An Excerpt from The long-Awaited industry report on best Practices for Convention Center Sales and Convention Center Operations (p. 50). Highlights from the Center for Exhibition Industry Research (CEIR) report on why exhibitors leave (p. 62). An insider reveals the "information underground" among salespeople at convention centers, CVBs, and hotels (p. 66). These seemingly disparate articles share a bottom-line theme: The economic viability of convention centers and our entire industry hinges on developing better partnerships. Plain and simple.

Making It Seamless for the Customer

An excerpt from Best Practices for Convention Center Sales and Convention Center Operations: A Report from the Joint Study Committee Sponsored by Destination Marketing Association International (DMAI) and International Association of Assembly Managers Inc. (IAAM)

In January 2006, a group of executives from CVBs and convention center management convened in Phoenix for an ad hoc meeting to discuss the changes in traditional operating models between publicly operated convention centers and independent non-profit destination marketing organizations that were taking place in their communities.

This initial discussion led to a formal appointment of a joint study group sponsored by DMAI and IAAM.

The group sought to explore best practices to advance the industry and enhance the convention center/destination marketing organization (DMO)/customer relationship - understanding that different destinations have unique circumstances that influence policy and practice and that these factors may require different approaches. The study group had one underlying and overriding objective: to provide the destination customer with a seamless positive experience from the onset of the sales cycle through move out.

In most domestic U.S. convention destinations, public assembly facilities are most often owned and operated by a public entity and marketed by a non-profit DMO (commonly a CVB). In recent years, other management and operational structures have evolved, including the emergence of independent for-profit operating companies contracted by facility ownership. Other destinations have developed independent operating authorities to oversee building operations and finances. Although there are a few instances in which the center operations and destination marketing functions are managed within a single organizational structure, most convention centers, regardless of the operating model, rely at least in part, on sales and marketing support from an independent DMO. These organizations often have some exclusive, contracted rights with facility ownership and/or management, to sell the space at some point in the future and beyond, typically 12-18 months in advance.

Many convention centers developed in the last three decades were viewed by municipal ownership as loss leaders contributing essential economic activity that drove new tax revenues, economic benefit, and employment from other services and establishments like hotels, restaurants, and retail stores. It was largely because of this benefit that cities accepted annual losses from facility operations because the convention center was the sole or primary source of new business activity in the corresponding central business district. The post Sept.11-environment is somewhat different and municipal governments and other convention center ownership groups now seek to make operating revenues cover a much higher percentage, if not all, of operating expenses for a host of reasons. Moreover, expansions authorized prior to and just after Sept. 11 have also created greater expectations to meet debt service in the face of shrinking margins due to the current buyers' market. This shift in thinking has placed greater pressure on center management to more closely monitor its operating expenses and the sales performance of its organizational partner, the DMO.

Even those convention centers with significant dedicated public funding are under greater pressure to at least cover expenses or make a profit on their operations. Complicating these transitional conditions is the recognition that the supply of available exhibit and meeting space across the nation currently exceeds demand, resulting in a buyers' market. Pressure to perform financially and discounting rental rates to meet the competition are not necessarily compatible, but offer real considerations nonetheless. Given this unique environment and the fact that most convention centers are owned and operated by public entities and marketed by independent non-profit organizations, the quality of the relationship of the two entities has never before been more critical. The need to develop a shared vision and common performance objectives has become paramount to success.

The buyers' market has exacerbated an already competitive environment resulting in the need to discount rental rates or increase services that can create a competitive advantage. It is within this context that the relationship between the DMO and convention center management are often at odds as their missions and performance evaluation are based on different, often competing objectives. The DMO management is focused on using the convention center as a tool to sell hotel room nights which is often the source of their revenue and a primary source of revenue to retire bonded debt on the convention center itself. Conversely, convention center management is charged with meeting critical financial operating performance that often limits flexibility in rental pricing to respond to competitive realities.

Given these realities, the group identified nine critical areas to promote best practices in sales and operations in order to provide the customer with a seamless experience:

1. convention sales
2. convention center operations
3. joint accountability
4. joint advocacy
5. funding and finance
6. technology
7. training and human resource deployment
8. conflict resolution
9. certification and accreditation.

Critical Issue No. 1: Convention Sales
The one common objective typically shared by convention center management and DMO executives is maximized utilization of the available space at the center. To help establish a better working relationship between the two, the group recommended taking the following steps:

• openly discuss the specific objectives of each entity
• develop a joint marketing plan for the convention center, recognizing the efforts of the DMO will be focused on convention holding groups outside of the agreed-upon timeframe, and that the efforts of the center sales staff are likely concentrated inside of the same timeframe
• establish a joint commitment to those local and repeating shows that drive critical operating profit for the center while maximizing available dates for convention-holding groups
• consider the needs and required cooperation of other industry partners, especially the hotel community in the market planning process
• address all market segments and a targeted mix of business aligned with each groups' organizational performance expectations in a co-authored marketing plan
• release a budget corresponding to the marketing plan, which details advertising, public relations, print and digital collateral development, promotional activities, sales trips, FAMs, and trade show attendance
• build a one-stop convention center Web site that includes all available or developed promotional media and information on all operational considerations required of any customer for both the convention center and the corresponding destination amenities; if an independent site is not practical, link and co-brand the destination site and the convention center sites
• ensure that the booking policies and guidelines are aligned with organizational priorities, performance expectations, and the jointly agreed upon market strategy, providing enough flexibility to promote maximum profitability, utilization of space and room nights booked.
• the sales team employed by the DMO should have specific revenue goals at the convention center; conversely the sales team employed by the convention center should have specific objectives that are aligned with the primary performance objectives of the DMO sales team, usually confirmed/contracted room nights; incentive compensation strategies and programs must be mutually beneficial to both organizations' sales team members
• in prospecting potential accounts/new group business for the convention center, DMO sales team members must lead the process, which includes collecting a history of the clients' performance in other destinations
• both team representatives should meet to review all research on the prospective business and mutually decide on a sales strategy and the competitive offering
• the convention center sales team should consult with key center operations personnel during the sales cycle to ensure the pending offer meets operational capability and compatibility; any additional data from this consultation must be shared with the DMO representative.

Critical Issue No. 2: Convention Center Operations
Many customers have expressed frustration resulting from the apparent lack of coordinated "hand-off" to the operations team after the contracting phase has been completed. It is necessary to build communication systems that ensure the customer is not "lost" in the system once the customer file moves from the booking office to event planning and supervision:

• hold pre-con meetings which include representatives of all internal departments and third-party event subcontractors and vendors to conduct a careful review of the master event resume, the objectives of the event, and any special needs of the planner or attendees, and to confirm a chain of command
• convention center operating personnel should conduct a detailed training program for all sales personnel
• develop processes that consolidate customer billing/ invoicing for the benefit of customer convenience; create systems that share customer feedback between the DMO and the center operating personnel.

Critical Issue #3: Joint Accountability
Given the fact that the governing body of each organization is most often independent of the other, there needs to be some measure of joint accountability:

• develop performance objectives that are shared by the management of both organizations; center management's performance objectives should include indicators that are typically associated with the DMO (e.g., room nights confirmed) and DMO management's performance objectives should include indicators that are tied directly to fiscal successes at the convention center
• the year-end performance or annual report detailing specific performance successes related to the joint marketing efforts should be co-published.

Critical Issue #4: Joint Advocacy
The current environment fostered by governing bodies creates a counterproductive and competitive funding situation since marketing and operating funds often come from the same source, leading to organizational separation and mistrust. To achieve the most desirable framework for a productive relationship:

• conduct ongoing third-party research to substantiate the full economic impacts of the overall convention enterprise to the area's economic base
• develop a model that defines transient economic productivity and compares the convention and visitor enterprise with other economic generators within the local economy.

Critical Issue #5: Funding and Finance
Convention center management is most always focused on the management of operating costs relative to operating income sources. Many DMOs fail to account for the revenue requirements necessary to meet operating objectives at the center; they are focused on what must be done to capture and confirm a new piece of business. This is at the heart of the challenge to build a productive relationship between the two entities:

• strictly relying on the center P & L as a measure of success undermines the justification for investing in public assembly facilities at the onset; these facilities are economic development tools that may require ongoing operating support that is dwarfed by the economic spending they create
• some level of industry oversight is needed for the purpose and use of any industry-specific new or increased tax source
• establish a business opportunity fund that both organizations contribute to in order to offset necessary competitive offerings from time to time
• develop a community ROI model that links direct expenditures and associated tax revenues with the center's operating performance.

Critical Issue #6: Technology
Technological resources are the cornerstone of any successful sales and marketing effort in the 21st century. At the same time, the customer's technological expectations continue to grow. The following practices can be employed to maintain pace with the available technology and anticipate inevitable upgrades:

• ensure that the DMO customer relations management system (CRM) and the center event management system are compatible and that the data can be accessed at least on a "read-only" basis; the entire sales and marketing team must have 24/7 access to the booking calendar and file data
• employ sales and marketing technology that includes virtual tours of the center, interactive mapping capability, digitally enhanced and automated e-mail distribution systems with tracking capability
• DMO sales representatives must have access and be permitted to place space holds on behalf of the client on a tentative basis pending approval from center management.

Critical Issue #7: Training and Deployment
Training efforts within the joint sales effort and convention service/event management areas are paramount to the success of the enterprise. The following practices are among those that may enhance efficiency and allow greater flexibility in achieving objectives:

• members of both teams should have "360 degree" product knowledge of both the center and the larger destination, which requires cross-training of all team members that interface with the client at all levels
• management at each entity should consider involving the other in the interview process when selecting candidates for key positions
• consider the formation of an ongoing formal customer advisory system that addresses changing customer needs and expectations.

Critical Issue #8: Conflict Mediation
Due to the nature of the structural and functional differences between the DMO and the center, circumstances related to a specific account or group of accounts may polarize the respective management teams. If the relationship has developed appropriate trust levels and disagreements regarding policies and/or bookings arise, employ the use of an independent third party to mediate and assist in the decision-making process.

Critical Issue #9:
Certification and Accreditation The task force recommends that the boards of directors of both IAAM and DMAI formally encourage the respective education committee chairs to pursue programming that will certify convention sales personnel and convention center operating executives in the best practices identified in this report. Efforts to offer formal credentials to both the DMO and the center who embrace these best practices should be pursued and adopted by the respective certification and/or accreditation programs and employed by the members of both organizations. 

Access the full report: www.iaam.org/CVMS/Conv_cent.htm

Why Exhibitors Leave

In order for trade show organizers to remain successful in a changing marketplace, they can no longer treat exhibit sales space as a real estate transaction, but an opportunity to build a mutually beneficial relationship with the exhibitor partner.

Exhibition organizers have always courted market leaders for their ability to draw other exhibitors and attendees, and to shape content. What has changed is the way in which exhibition organizers are being challenged to engage key clients, the levels of engagement, and adopt a more strategic approach to discover the new needs of their most influential clients. Few major exhibitions are immune to the potential for key exhibitors to terminate their participation in the exhibition. Key exhibitor attrition is part of the ebb and flow of the exhibition life cycle.

The exhibition landscape has changed. According to Francis Friedman, "Fort Tradeshow," the metaphorical closed loop system of buyer/seller commerce has succumbed to the shifting forces of technology, corporate consolidations, call centers and data management solutions, centralized purchasing, outsourcing, and other forces.* The corporate relationship with exhibitions has also evolved. The ability to make customer connections off the exhibition floor, proliferation of competing exhibitions, shortening of product life cycles, weakening of traditional marketing mediums, rise of new media, and the desire for more exhibition focus, intimacy, and return on investment have put some corporations at odds with exhibitions that do not address these changing dynamics.

Key exhibitors drop out of exhibitions because their needs are not being met (the exhibition offerings were inadequate in addressing their overall marketing objectives). In order to meet key exhibitor objectives, exhibition producers must take significant measures to quantify the value of that key exhibitor over the long term, to learn about their marketing objectives, brand strategies, product innovations, and plans for market penetration - and tailor a product that addresses those requirements. The organizer must be so "in tune" with the exhibitor and the industry that he or she can identify potential shifts in the business climate that might signal a change in the client's strategic direction and modify the exhibition product mix accordingly.

There are marketing alternatives to exhibitions. Private or corporate exhibitions, for example, have picked up where some industry exhibitions have left off in terms of attracting specific customers, maintaining a captive audience, and delivering an undiluted message. New media, social network marketing, experiential marketing, television and print advertising are among the alternatives competing for corporate marketing budgets. The answer to key exhibitor attrition in this context lies in the exhibition organization's ability to represent a community rather than a constituency.

There are instances when despite thorough planning, solid relationships with key client decision-makers, and an excellent exhibition, exhibitors terminate their participation. Companies merge and consolidate, cut marketing budgets, change senior management, endure damaging product recalls, experience national tragedies, pursue new markets, and engage in activities that are independent of the exhibition's performance. The important lesson for exhibition producers is that in addition to strengthening key client relationships, they must develop strategies and procedures for minimizing their dependence on bellwether exhibitors to define their exhibition.

The U.S. exhibition industry has grown successfully over the last 35 years, treating exhibit space sales much like a real estate transaction. In the future, successful organizers will be those that shift to a relationship selling sales strategy. Key exhibitors deserve and will demand a greater level of attention when they begin to see themselves as partners contributing more fully to the success of an event.

Footnote: * A View to the Future of the Tradeshow Industry, a White Paper on Trends and Challenges 2003-2010, by Francis Friedman, Time & Place Strategies Inc. ° Editor's Note: To learn more about CEA's initiatives (see case study on next page), visit www.pcma.org/resources/convene/archives/ and click on the December 2006 issue to access the article "Innovation Keeps the Consumer Electronics Association Thriving."

Best Practices for Key Exhibitor Retention

The following approaches, tactics, and procedures are being employed by leading exhibition organizations, trade associations, and general contractors worldwide to address the special needs of key exhibitors and market leaders.

° Employ senior level managers to engage CMOs (Chief Marketing Officers) in strategic discussions about how exhibitions can meet their specific sales and marketing objectives.
° Develop a key account management strategy.
° Evolve from traditional exhibition organizations into media companies.
° Quantify the monetary value of key clients.
° Address the issue of exhibitor return on investment.
° Host an in-house exhibitor training program.
° Allow market leaders to invest in the exhibition without having to exhibit.
° Collaborate with exhibitors to develop corporate exhibitions.
° Set exhibit space limitations.
° Align the exhibition organization's goals with exhibitor's goals.
° Use technology to elevate the level of the face-to-face exhibitor interaction.
° Engage advisory committees to measure key customer satisfaction.

CASE STUDY: Consumer Electronics Show

The International Consumer Electronics Show (CES) is the world's largest exhibition for consumer technology and the largest annual exhibition of any kind in the United States. This past January marked the 40th anniversary of the trade-only exhibition that features manufacturers, developers, and suppliers of consumer technology hardware, content, delivery systems, and related products and services. Produced by the Consumer Electronics Association (CEA), the exhibition occupies more than 1.7 million net square feet of exhibit space in Las Vegas and hosts more than 140,000 visitors from North America and 130 other nations.

As a non-profit trade association, CEA has a significant advantage over for-profit or independent exhibition organizers. CEA is able to build customer loyalty through opportunities and programs year round, versus the traditional exhibition-only model that touches customers once per year. Programs such as publishing, advertising, sponsorship, market research, legislative advocacy, education, and reinvesting 100 percent of the proceeds from its annual exhibition and conference back into the industry, are among the ways that CEA supports its members.

CES has been subject to key exhibitor attrition over the years. A group of key exhibitors in the electronic gaming industry departed CES more than 10 years ago to become aligned with the Interactive Digital Software Association and develop their own exhibition, the Electronic Entertainment Expo. To address the issue of key exhibitor retention, CEA has implemented a number of programs and strategies to strengthen client relationships and retain key customers, key among them an organization-wide SURE (Sense of Urgency, Responsiveness and Empathy) approach to customer service. It involves constant reminders to employees of the importance of effective customer communication and timely responses to inquiries. CEA leadership describes the approach as a type of "emotional bank account," a term coined by author Steven R. Covey, in which they accumulate goodwill "deposits" that enable them to better withstand crises of the magnitude of Sept. 11, economic downturns, and the departure of key customers with less impact than other organizations where customer service is less of a priority.

While participation in CES is an important building block for developing relationships with key clients, members are not required to exhibit at CES in order to contribute significantly to the association. CEA's research has shown, however, that the most satisfied exhibitors at CES are also those companies that are most heavily involved with the association. To capitalize on this relationship, CEA performs a "top to bottom" analysis of exhibitor involvement in the association, quantifying the extent to which members avail themselves of its offerings. This is an opportunity for CEA to characterize a client on several different levels in an attempt to understand and meet their objectives. Over the years, CES management has effectively used exhibitor advisory groups as an important mechanism for determining key exhibitor needs and satisfaction levels. When feedback consistently indicated the need for more private meeting space for exhibitors, CES reserved suites in adjoining halls at the Las Vegas and Sands Convention Centers in Las Vegas where the annual exhibition is held, and offered the space to exhibitors. They also created meeting space on the exhibition floor and allowed exhibitors to build their own meeting space configurations.

For at least the past five years, CES has increased the frequency of meetings between senior-level exhibitor management and CES management. A main topic of discussion is the detailed presentation of CES's independent audit. The audit reveals such important information as numbers of buyers, categories of buyers, management level of attendees, media representation, government and regulatory agency attendance, and other indicators designed to help exhibitors quantify their experience and help determine their ROI.

CES has been challenged with finding ways to appeal to key companies that are unable to or not interested in exhibiting at the annual exhibition. In some cases, the product is not market-ready. In other instances, the offering is a more consumer-oriented product or service, inappropriate for the CES audience, but in need of the brand exposure that CES can deliver. One way that CES has been able to serve non-exhibitors is through creative sponsorship opportunities. An example is the Concierge Center, a visitor service center that offers everything from exhibitor information and foreign language interpreters to massage therapists and wireless Internet access. Sponsors such as Vonage, Palm, and Beck's Beer are able to place the product in the hands of users in the Concierge Center to drive brand recognition and usage while opting not to exhibit in the traditional booth setting.

By offering year-round products and services to its members, establishing programs and offerings that address client concerns and objectives, and continuing to engage key clients at a senior level, CEA has managed to build a loyal exhibitor and sponsor base for its flagship offering, the Consumer Electronics Show.

Busted!

What Suppliers Are Saying About You

It's your job as a planner to negotiate the best deal for your organization, right? Careful: Even a slight exaggeration can be caught. The best convention salespeople at centers, CVBs, and hotels share information - good and bad - about you.

It started out innocently enough. You put together your RFP, sent it to the cities your steering committee identified, and waited for the proposals to roll in. Instead, there were questions. Lots of questions. How much did you spend in convention center rental last year? Food and beverage? What incentives were involved? Why was your pick-up so low? Where did the others stay? You do your best to respond in good faith, as you should.

But suppose you s-t-r-e-t-c-h it just a little? After all, your job is to negotiate and get the best deal possible for your organization, right?

Careful. Good convention center, CVB, and hotel sales people do their homework. And they talk. About you. In truth, the majority of information they share is with the aim of presenting you with the most complete and, hopefully, attractive proposal possible. As meeting planners have grown more skilled in their positions, suppliers are following suit. They are getting better at researching the history of your event, as well as taking a close look at the competitive sites you're considering. Successful salespeople are sniffing out the hot buttons specific to each group and crafting customized proposals that address them.

Doing Their Homework
Those are the really good salespeople. And the others? According to Gwynn Breckenridge, CMP, director of meetings, International Association for Dental Research, "about two-thirds of the salespeople that I work with bother to do any research. Some just go to our Web site, but that does not really tell you anything other than dates and location. I recently met with a salesperson for a city that we are considering again (they lost the first go-round), and this person didn't bother to pull up any history on what they quoted before for rental or space offered - and asked me for the information! That shocked me."

Not only is research helpful in the bid process, it can help move things along when it's time to close the deal. "If you're working from the same data, it shortens negotiation time," said Chuck Potter, CMP, conference & exhibits manager for American Animal Hospital Association, who believes that sharing figures with sales professionals can streamline the contract process. "Sharing information confirms historical data and allows you to address discrepancies with the planner, which sets the stage for productive and successful contract negotiations. I have found that when both parties have common historical data, the final document more closely reflects each party's contractual needs."

Getting the Skinny
In addition to asking planners for more information, there is that "information underground" I referred to before. Just as meeting planners compare notes, it's not uncommon for representatives from non-competing destinations to call a colleague in another city to get the real "skinny" on a client. Since everyone is busy trying to book business for the future, it helps to have a connection.

The Association for Convention Marketing Executives (ACME) provides a forum for this type of exchange at its annual conference and informally throughout the year. Members are convention facility and CVB senior sales staff who use their network to ask general questions about topics such as rebates - but also to talk one-on-one about a particular program or meeting planner. ACME member Linda Addaman, director of marketing & sales for the Indiana Convention Center and RCA Dome, says she often receives inquiries from her peers. "Some want to know how much space a group really used or if we truly waived the building rental, as the client may have suggested," she said.

Getting Personal
Apart from the meeting specifications and requirements, most industry sales professionals also want to know the personal likes and dislikes of the planners they're working with. If a site visit is scheduled, it's helpful to know food preferences, hobbies, or special interests around which to build the itinerary. Some in sales ask clients directly, while others contact an assistant in the client's office or, again, a friend in another city.

"I think it's nice when the CVB or hotel tries to personalize your experience during a site visit as long as that same enthusiasm and attention to detail is translated into customer care for my attendees during the meeting," said Windy Christner, CMP, American Pharmacists' Association's senior director of meetings & expositions. "Instead of the fruit and wine amenity, I've had a basket of dog toys and treats sent [to my room] because my contact knows what a dog lover I am. I've been greeted in the lobby by hotel staff wearing lab coats - very clever. I've also had pre-cons set with pill bottles that read 'Take two for a stellar meeting,' that kind of thing." While Christner likes all of this special attention (who wouldn't?), she says, "in the end, it is most important that the attention to detail to impress the planner is a direct reflection of that which will be used to impress our members."

Melanie Younger, CMP, director of conferences for International Reading Association, offers another perspective: "It's really appreciated when suppliers send amenities to our rooms. Unfortunately, because we're so busy on site, there is often little opportunity for us to take advantage of the wine or fruit-and-cheese tray, so by Day 3 fruit flies are starting to breed over in the corner!"

What's a supplier to do? "One thing I know I would really like would be an offer to press my clothes when I arrive," Younger suggested. "You can't imagine what a load that would take from my shoulders … especially when I am in town for 10 days or so for a citywide,"

So, unless you want, in the words of Bonnie Raitt, to "give 'em something to talk about," be thorough and upfront with suppliers about your meeting history and what you'd like to see in their proposals. And, when it's time to arrive in their city, don't be shy about sharing your personal preferences … unless you happen to like fruit flies.

° Sally Forrest (sforrest@visitphoenix.com) is the director of national accounts for the Greater Phoenix Convention & Visitors Bureau. She is also serving as the 2007-2008 ACME president.