Everyone emphasizes the importance of founders keeping their VCs and investors informed on the progress of their startups – but communication flows both ways. Investors are also responsible for keeping their clients informed, providing value-added updates, and offering strategic guidance and wisdom to deepen the business relationship between both parties.

This guide will offer best practices to enhance your communication strategies with founders and ensure your interactions with your clients are impactful and productive.

Understand Preferences

Like all people, communication preferences will vary from client to client. Some want to keep in touch fairly regularly, while others may prefer to be a bit more hands-off. Your firm may also have specific preferences for the frequency of updates you require from your clients, and it’s important to communicate those needs upfront and as soon as possible into your initial engagement.

One way to keep this organized is to segment your clients based on communication preferences. Potential segmentation opportunities include frequency of contact and type of communication (for example – initial outreach and marketing for leads versus thought leadership designed for current clients). Use surveys or direct conversations to determine what your contacts prefer when it comes to value-added or advisory content. From here, you can create a tailored communication plan that meets their needs and expectations.

Establish Clear Communication Objectives

While many investors take an ad hoc approach to communication, your firm will be better served by setting a communication goal. Are you sharing market insights with leads and prospects or perhaps educating an audience on your firm’s history and specialization? Are you soliciting feedback from past clients? Each interaction should have a clear purpose that aligns with your broader business objectives, so get clear on those business objectives.

Setting clear objectives will help save time and resources when creating a communication plan. For instance, if your goal is to update clients on funding, focus on providing clear, concise financial information. If you share business insights, ensure the content is relevant and actionable.

Aligning your communication with your business goals ensures every interaction adds value. This approach keeps clients informed and strengthens your relationship with them.

Craft Compelling Content

Creating engaging and informative content is key to effective communication, but it’s easier said than done. Your updates should resonate with clients and provide them with valuable insights.

Focus on delivering clear and concise information. Use plain language and avoid jargon that might confuse your audience. Include updates on performance, market trends, industry insights, and company news relevant to your clients. Incorporate visual aids to make complex information easier to understand and digest.

Choose the Right Communication Channels

Different channels serve different purposes. Email newsletters, portals, social media, webinars, and personalized meetings may all have a place in your communication strategy, and each has its benefits and drawbacks.

Email newsletters are great for regular updates and for broader communication among a wide group of contacts. You may consider implementing a portal for more regular and personalized communication in one central location. 

For your more public-facing communication and marketing, social media is still one of the most impactful ways to engage your audience in real-time and grow your firm’s reputation.

Other channels worth exploring include webinars and real-time meetings for more in-depth discussions and education. Select the channels that best meet your contacts’ preferences and your communication objectives. A multi-channel approach ensures you reach your audience effectively and keep them engaged.

Implement a Consistent Communication Schedule

You hear it everywhere because it’s true: consistency is key to maintaining engagement with business contacts. Establish a regular communication schedule that your clients can rely on, and be clear with them if you require updates from them within specific timeframes.

Develop a communication calendar outlining when and how often you’ll reach out. Stick to this schedule to build trust and ensure clients receive timely updates. Consistency helps manage expectations and build trust, but it also keeps your communication organized. It shows clients that you’re reliable and committed to growing your relationship.

If you need extra help, a contact management solution like Contacts+ can help you keep track of your follow-ups. Within the app, you can set reminders and write notes for each contact you need to stay up to date with so no follow-up will go overlooked.

Personalize Your Outreach

Personalized communication makes clients feel valued. There are the basics: addressing clients by name, referencing their specific interests, and tailoring your content to their goals and interests. While it’s easy to automate simple personalizations in your written communications using a contact management solution paired with a CRM (name, industry, business name, for example), it can be a little more difficult to personalize content topics at scale. A CRM can help you track client preferences and interactions so you can deliver customized messages that resonate.

Personalization goes a long way in building strong relationships. It shows that you understand and care about your clients’ unique needs and interests.

Provide Transparent and Timely Updates

Transparency is crucial, especially during the inevitable challenges that arise with clients. Keep clients informed about developments, even if the news isn’t all positive. Deliver updates promptly to manage expectations and address concerns. Being upfront about issues builds trust and fosters a positive relationship. Provide detailed explanations and offer solutions when possible. Transparency during tough times shows clients that you are honest and dependable.

Facilitate Two-Way Communication

Encourage open communication that flows both ways by inviting feedback, questions, and suggestions. This two-way interaction helps build a collaborative relationship. Use Q&A sessions, forums, and dedicated feedback mechanisms to show clients that their opinions matter and that you’re willing to listen. Two-way communication fosters trust and engagement. It allows you to address client concerns directly and build stronger, more collaborative relationships.

Effective communication is essential for maintaining strong relationships with your clients. By understanding their preferences, setting clear objectives, crafting compelling content, choosing the right channels, maintaining consistency, personalizing outreach, providing transparent updates, and encouraging two-way communication, you can enhance your communication strategies and ensure your interactions are impactful and productive.

Ready to take your communication to the next level? Implement these best practices and see the difference they make in your client relationships.