Warren Buffet has famously said praise by name, criticize by industry. COVID-19 is arguably the best thing that ever happened to the conference industry as the general format has not changed in decades, literally. Now is the time for the conference industry to take a long, hard look in the mirror and re-asses its value proposition. Now is the best time to re-think the entire experience given we are going to be in a virtual world for the foreseeable future. The world and speed of business has changed and conferences need to adapt to this new reality. Many conferences put too much emphasis on panels and education and not enough on networking. To be fair, there is value to education and panels as they play a role, but it should be second fiddle to promoting networking. To be clear, true networking is not an open ballroom with a bar and hundreds of people. It’s a thoughtful way to foster relationship building. This has never been needed more than it is now, especially since there are few conferences that cater to lenders. The conference industry faces a real dilemma right now as their product is not evolving and prospective attendee budgets are shrinking.
The author is and has been a BDO for the better part of a decade and pre-COVID attended on average two deal conferences (big and small) per month across the country. Rarely can I attest that a conference put the customer first in the sense of truly promoting networking for lenders. Granted, some conferences are meant for private equity professionals, but not all. Many are unfortunately too focused on legacy revenue models based on sponsorships rather than fostering the best experience for attendees. Not enough conference hosts understand their respective customers or foster networking by making it easy for people to connect. Many conferences don’t give out attendee lists with contact info under the auspices that it is for sponsors only or out of fear that folks will attend once. Since firms pay a lot of money for a ticket, travel and entertainment, it is not an unreasonable expectation to get the list of people (including emails) attending. Also, attendees are often required to use the conference’s captive reservation system to set up meetings. To complicate this, many large banks and lenders have software and security protocols in place that prevent their employees from using these systems efficiently, which is another reason to provide attendee lists. The logic from organizers goes that folks should risk their time and capital to hear panels and potentially meet helpful contacts.
This thinking is sadly pervasive in the conference industry. The value of human interaction in business and life for that matter will never be replaced. Many conferences continue to limit quality relationship building as there is a clear lack of understanding the customer. The author cannot think of any BDO that would travel to a conference for a panel versus the opportunity to schedule quality meetings. Yet, look at any conference ad and they all tout panels and education. There is just a fundamental disconnect from the perception of value compared to the real value delivered to attendees. Conversely, the few conferences that have put the customer first in terms of networking and easily accessible attendee lists have thrived. Every hotel owner should be forced to be a guest in their hotel meaning it’s hard to know the pain points of the guest until they have been one.
The problem is that any and all conferences that are unwilling to give out attendee lists simply don’t believe in their product or need to update their business models. This is a sad, but true fact. Pre-Covid, the author traveled literally the entire country each month and faced the same ongoing argument with conference organizers. What is the value-add or incentive for a bank or non-bank lender to travel to a location, pay the conference fee to not get a simple attendee list with contact info? To be fair, some events do provide, but many don’t under the guise that “panels” will provide such strong education that networking is simply less valuable. These people need to understand pressure to produce business or justify the expense of a trip, especially at a time when all firms are cutting costs. The fact that there are no better options in certain regions is proof that this industry is long overdue for an overhaul.
What event organizers should focus on is a way for attendees to build relationships and have memorable experiences. Most have the premise inverted by not making access easier. Rather than fear making networking easier, the ones that go out of their way to do this well will see increases rather than decreases. We live in an experiential world where consumers and businesses will pay for experiences. The fundamental experience at a trade show is to be able to build your network, your personal brand and educate others about your firm. There is enormous value to be created by this industry by simply focusing on customer experience rather than protecting a legacy revenue model.
To give some praise where it is due the TMA organization has been one of the few on the innovative side of building its membership for a few key reasons. Firstly, they promote networking locally and nationally and go through great lengths to deliver on this. They go through great lengths to find good formats and attract top tier professionals who have a reason to meet each other. Second, they offer an affordable price and make contacting other professionals transparent and easy. Thirdly, they have done this locally and nationally. The annual TMA show is the only national I can think of that continues to grow because of the focus on promotion relationship building. By no means is the TMA the only game in town, but the author highlights them as they have involved their constituency to better create memorable experiences.
On behalf of the BDOs who live for conferences now is the time for all conference organizers to re-invent and refresh their offering. We have all adjusted and pivoted in this new world. Let’s hope the conference world does the same.
The author appreciates feedback and he can be reached at charlie@sgcreditpartners.com.
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