tides of change: trends disrupting the meetings industry
DESCRIPTION
Disruptive forces are significantly reshaping the world of work and the meetings industry. Some of these changes have been brewing for a decade or more. The recession exacerbated their influence and speeded up their effects. Companies that survived the downturn need to shift their focus to surviving the upturn. We are not ever going to get back to normal. A new way of business is emerging for everyone, everywhere.TRANSCRIPT
The Trends Disrupting The Meetings
Industry Tides Of
Change
3
1) Identify
four new
consumer
behaviors
shaped by
recession.
4
2) Discuss trends disrupting the meetings industry.
anticipating what
opinion to be.
John Maynard Keynes, 1936
average opinion expects the
average
We devote our intelligences to
Rely on
Guesstimates
Opinions
Absence Of Good Economic Models
Crowds
higher rates of unemployment, years before housing prices get back to old highs, a weaker dollar, more government debt, more taxes, a little deflation, then a lot more inflation and an end to U.S. global economic downturn…
~ Don Reynolds, Economist, 21st Century Forecasting
More Regulation, A WeakerConsum
er
Welcome To
TheNew Normal
4 New Consumer/Attendee Types
New behaviors
Adoption of
New Normal
Great Recession
Shaped
Decitica Research
Research showed new lens
on how consumers
internalized
their recession experience
Steadfast
Frugalists 20% of population 6 in 10 women Fewer Gen X & Gen Y Already considered
tightwads Most difficult to
market to
Involuntary Penny Pinchers 29% of population 6 in 10 women Primarily Gen X Forced frugality Challenging group
to attract
Pragmatic
Spenders 29% of population 6 in 10 men Over represented by people in 60s 1/3 HHI > $75K Best group to
market to
Apathetic Materialists 22% of population
Slightly more women
than men Gen Y Indifferent Attractive target for
youth market
So What?What Does This Mean To You?• Steadfast Frugalists• Involuntary Penny Pinchers• Pragmatic Spenders• Apathetic Materialists
1 in 5 U.S. Meeting Professionals
doubt economy in recovery
CEIR Index For Exhibits DownFor nine straight quarters
Struggling Economic
Growth
55 %Consumer Optimism
Economy Improves
Next Year
Struggling Economic
Growth
9.6 %Unemployment*
*Not Included8.9 Million Part-Time
6.2 Million Jobless 27 wks or >
2.4 Million not in labor force
1.1 Million discouraged workforce
1.3 Million did not search for job
Americans Saving
More
6% Income
Spending Less
Fragile
Economy
18 more monthsEconomic
TurmoilDouble Dip Recession4th Quarter 2011 USA
1st & 2nd Quarter 2011
Europe & Asia
Roger Martin-Fagg , Global Event Summit, London, 9/2010
41Million Minutes
Spent on Facebook
More than GoogleAugust 2010
10 New NormalsThe impact of the new normal on
meeting and event professionals
Tides Of
Change
Impact of New Normal On Meetings Industry
Four Major Waves
Tides Of Change On Meetings Industry
Four Major Waves1. Buyer & Seller
Changes
Four Major Waves1. Buyer & Seller
Changes2. Biz Model Disruptors
Four Major Waves1. Buyer & Seller
Changes2. Biz Model Disruptors
3. Programming
Pressures
Four Major Waves1. Buyer & Seller
Changes2. Biz Model Disruptors
3. Programming
Pressures4. Attendee
Expectations
Wave #1 Buyer & Seller
Changes
1. Buyers Market
On an inflation-adjusted basis ... it’s going to probably take eight to ten years to get hotel room rates back to where they were in 2007.
Mark Lomanno, President Smith Travel Research
• Price Integrity • Rate Transparency• Less Brand loyalty
TRUST!
1. Buyers Market
2. Move from Transactions to Relationships
Trust is
differentiat
or
• Online footprint
• Social mediainteractions
• There B4 the Sale
• Geo-location
2a. Relationship Sales: Hotel
2.0
Process to monitor, engage & manage conversations &relationships with existing & prospective customers & influencers across the Internet, social networks & digital channels. ~ Mark Walsh
2b. Relationship Sales: Social CRM
3. Reg List Lures
4. Buyers Still Stung
byExtravagant Label
Optimism up.
Budgets not.
Incentive Research Foundation Pulse Survey Report, 8/2010
5. More For Less New Frugality
• New Competitive Set
• Buy up, not down• Packages
6. Group Biz Commoditized
• RFP Overload
• Grids
• Selling brass & glass
• More small biz
7. Billboard EffectExpedia/Cvent
8. Push To Pull
42
What struck most
about buyers & seller
changes?
Small Group Discussion
Wave #2Business Model Disruptors
Innovation9. Creative
Destruction
New ways to create
value Drive out old
10. Rise Of
Free
Increased pressure to create
value
11. Self-Organized Communities
12. 2011 Hotel & Airfare Rates Rise
13. No Longer Serves Us
14. Shorter Lead
Times
15. Procurement Depts Taking Over Incentive
TravelIncentive Research Foundation Pulse Survey Report, 8/2010
SMM16. Smarter
Buyers
17. C-Suite more involved indecisions
aboutconferences & travel
18. Increased Demand ROI &
ROO
19. Successful Shows
At expense of weaker
shows
Continue To
Grow
19a. Successful Shows See
Growth Reputation for
best
Ed, Networking
Quality,
BuyersInnovatio
nFocus on
programming
20. Exhibit Revenue Mix Changes
Traditional 85% booth, 15%
sponsorshipLess booth, more
sponsorship
21. Current Exhibit Biz Model
Not likely sustainable. ~ Doug
Ducate CEIR President & CEO
58
Which biz disruptors are impacting you?
Small Group Discussion
Wave
#3
Programming Pressures
21. Increased PressureProgrammingNetworking
New Products
22. Speakers With
Substance In
Motivational out
unless Programming packed with
relevance
23.
Extending
The Reach• Technology
infrastructure
• Helping your customers reach their customers beyond four walls of venue
24. Untraditional Room Setups
Conduit For
25. Your Conference Seen
As Connections
Novices: 1-5
yrs
26. Three Audience Types
Mature: 6-10 yrs
Experienced: 11
yrs >
To Plan For
27. Education Vs. Information
Is your
programmingInformation
DumpsInteractive Learning
67
28. Active Learningwhen the learner
is involved in more
to a lecture.
than just listening
68
How will new
programming pressures
impact you?
Small Group Discussion
Wave
#4
Attendee Expectations
29. Online Content & CommunitiesThreat or Opportunity
30. Monologues To Dialogues
To Polylogues
31. Participatory Culture
32. More Adult White
Space
33. Problem
CentricNot Content Centric
34. One Size Fits All Out
Mass Customization
Free Wi-Fi
Expectation
35. Attendee
36. On-Demand &Mobile Access
37. Green
ContinuesTo Drive
Decisions
38. Attracting Younger Audiences
80
1) Identify
four new
consumer
behaviors
shaped by
recession.
• Steadfast Frugalists• Involuntary Penny Pinchers• Pragmatic Spenders• Apathetic Materialists
82
2) Discuss trends disrupting the meetings industry.
Four Major Waves1. Buyer & Seller
Changes2. Biz Model Disruptors
3. Programming
Pressures4. Attendee
Expectations
To expect a normal recovery cycle, whether it is corporate profits or lending or consumer spending or capital investment, or pick the category—increased meeting attendance, or association growth, or…
is just notreasonable.
~ Don Reynolds, Economist 21st Century Forecasting
85
Planning Meetings & Events…
Not A Piece Of Cake
86
Adult Ed & Meetings
Thank You
Stay Cool!
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