More and more public companies are adopting social networks as part of their communications strategy.  Of these early adopters, we are seeing some emerging trends.  For example, we found that 48% of the 350 companies analyzed in our recently issued report on the use of Twitter for IR are using Twitter to engage with their audience.

Some other trends we found include tweeting the earnings call, providing a link to a video on YouTube of the CEO talking about recently issued financials and reaching out to followers to submit questions they would like answered on the quarterly earnings call.

Westport Innovations was also included in our recent study.  While the company has only been using social networks for a short period of time they have already implemented some interesting ideas, had some early wins and realized some of its pitfalls.

We felt it would be useful to speak with Westport to learn more about their early experience with social media to help increase awareness for those who are still sitting on the sidelines.  So Q4’s CEO and co-founder Darrell Heaps and I recently spoke with Darren Seed, the company’s Senior Director of Investor Relations and Ryan Thompson, Multimedia Manager to learn more about their social media strategy.

The interview was recorded and you can Listen or Download:

Download MP3 File (1.5MB)

Westport Innovations is an environmentally green, clean technology company with industrial applications such as natural gas engines for big trucks and buses.  Their customer base is focused on OE and heavy duty manufacturing as opposed to consumer brands. They are dually-listed on the TSX (WPT) and NASDAQ (WPRT), with a shareholder base that is evenly split in Canada and the U.S.

What follows is a snapshot of some of the interesting things we discussed:

KNOW YOUR APPROACH

Westport breaks down the use of social media into two approaches:

1. Dedicated campaign – strictly for consumer-related interaction. For example, announcing contests etc.
2. Website Supplement – tool to leverage internet to deliver information. For example, Westport uses social networks as part of their corporate communications initiative, with an IR component.

SOCIAL NETWORK MUST-HAVES

Once you know which approach you want to use, you then need to discern which social networks work with that approach.  Westport sees the following tools as must-haves:

1. RSS feeds/ShareThis – easy to integrate into website and a good starting point.
2. Twitter – good way to share company material, especially news releases.
3. YouTube/SlideShare – 24/7 online resources for media.  Posting the company’s b-roll on YouTube enables independent bloggers and the financial media access for use anytime.  This 24/7 access potentially increases the use of their video footage and their following.

INFORMING THE MARKET

Westport didn’t assume that the investment community knew they were using social media.  So they proactively notified their email subscribers.

Dear Westport Email Alert Subscribers,

In an effort to enhance shareholder communication, Westport now has multiple ways for you to get the news you want about Westport, its joint ventures, and the energy, environment, and trucking industries.

1. Subscribe to our RSS Feed (what’s this?)
2. Follow us on Twitter @WestportWPRT
3. Continue receiving email messages

Each communication method offers varying levels of news coverage:
RSS – news releases, media coverage, industry news

TWITTER - news releases, media coverage

EMAIL – news releases

And of course, all the same information is always available on our website at www.westport.com.

THE GOOD & THE BAD

Westport recently issued a press release announcing they would be supplying natural gas engines to Volvo.  As they were still new to Twitter, they wanted to gauge the reach of this release.  Using Tweetreach.com, this release reached over 44,000 people, contributed by 36 Twitterers, not all of them directly following Westport!

The company uses direct hits, search engine traffic and referring sites as their key metrics to gauge success of their social media strategy.  The Company has seen a 26% increase in website traffic in the past month of using these new communication tools and 175% increase in Twitter followers, over the past month. They have also specifically seen an increase in the number of referral sites.

Westport has tried incorporating other social networks into their corporate communications strategy.  While they feel it has a lot of value for consumer-focused companies, Facebook was not providing any additional draw for people to access information.  They recently re-launched their website and as they were having so much success with their other chosen social networks, they took Facebook out of the mix.

We have outlined some of the interesting ideas ways Westport uses social media as part of their corporate communications strategy.  We have also discussed some of their early wins and talked about some of the pitfalls they have realized from the social network tools they have chosen.

The goal of sharing Westport’s early experience with social media is to help increase awareness of how companies are using social networks.  We hope you found this helpful!

Related posts:

1. Webinar Replay and Transcript: Tips, Wins and Pitfalls of Using Twitter for Investor Relations
2. WEBINAR – Tips, Wins and Pitfalls of Using Twitter for Investor Relations
3. Case Study: How NovaGold Uses Social Media to Augment Their Quarterly Reporting
4. Corporate Social Media Best Practice: List Social Networks on Your Website
5. 60% of Financial Advisors in North America are Using Social Networks to Drive New Business: Study

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