Blog | CFO Dynamics

5 Proven Strategies to Improve Sales Travel ROI

Written by Team CFO Dynamics | May 7, 2024

Business travel, when leveraged correctly, can shift from being a burdensome cost to a significant revenue generator. The secret to this transformation lies in strategic planning and execution. Every trip should be viewed through the lens of opportunity, whether it’s to solidify existing relationships, tap into new markets or close pending deals. 

Here’s how you can ensure every travel dollar spent turns into new opportunities for your business.

 

5 Proven Strategies to Improve Sales Travel ROI

1. Get Specific About What Success Looks Like

To make every trip count, it's crucial to align any travel with your business goals with tangible objectives. Setting specific, measurable goals for each trip can transform your approach from a routine expense to a strategic investment.

Here are some examples of how you can define success for your travels.

  • Market Penetration: When looking to tap into new markets, start by identifying key regions or sectors to focus on. Then, set objectives like hosting a workshop or product demo in a new city, or meeting with local industry leaders to establish a foothold.

  • Client Acquisition: If the primary goal is increasing client acquisition, schedule at least five meetings with potential customers.

  • Strengthening Existing Relationships: If maintaining and enhancing current client relationships is a goal, plan to visit clients who contribute significantly to your revenue (or those who have in the past) to understand their current challenges and needs. Present tailored solutions or incentives designed to reignite their interest and re-establish their former level of engagement.

Key Takeaway: Define specific objectives that align with business goals to measure the trip’s success.

2. Focus on Key Decision-Makers

The effectiveness of travel isn’t about the number of flights or miles traveled; it’s about ensuring each trip targets the right individuals — those who are key decision-makers capable of making significant business decisions. 

Not getting in front of the right people is akin to throwing spaghetti at the wall and hoping it sticks. If you’re not meeting with those making the purchasing decisions (whether positive or negative) about your product or service, you’re setting yourself up for failure.

Instead, focus efforts on high-value clients or prospects who have the decision-making power. Develop a targeted list of clients and prospects who have the authority to make purchasing decisions, and use CRM data to prioritise meetings with those who have a history of substantial investments.

→ Related: The Hidden Value of Sales Travel for Business Growth

Key Takeaway: Identify and prioritise travel with high-potential clients who have the decision-making power.

3. Optimise Travel Scheduling

Despite upfront costs, the return on investment can be substantial when travel is planned effectively. A well-organised trip can yield substantial returns far exceeding your initial investment.

Implement practices such as:

  • Booking accommodation far in advance to get the best rates
  • Setting meetings with different clients in the same geographic area
  • Scheduling meetings back-to-back to minimise downtime, and
  • Planning routes that maximise client interaction.

For instance, arranging a sequence of meetings in a loop around a city can save both time and travel costs.

Key Takeaway: Ensure each trip's itinerary is planned effectively to maximise time spent in meetings and minimise downtime and driving time.

4. Monitor Both Direct & Indirect Returns

As a business expense, sales travel often carries the stigma of being high-cost without apparent immediate returns. But when done correctly, sales travel is an investment with high yields. Its ROI includes both direct outcomes, such as deals closed, and indirect benefits, like enhanced client relationships and enhanced market presence.

To fully assess the impact of sales travel, track a variety of metrics such as:

  • ROI: Calculate the expense of the trip versus the revenue generated directly from deals closed during the trip.
  • Meeting Conversion Rates: Monitor how many meetings led to immediate or future sales.
  • Client Retention Rates: Track the retention of clients visited over a period to understand the impact of personal engagement.

Key Takeaway: Track both direct and indirect outcomes, which will help evaluate the financial and strategic effectiveness of each sales trip.

5. Establish a Strong Follow-Up Protocol

The success of business travel is not only about the interactions during the trip but also how those interactions are followed up.

Develop a robust follow-up strategy that reinforces the discussions held during each meeting, ensuring any communication is timely and personalised. This might look like sending an email summarising each meeting's main points within 24 hours, checking in with a phone call the next day to ensure it was received, and following up with a detailed proposal within five business days. 

Key Takeaway: Implement a systematic follow-up strategy that keeps the momentum going and ensures you stay top-of-mind with clients.

Conclusion

By strategically planning each aspect of sales travel, you can turn every trip into a profitable investment. Focus on engaging with decision-makers, having an optimised itinerary, rigorously tracking ROI, and following up effectively. These strategies ensure that any sales travel is not just a cost but a pivotal part of your business growth strategy.

 

Learn everything we teach our clients... for free

Join 400+ business owners & leaders who receive practical business & accounting tips, delivered free to your inbox every week. No fluff, just high-level expertise. Sign up now.