The Classic Chicken and Egg - Sales and Marketing

A fellow “EventPeeps.com" colleague asked this question - to paraphrase, I am tasked to sell but I think like a marketer and I know our leads are not high quality. Do I overlook my boss and concentrate on developing better marketing?

Here is the answer I sent her:

April,

Having been a sales person, sales manager, marketing manager, marketing consultant and now event marketing ROI consultant, I feel I may be able to shed some informed perspective on your delimma. What you describe is a situation that many of us are familiar with and the answer is probably a little different than you might expect.

First, there is no more important function in a company than sales, marketing included. The entire financial structure of a company begins and ends with the sales forecast and sales results. Therefore, most companies are unwilling to tolerate any slow down or redirection of focus from direct sales activity, even if the marketing needs work. The link between marketing and sales is a topic of discussion at every level. At worst it is perceived as a disconnect. At best, to build an effective marketing program where little or no good marketing exists is perceived to be a lengthy process. So your boss is coming from a perspective that he or she probably has little or no choice but to keep the pressure on direct sales effort. And, I agree to a point, that near term sales results come from a large number of contacts with prospects. If targeting is bad, the close ratio will be lower, so more contacts are needed. A classic catch 22.

Targeting is the key to effective marketing and sales. Effective marketing should result in placing well targeted individuals directly into an identifiable step in the sales funnel for your company. Prospects reached through your marketing must commit to a step (action) that your sales people will agree is a step in their process. If you do this, the proverbial gap between marketing and sales will be erased.

So what am I suggesting, 1) you must keep selling. 2) focus your marketing development activity on two things a) define and find the targets, b) interact with them in a fashion that commits them to a specific action that your sales team agrees with. Events are a good way to do this. On- line and direct marketing are as well. If you want more background on this my website has some case studies and papers in the Solutions Center section.

“http://constellationcc.com"

Good luck. I hope this was helpful. Drop me a line and let me know.

Ed Jones
President
Constellation Communication Corp.

“Goal Conversions” – A Parallel Concept from Web Marketing and Advertising for Event Marketing

Tie Your Face -to Face and On- Line Marketing Activity Together in New Ways . . .

Goals vs. objectives, an age old discussion, isn’t it? In the case of marketing events, the goal is to obtain a specific action, on the part of participants, that demonstrates transition from marketing contact to sales participation. I was reading a section on Google Analytics that deals with exactly this same concept, Goal Conversions:

“Goals Overview

What are Goals?
Goal conversions are the primary metric for measuring how well your site fulfills
business objectives. A goal is a website page which a visitor reaches once they have made a purchase or completed another desired action, such as a registration or download.

How can goals help me?
Once you have set your goals, you'll be able to see conversion rates and the monetary value of the traffic you receive. You can also define a "funnel path" for each goal. A funnel path is the path you want visitors to take to reach a goal. Defining a funnel path allows you to monitor how frequently visitors who begin a conversion process actually complete it.

Examples of goals include:
• "Thank you for registering" pages
• receipts
• flight itinerary confirmations
• "Download completed" page”

Source: http://www.google.com/analytics/reporting/goal_intro

The Google page also includes a link to additional material on how to set up funnel and goal pages that work together. In the course of an event, every activity or step, starting with direct marketing, presentations and demonstrations and ending with a commitment for follow-through, are funnel steps leading up to goals.

Goal activities are those that demonstrate specific participation in a sales step or have resulted in a sale. You may have many goals, perhaps differing by types of visitors or products. You may find multiple ways of demonstrating that a prospect has moved solidly into the sales cycle. This is a very useful concept for event strategy and may help you tie your on-line and face-to-face activity together in new ways.

Call us if you have questions or would like to discuss. +1.770.391.0015.

Managing Executive Perceptions - More on Visual Presentation of Data (Dashboard)

(You may click on the charts to review full size. Use the back arrow to return to this point.)

I often emphasize in event measurement lectures that keeping it simple is one of the keys to success. This is especially when you are presenting justification data for an event. One tactic that is working well is to simplify planning and measurement objectives down to seven or eight key accomplishments and present them in very simple, pictorial ways.

We call these simplified measurement plans “Dashboard” reports. I know the "dashboard" concept is verging on overuse these days, but there is a reason for popularity of the concept. It tells almost anyone in the organization, quickly and easily how well key planning objectives were met.

You will note in the example charts, most of the actual event results are shown compared to a "performance average" (baseline) developed over the previous plan year. We are finding that this approach simplifies the process, pinpoints accomplishments and generates a lot fewer questions on both ends - event planning and reporting.

Please call us if you have questions. +1.770.391.0015

"How Do I Get Started?" FAQs and Some Answers

Getting Started on A Structured Measurement Program

People ask me frequently, “What is the best way to start up an event or trade show measurement program?”

You can start your own program in a three ringed binder or a spreadsheet program such as Excel. Make a tab (or worksheet) for each of the four main categories of value; "Sales Impact," "Customer, Prospect and Partner Relationship Management," "Cost Savings/ Expense Avoidance," and "Promotion Value." Start to fill each tab with any examples of revenue increase or expense reduction you can document for that event. Market facing events usually produce value in all four categories. Internal events produce value in one or more of the four. A non-sales related internal event may not have a sales impact or customer relationship component for example, but it should have a cost reduction (profit improvement) component. Business profitability is simply, Revenue – Expense = Profit. (There is an interesting article on the behavioral aspect (employee behavior) of profit improvement focusing on the equation People x Process = Profit, The article is available at http://www.acpavlik.com/BizSol/Articles/profeq.pdf . This is a good read for understanding how to look for value in job performance and process improvement.)

Be creative in how you identify value. Get agreement from others within the organization such as your sales team, the PR folks or the advertising folks. Ask them to help you identify value derived from the event. You may discover that they are interested in protecting the event as well and have their own objectives for participation.

You can access a re-print of my article, “How to Measure the Value of a Trade Show Program", “Exhibitor Magazine”, March, 2005, for a much more in-depth look at how to assess and report value in these categories., “Exhibitor Magazine”, March, 2005, for a much more in-depth look at how to assess and report value in these categories.

Of course there are more sophisticated support tools and resources available if you find that, although you do not have the time available, you need to prove justification and identify improvement opportunities. In-depth measurement is easier than ever because web based surveys, event ROI modeling and database tools are available from capable providers. You can also employ these tools to compare events and decide in which ones to invest and how much to spend.

Don’t hesitate to start on your own measurement program. This is truly a “one step leads to the next” proposition. You may start small but the success you enjoy will make you a “manager of the business” in addition to a manager of events.

Do not hesitate to call with questions.



Another frequently asked question regards application of our evaluation services: “How does Constellation provide professional assessment on different levels of events. i.e. small ones vs. the largest events?”

We offer three basic levels of support for identifying and reporting value from events of differing sizes and scopes. Plus, we offer an internal review by staff and stakeholders involved with an event. Each of these evaluation levels result in your performance data being added into an event marketing performance database unique to your company:

1) Consultation (telephone) forecasting and review of actual results, including one hour before the event and one hour afterwards discussing last minute strategies and reviewing results.

2) One day, on-site evaluation where a consultant observes and reviews everything from your fit within the overall event, staff engagement skills, messaging, etc.

3) Two day, on- site evaluation with 50 random sample interviews with your guests who have completed their exhibit or event experience.

4) Three day, comprehensive review that includes 100 random sample exit interviews, assessment of your competitors effectiveness and level of expense and much more detail on your staff and messaging and demonstration effectiveness.

5) The Staff and Stakeholder Review determines how the people who funded and worked the event assess both the marketing opportunity afforded to your company and how well you worked that opportunity. Should you repeat this event next year, and if so, in a larger or smaller format? Ask your staff. You will be surprised how many times they are already aware that a change is needed.

All of these approaches are built upon the Constellation Event ROI performance model that builds a database of your results and provides the basis for quarterly and annual analysis and documented support of future planning.

If you are interested in a large scale, sophisticated approach then please contact us directly to determine your needs, and to provide a proposal, scope of work and budget for a program that will take your events to a profitable level.

Ed

“How to Rescue a Worthwhile Event” - (The time is right to review this need) - CASE STUDY

Daily we see signs that the current economic influences, high fuel costs and the rippling effects of the lending crisis are inhibiting decisions to move forward with big events, particularly high priced ones. In some cases, events have been cancelled. Unfortunately, events are often viewed as an easy target for cutting cost. Why, on reason may be that events are not seen as a direct influence on near-term business improvement or stated another way, there may be little fear that negative business impact will result from event reduction or cancellation. This may be affecting you right now. So, what can you do about it?

Protecting or rescuing an event depends upon identifying the payback streams flowing from your event. The number of streams and the amount of payback may surprise both you and the boss. When an event that you believe is a positive, productive influence on business is in jeopardy, it is time to identify the payback streams and make the case to continue or discontinue it based upon the impact on the bottom line.

You can read a case study on this very topic called “Cancelled, End of Discussion.” It is about a multi- million dollar sales incentive travel program that was cancelled by the chairman of a Fortune 50 sized company. His cancellation decree came mid- year, for exactly the same reasons we have cited, to cut cost. As the current program neared its’ final conclusion, a comprehensive event measurement program proved its’ worth and potential negative impact on the company if it were to be discontinued. The chairman, not known for changing his decisions, reinstated the program and increased its scope.
If this interests you read the case study found in the Solutions Center section of the Constellation website http://constellationcc.com or go directly to the document at http://constellationcc.com/cancelled.pdf .

So, what can you do if you have a good event that is in jeopardy? Mount a campaign to save it. Any event can be analyzed on a forecast basis (before the next occurrence), on a post-mortem basis (based upon the last run) or on an actual (current) event evaluation basis to determine its potential for value. This analysis will also provide prescriptive steps to increase value of an upcoming event to deliver more value to the bottom line. The output is a presentation to senior management that clearly delineates the business results associated with the event and the results that flow from it. Once the magnitude of the results is determined, the decision becomes an economic one, not an emotional one.

If you are a corporate event manager or director, consider mounting a campaign to save a productive event. If you are a provider, such as an event production agency or exhibit house, consider supporting your client in need with event measurement and ROI support. The result will be not only the potential salvation of a productive event, but a change in the way events are viewed internally by the company.

Call me at +1.770.391.0015 or email me with questions or to explore a rescue mission for an event you know is worth saving.

"No Leads Are Qualified If You Haven’t Talked to Sales" - Pre- and Post- Event Marketing, the Keys to Getting ROI on Your Event

Today I had lunch with the CEO and Chief Sales and Marketing Officer for a leads development and management company called FirstWave. Naturally the conversation turned to the quality and results associated with leads produced through events and thoughts on how the two topics identified in the title of this post are inextricably linked.

In marketing, our job is to create sales opportunities and improve the probability of sale. Good sales opportunities are only those that involve the right people, i.e. those that can buy or those who are influential in the buying process. The truth is we waste a lot of time and money on the incidental visitors to an exhibit at a trade show or the disinterested participant at a festival event. Why, because we have always done it that way. Today, more than ever before, we have effective, inexpensive means of identifying and attracting those who are most qualified.

At lunch my friends from FirstWave told me something interesting. We all know how confounding it is when event organizers will not divulge detailed contact data on your targets. After all, we are paying for the event as sponsors and exhibitors! Guess what? (and you need to keep this among us) FirstWave routinely identifies email addresses with only a name, title and company. That level of information is often provided by event organizers. Now, last year’s list can become part of this year’s pre- event, direct marketing database. Why only part of the base?, because you will add you own updated contacts collected from all other marketing tactics. Why not identify and market to everyone who fits your target profile that could conceivably have an interest in the event, even if they will not attend. An event provides a reason for focused contextual contact, regardless of intent to attend. The post- show list becomes part of your post- event follow-up base. This is great stuff, if you are one of the smart event managers actively focused on pre and post event marketing work.

Back to the conversation with sales - if you don’t know what your sales team considers a qualified lead to be, you are doomed to have your leads disregarded, and perhaps your own lineage impugned. Worse, these leads are not going to produce any ROI.

According to Marketing Sherpa, only about half of marketers surveyed worked directly with sales to define a lead. If your sales management defines a qualified lead as a person who fits a particular profile (by company type, company size, functional responsibility, and title), who is committed to a specified step in their sales process and includes the necessary contact information, your job is considerably clarified and your planning refined. Your key measure becomes how many committed leads did you provide to sales. And, they can tell you the worth in eventual sales for those leads immediately upon receiving them, based upon historical close ratios and average value of sale. Voila! You can report that you contributed $XXX thousands (or millions) of dollars in sales opportunity, and the sales team will back you up!

So before your next event, consider a conference with the sales team and define two things, 1) Who do we need to see?, and 2) What do we want them to do during and after the event? Use those answers to design your event strategy and also to drive the creative brief. Why?, because you only need to show and tell your participants that which is necessary to gain their commitment to act. You can leave the kitchen sinks at home.

Dig deeply on these questions. Ask sales for a very detailed description of who they can sell most easily and or most profitably. What are the titles or departments in what type of companies where they are having the greatest success, etc?

Also, ask sales what you can accomplish at the event or trade show that will eliminate one or more sales calls in the field. After all, when you get the right person into your chair or in front of your demo at an event, you have already by-passed a considerable amount of effort required to simply to identify and make initial contact with that person.

Keep track of the leads you hand off to sales and keep track of those you have seen at events. You might be surprised how often you see the same people. This can be a good thing if the relationship is maturing in the process, or a bad thing if people are simply mooching on your hospitality. Using the types of leads maturation and development services we discussed with FirstWave at lunch, you can keep a lot tighter tabs on how your leads are progressing. Also, by tracking who visited you throughout the year, random sample research can tell you exactly how many of your leads converted to sales and for how much revenue.

Establishing a continuous post event communications stream and contact maturation program is considerably easier using electronic media, such as newsletters, on-line, interactive presentations, education, briefings, resources such as white papers, and tools such as configurators or evaluators.

Finally, Marketing Sherpa recently published the following survey data on inquiries and leads:

• 17% of inquiries are designated qualified leads
12% among best practices companies (yes less if more)
• 34% of qualified leads turn into prospects
40% among best practices companies
• 16% of prospects end up as closed sales
20% among best practices companies

If you do the math, on average, according to those marketing managers who responded, 9.25 sales result from every 1,000 inquiries, or from 170 qualified leads. That is approximately 1% (.925%) of inquiries or 5.4% of qualified leads. For best practices marketers, .96% of inquiries will close (about the same) but 8% of qualified leads result in sales. Quite an increase. Marketers who use target marketing techniques and have a tight definition of a qualified lead take fewer leads and close more sales. There is less clutter added to the pipeline and less work overall.

To sum up, there are three main ideas here regarding how to make money on leads generated from events:

1) You have to get the right people into your event, pre-identify, invite and attract them. If you don't you are holding some expensive open house parties.
2) You must have a tight definition of a qualified lead, one that is ordained by the sales team, and
3) You must work the "market" as much as you do the event logistics. Use the great new tools available to do your pre- and post-event marketing. Digital tools make prospecting, targeting, attraction, post- event lead re-qualification, and contact maturation and conversion a structured process that requires less effort to accomplish. (Lead re-qualification is a good topic for a future post!)

Thanks for lunch to FirstWave!

Call me if you have questions or would like to discuss this or anything about event measurement. 770-391-0015 or visit Constellation Communication Corp..

Pictorial Presentation of Results Drives Discussion, Change

Presenting performance data pictorially really clarifies improvement opportunities, especially when others in the organization must be convinced to change the status quo.

We have been working on a pictorial representation of what we call the Key Performance Indicators Baseline for our clients. The Baseline is developed from the measures on all evaluated events over the course of an entire year. These averages become management reference points and each event will show metrics that are above, on or below those averages. When a performance metric is below average, it warrants investigation or explanation as to why. In many cases a company may have chosen to spend more than an average spend to launch a product, support an association or hold an associated meeting.

I have included a couple of example charts here. Look for the highs and lows. Also, look for the difference between high and low performance on different measures. If you have questions call me. 770-391-0015.