Meeting professionals are facing public scrutiny on the value and relevance of meetings and incentive programs. Now, it is more important than ever to convey the importance of our $40.3 billion industry. Luckily the meetings industry has an expert in their corner, Tracy Norum, Vice President and General Manager for Fox Premier.
Fox Premier Meetings and Incentives was recently named to the second annual “CMI 25”, Corporate Meetings & Incentives® magazine’s list of the industry’s largest and most influential full-service independent meeting and incentive travel management companies focused on the corporate market.
“Fox Premier Meetings and Incentives has developed solid partnerships and worked for the past 20+ years to achieve client goals and reach this pinnacle,” states Tracy Norum, CMP, Vice President and General Manager for Fox Premier. “We manage incentive programs and strategic meeting management plans on a global scale.”
Here, Norum shares her recipe for success when faced with challenges in a multi-dimensional and fluctuating industry.
Midwest Meetings: How has the current scrutiny on incentive programs affected your business and your clients’ business practices?
Tracy Norum: I don’t believe there’s a business out there that isn’t examining their business model and exploring opportunities to tighten their budget. We have been fortunate due to long-term relationships with our clients, we have the ability to address any concerns they have related to the scrutiny propagated within the media. In reality, two troubled industries threw a negative spotlight on incentive programs creating sweeping statements and misinformation. It is those unfamiliar with the benefits of incentive travel programs who may view their elimination as a cost savings measure. In actuality, sales revenue will likely take a hit, creating a significant challenge for many financially astute companies at the cost of an inferior solution. Properly designed, financially responsible incentive programs help companies increase sales, improve profits and recognize and retain top performers. With the current state of our economy, meetings, events and performance improvement programs are not the problem; they are part of the solution and more important now than ever.
MM: How are you conveying the importance of the meetings and incentive programs to existing and prospective clients?
TN: Face to face, traditional communication is more important than it has ever been. For some, there is a misconception that sales incentive programs are for the high-end executives, when actually they are well-earned by the mid-level sales team in the trenches. Incentives can be part of a compensation package to motivate and in turn recognize the achievement of peak sales performance. It’s about expanding potential and changing behaviors to meet and exceed the program goals that are tied directly to a company’s bottom line, branding and future growth.
As an earned incentive, the events are designed to be an exclusive, memorable, once-in-a-lifetime experience in order to fulfill a purpose – a key means of gathering top performers together, building relationships, talking business and gaining greater understanding of today’s industry. It simply makes sense to connect and network with those who sell your product. Successful sales strategies involve relationship building. By putting a face with the product, a sales force or independent distributor network has a greater desire to sell that product above those they don’t know.
Meetings are a proven mechanism for developing solutions and increasing productivity within a company. They are a smart and cost-effective way to improve company culture, retain and develop employee talent, generate ideas, bring challenges to the forefront, share solutions, and drive future business growth. Meetings generate strategic business results.
MM: What types of incentive and loyalty programs do you incorporate and what are the benefits to both the company and if applicable, its shareholders?
TN: The industry and our business have evolved from traditional meeting planning to results driven performance improvement incentive programs and the development of strategic meeting management synergies. It’s more than logistics. Incentive programs involve motivating people’s behavior and creating experience beyond what participants could get on their own.
From concept to promotion, tracking, marketing, selling and fulfillment, we customize programs to reach those ultimate goals of increased sales, loyalty and long lasting relationships within a specified budget.
The bottom line is employees are valuable assets to almost every company. Our programs enhance performance and give employees the motivation to work harder and smarter. Taking the initiative to implement employee recognition and performance improvement programs can yield results - not only with employees, but directly to the bottom line.
Group Incentives, an ultimate form of recognition, fosters a sense of teamwork, drives loyalty, and provides the exclusive experience and opportunity for networking among corporate leaders and peers.
Individual Incentives are we refer to as “your stay, your way.” It is the most popular incentive for companies whose business model does not accommodate a group of individuals out of the office or out of the sales cycle at one time. While winners miss out on the advantages specific to group travel, individual incentive programs offer more flexibility. Winners can often choose from multiple destination offerings that suit their lifestyle and/or have the ability to travel at the time of the year that suits their personal needs.
Studies have historically shown that money isn’t the best motivator…but an unforgettable experience is. Motivated sales people are the key to any company’s success.
MM: What trends are you noticing and what trends are you forecasting for the industry?
TN: With the economic challenges we face, we are seeing an increase of domestic destinations over international with a close look at the length and number of attendees. We have a new generation of attendees who now prefer lifestyle trips to include more adventure and individual interest opportunities. We are seeing a gradual wave of green initiatives with a desire to build corporate responsibility. Creating memorable experiences through community service has been an important part of some programs for a while; drawing attention to them now is being looked upon as favorable. Whether it be stocking backpacks school supplies and delivering them to children in Guatemala or planting gardens for families in rural Mexico, contributing to the local community has a powerful team building result money can’t buy.
MM: Any suggestions to clients on how to make the biggest impact when trying to reduce or maintain their budgets?
TN: The key is remembering a company can achieve priceless results on any budget. There does not need to be a direct correlation between the ability to move hearts, souls, minds and the amount of money a company must spend. It is about the personal experience itself.
Every client has a different vision or set of needs, so this business does not involve a magic formula. The industry has recently aggregated best practices and prudent guidelines for companies engaged in the planning process which will allow event professionals and clients to partner in budget allocation designed to yield high value results.
Companies have branding to consider as well as the overall expectations of the winners and attendees. In order to reduce budgets and continue to be fiscally responsible for upcoming programs we have seen a trend in the selection of more all-inclusive hotel properties as well as longer programs shortening up. For some we are incorporating more free time into the agenda, which incidentally, is often welcomed by the participants. Seasonal shifts in program fulfillment, providing optional activity credits vs. fully hosted programs, creative theme event development and carefully reducing program components all add savings to the bottom line. For example, we have a client combining four nights of room gifts into two – limited to the first and last night of the program. The overall cost is less, but the perceived value of the two amenities is greater.
Bottom line, there are hundreds of ways to save money on your meetings, events and incentive programs that all add up to big savings.
“It’s a fine line to walk. We have to be very careful to protect the integrity of the program so any cuts are undetectable to attendees.”
MM: What do you think our industry partners (clients and suppliers) need to do to limit the backlash everyone is experiencing based on a select few that are in the headlines?
TN: There are three key components to limiting the backlash found in the headlines: 1) for those within the industry to remain informed and effectively communicate the benefits meetings and incentive programs deliver to correct misperceptions; 2) maintain fair and competitive pricing for high value programs; 3) do not cancel existing programs. When scheduled meetings and incentive programs are canceled, substantial hotel, destination and airline fees apply. Unfortunately the loss is great to the company and to the community in which the event was scheduled, resulting in a loss for our economy as a whole.
MM: How can companies’ best communicate the importance of meetings and incentive programs? Do you provide them tools to “sell” to their events and programs to their internal and external customers.
TN: Each client requires their own tools to “sell” their programs. Regardless of the economy we assess our contact’s needs and offer them tailored support. This is accomplished face to face through our business development and program managers. We also have the luxury of utilizing our internal creative services department to design program themes, logos and a look, to assist in the selling process.
One of the most important communication components we provide is to help companies define and outline the goals and objectives of their meetings, incentives and events. Establishing measurable ROO and ROI. The way we communicate flows intuitively based on our audience from that point forward.
To illustrate the importance of meetings, take a look at our government. Meetings are a way to get the job done. President Obama can’t be expected to meet with world leaders over the phone. How would we know our leader if town hall meetings or political conferences were eliminated? I understand I’m taking a big brush stroke with this, but it’s a perfect example of how building relationships and face to face gatherings of like-minded people is essential to collaborative success.
MM: Have you experienced more clients utilizing social networking tools (Facebook, LinkedIn, etc.) to promote their events and/or programs?
TN: While I can’t say I have experienced a great influx of social networking for program promotion, I believe it’s an emerging trend. Social networking is a technology platform for staying connected. While technology does not replace the face-to-face connection we prefer, credible sites such as Twitter, Facebook and Linkedln appeals greatly to our younger generation of attendee as a means of communicating. There is great potential in pre- and post-event communications via social networking tools.
MM: Do you notice more clients holding virtual meetings to reduce costs? If so, what are they losing by not having face to face contact?
TN: The virtual world complements our programs for those who can not attend. It does not replace the need for relationship building and direct interaction with colleagues. Meetings and incentives are important to the individuals involved, to the companies that hold them, to the communities they are held in. It is important to keep America meeting and be part of our economic solution.
Cheryl Geib, national director of travel and meetings at Grant Thornton LLP in Chicago, has been in the meetings/business travel business for 32 years. Geib has seen the industry reach the highest peaks and hit some serious lows during that period, and she took some time recently to talk to Midwest Meetings about how she thinks the industry will emerge from its current problems.
