The benefits of corporate events, meetings and travel have not changed because of the economic downturn. In fact they may be even stronger in a recession.

 

Whether it’s the opportunity to develop relationships, the chance to incentivise hard working staff, the need to inform clients of latest developments then events, meetings and travel still offer the same tangible benefits that they did a year ago.

 

We hear that in the current climate one needs to ensure value for money, but that’s always been the case. There’s never been a time where Banks Sadler and our clients were not looking at every area of expenditure with a fine toothcomb.

 

Obviously cost is critical, but areas such as offering a measurable return on investment, being sensitive to PR issues and working with venues, clients and all other stakeholders to create imaginative solutions are just as important.

 

So, let’s take a look at some key areas…

 

Banks Sadler regularly offer our clients average cost saving of 25-30% against rack rate on their venue and accommodation cost and with more suppliers chasing fewer clients, we hope to be able to negotiate even better deals next year. We achieve these discounts by consolidating our purchasing power and having the relationships with suppliers (be they hotels, travel, DMC’s or production companies) that many agencies can only dream about and an in-house event buyer working alone can’t hope to match.

 

Suppliers are willing to reduce costs to fill gaps in their schedules, but you need a strong negotiator to get you the best deals; many of these deals call for personal negotiation. A good agency, with it’s ear to the ground, will understand your needs, what’s happening in the market and will know where the best value is to be had. Moreover, they will know just how far one can go in securing discounts without jeopardising quality.

 

In the current climate it’s perfectly acceptable to scale back events; people appreciate that it’s a tough environment. However, there is a real relationship between the perceived quality of the event and an attendee's feeling of value. So it’s okay to go for a lower cost option (such as not going abroad or spending less on alcohol and entertainment), but don’t appear too “thrifty” as this may lead attendees to lose a little faith in your organisation – it’s all about getting the balance right. But whilst you may be spending less on the frills it doesn’t mean your events need be drab…Imagination and innovation often fill the gaps where, in the past, expenditure may have done the trick.

 

Which brings us on to the need to correctly “pitch” events, travel or meetings to all stakeholders; one can’t be seen to be spending excessively whilst jobs are being cut or pay raises reigned in, but that could be true of all aspects of business. It’s the companies that keep investing in their marketing, their clients, their partners and their staff that come out of a recession strongest; and these are all areas where events can have a huge impact. Once again, it’s a question of balance. 

 

One way to improve your Return on Investment is to consolidate your spend by either merging two or three events into one to take advantage of economies of scale or by sub-contracting your events work through an agency, or limited number of agencies, to achieve greater savings and complete cost transparency. If you are considering going down the first route and have only ever relied on in-house staff to manage your events then you may want to look at using an agency to help with planning and management. As events get bigger they tend to become exponentially more complex, but also offer more scope for savings; an agency will minimise the risks and maximise the benefits. 

 

Once you find a good agency make the most of them. Not only do they offer better rates and have the expertise and experience to make an event run smoothly, they offer a flexible resource that you can gear up and gear down as needed.

 

However, you need an agency that’s got the financial strength to keep going through the lean times. The smaller agencies, with “all their eggs in a few baskets” are very susceptible to the loss of one major client. On the other hand an agency that is part of the huge multinational group may find the pressure from distant boards of directors, accountants and shareholders to cut costs and reduce service levels too difficult to resist. As a result clients may suffer. 

 

The large, successful, independent agencies, like Banks Sadler, are in a unique position; they have the funds to survive the downturn but are staffed, run and owned by people who are embedded in the industry, close to their clients and are looking at the long term business. 

 

As we approach our thirtieth year Banks Sadler can look back on several economic downturns and the lessons learnt. By focusing on our core business and by continuing to exceed client expectations, by delivering real benefits and seeing downturns not as a threat but as an opportunity, we have come out of similar situations in a very good position. It’s in times of adversity that innovative, vibrant organisations can revolutionise their sector, win more business and better serve their clients.