“Why should I spend money and time on meetings and travel?” It’s not uncommon to hear the question tossed around. People started tightening their economic belts and were looking into any and every way to cut costs, limit spending and increase efficiency. The problem with the strategy was many businesses blindly cutting spending without looking into the potential ramifications, which frequently led to undesirable results. Problem number one in this instance came from dreaded lost opportunity costs.
One way to quantify lost opportunity costs is to identify all the business that won’t get done when you don’t get your important clients, colleagues and employees in the same room together. Where there is big opportunity for growth and revenue, there is a big opportunity to miss out on a potential bonanza. If you’re still hesitant about quantifying the ROI of an event, just look at these figures:
According to an Oxford Economics study, “Detailed statistical modeling over 18 years and 14 industries indicates that for every dollar invested in business travel, U.S. companies have experienced a $9.50 return in terms of revenue.”
Travel budgets were first up on the chopping block for lots of companies, and the results haven’t been pretty. Proponents of the importance and value of face-to-face were overruled by hardline accounting decision makers to deleterious effect. The simple truth of the matter is personal interaction drives creativity, teamwork, efficiency and productivity, and an analysis of financial data backs it up. Capitalize on the opportunities your business has, and see how meetings can boost your bottom line.