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“My sole objective, and the only bullet on my job description, is to get the share price of TVI to a fair and sustainable value, PERIOD.  I decided the way to do that would be to use all things social media and set some benchmarks for Return on Investment (ROI) so I could measure the results.  Indicators such as increased web traffic, improved liquidity, increased institutional holdings and improved investor sentiment, would all result in a fair share price.”  – Rhonda Bennetto, Executive Director Investor Communications, TVI Pacific Inc.

TVI is still a relatively new user of social networks and in conjunction with the launch of their new website in mid-November 2009, they have reaped some interesting results thus far:

• Website visits are up from 100/mth to 4,000/mth;
• 83 followers on Twitter (as of Jan 11);
• Photos have been viewed on Flickr 1,519 times and they have 696 views of their videos on YouTube; 
•  Average daily trading volume has increased 55%; and
• Their share price has risen from $0.06 prior to launch to $0.12. 

What follows is an interview with Rhonda to provide context for their results: 

1. Tell us a little about yourself and TVI

I have been in IR since it became a profession (IR has grown with regulation surrounding disclosure of information).  I was fortunate to already be doing a corporate secretarial role so I gradually became an IR professional (because no-one else knew what to do) and have been doing it full time since 1995, part time since 1990 as the profession evolved.

By design I found my way into the oil and gas industry in Calgary (what else is there to do here?) and then by accident, I found myself getting a reputation for “stakeholder communication during change” – I have been the IR “go-to-person” for 8 mergers, acquisitions or outright sale of public companies (that’s just life in the Calgary oil and gas patch).  My reputation for communication during change took me into mining where I recently helped prepare a Denver based gold company for sale (for a premium).

I joined TVI Pacific (copper mining company) because they had some very specific challenges.  They have a legitimate story and a platform for growth, but are largely unrecognized in the market.  This was a result of a lapse in production during the financial crisis and a soft Management reputation issue – both challenges were appealing to me.  Complacency does not sit well with me – I’m too ADD! – I stick with small cap companies, where I can shoot the gun, then go chase the bullet.

2. What were your objectives for TVI before you went ahead with this project?

My sole objective, and the only bullet on my job description, is to get the share price of TVI to a fair and sustainable value, PERIOD.  I decided the way to do that would be to use all things social media and set some benchmarks for Return on Investment (ROI) so I could measure the results.  Indicators such as increased web traffic , improved liquidity, increased institutional holdings and improved investor sentiment,  would all result in a fair share price.  I think too many IRO’s and senior managers spend too much time watching the share price.  If you have a good, credible story and can back it up with tangible growth plans and share that information with your stakeholders, the share price will follow – it should be considered a lagging indicator.

3. Was it difficult to get approval from sr. executives to use social media?

I’m probably a minority among IRO’s in this regard but my senior management team (of which I am a member) and Board of Directors have been extremely supportive.  Even though most of them were unfamiliar with Social Media (other than the hype they had heard) they just trusted my judgment and my vision (which I wasn’t 100% sure of myself) and let me run with my program.  Of course, as you’ll read a little father down, it’s been more successful than even I envisioned.
 
4. What were the tactics that you put in place? (website, social networks, etc.)

Less than a year ago I was intimidated by Social Media and couldn’t seem to separate the noise from the product/benefits, I was scared it would bite me “you know where”.  As everyone should do, I created a twitter account and just watched….for 4 months… and it became  quickly apparent who is worth following and who isn’t, who has good information and who doesn’t.  Although I’m not a huge fan of George W. Bush, I live by something he said once “I don’t need to know everything, I just need to surround myself with people who do”.  So, I went to the people who I watched consistently provide valuable information (like Q4 Web Systems and Communicatto, a Calgary based digital marketing, public relations and investor relations agency). We talked about TVI’s audience (large retail base), which social media tools and platforms would be appropriate for my audience and then we all worked together to put it in place.  I admit, I was a bit nervous but having professionals in the field by my side, it all came together.  Our new and very cool web site (www.tvipacifc.com) is merely the platform for Phase II of TVI’s IR program.  For my audience we use our website as the “information transportation portal” for everything – we have links for RSS feeds, Twitter, Facebook, Flickr and YouTube.  I also have an account with a couple of e-mail service companies where I can send one e-mail and it tweets, posts to facebook and uploads photos or video, all in one shot.  It still amazes me what can be done with a click of a send button!
 

5. What were the results?

Our numbers speak for themselves – Website visits are up from 100/mth to 4,000/mth.  Last time I checked, we had 78 followers on Twitter, our photos have been viewed on Flickr 1,519 times and we have 696 views of our videos on YouTube.  Our average daily trading volume has increased 55% and our share price has risen from $0.06 to $0.12.
 
6. Were you surprised by these numbers?

Oh Hell Ya!  I never, in a million years, expected to see these types of numbers.  Truthfully I hadn’t set a specific number – I had set a goal of “increased web traffic”. A note for new SocMed people, you can’t set a target for something you can’t control – set a goal instead, don’t limit yourself by putting a box around something so fluid.

7. How about your executives?

Yes, they are very impressed – I think it might be a good time to ask for a raise!  Seriously, I was not able to exactly identify what this program would look like 120 days ago and I was honest with them about that. I was still in learning mode myself so I could only quote other success stories and list other credible companies using Social Media and now… WE ARE ONE!  Very exciting!

8. How has your findings help you fine tune your IR program

Most notably we’ve been able to identify where we can cut back on marketing costs – something in the neighborhood of  50% – and have roughly tripled marketing effectiveness (measured by lead generation volume, cost per lead, press coverage, and other quantitative metrics).  I still believe in face-to-face meetings at conferences and with fund managers and analysts. What Social media has done is enabled us to provide timely, accurate information to all shareholders so they don’t ask to see us as often (which was always my IR philosophy but we spent a lot of time on the road).  Now we pick and choose where and when we need to be and are way more efficient.
 
9. What are you plans moving forward?

Now that we have our web site and social media platforms running smoothly, the next step , which I want to EMPHASIZE, is to constantly communicate.  You can’t go to all this trouble and then not use it.  I post pictures from our mine site, I upload stories from our PR crew in the Philippines (where our mine is), I speak openly to shareholders on our discussion forum on Facebook and I Tweet when I have news. I honestly have no idea where Social Media is going to take my IR plan (I didn’t know I’d be here), but it can only be “good places” if we consistently rapport with our stakeholders.

10. Advice for other small caps considering social media?

Open your mind, admit you don’t have to know everything and hire someone who knows what they’re doing.  There are pitfalls but they are easily avoided with the right experts. This is a relatively inexpensive way to get your story out (make sure you have a story) and your ROI will be huge in numbers and credibility.

11. Any other closing remarks?

Yes, don’t put numbers on what you expect from social media, it’s too fluid and you’ll limit yourself. Believe in what you don’t know – hire the best people in the profession and leave lots of room for pleasant surprises!

Something I’ve lived by (through a couple of market downturns and one big-a** financial crisis) – If you communicate with your shareholders, ALL THE TIME, with good and bad news, they will remain loyal, require less maintenance and, as I’ve recently learned, support you in public when an unhappy shareholder says anything negative.  I honestly have shareholders ‘working’ for me!  We have one shareholder who consistently bashes TVI on certain chat boards – here is what a shareholder, happy with our efforts, had to say in return. 

“I’ve never seen anything like this from an IRO in ANY stock listed company – Very impressed, Great job”
”I’ve been in the stock market for over 25 years and never seen anybody do a job like Rhonda”
Is Social Media worth it?  Clearly.

Related posts:

1. Q4’s CEO Discusses all things Twitter, Social Media and Investor Relations
2. M.O.M. knows what’s best for IR and Social Media
3. Social Media and IR Trends Webinar Wrap-Up
4. Social Media Monitoring – Fish Where the Fish are
5. The Current State of Social Media and Investor Relations – FREE Webinar

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