PSYCHOLOGICAL EVIDENCE THAT CORPORATE HOSPITALITY IS WORTH MILLIONS!
Steven Barry is a youngling in terms of property development, although already vastly experienced, 35 years of age is young when it comes to deal making in the property world.
A strategic meeting through corporate hospitality at York Racecourse helped Steven seal his first big deal worth potentially many millions.
In 2012 he attended hospitality at York racecourse with the goal of making himself better known to some key influencers in the world of property. He chose the event as he knew several key decision makers from the commercial banking and property development sectors were going to be in attendance.
The day was a success with Steve attaining a choice few new contacts which he followed up and cultivated a relationship with over the following months.
These contacts proved life changing last week when one of them, whom he had subsequently become close to, was integral to a decision regarding a contract he was involved in.
Names cannot be named for obvious reasons but Steve has sealed the deal and marches on with his ever growing portfolio.
Corporate hospitality gives the opportunity to spend a prolonged amount of quality time with otherwise extremely busy people. It allows one-to-one interaction in a relaxed and enjoyable environment. It opens up high level executives allowing them to show their true personalities and characters and creating more personal relationships.
In addition there are many more subtle and psychological benefits to hospitality.
The reciprocity principle is one of the basic laws of social psychology: It says that in many social situations we pay back what we received from others. I’ve seen this in action through some of my experience in marketing but hospitality is more powerful than a free pen or fancy birthday presents (thanks Adrian, please don’t stop sending me brilliant presents!). It opens up a new relationship between giver and receiver, establishes rapport and an unconscious sense of bonding and long term commitment to each other.
There’s also the social status gratification that attending hospitality at a major sporting event provides. We are always enthused to tell our friends and associates about a new swanky bar or restaurant we have been to and this works in much the same way as attending an exclusive hospitality suite at say Wimbledon or Twickenham.
The even more powerful impact of hospitality is that when a business contact is made through the more social environment they are more likely to be considered a friend thus increasing our drive to please and in theory raising standards of service. This can have a massive direct impact on spend and referral rates.
Meeting with influential minds within your business or industry in a relaxed environment can also have other benefits.
Studies have shown that when someone is relaxed they are more creative. When we are relaxed our brains release dopamine which triggers the parts of the brain associated with creativity.
So, that casual chat with your business contact over a glass of chilled Chablis at Twickenham might just turn into that “Eureka” moment when you come up with a winning joint venture (it would be even more powerful if you could find a hospitality suite with a Jacuzzi in it!) .
Bottom line is hospitality WORKS!