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

ruth@nadlerandassociates.com