Approaching nine in 10 IROs who went on virtual roadshows in the past year express satisfaction with the experience. Half of IROs globally are very satisfied, giving a rating of eight or more out of 10, while 9 percent give a perfect score of 10 (extremely satisfied).
European IROs are the least satisfied with virtual roadshows, with just over eight in 10 satisfied, 38 percent very satisfied and one in nine dissatisfied. On the other hand, six in 10 North American IROs register high satisfaction of eight or more out of 10, and 13 percent give a perfect 10/10 score for their experience.
There is little difference in satisfaction ratings given according to company size. Satisfaction ranges from 84 percent among small-cap IROs to 91 percent among large caps. The one notable rating is that a quarter of mega-cap IROs are extremely satisfied and give a 10/10 score.
A greater number of IROs who have conducted virtual roadshows this year express satisfaction with the experience than do IROs holding in-person roadshows. Just over three quarters of IROs who have been on in-person roadshows in this time give the experience a positive satisfaction score, compared with 88 percent of virtual roadshow holders who are satisfied with their experience.
When it comes to high satisfaction ratings, however, in-person roadshows fare better. Among IROs who have been on the road during this year, 57 percent are very satisfied; for IROs holding virtual roadshows, only 50 percent are very satisfied with that format. A third of those who went on the road express extreme satisfaction with the experience, giving a perfect score of 10.
We asked IROs to comment on the benefits virtual roadshows bring over conventional in-person roadshows. Time is the most-mentioned advantage, with the increased time benefits of virtual roadshows mentioned by half of all IROs who commented.
The cheaper cost of virtual roadshows is the next most-mentioned benefit, followed by the fact that virtual means not having to travel. Approaching a quarter of IROs who comment also mention that virtual roadshows are able to access investors in locations that would be impractical to visit in person.
Regionally, the travel benefits are higher for North American IROs and the cost benefits lower, while the opposite is true of European IROs. Increased locations hardly matter to Asian IR professionals, while greater senior management involvement in virtual roadshows is mentioned much more by Asian IROs than by North Americans or Europeans.
The importance of cost as an advantage of virtual roadshows diminishes with cap size. Half of small-cap IROs mention it as a benefit, compared with just 17 percent of mega-cap IROs. Access to investors in more diverse locations is a more greatly observed advantage for larger companies than smaller companies. Location tops the list of most-mentioned benefits by mega-cap IROs, along with more time and not having to travel.
The key challenge of virtual roadshows is to gain the level of connection with investors that can be achieved with an on-the-road visit. It is more difficult to develop interpersonal relationships in the virtual format and investors are often less engaged than when present in person.
The technology itself can contribute to this lack of engagement as it allows for investors to interact without video or to be easily distracted and dip in and out of meetings. Some IROs suggest a fatigue is setting in with the virtual format.
