I'd like to throw a big ole THANK YOU (read: sarcastic) to AIG for their role in vilifying the event industry. You may remember the story of the company who, despite asking the government for financial assistance, went ahead with high-dollar (and I mean HIGH) events for executives and independent
financial planners. And while AIG can't be held solely responsible for the troubled event industry, they certainly brought events and event marketing to a new level of PR and scrutiny.
Once companies started feeling the effects of the recession, it seemed natural to many that events would be the first to go. The combination of the cost of events and the difficulty in measuring ROI caused companies to revert to other methods, or sometimes nothing at all. At the end of 2008 and the beginning of 2009, clients not only began questioning the cost and value of events, but also the impression the event would give to employees, consumers and the general public. Return on investment was no longer the most important factor; public perception ruled the day.
Texas Roadhouse understands that firsthand. The popular restaurant chain held an event for its employees after the AIG hubbub, and the public was hopping mad. Reporter Ashley L. Brazzel from PlanYourMeetings.com writes,
"While other restaurants are struggling to attract diners, 89 percent of Texas Roadhouse customers plan to return; 71 percent eat there more than two times a month. In an industry known for its high turnover rates, employee turnover has dropped by 15 percent in the last two years."
Right on, Texas Roadhouse.
The move to continue with their event was bold; the idea of doing an event for potential customers rather than employees is much more palatable.
Companies are tending to invest less in their employees and more in potential new business – it's good business sense, right? By continuing with their event, Texas Roadhouse and employers like them embrace not only the idea of the experience, but also the unique thought that putting time and money into your employees, especially in a recession, can prove successful.
DUDE, WHERE'S MY SPA TREATMENT?
The fatal flaw for AIG was the approach to their event in the wake of their federal assistance request, not the existence of it. Were the thousands of dollars for spa treatments and five-star accommodations required to train independent planners? Memorable, yes; required, no. Unlike AIG, many companies today are finding ways to cut the luxury while still having an exciting, impactful and memorable event. These days, spa retreats are being replaced with group public service projects to benefit the host city. It’s not a moment too soon, I say. After a beautiful dinner at a beautiful resort, a member of the media once told me, "We are constantly getting wined and dined. Nothing is new and exciting anymore. Maybe someone should try to take us camping. That would be a different experience."
Luckily, I have worked with several companies over the past year that made the decision to continue with events and event marketing, through making adjustments for the current economic conditions and adding more social responsibility. In this economy where people are canceling vacations and pinching pennies, the opportunity to experience a new product and/or have some fun is exciting, appreciated and leaves a large impact on a consumer or employee. The look on an attendee's face when they hop out of a car, off of a motorcycle, or rock out at a concert – that's the true ROI. Some measure event success with paper forms; some use internet kiosks. But I have yet to find an attendee who was able to accurately translate their joy and excitement to paper or computer kiosks. It is the event workers and the clients in attendance who truly understand the success of their event – and they know it immediately. There's no time needed to tabulate survey forms or process data.
To event or not to event...some say that this is the question. I propose the event can be successful even in/despite stressful economic times. The trick is changing the execution of the event to adopt more social and fiscal responsibility. I'm ready to roll up my sleeves and accept the challenge.
Since I am slightly biased, what do you think? Are events worth the time and money in this economy