The Value of Perception Studies

Jan 2025

Companies operate in a high-stakes environment where market perception can significantly influence valuation, investor trust, and corporate strategies. Communication is no longer a simple process of disseminating messages — it’s about ensuring that the narrative resonates with key stakeholders. Sometimes even the most carefully crafted messages can be misunderstood or lost in translation. A perception study can help bridge any communications gaps and misperceptions of your company.

Perception studies have emerged as an essential tool for companies looking to refine their investor relations (IR) strategies, address misconceptions, and maintain a competitive edge in the market. At this point, they are indispensable, so if you are not planning one for 2025, you should be.

What are perception studies?

A perception study gathers feedback directly from key stakeholders, such as equity analysts and investors, to understand how they perceive your company. Companies use them to confirm whether their IR program is communicating effectively.

Prioritize senior level conversations.

Perception studies that rely solely on online surveys might miss the mark. Meaningful insights often arise from one-on-one, senior-level conversations between IR professionals and key stakeholders. These interactions enable in-depth discussions that go beyond surface-level responses.

There are a number of reasons why a company should consider conducting a perception study.

  • Pinpoint issues or misperceptions that may be impacting valuation or overall perception. A customized perception study can home in on key issues that may impact your valuation and cause misperceptions of your company, while also providing tangible solutions to remedy the problem.

  • Demonstrate proactive IR. A study demonstrates to Wall Street that the company is open to hearing feedback, improving its communications, and sharing unbiased investor sentiment with its board and management team.

  • Assess vulnerability to activism. If you feel like your company may be susceptible to activism, a perception audit is one action you can take to make sure you clearly understand the root of negative investor sentiment and the company deficiencies that drive it.

  • Create a framework for benchmarking your program so you can evaluate your progress. If a perception study is conducted on a yearly basis, the company can clearly see the evolution of the investor relations department’s progress.

  • Foster ongoing communication between IROs and the board and C-suite. Many best-in-class companies execute a yearly study to improve communications with the board. A comprehensive and independent perception audit can ensure the board hears objective feedback from key influencers.

Actionable insights drive strategic success.

Effective perception studies surface insights that enhance communication strategies and rebuild investor confidence. Whether you aim to close valuation gaps, strengthen relationships with stakeholders, or simply ensure alignment between your corporate goals and shareholder expectations, perception studies pave the path forward.

Looking for a partner to conduct an in-depth perception study for your business needs? Our team specializes in gathering comprehensive feedback that drives action and unlocks true value for your company. Contact us today to learn how we can support your investor communications strategy (https://www.stratosir.com/perception-studies).