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2 Good Reasons to Establish a Corporate Hospitality Budget

Rebecca Fells

Rebecca Fells

07-Aug-2015

Corporate Hospitality Rewards

Corporate entertainment and hospitality are big business in Britain. According to Talk Business magazine, sales to corporate hospitality firms account for more than £1 billion of the total £39 billion spent annually on hospitality events. It is clear that companies of all kinds are putting money into entertaining clients, vendors, and employees alike.

What about your company? Do you have a corporate hospitality budget? If not, there are plenty of good reasons for changing things up. We challenge you to step back and consider corporate hospitality as a marketing opportunity that could help propel your business to the next level. Whether it's sporting events, live theatre, or bespoke events tailored to your particular needs, corporate hospitality provides benefits difficult to achieve in any other way.

From our experience, here are two excellent reasons to establish a corporate hospitality budget regardless of the size and scope of your company:

1. Corporate Hospitality Improves Business Relationships

The number one reason our clients use our services is a desire to improve business relationships with their clients. Business-to-business (B2B) relationships rely on mutual respect and common ground outside of the world of business, two things that can be hard to maintain within the confines of day-to-day transactions. Entertaining your B2B clients at a world-class event makes up for shortfalls of the daily grind.

Does it work? Data from the most recent Rugby World Cup Official Hospitality Report suggests it does. According to the report, 89% of the 250 senior managers interviewed claimed corporate hospitality is very effective for improving business relations. They would know, given they are the ones spending the money. This suggests that the amount of money you dedicate to your corporate hospitality budget will be partially dictated by the value of the clients with whom you are attempting to improve relationships.

2. Corporate Hospitality Increases Brand Strength

Successful branding is one of the most important components to generating repeat business. A company with a solid brand is more likely to retain a solid market share as long as products or services continue to meet customer expectations. Corporate hospitality can help in this endeavour by further strengthening a brand in the minds of clients by creating a more personal connection.

According to the Hospitality Report, 52% of Britain's senior managers believe corporate hospitality is effective for increasing brand strength. This is accomplished in any number of ways, including increasing brand awareness among new clients who may still be only nominally familiar with your company. In addition, corporate hospitality shows those clients that have been with you for a long time that you have not lost interest in them. The positive impression this creates makes your brand even stronger.

Looking at corporate hospitality as a marketing tool rather than just a perk your company may consider if you have extra money, changes the way you perceive the value of your customers. While more traditional marketing methods address your clients as separate entities unto themselves, corporate hospitality brings your clients into your fold and makes them part of your corporate family.

We hope you will consider establishing a corporate hospitality budget alongside the traditional marketing budget. Investing in corporate hospitality will help improve business relationships and the strength of your brand.

Sources:

1.Talk Business – http://talkbusinessmagazine.co.uk/2015/07/23/how-much-of-your-marketing-budget-should-be-spent-on-corporate-hospitality/

Corporate Hospitality Budget

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