Dell's IR blog gathering momentum
Jan 09, 2008
IRO says social media is 'a natural extension' of day-to-day shareholder communication
ROUND ROCK, TX -- Dell has had a blog about its products; now it has one about its shares: dellshares.dell.com.
The blog is a place for serious discussion about the strategy and direction of the company. So far, topics include how Dell should use its cash and what constitutes '21st Century IR', and have drawn a range of comments from Dell's IR team and its investors.
It's risky to let shareholders sound off in such a public way, which may be why no one has yet stepped forward to try a blog with an IR angle. Dell Shares makes its debut 'about eight years after the first modern blogs made their appearance on the web,' notes IR Web Report's Dominic Jones.
The comments are edited, but lightly, says Dell's IR director Robert Williams, so the dialogue avoids being the kind of free-for-all of Motley Fool and Yahoo stock chat boards. Still, Dell doesn't appear to be afraid of criticism. 'We let the vast majority of posts through,' he says. 'We want this to be a free and open means of communication.'
Users have to agree to certain terms of engagement, promising that their posts be relevant and respectful. 'With very few exceptions, people are posting well within the guidelines,' Williams says.
Dell has had a lot of news for shareholders in recent months: the conclusion of an accounting investigation, a restatement, a $10 bn share repurchase plan and new partnerships with retailers. The issues raised on the blog are the types of questions Dell is getting in investor meetings, conference calls, by e-mail and phone, Williams says. 'It felt like a natural extension to move into social media,' he adds.
Dell's legal and corporate communications teams didn't throw up roadblocks. Instead, they encouraged a blog aimed at investors as fitting with the company's philosophy of establishing direct linkages with customers. 'They also said, 'Who better to be blogging on financial issues than an IR team?'' Williams says.
Dell brought the blog online in a soft launch in early November before a more public unveiling at its December annual shareholder meeting. To increase awareness, IR VP Lynn Tyson did a podcast on the subject for the Hobson and Holtz Report and the IR team has notified key financial bloggers.
One point Dell is trying to get across is that IR offices are open to everyone, not just Wall Street analysts and institutional investors, Williams says. 'We feel very strongly about the democratization of information, specifically financial information. The information should be out there, available and usable to all types of investors.'
By Anna Snider