All work and no play isn’t as beneficial as some companies believe. There are benefits to entertaining your clients, and we have a few reasons outlined for you here.
Why do you see the need to entertain guests in your home but can’t apply it at your business place? According to experts, the same reason you do this in your personal space should be the same (or more) reason you replicate that in your company. That said, what impact does client entertainment have on your company? First, you can deduct from your tax a whopping 100% of the costs of entertaining your clients and customers! For other benefits, please read on.
- Maintains business relationship
Your clients, like everybody else, will love a good dose of stress-relieving entertainment. It may sound relatively trivial to the typical business-oriented person, but it is the truth. Professionals like Jorge Hank Rhon understood this so well that he found it expedient to build dog racing tracks and other entertainment outfits to boost his organization. Indeed, clients are naturally attracted to value proposals, but how you go about it will determine your business relationship with them.
While one school of thought believes clients are difficult to please, another asserts that knowing how to break the ice impacts whether your business can maintain such relationships. Moreover, in a competitive world of commerce, maintaining the relationship is good for business as it determines whether you’ll benefit from repeat transactions or not. As a tip, avoid thinking that business relationships are not to be nurtured. Instead, through nurturing, you increase the chances of maintaining a long-lasting business relationship with clients.
- Differentiates your company from others
Competition in the business space is always rife, and if you fail to be innovative, you will lose out. Entertaining your clients separates you from the rest of the pack. Your competitors may be hitting their targets and raking in huge revenue initially, but that may shift soon if you do it right. Making your clients feel more comfortable with you sets the foundation that distinguishes you from others who may have even started operations before you did.
Unfortunately, some companies develop a habit of entertaining new clients as a marketing strategy. If you fall into this category, you should know that you may be setting your business up for a fall. Although it’s necessary to do whatever it takes to impress new clients, your existing clients are your link to continuous business. Remember that client loyalty can wane at a quick rate if you ignore them. Therefore, to create a fairground for all, maintain special entertainment perks for your existing customers.
- Increased revenue
Client loyalty usually translates into increased patronage of your goods and services. As a result, that has a direct bearing on business revenue. This is a natural law of nature that proves that people go where they feel appreciated. Client entertainment goes beyond creating a lasting first impression. It has rewarding benefits for your business establishment. Remember the tax deduction benefits mentioned in the introduction.
Therefore, the next time you’re planning with your marketing team to strategize business operations, it would help if you factored in client entertainment. Indeed, it pays to invest where your mouth is.