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Compared with other industries, the media in the financial sector is much more forgiving. All parties involved are determined to get their hands on the only currency, and it is literal currency.
Speculation in the stock market is particularly fervent among corporations. Is there any stock going down? Are any going up? Is the market going to do anything tomorrow?
Since there is often such a disparity between what companies achieve and how their products and services are perceived, it is extremely risky (and potentially costly) to simply do good work and trust that it will be appreciated by the market. You need a so-called spin that works to your advantage in the gentlest and most stigma-free way.
Financial PR plays a key role in that process. In order to understand why financial companies need it, let’s look at what it involves:
Bringing interested parties together to see the performance
The finance industry is well aware that financial performance is important, and that companies must regularly report on it to their stockholders and shareholders.
Results are particularly important on a quarterly and annual basis, including everything from revenue and profitability to dividends and staff turnover.
A noteworthy aspect of presenting performance metrics in this manner is that companies can choose how they do so, and they often announce their results by having conference calls and to answer subsequent questions.
There are countless ways to present a result, and the way the results are presented can affect whether the stock plummets or does not.
Rather than handling this entire process themselves, financial PR Agency professionals will handle most of it, from the first clues as to what to expect through to a positive spin after the results are released. The chief executives will make the big decisions, of course, but they will draw their angles from public relations.
Providing advice on public-facing activities
Financial PR companies are responsible for more than just formal performance reports. A lot of the time, they are called on to participate in mergers and acquisitions, as well as big business negotiations between several companies.
In the case of a proposed merger, for example, there can be a lot of opposition based on customer opposition, even threatening virtual monopolies.
Many companies possess enough market capitalization to avoid major negative consequences (at least in the short term), but they don’t want to alienate their customers. In order to accomplish their goals without attracting criticism, they will spend a lot of money on PR firms. They consider the price well worth paying in order to pursue their objectives.
In business, customer success is becoming more and more popular. A business that is known to care about the success of its customers is a phenomenal way to win accolades, and even the faintest hint of any move that would undermine that status can damage its reputation. That cannot be taken for granted.