Diamond hands are a type of investor coveted by CEOs of public companies. Here’s why: if all shareholders had “diamond hands” no one would sell at the slightest whiff of bad news. Or even really bad news.
Here’s how to use social media to make diamond hands from paper ones.
We ❤️ charts. Here are seven of our favourites.
Because we are a social media agency for publicly-traded companies, we’ll frame these charts for our CEO/CFO/IRO audience.
Stocks are the new cosmetics.
Before the pandemic, people loved shopping on social media for beauty products.
The pandemic changed that.
Now, everyone on social media loves shopping for stocks.
Why buy the new shade of lipstick from Sephora when you can buy 50,000 shares of HCMC?
A nation of day traders (and their spouses) scour social media 24/7 looking for stock picks. And research. And opinions.
This is why if you’re a public company (especially a small to mid cap), you’ll want to be pounding your drum on Twitter.
Don’t worry about Facebook. Your time is better spent elsewhere.
Remember: 99% of social media has never heard of your stock.
Millions of new traders are looking for stocks that are deals or “runners” or squeezes. Or the next $MARA.
They will buy based on FOMO or YOLO or because they know someone else that bought it (another friend on social media) or they just sold something that hasn’t moved in a day and they want to put their cash to work.
Chart: Why do people follow brands on social media? Mainly because they want the updates. So give them updates.
Don’t have any?
Wrong answer. You have 12 months of updates because on social media you are allowed to go back in time.
Again: 99% of social media has never heard your story.
Tell it, and tell it again. (Source).
Social media was already hot. Now it’s the go-to category for marketing spend.
“But we’re a blockchain company” says your CEO, “What ads on social media would we run?”
“Educational ads” you respond confidently. “We will educate our investors about how we create shareholder value through the blockchain.” Ahhhh, your stock options are well earned, young jedi.
A lot of brands face the same challenge: they know they want to get into social media but they have zero followers.
Don’t worry. That’s life in the fast lane.
The solution is easy: run a “Follower” campaign on Twitter. Before too long, you’ll have an audience you won’t have to pay for. Before you start, though, make sure you have already Tweeted a bunch of times.
No one likes to see a Twitter account with only three or four tweets. It’s sad.
Chart: Social media spend is up a whopping 74%. With everyone using social media at home during Covid, that’s where the dollars went (Source).
The emperor is now clothed.
It used to be that politicians were the only ones that knew that social media held the key to true power. Then it was the super successful entrepreneurs. Now, everyone else seems to be catching on. Or getting better at it.
There is still a lot of really bad social media. But on the whole, companies are trying harder and taking it more seriously.
This has the effect of contributing to the company’s performance.
Not only do shareholders appreciate the fact the company is reaching out to more investors (always a good thing) but that customers seem to like what they’re doing on social media, too.
Chart: Social media is contributing more to company performance. 46% rate social media as making a high to very high contribution to the company’s performance. We have studied the effect of tweets on public company Twitter accounts.
To stock-trading algorithms, tweets are like catnip.
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I want my stock research. Here and now.
Nothing beats social media for finding real-time news. Nothing free, anyway.
That’s why 80% of institutional investors use social media as part of their daily workflow. It’s also why every millennial with a mobile stock trading app has Twitter, Stocktwits and Reddit open in separate tabs that never close.
Gen Z? They like the stocks on TikTok.
Google isn’t used for stocks like it once was.
Sure, investors will Google your company after they’ve seen your ticker on Twitter or Reddit (make sure you configure your Google My Business profile for stock researchers!) but your website is sort of the last frontier.
Still important, though.
But social profiles have moved into pole position.
Chart: Social media is the main online gateway to the news. Gen-Z slurps up news on social. Because millennials are the biggest investor cohort, you know what that means?
You want to be serenading the next generation because one day they will be the biggest investor cohort.
GameStop literally changed popular culture. Which is why Hollywood is producing five movies about how teenagers made millions off GameStop.
Social media is the biggest differentiator when it comes to digital marketing.
We don’t make the charts. But here’s the proof: social media is eight spots ahead of “world class website.” And it’s in first place. Imagine if your website isn’t world class.
According to a May 2020 survey, social media is the number one factor when it comes to differentiating one company from another.
Social media makes the biggest impact.
Recall earlier how social media contributes to company performance “highly or very highly?” This is why.
Now, think about all of these legacy executives pouring money into their websites. We get it.
They know websites. They don’t know social.
So lop off half your website budget and stick it into social.
And for heaven’s sake, do not ask your website company to do your social media.
Social media is too specialized. And hard. You need finance people. Or people with financial communications experience.
You can’t just change a logo and replace the investor presentation like they do with websites.
No. your social has to be good. But good is so worth it.
So you know those retail strategies where they put the treats in a three kilometre tunnel leading up to the check out, and you actually think about buying those stale organic beet chips?
Social media is a lot like that tunnel.
If you’re buying stocks, you can’t really avoid it. Or at least, you are crazy if you do. Caveat emptor and all that.
Chart: Social media represents the #1 product (i.e. stock) discovery channel. This chart from last year demonstrates how 16-24 year-olds really lean into social media, with millennials coming in a close second.
If you’re a public company, you can’t ignore this research. Or you shouldn’t.
Social media turns paper hands into diamond hands.
Social media is useful for a lot of things.
Differentiating two similar stocks, for example. Or showing why one stock is a better buy than another. Maybe it is more culturally relevant. Or the company is sensitive to underprivileged communities.
Or, it shoots rockets into space and then lands them so it can re-use them.
Whatever you are doing, your brand must show off its creative chops. It can be funny. It can give away free stuff. Compliments are free.
There are endless things you can do.
The fact is, if you make an earnest attempt at conveying your devotion to making shareholders wealthy through generous amounts of information, you will be rewarded.
They will be less likely to sell. That is how you make diamond hands from paper hands.
Chart: More than 50% of CMOs use social media to acquire new customers. Make new investors shun their old paper hands.