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12/1/2010
1
Ten Fundamentals for Growing Your Cateringand Conferencing Business
CECS 2010Tim Copeland
December 1, 20101
Copyright 2010, DemandEngine, Inc.
Your challenges?
• Generate more revenue
• Do more with less
• Staff reductions
• Attention to value andROI
• Shorter time frames
• Public perception ofmeetings and events
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Conferencing units with well-developedbusiness development plans will thrive,
while others will be contracted oroutsourced. We have to be good stewards
and effective managers.
Copyright 2010, DemandEngine, Inc.
1. Current environment
2. Ten fundamentals for growing your cateringand conferencing business
3. Three recommendations to move forward
Agenda
4
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Copyright 2010, DemandEngine, Inc.
Your business?
• Run a dedicatedconferencing facility?
• More than 60% ofrevenues from campus?
• Part of a CE unit?Housing?
• Directors?
• Programmanagers/coordinators?
• Furlough days?
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Copyright 2010, DemandEngine, Inc.
Q&A
• What are you seeing in yourmarket?
– External?
– Campus?
• Seeking new revenue sources?
– Explain
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Copyright 2010, DemandEngine, Inc.
A New Economic Reality
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Copyright 2010, DemandEngine, Inc.
Competition
• New trend – holdingmeetings atcustomer sites
• From $1,000 to $87per day
• Reduce costs
• Inspiration
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Copyright 2010, DemandEngine, Inc.
Sometimes we are not user-friendly
• Secret shopping university conferencing units
• Emails
• Web forms
• Phone calls
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Copyright 2010, DemandEngine, Inc.
Example: The Delay
• We were returning their voicemail
• Transferred multiple times
• 30% of our call time was onhold
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Copyright 2010, DemandEngine, Inc.
Example: The Web Shuffle
• The prospect was on thephone,
• … yet sent to website tocomplete application
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Copyright 2010, DemandEngine, Inc.
“Who are you again?”
• Transferred, disconnected,and interrogated
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Copyright 2010, DemandEngine, Inc.
Pass the buck
• A leisurely stroll through anorganizational web
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Copyright 2010, DemandEngine, Inc.
Other examples
“I called number provided on website. Representativeanswered…found out he was ‘in a bucket/fork lift’.Yelled to other staff to ask how to transfer calls. Verynice person, but not the most professionalexperience.” DemandEngine researcher
“Representative bordered on being combative.Questioned which facility I was calling about andthen basically talked me out of doing business there.Ended call suggesting I call the other facility.”DemandEngine researcher
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Copyright 2010, DemandEngine, Inc.
What this means
• An already competitive businessjust got tougher
• Downward pressure reducingstate budgets – reduction inacademic conferences and travel
• Corporations looking toimprove/innovate meetings,reduce costs, and improve travelprocesses
• To compete, we have to be user-friendly
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Copyright 2010, DemandEngine, Inc.
1. Current environment
2. Ten fundamentals for growing yourcatering and conferencing business
3. Three recommendations to move forward
Agenda
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Copyright 2010, DemandEngine, Inc.
Ten Fundamentals
1. A business-development mindset
2. Clear and realistic goals
3. Management by the conference funnel
4. A written business development plan
5. Development of an adequate inquiry pool
6. Efficient means for follow-up
7. Methods to manage the conference funnel
8. Use of information systems
9. Management reporting and progress towardbusiness objectives
10.Outward-looking business processes17
Fundamental #1:A business-development mindset
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Copyright 2010, DemandEngine, Inc.
Conferencing is sometimes viewed as‘easy money’
“Everyone who has an extraroom or two thinks they
have a conferencecenter…I’m surprised wehaven’t seen the FuneralHome and Conference
Center.”Louise Silberman, Summit Executive Centre
Copyright 2010, DemandEngine, Inc.
A business-development mindset
Inhibitors
• “Return revenue”
• No pressure to set goalsand accountability
• Realization that acommitment to growgenerally includesnew/shifting resources
• Lack of pipeline reporting
• Disconnect with staff
Questions?
• How have you ‘designed’your product?
• How many are looking togrow conferencing/eventbusiness?
• How do you set goalstoday?
• When do you set goals?
• How do you currentlyreport on goalattainment?
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Fundamental #2:Clear and realistic goals
Copyright 2010, DemandEngine, Inc.
Clear and realistic goals
Setting targets
• ‘Grow’ is not anactionable goal
• Simply looking at revenueis like driving by yourrear-view mirror
Questions
• How are your goalsdetermined? Considerpotential? Capacity?
• Do you ‘reverse engineer’your goals?
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Fundamental #3:Manage by the conference funnel
Copyright 2010, DemandEngine, Inc.
Funnel Example
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Copyright 2010, DemandEngine, Inc.
Manage by the funnel
Developing a pipeline
• Forward-looking
• Improves forecasting
• Failure to recordconferencing inquiries
Questions
• Do you record inquiriestoday? Why or why not?
• Pathway? Proposals tocontracts? How many?Conversion rates?
• What do you track?
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Fundamental #4:A written, business-development plan
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Copyright 2010, DemandEngine, Inc.
What’s in a plan?
• Clear goals by marketsegment andproduct/service offering
• Strategies for achievingyour goals – at least oneper goal
• Success indicators
• Defines accountability
Copyright 2010, DemandEngine, Inc.
The ‘plan’
Writing a plan
• Tendency to get lost inSWOT, etc.
• A list of stuff (e.g.directories,advertisements)
• Reluctance to commit
Questions
• Do you have adocumented businessdevelopment plan? Whyor why not?
• Elements of your plan?Good and bad?
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Fundamental #5:Development of an inquiry pool
Copyright 2010, DemandEngine, Inc.
Growing conferencing revenues
• … is really a simplebusiness
• In order to have anevent, what musthappen?
– A customer with aconferencing need
– Raise their hand
– Qualify
– Propose
– Sign
Customers
Contracts
Proposals
Inquiries
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Copyright 2010, DemandEngine, Inc.
Five approaches to finding customers
1. Solicitation
2. Self-initiated
3. Referrals
4. Past customers
5. Events
Copyright 2010, DemandEngine, Inc.
Psst … Your online presence is important
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72%
67%
61%
69%
60%
54%
60%20%
25%
25%
20%
15%
14%
15%
6%
4%
6%
6%
9%
14%
5%
<$500
$500-$1,000
$1,000-$2,500
$2,500-$5,000
$5,000-$10,000
$10,000-$50,000
$50,000+
Budget ranges
Search engine
Known manuf. ofthe product
Portal for theindustry
Source: Enquiro, October 2004
“Where would be the first place you would go online to find out more abouta product or service?”
Base: approx. 1500 business respondents
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Copyright 2010, DemandEngine, Inc.
UCSB is ready for business
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Copyright 2010, DemandEngine, Inc.34
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Copyright 2010, DemandEngine, Inc.
How you rank
35
University name City Search term 1First
page?
maps?
Possible
competitors,
Natural Search,
1st page
Possible
competitors,
paid search,
1st page
University of California, Los Angeles Los Angeles los angeles conference center yes no 13 5
University of California, Berkeley Berkeley berkeley conference center yes yes 4 0
University of California, Merced Merced merced conference center yes no 5 1
University of California, Santa
BarbaraSanta Barbara santa barbara conference center no no 7 1
University of California, San Diego San Diego san diego conference center no no 10 4
University of California, Riverside Riversideriverside california conference
centeryes no 5 1
University of California, Davis Davis davis california conference center yes no 6 0
Source: DemandEngine
Copyright 2010, DemandEngine, Inc.
Developing an inquiry pool
Inhibitors
• Ability to manage multiplepoints of entry
• Inputting all inquiries
• Tracking the source, dateof inquiry, and timeframe
Questions
• What sources provideyou measurableinquiries? What’sworking?
• What offer strategies doyou use to get prospectsto raise their hands?
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Fundamentals #6 & 7:Efficient means for follow-up andmanaging the funnel
Copyright 2010, DemandEngine, Inc.
Efficiently managing the funnel
Inhibitors
• Lack of resources makethis seem impossible
• Inconsistent follow-up
• Too few communicationsparticularly with pastcustomers
• Requires systematiccommunicationsapproach (e.g. print,email, phone)
Questions
• How do yousystematically follow-upwith past customers?
• What happens whensomeone inquires?
• Do you treat the decisionprocess as a considered-purchase? Why or whynot?
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Fundamental #8:Use of information systems
Copyright 2010, DemandEngine, Inc.
Databases
Inhibitors
• Non-existent or shadowdatabase systems– “the Book”
• Failure to utilizecapabilities of existingsystems
• Lack of databasecompetency among staff
Questions
• How do you manage yourcustomer informationtoday?
• How would you rate yourown data quality?
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Fundamental #9:Management reporting and progresstoward business objectives
Copyright 2010, DemandEngine, Inc.
A Reporting Example
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Conferencing Pipeline ReportWeek ending March 20, 2010
FY2011 FY2010 - YTD FY2010 - FINAL FY2009 - FINAL
Inquiries 200 225 300 350
Proposals 90 125 150 170
Contracts Signed 23 35 50 58
Conversion rate 45% 56% 50% 49%
Yield (close) rate 26% 28% 33% 34%
Source: DemandEngine, Inc.
12/1/2010
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Copyright 2010, DemandEngine, Inc.
Management reporting
Inhibitors
• Unsure what to measure
• Not defining what tomeasure
• People issues
• Lack of process systemsand technology
Questions
• What reporting do youuse today to manageyour business? Top fivereports?
• What adjustments do youmake to your plans basedon the data?
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Fundamental #10:Outward-looking business processes
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Copyright 2010, DemandEngine, Inc.
Recent research
• Shopping scenarios
– Corporate leadership retreat - 25 participants
– day meeting, 30-50 participants, breakfast andlunch, 1 large room, 1 breakout room, audiovisual
Copyright 2010, DemandEngine, Inc.46
Date/time email
submitted
Date/time
response
received
Qualifying
questions?Capture info? Ask to call?
Any follow-up
after their
initial
response?
Is this
organization
easy to do
business with?
General observations
11/16/10 @10:22 11/16/10 @3:14 no yes, they asked for my number to call me no yes
She responded quickly but just asked me
for my phone number to discuss the scope
of the event.
11/16/10 @10:25 none n/a n/a n/a n/a n/a
11/16/10 @10:26 none n/a n/a n/a n/a n/a
11/16/10 @10:33 11/16/10 @12:45 no
They already had my basic info from the
web form I completed. She asked the
age group that would be attending the
meeting & if I was located in the LA area.
no yes
She responded quickly. She was very
helpful but ultimately re-directed me to a
person in another group that had a more
appropriate meeting site. She said they
recently posted some ads on Facebook &
asked if that was how I heard of them.
11/16/10 @10:27 11/16/10 @5:33 no no no yes
They emailed a respose quickly. They
indicated that one of the dates requested
was not available. They attached a
document with information regarding
their rates & provided a phone number for
further questions.
11/16/10 @10:28 none n/a n/a n/a n/a n/a
11/16/10 @10:36 none n/a n/a n/a n/a n/a
Source: DemandEngine
UCLA Catering and Meeting Rooms
UC-Berkeley
UC-Merced
UCSB
UCSD
UC-Riverside
UC-Davis
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Copyright 2010, DemandEngine, Inc.
Outward-looking business processes
Focus on your customer
• Most are organized byhow we want customersto do business with us
• Secret-shopping revealssometimes delayed andnon-existent follow-up
• Beware: the morechannels you open, themore you have tomanage
Questions
• What’s the experiencelike for your customers?Internally? Externally?
• How many one-stopshops do we have?
Copyright 2010, DemandEngine, Inc.
1. Current environment
2. Ten fundamentals for growing your catering andconferencing business
3. Three recommendations to move forward
Agenda
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25
Copyright 2010, DemandEngine, Inc.
Three Recommendations
49
1. Start with clear goalsand measurableobjectives
Copyright 2010, DemandEngine, Inc.
Three Recommendations
50
2. Reverse engineer yourgoals into funnel metrics
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Copyright 2010, DemandEngine, Inc.
Three Recommendations
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3. Develop a written,business-developmentplan connecting actionswith results
Copyright 2010, DemandEngine, Inc.
If you would like a copy of theseslides, leave your business card
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Copyright 2010, DemandEngine, Inc.
Tim CopelandManaging Partner
Email [email protected] 912-354-8007Web www.demandengine.comBlog www.enrollmentmarketing.orgTwitter www.twitter.com/tim_copeland
How we can help
ASSESSMENT
•Audits on current marketingapproaches
•Secret shopping institutionaltouch points
•Developing audience profiles
PLANNING
•Business development strategy•Communications planning
Outsource Services
•Email marketing programs
•Search engine marketing
•Social marketing
For upcoming events, researchreports, and white papers visit:
www.demandengine.com
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