Can VDR stand as investor relations management software?

International investors are more likely to opt for a Virtual Data Room than a physical one, as this is much easier and less time-consuming. So, how can the software manage investor relations?

What is investor relations management software?

At the present stage of marketing development, there are many marketing concepts to increase the economic efficiency of the enterprise. One of them is the concept of affiliate marketing, or the concept of relationship marketing, which provides sustainable mutually beneficial economic relations between business partners. In the context of investment activities by industrial enterprises, this concept can be a decisive factor in success and significantly affect the effectiveness of the results of investor relations.

One of the main factors influencing the successful operation of the company is the possibility of its access to investment resources. At the same time, the company cannot count on investor confidence and external financing if it does not take measures to implement effective corporate governance, namely, proper protection of investors’ rights, reliable management and control mechanisms, openness, and transparency in its activities.

The essence of corporate governance is a system of relations between investors – the owners of the company, its managers, as well as stakeholders to ensure the effective operation of the company, the balance of influence, and the balance of interests of participants in corporate relations.

Investor relations management software acts as a CRM. It is a business strategy, investor acquisition, and relationship management strategy that aims to optimize customer value over the long term. It assumes that the organization has a specific philosophy and culture, focused on the customer and aimed at improving the effectiveness of work in the field of marketing, sales, and service.

Data Room as a service for managing investor relations

Virtual Data Room has some similar functions with CRM and Investor relations management software, thus this software can serve as an alternative for managing investor relations.

In practice, VDR is the process of actively deepening investor knowledge and using that knowledge to tailor business and strategies to meet individual customer needs. With the current level of development of information technology and high expectations of customers as a service, it is almost impossible to approach these problems without the use of appropriate technologies.

Virtual Data Rooms for investor relations is a fusion of customer-oriented business strategies and corporate culture and certain software, technologies that automate and improve business processes in areas such as sales, marketing, customer service, and support.

According to experts, Data Room solves three main practical tasks:

  • Formation of a customer database;
  • Organization of an interactive process of working with clients;
  • Controlling the activities of managers.

The software ensures investors and interested parties with personal access to current and relevant information used during transactions.

Data Room software also can register and organize the work of investors. At the moment when the “Information is available” checkbox is checked in the event settings, the investors who were registered for this event in the list of projects for the study will have projects that were registered for the same event. An investor can filter projects by:

  • The event;
  • Selection result (not admitted, admitted, received investment);
  • Scope of the project.

VDR modules can be used as a source of valuable information for strategic management systems – analytical programs that allow evaluating company performance, making marketing analysis, and planning activities. This role is played by VDR systems along with modules of corporate information systems that provide operational management