"It's not what you know, it's who you know."

You might argue that with the frenzied growth of social networking - sites like Twitter, Facebook and LinkedIn - that's more true than ever.

So where does that leave corporate hospitality? At a time when you can build a very solid 'virtual' relationship with someone, is there any point taking your clients to the races? Shouldn't you just re-tweet something useful?

Firstly to check the legalities….. Contrary to 'popular' belief, the Bribery Act that came into force in 2010 was not a dagger to the heart of corporate entertaining. Its purpose, was more to give "structure & transparency" in a world where £billion dollar contracts are now common place and the reaching eyes of the 'common man' more intense than ever before.

"Bona fide hospitality and promotion or other business expenditure which seeks to improve the image of a commercial organisation, better to present products and services, or establish cordial relations, is recognised as an established and important part of doing business and it is not the intention of the Act to criminalise such behaviour," said the guidance.

Thus, you can continue to provide tickets to sporting events and take clients to dinner, as a reflection of your good relations. Likewise, you can continue to attend such events where you're invited, because you're the client. It all comes down to whether the hospitality is proportionate and reasonable or whether it goes too far by being lavish, excessive or extraordinary. Also, what's reasonable for one business may not be reasonable for another, as it can depend on the size, nature and turnover of the business.

But should we bother??

According to my experiences - the answer is a resounding YES.

Corporate hospitality is no longer just about entertaining clients.  It's about maximising your return on investment.  According to Sports Business, "It costs five times as much to acquire a new client as it does to keep an existing one".  Yet, the majority of brand owners have not even begun to scratch the surface of using corporate hospitality as a way of retaining and motivating clients or their own employees in any meaningful way.

The key points for one expert I asked, William Aldridge - Owner & Director of EventbyEvent, (one of the UK's leading corporate events businesses) is in the attention to detail. Above & beyond the obvious (correct venue choice, knowledge of your audience etc etc), William suggested that the following were critical points in making hospitality worthwhile;

1) No shop talk-Golf (particularly for the likes of me) is difficult enough and needs upmost concentration. There's plenty of time to talk business afterwards.

2) Corporate hospitality needs to be creative and present your clients with inspirational experiences that not only stand apart from the crowd but also go someway to differentiate & demonstrate effort

3) Don't be scared to brake the mold - if you've always doneAscotand it's a favourite in everyone's diaries, then there's no need to change. However if you're just thinking about a new event, why not think less obvious. Thesedays, knowledge is hospitality - Many Directors would now turn down a day at the races in favour of a client inviting them or their employees to a really good workshop/training day.

4) Good quality and quantity of food and drinks - simple but essential. It will be the first critiquing point.

Growing corporate relations is of the utmost importance in today's fiercely competitive market. Unlike days gone by, hospitality is by no means the only way of intecting - and it is probably now the most labour intensive. However, the key for me is injecting life & enthusiasm into every opportunity for either broadcasting your company, or saying how much you value a clients business.

For me working in recruitment the key is to embrace all posibitlies for social engagement with my audience. To distance yourself in competitive markets, clients need to feel that they are special, highly valued and be presented with opportunities that they can't say no to - demonstrable effort that 160 character limits just can't compete with!

KEYWORDS:

Marketing, sales, PR, HR, social media, corporate hospitality, recruitment, marketing recruitment, sales recruitment, PR recruitment, HR recruitment, social media recruitment.

Copywright - www.weareadam.com