Understanding the
Value of Conferences
Is your conference an
expense or an investment?
Many organizations regard their conference as a necessary
expense, one that serves to educate customers to be successful in using
products or influences employees to do a better job. Having evaluated and measured a variety of
conferences, we found something different. In this tip, we explore how
conferences deliver real, near-term profit improvement beyond the conference. And, we look at how a great
conference can influence other objectives such as organizational growth and
customer retention.
The conferences that deliver the most value for the
organizer or host have a common characteristic; they successfully provide value
to all of the other players in the conference ecosystem. Simply stated, organizers attract
participants through valuable offerings and content. Sponsors and exhibitors seek valuable access
to targeted, high-value participants. Sponsors and exhibitors provide the organizer with
valuable funding and support in return for access. The organizer perpetuates
and grows the cycle. All participants
seek value in return for their contribution of time and money and smart
organizers and hosts ensure that it is provided.
In addition to profit improvement, the well-planned
conference also serves the organizer’s overall mission and goals. For example,
many associations seek membership growth, in part, by providing great value to
their members through the conference experience.
For those of us with interest in exhibitions at conferences,
numerous studies have shown that that exposure to content provided by sponsors
and exhibitors is an integral part of conference participant value and
satisfaction. When the organizer and the
sponsors and exhibitors are attuned to the strategic needs of the participants,
the momentum builds quickly. Intra-event
communications using digital and social media make it possible to learn from
members as well as serve their needs between events.
Increased revenue and expense reduction resulting from
conference participation – after a successful conference participants may take actions
that result in improved business results for the host. Here are a few of the most likely results:
Increased Sales –
Reduced Support Requirements –
- Participants will have less need for technical or customer support through knowledge gained at the conference. Applicable measures: Changes and cost associated with levels of customer service access and requirements
Enhanced Loyalty, Customer and Revenue Retention –
-
Retention of the participants’ existing level of business is ensured through enhanced affinity, familiarity with your company and product and reduced perceived risk. Applicable measures: Retention rates among conference participants vs. non-conference participants, Average revenue value of a customer, Cost of a lost account, Cost of a new or replacement customer.
Recurring or Repeat Revenue Growth –
-
Participants experience personal and company success, leading to growth on the existing revenue stream. Many conference providers focus efforts to help their participants grow their own business, thereby increasing the demand for their own products. Applicable measures: Financial and growth performance of conference participants. Associated sales volume.
Other Expense Reduction -
-
Conference activities may produce cost
savings in hundreds of ways. Exploiting
the time and place opportunity afforded by attendance at a conference allows a
company to accomplish goals that would require additional time and expense to
duplicate in the future and in different locales. For example, teaching 3,000 customers at a
conference the nuances of your upgraded product may be much more cost effective
than sending field sales teams out to do the job on-site or relying on digital
media. Providing customers and prospects
with access to your executives and experts may create an experience and exert
influence that would not otherwise be possible or financially feasible. The
possibilities are endless.
Communications, Press and PR Value –
-
Conferences can generate
considerable press and PR exposure through conference related promotion, advertising
and marketing campaigns. The value of
conference related promotion and earned media can be equivalent to several
million dollars of advertising exposure for the host. Inspiring the press to focus on your
strategic initiatives, included in the conference content, is invaluable.
All of the above either impact the revenue or expense side
of an organizer or host’s profitability or income.
How can a conference help an organization to grow?
When participants and sponsors feel they derive great value, organizers may experience an increase in event participation
and membership.
In my research I have learned some of what participants seek
at conferences, related to their job:
Immediate Impact:
- The ability to make informed decisions
- The ability to make effective near-term changes and improvements
- To make connections with people and resources valuable in achieving improvements and goals
- To reduce personal and organizational risk (see what works!)
Future Results:
- To identify and consider influences that affect good planning
These may be regarded as “strategic needs” of the
conferee. Conferences that focus their
content on these types of topics excel.
Exhibitors and sponsors who focus their messages and demonstrations for
customers on these types of needs will be successful as well. This provides a great basis for targeting the
content of publications, and content delivered through education, digital, and
social media on value for all concerned.
As the word spreads of a conference’s value in meeting these
needs, attendance will grow. As it
becomes apparent that a company or membership organization delivers a constant
stream of strategic information, customers and memberships will grow too!
Ed Jones
President, Constellation Communication
To get started on your event marketing measurement program, contact us today at +1.770.391.0015 or edjones@constellationcc.com
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