Corporate hospitality can be a great revenue driver for your business. James Clutterbuck, director of Paragon, offers four steps to make sure you get it right
Corporate hospitality is an integral aspect of growth and development for businesses of all shapes and sizes. In recent years, the opportunities for corporate hospitality have expanded massively, with the market now valued at an estimated £1.2bn. When executed well, corporate hospitality can go a long way to improving and forging client relationships, generating brand awareness, increasing brand value, as well as delivering significant ROI.
Treating your clients to memorable experiences is highly rewarding but requires a considerable amount of research and forward planning. The most successful corporate hospitality is considerate of client needs and interests, as well as your own business objectives. I have identified the following core principles for businesses to consider when planning their corporate hospitality strategies in order to maximise impact:
1. Choose the right event
Are you targeting an individual, high-value client for a more personal hospitality experience, or are you looking to host a larger event targeting a number of clients? Gaining a clear understanding of your clients, their interests and objectives should always be the first step in planning an event.
When targeting an individual client, you should conduct the research into that client’s particular interests. Your client’s preference might be for a particular sport or another type of cultural activity; the possibilities are virtually limitless and the right degree of preparation and forethought will allow you to tailor an event that is perfect for the chosen recipient. Doing so is a positive reflection of your professionalism, dedication and, above all, a personalised and considerate approach to client relationships.
When targeting multiple clients through one event, one size doesn’t always fit all. Dinners and parties can successfully bring together many groups under one roof. However, you might also consider holding a number of smaller events, each designed to engage the specific interests of your different clients. This would also be particularly effective if you have a varied client base.
2. Remember your objectives
Corporate hospitality, for the majority of businesses, is an important strategic tool. Hosting a high-impact event can place your brand in the consciousness of a range of customers and prospective customers in a manner that might otherwise take many months, multiple initiatives and a considerable marketing spend to achieve.
Corporate hospitality is most commonly used to improve existing client relationships and build new ones. Treating your existing clients with events and experiences will help to strengthen brand loyalty, as hospitality is a physical expression of how much you value that relationship.
If your main objective is to win new clients, it’s crucial to think outside the box. A business of any size has to consider using the power of corporate hospitality, not least because they can be certain their competitors are busy doing so.
Whether an overseas trip or a once-in-a-lifetime chance to meet a celebrity, by making your event unforgettable, you do the same for your business in the minds of potential clients. This, in turn, will contribute to improving wider brand awareness and increasing the number of new client leads.
3. Spend carefully
Corporate hospitality can be a significant cost for businesses, and determining how much to spend on events and experiences is often a challenging process. Your corporate hospitality budget should be shaped largely by the relative value of certain clients to your business, your business aims and the suitability of particular types of events.
High-value clients – those who are integral to your financial success – should be treated accordingly. This might mean spending more on tailored, exclusive hospitality packages, such as VIP sporting events, to guarantee quality time with these clients. However, more cost-efficient events, such as dinners and parties, can also be very effective, especially for smaller businesses. They can massively boost brand awareness and help your business to get noticed.
Businesses must avoid blurring the line between acceptable corporate hospitality and bribery. Before the Bribery Act 2010, there was speculation around whether taking clients to sporting or other events might be considered bribery. Guidance from the Ministry of Justice acknowledges that gifts and hospitality that better presents products or services, promotes the image of a company and positive relations between organisations is an important part of doing business and are permitted.
4. Measure your success
Effective corporate hospitality is a long-term process culminating in an event. Think of the event itself as a package that begins with the invitation and anticipatory build up and ends, after the event, with the gathering of feedback. You can use client feedback to identify areas of improvement for future corporate hospitality programmes. Holding frequent events will go a long way to maintaining client relationships, increasing brand awareness and ultimately helping your business measure the success of its corporate hospitality strategies.
You should always look to track the success of your corporate hospitality programmes by measuring ROI during the follow-up. This will help you to determine whether your efforts have been influential, for example, in bringing in new clients, or in increasing the business spend of existing clients. The impact of corporate hospitality on ROI and brand awareness will not always be immediate, so it is a good idea to plan a long-term programme, consisting of multiple events.
