Tag Archives: Return on Investment

Exhibition and Tradeshow Review of ROI

Following on from the last blog on Exhibition and and Tradeshow review and follow-up where we reviewed the logistics, sales lead follow-up plus feedback and analysis.  We will now look at reviewing the original objectives to see if the ROI was achieved.

ROI (Return on Investment)

  • Review your ROI by looking at your original objectives for attending the trade show and see if they were met. If this included a sales target it may take some time before you can determine how successful the show was at generating revenue.
  • The two primary reasons for exhibition performance measurement are
  • To justify the investment.
  • To gather information to make your investment more profitable.
  • A good measurement system can help you determine whether you should continue exhibiting at a specific show, and if so to what extent. It can help you identify your exhibit program’s strengths and weaknesses. It can also provide benchmarks for comparing different shows you that have exhibited at, and measure what your exhibition return was for the current year when compared to last year’s show. You can even look at how your marketing budget spent on trade-shows compare to other sales and marketing media. If you’re going to win the game of exhibiting you must have a score keeping process.

There is a very good article by Jefferson Davis of Competitive Edge which is available on the Internet in a number of places including:

http://www.ewea.org/offshore2011/fileadmin/eow2011_documents/exhibition/9_Exhibit_Measurement_Made_Easy_How_to_Measure_Exhibiting_Results_and_Return_on_Investment.pdf

The article outlines six basic measurements that almost every company should be measuring:

  1. Return on Objectives: What specific goals were you pursuing and what progress did you make toward those goals?
  2. Exhibit Budget versus Actual: What was your total exhibiting budget and what did you actually spend?
  3. Post-show Sales Written: How many orders and what was the total value of orders written after the event? Ideally, you should measure post-show sales at the 90 and 180 day points, unless you have a very long sales cycle. Also take into consideration the frequency of the show.
  4. Quantity and Quality of Leads: How many leads did you capture? How many were A – B – C leads? What is the estimated total sales potential of the leads?
  5. Cost per Lead: What was your cost per lead? Divide total number of leads captured by total show investment to determine this number.
  6. Cost per Interaction: What did it cost you to generate a face-to face contact? To determine this number simply multiply your total lead count by 2.4. This will give you a pretty accurate method way of determining your total booth traffic. Then divide total show investment by estimated total booth traffic.

These six basic metrics are by no means all that could and should be measured, but they are a very solid starting point. They will give you a very good picture of whether you are winning the game of exhibiting.

There is one final metric that all exhibitors should attempt to measure – the elusive exhibiting Return on Investment. To determine ROI accurately you must first be able to track at-show and post-sale revenue. Once you have that, simply follow the formula below.

Here is a Return on Investment example:

Total post-show sales from exhibit leads:                250,000€

Less cost of sales or gross margin:                             -190,000€

Equals Gross Exhibit Profit                                         60,000€

Less Exhibiting Costs:                                                    20,000€

Equals Net Exhibit Profit:                                           40,000€

Net Exhibit Profit 40,000€/Exhibit Costs 20,000€ = 200% ROI

Track the trade show organisers analysis of the show number and type of attendees to check whether this might be a show you would like to continue to attend.

You now have the basis for having the analysis and justification for exhibiting and also for participating in future exhibitions.

 

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Exhibition Review and Follow up part 1

Completion of an Exhibition

Your exhibition at a trade show has now finished and there are certain steps you should complete before the whole project is wrapped up.

Logistics

Hopefully the stand or pop-up, all the equipment, literature and give-aways have been carefully packed and returned to office or place of storage.

  • Check that all items have been returned.
  • Unpack boxes where literature needs to go back on the rack or in the literature cupboard.
  • Assess how many give-aways you have left and, if they will be required for your next exhibition, keep record of the number. Order replacement stocks as required.
  • Check that the pop-up has been correctly stored in its box or container and note any breakages or things that need to be fixed before next show.

Sales Lead Follow-Up

The same process should be used for both paper lead forms and leads collected from a scanner in the form of data files.

  • Review leads and grade each according to their urgency, for example as hot prospects or as courtesy follow-ups.
  • Arrange a meeting with all sales personnel and sales management regarding the leads and allocate the leads to appropriate representative or product team.
  • Follow up leads with the required action, for example send out an email or letter thanking attendees for visiting the stand or showing interest in your company, send out literature as requested, or follow up by phone to arrange a meeting etc.
  • Track results.
  • Remind all stand personnel to make sure that any business cards collected are input into the sales database or CRM (Customer Relationship Management) system so that they are updated with relevant information.

Feedback Follow-Up and Analysis

  • Send out a feedback form asking stand personnel for their feedback on specific aspects to do with the trade show that you are interested in and also ask them how they felt it went overall. Ask for any suggestions for improvement etc. Once you have the feedback forms returned analyse them for any learning points or actions required.
  • Follow up with a debriefing meeting for all stand staff and sales and marketing personnel, so that they can share findings and discuss how to improve exhibit performance for the next show.
  • Track the trade show organiser’s analysis of the show attendees by number and type to check whether this is a show you would like to attend again.
  • Review lead contact details and analyse their job titles and profiles to check whether this is a show where the people with the appropriate job roles you want to reach are attending.

The next blog will include reviewing the original planned objects and follow up ROI

Tips on Running a Successful Conference: Measurement of Return of Investment ROI on a conference

In this blog we will follow on from the previous tip where we looked at setting Objectives for ROI to review the measurement of ROI objectives, incorporating different  levels of ROI Methodology used to measure ROI of an event.

As mentioned in the previous tip on setting objectives for ROI which is another way of expressing the contribution to profit made by an event.  The profit is the net value created by the event minus the event costs.  ROI is the profit expressed as a percentage of the cost of the event.

Measuring Level 0, Target Audience

  • The target audience should be the right people attending the event.  They are the ones with the greatest learning and behaviour gap in the potential participants.
    • The target audience is therefore defined by a method of deduction from desired behaviour (level3) and required learning (level2)
    • Measuring that have the right target audience, the post event evaluation could ask the question ‘To what extend is the topic of this session relevant to you job?’ Or ‘ How much of what was covered in this session did you already know?’

 Measuring Level 1, Delegate Satisfaction and Learning Environment:

Normally the delegates satisfaction is measured by asking the questions as to whether they were satisfied with the facilities of the venue, the logistics of organising the conference, such as registration and information sent, content of the sessions, the topics covered, quality of speakers, enough time for discussion and Q&A, was networking beneficial?

The learning environment is very important in the learning of the delegates and the changes in their behaviour which will provide value to the stakeholder.

Level 2 – Learning

  • Learning in events comes under that of information, skills attitudes and relationship learning, this can be done by self reporting.  Questions such as indicate on a percentage scale your level of knowledge or skill both before and after the session.
  •  Attitude learning, can include questions which indicate changes in brand perception, where the respondent expresses his degree of agreement or disagreement with an attitude statement, using the Likert statements.
  • Relationship learning refers to the building of affinity between people, getting to know others, trust and liking, the answers could be scored on a scale from very low to very high

Level 3 – Behaviour

  • Behaviour is the application of learning but either stop doing something, doing something differently or something new as a form of their learning experience.
  • Behaviour is often best measured by observation, e.g. if the delegates has learnt how to set up a website, and he claims to understand and remember well enough the steps and procedure to put into practice, by using learning measured by self reporting you could at some time later see if he has used the processes learnt

Planned Actions

It is useful to measure the intended application immediately after learning, with question such as ‘How do you plan to use what you have just learned?  Also by suggesting possible actions and asking delegates to consider whether they are likely to follow this through, question delegates if there are any barriers to these planned actions or if there are enablers

Level 4 Impact

  • The business impact is the very reason for which the event was designed, such as increased sales to new clients or wider range of products to existing customers, increased customer penetration, or customer loyalty. Internal events such as team building are likely to reduce costs as their business impact.  The impact data may be obtained from accounts of the company sales performance.
  • For measurement of business impact then one has to isolate the effect of the meeting to know if the sales when up after the customer event that it was this and not for example a new advertisement campaign. The best method of doing this is to have a control group, comparing the results from one group which attended and the other that did not.  For this to be reliable then the groups need to be closely matched to see if they respond in the same way or if other influences and difference was due to the event.
  • Some business impacts are monetary like sales, others which are intangible need to be converted into money values for ROI calculation. Such as reduced employee turnover or absenteeism after an event, motivation of staff.  This can lead to time saving cost per hour, recruitment by the HR department.
  • Impact values when expressed in monetary value deducted from the total cost of the event you will get the profit or loss for the event. The profit or loss value is the same costs as the percentage of the ROI figure.  The return is the impact value and the investment is the total cost.

The benefit of applying ROI methodology will always out way the costs.  It forces you to be precise in setting event objectives when planning the event, these are clear and measurable, resulting in the event programme focusing on achieving them, thereafter improving each event when applying the measurable results

Tips on How to Run a Successful Conference or Seminar – Part 1 Corporate Reasons for Having a Conference

There can be many business reasons why a company should consider having a conference, and events are an important part of the marketing mix. Listed below are some marketing reasons for holding a conference or seminar that a company or organisation may use to promote.

Reasons for a conference could be:

  • A medium for passing on information, specifically for new products and services
  • Internal communication to employees regarding internal information, such as training, boosting morale, making announcements, launch a new culture
  • Used by associations to network and educate their members
  • Yearly or quarterly way to communicate with their sales force, partners or distributors
  • A forum for discussing world issues or topical subjects

An example of benefits for the business client to attend a software companies conference or seminar

  • Excellent communication forum for the end user, ability to meet senior managers from the corporation, to get advice, discuss business propositions, get answers straight from the software engineers, product developers
  • Ability to fast track communications to the highest level
  • Good for the client to feel that they are having an impact on the future direction of the company and its products in relation to their requirements
  • Excellent for networking and meeting other users and hearing their business experiences, share ideas, solutions to problems
  • Good for education and increasing knowledge of the products and business environment
  • The event enables the attendee to build up a picture of the quality of the company products or services

Benefits from the Company’s perspective

  • One of the marketing vehicles for increasing regular communications with both current, new and potential customer
  • A platform enabling the company to know the client better and understand their business needs for the portfolio of products and services that they are developing
  • Make the customer feel that they are being listened to and giving the company first hand research into the future product direction
  • Excellent PR opportunity to made customer feel important and build on loyalty and customer relationship by sponsoring a drinks reception and dinner
  • Good opportunity to get the TPV/Resellers involved promoting the company’s products and making them more involved with the clients, as well as strengthening the business alliance
  • Opportunity to increase sales of products with users through workshops demonstrations
  • Event feedback should be measured against the objectives to know the bench mark for the next event and to measure if it has been a good marketing vehicle for ROI, and how to improve on future events

Further posts on how to run a successful business event that has ROI will follow. Follow the blog or subscribe to the RSS feed to make sure you don’t miss any of them.The articles will be full of tips and ideas, to help you and your business in event management.

Reference reading:

John G Fisher – How to run a Successful Conference