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Implementing a shareholder discount program can be a highly effective strategy for attracting and retaining retail investors while simultaneously maximising value for shareholders. This approach creates a relationship between the company and its retail shareholders, fostering a sense of loyalty and engagement. By offering exclusive discounts on goods or services to shareholders, the company not only rewards investors for their financial commitment but also incentivises them to remain invested in the long term. This loyalty can contribute to a stable and dedicated investor base, reducing the likelihood of shareholder turnover. Furthermore, the discount program can serve as a powerful marketing tool, attracting new retail investors who are enticed by the prospect of not only financial returns but also tangible benefits in the form of discounted products or services. This dual appeal enhances the company’s marketability and sets it apart from listed peers. The positive impact on shareholder engagement can also translate into increased brand advocacy as satisfied investors are likely to promote the company to their networks. Additionally, from a financial perspective, offering discounts may lead to increased sales volume, driving revenue growth and potentially offsetting the costs associated with the discount program. In this way, a well-structured shareholder discount initiative can create a win-win scenario, fostering a strong connection between the company and its shareholders, boosting market appeal, and ultimately contributing to the maximisation of shareholder value.

In the UK, a minority number of companies have recognised the strategic value of offering shareholder discounts, with Mothercare standing out as a prominent example, the Mothercare scheme is no longer available. However, Mothercare implemented a shareholder discount scheme that became widely recognised among British retail investors. This program not only served as a tangible benefit for shareholders but also contributed to building a strong and loyal investor community. By extending exclusive discounts on their extensive range of products, Mothercare successfully fostered a sense of appreciation and loyalty among its shareholders. The scheme not only enhanced shareholder engagement but also contributed to the company’s overall appeal, making it a noteworthy illustration of how such initiatives can effectively resonate with investors and the wider public in the UK market.

Interestingly, despite the potential advantages of shareholder discount schemes, many companies, including those in the UK, often underutilise or overlook the advantage of such initiatives. This is particularly true when it comes to reaching the demographic most likely to benefit – retail investors. Most companies don’t offer these perks to shareholders, missing an opportunity to enhance engagement and loyalty. An effective program and a clear and targeted communication strategy is crucial to ensuring that retail shareholders are aware of and can take full advantage of the benefits associated with these schemes. The result is an increase in the number of retail investors in the company.

Sociables Express has taken a proactive step towards addressing the underutilisation of shareholder discount schemes by introducing a service we call the Mothercare Model. Recognising the potential benefits of such programs, Sociables Express collaborates with companies to develop and implement tailored shareholder discount schemes. Drawing inspiration from successful initiatives like Mothercare’s, this service aims to create mutually beneficial relationships between companies and their shareholders. What sets Sociables Express apart is our ability to target retail investors – after designing a bespoke scheme, we actively promote it across various digital platforms, ensuring that the information reaches the target audience. By adopting the Mothercare Model, Sociables Express can potentially maximise the impact of shareholder discount programs, fostering stronger connections between companies and their investors while optimising the value for both parties. / Mike Cosgrove 07481760280

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