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Meetings

The Power Of SMM Tech: Travel Procurement’s Last Frontier Boasts Saving

By Michael B. Baker / August 24, 2015 / Contact Reporter
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Travel buyers who’ve tapped meetings management technology report that they have more control over such tools and that return on investment has improved as a result, though they often have to tweak the technology.

The travel management industry has focused on strategic meetings management for years, but professionals still commonly call the segment “the Wild West” or “the last bastion of procurement,” Meetings Analytics founder Kimberly Meyer said at The BTN Group’s recent Tech Talk event in Chicago. Avoiding this frontier, though, means failing to capture visibility into meetings data, and that opens a company to risks beyond just lost savings, including exposure to fraud, she said.

Centralization 

Meetings and events project manager Erin Stahowiak launched McDonald’s Corp.’s U.S. and Canadian SMM program two years ago. Until then, the 15-person department managed about 30 meetings and a 15,000- to 18,000-attendee convention each year. The rest of the company’s 1,000 meetings were planned outside the department. “We were fully aware that we needed to start getting some insight into what was happening and get some tools into the hands of those planners,” Stahowiak said. “Everything was happening from a manual standpoint.”

Project leaders met with several of those ad hoc planners to introduce them to the concept of SMM and discuss their pain points. Those planners ultimately helped the project team select Cvent to help organizers source, budget and plan.

“We knew what we wanted to accomplish and be able to speak to from a reporting standpoint,” she said. “We were able to start from the ground up with Cvent to build the program, figure out what we wanted our planners to be doing and figure out what to source externally from a support standpoint.”

The technology empowered planners to register meetings and create a system calendar that populates automatically as meetings are registered, according to Stahowiak. McDonald’s third-party travel partners also work in Cvent, such as the partner that helps planners find meeting locations. “It’s documenting everything we want to be recognizing: savings they’re negotiating, contract terms to show how they’re protecting the company and, from a budgeting standpoint, going in after the event to capture what we’re actually spending to speak to overall spend,” Stahowiak said.

Reporting & Corralling Total Spend 

Aon senior manager of meeting services and sourcing Sue Daly deployed Lanyon’s StarCite to manage meetings in the United States. Meeting hosts entered 250 meetings into the tool in 2009, the first year, and Daly has since expanded it to the United Kingdom and India. Last year, more than 800 meetings went through the system, in which requesters enter information and the planning team sources the meeting.

The technology has improved reporting significantly, Daly said. Aon integrates StarCite, booking tool GetThere and management platform Salesforce and thus can report on the total costs of meetings, including airfare. “We also have scorecards, sent out mostly to executives, showing meetings and where they are in the process,” Daly said. “We can show the hotels, rate booked, spend year over year and future meetings reports, so they can monitor what’s on the horizon.”

The platform also streamlines the risk management company’s complex meetings approval process and supports compliance with government regulations.

Anthem director of travel and events Cindy Heston cautioned that there’s no magic-bullet SMM tech tool. Anthem’s airline data was not making it into Cvent, despite a strong application program interface with both Concur and GetThere. “Users would register for an event months before departure but wouldn’t book air until two or three weeks ahead of time,” Heston said. “Through trial and error, we found that they weren’t going back into the registration.”

So Anthem developed a system to upload attendee lists to the booking tool and recognize attendees by booking date and destination. The system pushes that data to third-party firm Cornerstone Data Strategies to segregate as meetings data. That allows Anthem to target this data when negotiating airline contracts specific to meetings and events.

Mobile Event Apps 

By 2016, 86 percent of meeting planners intend to run apps for event attendees, according to an Event Marketing Institute/Cvent survey of about 300 association and corporate planners conducted in late 2014 and published in March. Most planners also plan to spend more on those apps. It helps that the move can produce cost savings. Some in the study have cut printing costs as much as 84 percent through use of mobile apps.

Now that McDonald’s has formalized a corporationwide meeting planning system, meetings and events project manager Erin Stahowiak is turning her focus to engaging attendees once they’re at the events. The company has soft-launched about 20 such mobile apps. “It’s engaging our stakeholders in a different way and talking to them about strategic communications,” she said. “It’s how you take that meeting and get them engaged both before and after, so you stretch out the life of that meeting and build on the ROI.”

McDonald’s put the responsibility for developing and executing the apps on event hosts, not Stahowiak’s team, but convincing them to do so has not been difficult. According to Stahowiak. “It’s a new shiny toy, so we’ve been able to get people excited about it.”

This report originally appeared in the August 2015 issue of Travel Procurement. 

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