® ’s Content Analyzer tool can help a company’s leadership ensure that they are “on target” in their communication with stakeholders and delivering encouraging news about the company’s future.
Content Analyzer ensures that your letter uses the right tone and keywords to convey a positive message to your stakeholders. To do this, True Content analyses the title and body text of your letter and compares them to the content your audience is searching for. As a result, you get an overview of how well your text matches your audience’s interests.
The tool shows you the top two or three tones identified in your text (angry, fearful, joyful, analytical, etc.), the overall sentiment of your letter (positive or negative, on a scale of one to one hundred), and the readability level (elementary school, high school, undergraduate, or graduate). It also gives you the main keywords in your letter and lets you see (sentence by sentence) where your tone may seem off.
Let’s look at an example of a shareholder letter from investment management firm BlackRock and what True Content can tell us about how effective it is.
