iacvb performance measurement initiatives acme annual conference
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IACVB IACVB Performance Measurement Performance Measurement
InitiativesInitiatives
ACME Annual Conference
February 25, 2004
Nadler & Associates
IACVB Core InitiativeIACVB Core Initiative
Provide CVBs with proactive, credible & auditable approaches to performance measures.
Nadler & Associates
Performance Measurement TeamPerformance Measurement Team
To standardize CVB reporting practices by establishing definitions, guidelines, and metrics in order to provide meaningful and useful data.
STANDARD DEFINITIONSSTANDARD DEFINITIONS & &
PERFORMANCE MEASURESPERFORMANCE MEASURES
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The ChallengeThe Challenge
• CVBs receive the lion’s share of their funding (82%) from public sources
• Unique position = external performance audits by local community stakeholders
• Lack of uniform approach to productivity reporting skepticism with CVB-supplied results
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A Real External CVB AuditA Real External CVB Audit
“The [CVB]’s marketing program has not developed or implemented any formal monitoring and evaluation procedures or mechanisms to determine the effectiveness of its marketing activities…despite the acknowledged importance of a monitoring/ evaluation system…Instead, [CVB] relies on such VAGUE ideas as the health of the industry and such HAPHAZARD methods as what people tell them. While senior [CVB] officials acknowledged the LACK of a monitoring system, they claim at the same time that the overall success of the [CVB] during the last five years---the increase in visitors and growth of expenditures and tax revenues generated by these visitors---all indicate that the [CVB] marketing program MUST BE WORKING.”
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The SolutionThe Solution
Develop an Accountability Mindset
CVB must be seen as a business by its investors
Account for the effectiveness of the investment
Establish standard definitions and measures for tracking and reporting CVB sales and marketing performance
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Why Standards?Why Standards?
• Uniform approach for internal/external audits
• Quantitative, management tools to identify organizational strengths, weaknesses and opportunities
• Recognized benchmarks to measure success over time
• Competitive Assessment - How does the CVB compare to other comparable CVBs?
• Serve as a basis for ROI calculations
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CVB Management & Staff
Destination Stakeholders
Government/Funding Entities
Consultants & Auditors
Media
Interested PartiesInterested Parties
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The ProcessThe Process
Started in 2003
Initial CVB outreach - Survey– definitions used by CVBs– activity & productivity metrics– visitor characteristics– methods used to track specific
variables
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Results of the SurveyResults of the Survey
• Good News– CVBs at all levels measure their activity
and productivity to some degree
• Bad News– CVBs use inconsistent definitions– Activity and productivity metrics measure
different things– ‘Data Rich’ but ‘Information Poor’
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Initial draft recommendations debated at joint PMT/Convention Sales Shirtsleeves meeting during 2003 Annual Convention
Revised draft circulated to PMT, IACVB membership & general public for comment via www.iacvb.org Sept. 2003
The ProcessThe Process
Standard Convention Sales Standard Convention Sales Definitions, Activity & Definitions, Activity &
Productivity MeasurementsProductivity Measurements
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Sales Productivity Standards CriteriaSales Productivity Standards Criteria
• Documentation
• Auditable
• Accountable
• Credible
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CVB Implementation StrategyCVB Implementation Strategy
• Core MeasurementsEnsures CVBs are consistent in reporting baseline metrics
• Supplemental Measurements CVBs will expand and enhance their accountability and productivity practices
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Recommended Convention Sales Recommended Convention Sales DefinitionsDefinitions
• Lead
• Bid
• Tentative
• Booking - hotel event
• Booking - citywide/conv. center event
• Lost Opportunity
• Cancelled Business
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Recommended Convention Sales Recommended Convention Sales Activity MeasurementsActivity Measurements
• Bids
• Tradeshows attended
• Outside sales trips
• Clients/Potential clients visited
• Client site inspections
• Fam tours
• Fam tour participants (planners only)
• Telephone call reports
• Direct mail campaigns
• Telemarketing campaigns
Note: All Convention Sales Activity Measurements are CORE metrics
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Recommended Convention Sales Recommended Convention Sales Productivity MeasurementsProductivity Measurements
• Leads– room nights
• Bookings– room nights– attendance– attendee spending
• Lost Opportunities– room nights– reason for loss– attendee – attendee spending
• Cancellations– room nights– reason for loss– attendee – attendee spending
• Number of leads per tradeshow attended
Note: All Convention Sales Productivity Measurements are CORE metrics
• Tentatives* * Status being refined
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Next StepsNext Steps
• IACVB Board adopted recommended definitions and core performance measures
• Publicized to IACVB membership and key industry partners through communication and education efforts
• Standards have been submitted to APEX for inclusion
• Review & recommend supplemental convention sales productivity metrics and special issues
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Next StepsNext Steps
Focus on Convention Sales Supplemental Measures & Special Issues
CVB Originated vs. Assisted Business
New & Repeat Business
Sales Conversion Ratios
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Leisure Sales Productivity Measures: Leisure Sales Productivity Measures: UpdateUpdate
• Three separate areas – Definition of a visitor & key visitor statistics– Group sales activity & productivity measures– Consumer sales activity & productivity measures
• Initial recommendations under review
• Enlist the Tourism Committee for input
• Recommendations slated for July 2004 IACVB Board of Directors meeting
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ROI: UpdateROI: Update
• Incorporate Convention and Leisure Sales Productivity Measures
• Extensive review by membership and industry partners w/expertise in CVB ROI
• Results will be completed end of 2004
• Provide CVBs with tools to measure value to community & stakeholders
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IACVB CommitmentIACVB Commitment
Providing CVBs with pro-active, actionable approaches to performance measurements will remain a CORE initiative for IACVB.
Check www.iacvb.org for updates on its Performance Measures Initiative
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Questions/More InformationQuestions/More Information
Ruth Trojan, Nadler & Associates