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Strategy

Treat your shareholders like people, not numbers.

Ben Williamson

Ben Williamson

— 5 min read

How to build shareholder loyalty.

If you want to be treated like a real company—not just another code—then it’s time to start treating your shareholders like actual people, not numbers.

I’ve talked to hundreds of ASX leaders, and every single one says the same thing:

“We want long-term, loyal, and “sticky” shareholders.”

But when I ask what they’re doing to make that happen? Crickets.

Despite their intentions, very few ASX companies actively consider their shareholder experience and what they as a company can do to build loyalty with their shareholders.

It blows my mind.

Companies obsess over customer loyalty but completely ignore the same principles when it comes to shareholders. Let me give you a real-world example:

If I walk into BCF (Boating Camping Fishing) and spend $100 on fishing tackle, I am invited to join “Club BCF” for free. I’d get $20 to join, exclusive member pricing, access to member events, prize draws, and an enhanced product warranty.

If I bought $25,000 worth of shares in their parent company, Super Retail Group (ASX:SUL), I’d get nothing more than an email (maybe) and a generic letter via their registry provider.

Why are companies bending over backward for casual shoppers but giving shareholders—actual co-owners—nothing?

Here’s the truth: your company won’t grow by constantly chasing new shareholders. Our data shows that the vast majority of buying comes from existing and returning shareholders.

So maybe shareholder loyalty schemes don’t work? Wrong again - there is evidence that applying customer loyalty principles to investors works.

Some more seasoned readers might recall the famous Coles-Myer shareholder scheme.

In 1993, the company announced that shareholders with more than 500 shares would get a 5% discount on purchases in-store - that’s a minimum value of ~$4k in shares at the time.

The impact? Between 1993 and 2000, their number of shareholders increased ninefold, with 71% holding 500-1,000 shares (roughly $4k - $8k).

This was a huge boom in “sticky” retail investors who wouldn’t just hold onto their shares, but also wouldn’t shop anywhere else. A win-win.

The scheme ended in 2004, but it has since inspired other companies to follow suit:

If your shareholder is also a potential customer, creating a similar loyalty scheme would be easy and highly worthwhile.

I know what some of you are thinking, "that’s easy for a B2C company, but what about mining, biotech, oil and gas, industrials, or any other B2B or commodities company?"

It’s possible for any company to implement a shareholder loyalty scheme.

I have come up with five novel concepts that apply the very same principles to building shareholder loyalty. You can tailor these to your business and set parameters around shareholding size, length of holding, etc.

The main point here is that the bar is so low, that even a little effort can go a long way and set you ahead of the 2,200 other ASX companies competing for investor attention and loyalty.

The goal is to delight your investors, help them feel closer to the business, and ultimately, make them feel like a co-owner.

I’ve put together five ideas to help you apply the principles of shareholder loyalty schemes to any business, but I also want to stress that this doesn’t replace the need for consistent and regular shareholder communication. This is about levelling up your shareholder engagement strategy, not replacing it.

Idea one: Welcome package.

First impressions matter. For most investors, their anticipation and excitement around a company is strongest at the beginning. Capitalise on this by using your registry information to mail each new shareholder a welcome brochure.

Make it glossy, introduce your management team, explain what you do, and outline the company’s mission and vision - address them as a co-owner, not a number. It starts the relationship with an acknowledgment of the journey they are about to embark on, the role they are playing in it, and provides a solid understanding of the company they’re investing in. Low cost, high impact - you can even “batch” it so that you can measure the impact the pack has on the group of shareholders who receive it.

Idea two: Branded merch.

Companies often give out branded merch (hats, pens, shirts) at conferences. But only a tiny fraction of your shareholders attend such events.

Scale it up!

Hats are a great option (no sizing needed): get a bunch made with your logo and send them to shareholders based on holding size, longevity, or engagement level. Accompany it with a note thanking them for their support - it will make them feel like a member of the team.

This not only surprises and delights your investors, but also turns them into walking billboards for your company.

Idea three: Investor dinners.

Many companies do “broker lunches” and spend money wining and dining people who’ve never invested a dollar in the business. But what about existing shareholders?

If 60% of your buy volume is coming from existing shareholders, then surely the money and time is better spent on them?

My recommendation is to create a roadshow for your existing shareholders.

Use your registry to find your 10-15 largest shareholders in each city, and invite them to dinner. It’s a great chance to pitch, meet them face-to-face, and build community among your investors. For about the same cost as attending one conference, you could meaningfully engage with 50+ of your most important stakeholders.

We have a full list of good private dining spots around Australia available here.

A member of this community that does this well is Gerard Dyson at Spectur.

Idea four: Giveaways

This one has a hidden agenda. People love free stuff. You need more of your investors’ emails (which is critical for engagement and retail raises).

Run a giveaway to reward shareholders.

We’ve seen clients use AirPods, bottles of wine, and even rocks from drilling campaigns as prizes. The catch? Shareholders need to sign up with their email and verify their shareholding.

Investors get to enjoy a fun competition, and you grow your email list—helping you to grow your distribution list.

Microba Life Sciences, Impact Minerals, and Dreadnought Resources have all done variations of this tactic at recent conferences.

Idea five: Acknowledge tenure

Want shareholders who stay for the long haul? Reward them when they do it!

In the UK, people get a letter from the King when they turn 100—a small gesture, but it means the world to the people who get them. Some footy clubs also do this with members—sending a pin, scarf, or keyring to acknowledge their support.

You could apply this concept by sending emails, making phone calls, or sending small tokens of appreciation to long-term shareholders based on key milestones.

It’s a great opportunity to reflect on the journey you have been on and prime them to stay on for the future.

Low effort, high impact.

These are simple, high-impact moves that can set you apart from the other 2,200 ASX companies fighting for attention.

But you could also easily choose not to do any of this. No one will push back if you read this and think, “that’s cool, but too hard.”

To me, that’s a big missed opportunity.

The ASX is crowded, and while most companies spend a lot on marketing, few embrace ideas like these.

Just look at how much effort airlines put into their frequent flyer programs. Companies clearly know how to build customer loyalty—why not apply it to shareholders?

As a starting point, consider sitting down at a board level and asking this: If we cut one conference from next year’s budget and used that time and money to delight existing shareholders, what could we do?

If you ever want to chat about ideas and what we’ve seen work, or understand how InvestorHub can help implement them feel free to reach out.

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