"One-size-fits-all" has too long been the mainstay of the meetings and events management industry. Regardless of the size, scale, creativity or complexity of the programme or event, the easy option has been to assign the same team of consultants to work on the brief.
But just as Henry Ford's mantra "Any colour so long as it's black" would be a disastrous approach in today's customer-first auto marketplace, so change is becoming a commercial imperative to agencies in our industry.
Buyers have very different needs. In trying to offer the very best and most cost-effective service in 2019, meetings and events management companies should be considering segmenting their service into categories.
One way ahead is for meetings and events agencies to create expert teams, distinguishing, for example, between a) Simple Meetings, b) Strategic Meetings, and c) Events. I'll illustrate some examples of this approach below, but first let's consider its value.
What is the value of segmentation?
To quote the British Library: "Many successful businesses continue to grow simply because they really understand their markets and their customers. One of the most popular techniques businesses can use to better target their products at the right customers is market segmentation. Put simply, it's an identification process that allows businesses to pinpoint the specific demands of particular customer demographics and use those learnings to develop products and services that tick those boxes."
Segmenting events, or buyers for the agency, and taking actions based on each type is all about delivering better, bespoke service. Organisations outsourcing their meetings and events management have different strategic and day-to-day needs.
Day-to-day: Buyers might hire a meetings and events management provider because they are hosting a one-off event or may wish to book the right venue at the right price for a couple of simple meetings.
Strategic: Alternatively they may need a strategic approach to meetings and event management for a complex programme of meetings, tracking outcomes to ensure they're getting return on investment.
Whatever the specific need, it would be good to think that the provider had a specialised team of experts primed to spring into action.
Commercial opportunities
This is important because this customised approach presents clear commercial opportunities. According to the World Travel and Tourism Council, the business travel market is worth $1.2 trillion, forecast to grow to $1.6 trillion by 2020 and set to keep rising by 3.7% p.a. over the next 10 years. And within this booming context, priorities are shifting. The essential focus for meeting owners now is not scale, but delegate engagement and experience.
Segmentation in action
Consider the breakdown I suggested above into a) Simple Meetings, b) Strategic Meetings, and c) Events. What sort of business might fit into each category?
Simple Meetings: A venue for a one-off sales seminar, bringing the entire sales department together in an inspiring setting to galvanise ideas and productivity in the face of tough new targets.
Strategic Meetings: One AGM for 3,000 stakeholders, preceded by one enterprise-wide conference for 450 staff and one senior management get-together in an exclusive venue with privacy guaranteed.
or a series of roadshows for a major new product launch, taking 35 staff to six venues around the country, then city hops to Paris, Berlin and Milan.
Events: A gala ceremony to celebrate a company's 50 years in business, with a dazzling stage set, a VIP speaker and commemorative take-away "Our next 50 years" action packs.
Maximising return on investment
Segmentation is the logical approach because it focuses the most relevant resources in the same direction.
A bespoke approach puts the buyer's business objectives centre stage, improves attendee experience and maximises their return on investment. Abandoning the sector's traditional "one-size-fits-all" approach allows for the categorisation of meetings and event management with specialised services. Creating different teams of specialist consultants offers customised expertise, ensuring each client's bookers speak to theright people to meet their requirements.
Turning traditional practice on its head leads to enhanced levels of service from the agency. Examples are:
1. The Meetings team not only know how to negotiate the best rates at a range of venues, they also have the personal knowledge to advise on all-important details such as whether there's daylight in a room and a view so good it will put an extra spring in delegates' steps, motivating them to achieve their best.
HBAA, the hotel bookers association, cites the case of a company booking 26 different venues for internal training events. Consolidating them to one venue saved £1m a year.
2. The Strategic team have the buyer's business objectives front of mind throughout, to maximise return on investment (ROI), ensure great outcomes and deliver an exceptional delegate experience.
A strategic approach, often merging meetings and travel, can bring impressive results.According to the Chartered Institute of Purchasing & Supply (CIPS), 40% of corporations cannot identify how much they spend on meetings, while using strategic sourcing can bring savings up to 29%.
3.The Events team create memorable events with unusual themes at the perfect venue, masterminding everything from finding niche speakers to tailoring an event app and developing a multimedia communication strategy.
The team organise every aspect, from database management and delegate packs to transport, and they are there on the day to ensure everything runs smoothly.
Tracking success
Crucially, the Strategic and the Events services should also include pinpoint analysis of engagement and performance data to track how successful each event has been for the buyer, not just how much attendees enjoyed themselves.
Key to this is technology that enables buyers to manage and evaluate their strategic meetings management programme with modules such as budgeting, ROI and analytics tools. At an operational level, the right technology can provide venue sourcing, diary management, attendee engagement and delegate management. This level of service allows buyers to track company-wide meeting spend, hone in on cost-effective options, spot trends in attendee behaviour and keep their people safe.
UK travel management companies carried out 33 million transactions in 2017, with millions more standalone meetings organised. Segmenting and categorising services therefore has the scope to make huge impact in terms of customer experience and efficiency gains.
A bespoke approach puts the buyer's business objectives centre stage, improves attendee experience and maximises their return on investment.