While I mentioned a couple of weeks ago that for many companies, cost savings is not enough of a driver to secure complete buy-in or get the go-ahead for implementing a meetings management program, the question of financial implications will inevitably arise. Before undergoing any business case conversation with your executive team, it is important to at least have a baseline estimate. I recommend that you walk through the following calculation:
- Estimate both a low and high-end potential spend. Gut check these numbers and adjust the multiplier if it seems too high or low.
Annual Company Revenue * .01 = low-end estimate
Annual Company Revenue * .03 = high-end estimate
- Estimate potential savings. Based on your meeting spend estimate
Meetings spend estimate * .25 = potential savings
Some of the most frequent sources of tangible dollar savings will come from automating manual processes, centralizing contracts, supplier consolidation, re-use of meeting space from canceled events, reduction of printing costs through the use of a mobile app, and real-time budget visibility. Based on your organization’s current processes, ultimate savings will be higher or lower than industry averages. Here is Cvent’s calculator that automates these calculations based on your industry.