Critics often see entertaining clients with corporate hospitality as an unnecessary expense; instead, it should be seen as an investment in clients and in the future of your business.
Many visualise client hospitality as expensive caviar canapes served with top label champagne in a luxurious client box. However, hospitality does not have to cost the Earth, and there are many options available to suit a range of budgets, whether it’s entertaining at a big event, a more participatory experience, or something completely different and unique.
For any considering any form of investment, the bottom line is the core. Sure, client hospitality requires an investment, but with the other benefits it provides, it provides an excellent return on investment.
Here are a few reasons why entertaining clients can be good for your business:
It allows you to get to know one another in an informal setting
We all know that it’s a good thing to get out of the office and escape the four walls of the workplace and the pressures of everyday work. Getting your important clients or prospective clients out of a stuffy, formal workplace and into a more relaxed and informal setting means that will be less aware of external demands and more able to concentrate on their relationship with you.
It gives an excellent first impression.
First impressions always matter. Business relationships are built on personal relationships, and if you meet clients face-to-face for the first time, company hospitality offers a more casual environment in which it is easier to get to know clients on a personal level. It’s a chance to demonstrate your loyalty to them as a customer and your ability to deliver and impress. This is why it is important to get it right. If you are organising something, makes sure you make the right choice from a large selection of after-dinner speakers. If you are taking them out for food, make sure you book somewhere in advance, so you do not face the embarrassment of being turned away when you get there. Organisation and preparation are key.
It nurtures relationships
Customer hospitality is a very effective way to elevate a customer relationship to the next level. Maintaining business with existing clients is far less expensive than the expense of attracting new customers to replace those who take business elsewhere.
As well as this, clients with a stronger relationship with their suppliers have been shown to spend more and are also more likely to become a firm supporter of a business. Word of mouth is the cheapest, most efficient means of advertising. The cost of corporate hospitality is very little compared to the value of a long term client. Entertaining a client demonstrates your continued commitment to the partnership and is also a great way to thank the customer for their loyalty.
While entertaining does and will cost money, don’t see it as an unnecessary or unimportant expense, see it as a form of investment in your company, and it’s clients.
- This post has been written by an outside source – See Disclosure Policy
