“How to Rescue a Worthwhile Event” - CASE STUDY

Current economic and political influences are inhibiting participation in big events for many if not most companies, particularly the most expensive, highly-visible events. In many cases, events have been canceled. Some companies are finding it more expedient to cancel an event for “PR” reasons, or because they are unsure of the value delivered relative to the cost.

A factor in these reactionary decisions is events may not be clearly understood in terms of their direct influence on near-term business improvement. Stated another way, there may be little fear that negative business impact will result from event reduction or cancellation. These perceptions may be affecting you right now. So, what can you do about it? To help you formulate a plan, I have revived and revised a post from last spring dealing with justifying valuable events.

Protecting or rescuing an event depends upon identifying its’ payback in terms of business improvement goals. The number of valuable outcomes and amount of payback may surprise both you and the boss. When a productive event is in jeopardy, it is time to identify the payback streams and make a rational case to continue or discontinue it based upon the impact on the bottom line.

The case study, “Cancelled, End of Discussion,” 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 cited, the need to cut cost and because the program was highly visible. As the current program neared its’ final conclusion, a comprehensive measurement program was initiated to determine the true value of the program for the company. The same study also identified the potential negative impact on the company if it were to be discontinued. The chairman, not known for changing his decisions, not only reinstated the program, but increased its’ scope once the value and potential loss was clearly understood.

This case study may be 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), a post-mortem basis (after the last occurrence) on an actual (current) basis to determine its business improvement value. This type of analysis also provides prescriptive steps to increase the value of an upcoming event to the bottom line. This process results in development of 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 an event organizer or 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 +1.770.391.0015 or email me edjones@constellationcc.com with questions or to explore a rescue mission for an event you know is worth saving.

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Related Services from Constellation Communication Corp.

Event “Business Best Practices” Certification

Constellation Communication Corp. is offering clients an independent certification for face-to-face internal and market facing events that meet Business Best Practices Standards (as defined by Constellation.) This certificate attests, to any interested party, that the named event was planned and measured for specific business improvement results. It further certifies that the expected business results are achievable and reasonable relative to the event cost.

Constellation will assist a company to produce event objectives and plans that will produce tangible business improvement results. Constellation will also provide event evaluation services to prove business improvement value.

Post- Mortem Trade Show Justification and ROI Analysis

A service of value to corporate exhibitors, event services providers and show organizers is the post-mortem trade show marketing analysis. This analysis identifies and summarizes tangible value from a recently completed event. The analysis is conducted through collaboration between key corporate event team members and senior level consultants from Constellation Communication Corp.

The analysis is run using the Constellation Return on Investment in Events Model. This model provides a complete picture of the business value obtained from the last event. The analysis also examines and makes recommendations regarding resources in a process referred to as “Right-sizing.” The analysis will identify how much space, how many staff and how much budget should be allocated to a particular event. The analysis looks at all sources of profit improvement delivered through event participation to the company, and makes conclusions regarding the benefits relative to cost.

The analysis is also useful in that it will generally expand the number of objectives and associated results that may be reported as business improvement. The types of objectives considered are:

• Executive Participation
• Thought Leadership
• PR Impact and Media Equivalence
• Business Development Goals
• Return on Stated Objectives
• Technology, Product or Service Show Casing
• Cost/Expense Reduction
• Return on Investment

Show organizers or events services providers experiencing attrition in exhibition and sponsorship levels or budgets for client projects may want to consider offering a post- mortem business value analysis to key clients who may be cutting- back. There is generally more business improvement value to be reported than the typical exhibitor may recognize and report. The result is a logical, fact based report of the estimated value of continued participation in an event or for an overall event program.

The cost for a post- mortem (or forecast) analysis and ROI valuation is approx. $2,500. Additional research may be required for complex events. A post- mortem or forecast analysis takes between seven and ten days to complete. The deliverables are:

• Return on Investment Event Summary
• Right-Sizing recommendations regarding budget and resource levels
• Recommendations regarding event performance improvement, strategies and tactics
• Power- point presentation for internal, executive level presentation to senior management
• Focus on investment justification

Please call +1.770.391.0015 or email edjones@constellationcc.com with questions or to explore a rescue mission for an event you know is worth saving.

Kerry wants Feds to Ban Certain Events - Are We Partially to Blame? ...and What Should We Do?

The time of reckoning has arrived. According to the National Business Travelers Association, "Senator John Kerry has introduced legislation that would ban all 421 firms including the nation's largest banks that received money from the Troubled Assets Relief Program (TARP) from hosting, sponsoring or paying for conferences, holiday parties and entertainment events." The federal government now thinks it must regulate what is acceptable business practice with regard to meetings. This is another glaring example of politicians setting destructive, sentiment based legislation in motion with real unintended consequences.

Are we partially to blame? I think we share some responsibility. We have produced many glitzy, high profile events without discernible, measurable business objectives in place to justify their cost. Now, a couple of very visible events have made the news, with little in the way of defense. In too many cases, we have ignored the need and opportunity to report value.

What can we do about it? First, contact John Kerry and let him know that tens of thousands of jobs will be affected by his ill-conceived reaction. http://kerry.senate.gov/contact/email.cfm . Here is the message I sent him this morning:

Mr. Kerry,

Even though the sentiment for anti-event legislation may seem worthy, it will hurt tens of thousands of meeting and event producers, hotel and food service employees, transportation workers and countless others. Many of those employees are union workers. This most assuredly would not stimulate the economy.

Events produce valid, reportable business results. Visit http://constellationcc.com if you want to understand meeting and event measurement and the impact of meetings and events on business results and profit.

Ed Jones

Next, investigate and join any one of several movements at work to counter this legislative trend. The NBTA Action Alert can be found here: http://capwiz.com/nbta/issues/alert/?alertid=12773376, also the Keep America Meeting initiative has good momentum. You can visit this organization at: http://www.keepamericameeting.org/ (You may want to be cautious about joining the mailing list for the host organization that provides the web hosting for this movement.)


In addition, we must begin now tying our event planning and measurement squarely to business improvement objectives. The results of these events must be presented in “Business Speak.” There can be no doubt that event cost is aligned with event outcomes in terms of business profitability.

As I have said in the past, identifying what to measure is perhaps the most difficult hurdle in event measurement. Once crossed you are well on your way to justifying an event expenditure. You may have 1,000 customers and prospects visit your exhibit or conference, but none of those visitors have an identifiable value until you can link them to an element in the simplified profit equation. Revenue – Expense = Profit.

To be successful you must think of event activities in terms of their value to the company. The event activity must accomplish two main goals. Business Improvement and Communications.

Under the goal of business improvement, interactions with people should include meetings with customers for the purpose of existing revenue retention and growth on the customer base, prospects for the purpose of expanding market share and the customer base, suppliers for the purpose of reducing cost and increasing availability or improving process, partners to make better solutions from your offerings, and regulators and legislators to keep market conditions conducive to success. For employees, meetings must result in changes in job behavior that improve profitability. Cost reductions through speed, accuracy, improved process, better teamwork, and superior decision making can be demonstrated and valued.

In a recent blog post I detailed a simple way of tying event accomplishments to business value. Consider the simple relationships between typical event activities, business processes and the simplified profit equation:

• Seeing and documenting new prospects (sometimes referred to as developing leads) is really customer acquisition.
• Seeing existing customers and thanking them for the business, providing executive access and introducing them to preferential programs is really customer retention.
• Briefing customers at a conference on how to use, manage and troubleshoot a system or product is really customer support.
• Asking customers and prospects questions at an event is really product or market research.
• Spreading and reinforcing the brand and priority messages is really advertising.

So, tying event accomplishments to business improvement and value might be fairly straightforward. In any case, it is quickly becoming a requirement. Linking event activity to these types of business accomplishments puts events squarely in the context of business improvement and will help us insulate them from knee-jerk reactions of ill-informed politicians.

Ed

A Brilliant Piece of Peer to Peer Marcom by a Non- Marketing Grad Student

Sometimes, albeit rarely, I am amazed by the clarity of a marketing piece. This video,
is produced by Adam Winn, a graduate student at the Center for Information and Communications Sciences program (CICS) at Ball State University (I am an advisory board member of this program.) The purpose of the video is to promote the CICS program to potential students through YouTube and other outlets. He is a graduate student in the computer and networking sciences field, and not a marketing major. He was a telecommunications undergrad.



There are many lessons here. 1) It doesn’t take a creative genius or experienced marcom practitioner to create great communications. This phenomenon, of which this piece is one of thousands of examples, is the result of ubiquitous, social, digital media exposing that many types of people, of varying personality types, interests and disciplines can be great communicators. 2) The resonance of “peer to peer marketing” is extremely powerful and may equal or exceed that available through traditional marcom output.

3) User produced media is reshaping how we communicate, are entertained and most definitely, how we are influenced.

Comments are welcomed.