March 2009
Virtual Meetings Go the Distance

By Annemarie Donnelly

Ray Paganini, president and chief information officer of Cornerstone IT in Concord Township, takes a break from leading a training session at Quail Hollow. Paganini has seen an increase in customers using Web-based software to conduct meetings and to interface with clients. Cornerstone is an information technology provider for small and medium-sized businesses. Photo by Rick McPeak

In 2009, every business owner and erstwhile business traveler knows that cutting costs is a vital part of maintaining profitability in today’s struggling economy. Corporate travel clients across the nation are increasingly concerned with reducing corporate travel costs in light of the global financial crisis. In a recent travel program survey conducted by a nonprofit business organization, 97 percent of respondents cited reducing corporate travel costs as a major priority for the coming 12 months.

“We are trying to be a little more careful about travel expenses than we used to be in the past,” says Gary Swanson, president of Thermotion Corp. in Mentor. “We do a fair amount of telephone conferencing, definitely more than we used to. We are also a little more selective than just jumping on a plane and running out to see someone than we used to be.”

According to American Express’ annual global business travel forecast, the average cost per domestic trip in North America will increase in 2009 by 1.2 percent, to about $1,002 per trip. The company also reports a trend to firms turning to videoconferencing and Web-based meetings as a way to combat soaring business travel costs.

In Lake County, area businesses are also mirroring national trends in the increased use of Web-based technologies that enable them to meet with customers or vendors without the costs associated with travel.

Less travel – more Web time

Obviously, many business trips are unavoidable but, increasingly, savvy business people are carefully evaluating travel demands in an era of both rising costs and increased social environmental responsibility. Simply put, more business travelers are asking: ‘Is this trip necessary?”

“Our company is like most companies these days in that we have a virtual organization, with most people working from home offices,” says Frank Thomas, president of Adaptive Corp., headquartered in Hudson. “Our sales reps cover all of North America, with a business model consisting of doing trade show events, then capturing information from the event, and marketing back via the Internet.”

To make the most of the company’s time and money spent on travel, Thomas’ team uses webinars to determine customer interest before sending the sales team on the road.

“We do a lot of webinars via the Internet, by using a Web-based meeting service by Microsoft to follow up with customers with one-on-one Web meetings,” he says. “If the opportunity justifies it, then we put someone on the airplane and try to move the business to closure.”

Thomas says the Web meetings are also an ideal way for potential customers to determine if his company’s products are a good fit for them before taking valuable time to meet with a sales representative.

“I think everyone is sensitive to time these days. If in the first 10 minutes of a webinar, a customer decides that this is not what they are looking for, they can simply log off and hang up,” Thomas says. “If you have someone in front of you, it’s harder to just walk away as quickly. So this is much easier for them to take a sneak peek at what you’re offering.”

If the Web-based meeting goes well, then Thomas says it’s the right time to hit the road.

“If after the Web meeting the customer thinks we are viable then it makes sense to have a face-to-face meeting,” he says.

And the technology products available today eliminate much of the fuss and poor functioning previously a part of Web or video meetings. Videoconferencing has traditionally been a tricky technology to implement with problems with latency, jitter, poor video equipment and other difficulties.

However, as both video technologies and organizational capabilities have improved in the corporate environment, companies are finally able to realize strong business benefits that make these meeting technologies viable.

Last year, at&t announced the industry’s first fully-managed intercom and telepresence service, called Telepresence Solution. With multipoint connectivity, the product enables businesses to meet with internal parties, customers, suppliers and business partners, all on a global IPnetwork.

“With our video conferencing – it’s almost as if you were right there with them,” says Sean Walsh, regional sales manager for at&t, who works with both small and medium-sized businesses in Lake County. ”What we are seeing are businesses looking at all aspects of their phone and Web capabilities, particularly in this economy. But especially when you’re looking at travel budgets our video conferencing is a powerful tool.”

Although Walsh declined to address the prices of videoconferencing, he says most businesses will quickly see the product can pay for its initial costs.

“Typically we are looking at a six-month return on investment, so most companies will realize a savings fairly quickly,” he says.

Ray Paganini, president of Cornerstone IT in Concord Township, also notes the increase in customers using Web-based software to conduct meetings and to interface with clients. Instead of conducting every meeting in person, Paganini says the Web makes conversations between business people much more instantaneous, and still provides the strong connections needed to engender good business relationships.

“A lot of people set this up so they can let their workforce work whenever or however they want to, so it’s much more commonplace to have them hooked up with these products,” Paganini says. “Usually what we see is that if you want to have a face-to-face meeting to go over a project or show new products, then it’s done all over the Web.”

Naturally, as part of a technology company, Paganini’s team is already ahead of the curve with maximizing the use of Web products. Through the use of a wireless air card, his sales force “could be anywhere” and phone calls will ring directly into their computers.

“No matter where they are, they can have a presence just as if they are in the office,” he says. “It’s all just connecting via the Internet.”

One of the most popular products that Paganini’s company provides is Microsoft LiveMeeting, an Internet-based meeting tool. The product enables clients to hold meetings over the Internet with the use of a Web cam.

“The meeting runs completely through the Internet and you can see the people you are talking to. It doesn’t use a phone number or tie up a call. You just plug a headset into your laptop.”

Paganini and his team use the products with regularity.

“Right now we are doing a project for Lorain County, so obviously we’ve been out there a few times, but then we do the rest of the meetings over the Web,” he says. “When we are presenting a PowerPoint, we can turn the meeting over to someone else to present, and then the PowerPoint slides come up. When we are done, we then solicit questions from the attendees.”

The standard cuts – travel & entertainment

In addition to increased technology use, companies are still turning to the tried and true – cutting transportation costs and bundling trips to customers.

“We use software that helps to quickly slice and dice travel options,” says Thomas, citing Expedia as an example. “If I need to go from point A to point B, there are always going to be three or four airports or airlines that we can use to get there, so we use a tool that helps us to evaluate all of the options.”

Steve Tsengas, founder of OurPets in Fairport Harbor, cites similar examples by his company to cut costs.

“I’ve got several people who are continuously on the road and they’re not afraid to go to other airports to get a better deal, even if they go as far as Pittsburgh or Columbus,” he says. “We have saved as much as $600 by making the trip through another airport. “

Business travelers are also more likely to carefully coordinate trips to see numerous clients in one business locale.

“If they go to the West Coast they try to get out to more customers and perhaps stay in the hotel one more night to get a bigger bang for the buck,” Tsengas says. “I think most customers understand that everyone is tightening their belts. The other thing that is happening is expanded radius by travel by car. You don’t just hop on an airplane like you used to.”

Still, business relationships develop and deals are usually realized through the power of the personal touch, even in a slow economy. When a client needs to see their vendor in front of them, most companies will still not shy away from a business trip to see them.

“We may be a little more conservative about pushing the ‘go’ button,” Swanson says. “But people still do business with other people, and relationships are very important. They still want to see you and feel like they are the customer, so it’s important that we go to see them.”

Tsengas agrees.

“It’s difficult to eliminate too much travel because it’s so critical, especially when you need to show product,” he says. “The pressing of the palm is still the way to develop those personal relationships.”

Annemarie Donnelly is a Mentor freelance writer.