In our industry, the most powerful sources that can erode profits are revenue leaks. The two most common revenue leaks for both business venues and event venues are money left on the table and lost opportunities.
Money on the table.
When one of your customers inadvertently gets something for nothing, that’s money on the table. Often times, this comes in the form of last minute changes to orders – especially those made on the day of an event. You know the scenario, a customer shows up on the day of an event and says something like, “Oh by the way, we need a microphone.” Someone from your staff runs to the A/V closet to get a microphone. Maybe they make a note; maybe they don’t.
Throughout the day, your staff is busy attending to customer needs and knocking things off their “to do” lists in order to pull off an exceptional event. At the end of the day, that microphone and some of those other quick requests are the last things on the staffer’s mind. He or she simply forgets to add it to the customer’s order, and invoices get sent without the additional fees. Think about how many times that happens at each event.
Fortunately, capturing dollars previously lost on revenue leaks is not as difficult as it may seem. Nor will it bog down your staff with additional paperwork. Today’s event venue management systems allow employees to work from any location – including the event floor. In a connected system, your staff member adds that microphone to the customer’s event on the fly and the fee is immediately added to the invoice in one simple step. When settlement time comes, those dollars that were previously left on the table actually make it to your bottom line.
You can’t win if you don’t play.
Lost opportunity costs happen when your sales team relies on email, voice mail, and notes to manage sales opportunities. In this all too common scenario, a potential client calls in and leaves a voicemail message. Your sales person picks up the call, writes details down on a note, deletes the voicemail and puts the note in a prominent place on his or her desk. Throughout the day or week, other papers get stacked up and the note gets lost before the sales person gets a chance to respond.
Fast forward by a month and you read in the paper that the event that would have been a perfect fit for your venue is being hosted somewhere else. It turns into a profitable event, and the opportunity stays with your competitor for several years into the future. With a connected system that includes customer relationship management purpose-built for event venues, every sales opportunity is entered into the system, so you can see what’s on each of your sales representative’s plates. You can monitor if something is slipping through the cracks. And, a system that can be accessed by anyone in the company allows everyone who answers the phone to direct calls to the appropriate party, so you don’t lose the opportunity to compete.
When venues have the right systems and processes in place, they plug all of those revenue leaks, so essentially they’re getting more income from the tasks they are already doing! I’d love to tell you more about ways to ensure the dollars you earn actually make it to your bottom line. Feel free to contact me via email.
Do you manage a convention center? Check out this blog and follow the link to the on-demand webinar!