Turning your seats into "Business Equity"

What used to be called "client entertaining" is now serious business for forward thinking companies.

One of the most undervalued assets in your company are the suites, seats and tickets that used to fall into the "entertainment" account on your ledger sheet. Today, progressive organizations use their premium seating investment as a strategic business tool.

The old-school approach of "Hey, buddy, enjoy a ticket to the game on me," has evolved into a carefully-tracked business tool that can build new business, retain employees, reward performance and form strategic alliances. Unfortunately, very few businesses know how to manage and account for their Philips premium seating investment. Even worse, some companies are unaware how often their seats are being used and by whom.

There is the true story of a national sales manager for a major corporation who closed a $250,000 three-year agreement by hosting a client to an Elton John performance. After he left the company, nobody in the company understood that this stream of new business resulted at the hosted event. Consequently, the company had no way to evaluate the business value of its seating investment for next yearís budget. In fact, it is a rare company that has a comprehensive system in place to manage the supply of seats, track the business purpose, measure the results and allocate seats based on past successes.

Premium seating can be leveraged as a business-building investment, and like marketing dollars, it must be strategically allocated to deliver the greatest return. When the results are tracked, most companies are surprised to discover just how much new business and good will are generated per dollar spent compared to other marketing and human resources expenditures.

The first step in turning premium seating into business equity is to identify the strategic purposes for which tickets can be used. These areas might include:

• Corporate Sales ‚ A senior sales representative entertains a prospective client whoís keen on superstar, Michael Jordan.

• Employee Retention ‚ The employee of the quarter is rewarded with a hard-to-get Jimmy Buffet ticket for a job well done.

• Customer Service Initiatives ‚ A corporate executive spends quality face time at a Hawks game with a long-term customer to learn more about the ways he can improve customer service.

• Marketing Initiatives ‚ A themed product launch, complete with t-shirts, entertainment and invites, is hosted in a Philips Arena suite.

• Strategic Business Development ‚ A chief marketing officer pursues a strategic alliance with a prospective partner company that can open new markets for growth.

• Total Quality Campaigns ‚ Internal departments meeting performance goals enjoy a family day at Disney on Ice.

After establishing the strategic areas where premium seating can build equity, the next step is to develop a system to manage the supply of tickets and events. This can be as simple a spreadsheet or a sophisticated scheduling program. Events should be prioritized according to their value. A sold-out superstar might rank an "A" while a Monday Thrashers game will rank lower on the scale. The goal is to allocate seats strategically for calculated results.

The final and most important step is events tracking. Like any marketing or HR expenditure, the goal must be defined and the results recorded. Premium seating expenditures can be compared with ROIs achieved from advertising, direct mail, company events, trade shows and business travel. Over time, this feedback will allow your Business Equity Program to align with your companyís evolving goals.

Bottom line, business equity from a premium seating program should be seen as a measurable investment. Any sized business should have a line item on its annual budget with a solid plan attached to see the results.