Measurement Tip 31

When all is said and done, what is the single most important thing to measure?

As I wind down a great career helping people like you get the most from marketing events, I find the most important measure for me personally is “Did I make a difference?”  This question is also entirely relevant for you and for your program today.

As I am fond of saying, “Only action delivers ROI.  No action, no ROI.”  So the fruit of my effort can be summed up quite simply, “Did anyone do anything different as a result?"  As you can see, action and change are somewhat synonymous. I have been fortunate that many students and readers have shared with me how they changed their program and their results acting upon the suggestions I gave. I hope you have benefited as well.

And, so it is for you, your program and ultimately your career.  The true measures of success are the specific changes that result from your efforts and your program.  Include accomplishments with customers, prospects, partners, your own team and countless others. 

This is the last measurement tip. I want to thank MC2, and my friends Rob Murphy and Caroline Meyers for the opportunity to share my ideas and thoughts with you through "eConnections Digest" over the past three years.  I sincerely hope you found something to use in your plans and activities that made a difference. I wish you all the best!

Ed Jones

Measurement Tip # 1

Be regarded as a manager of the business as well as a manager of trade shows and events.

(This is the first in a series of articles for the MC2 eConnections Newsletter)

Your career opportunities expand rapidly if you are seen as a manager who affects the profitability of the organization and not just your own budget. The best way to do this is to relate the accomplishments you measure to the basic business profit equation.

Revenue – Expense = Profit

In fact, the following two simple concepts will be the underlying basis for this entire series of tips and articles:

1) Your success as an event marketing manager
2) Relating accomplishments to business profitability

So let’s get started. . .

Revenue related accomplishments in a marketing context are usually related to sales. Generating new sales through interactions and resulting leads with potential buyers is the most obvious. Not so obvious, is protecting and growing the revenue you already have through your existing customers. Your event plans should address both.

Expense related accomplishments in an event marketing context are virtually unlimited. Expense reductions (aka cost savings) impact profitability dollar for dollar. When you have your company CEO meet with thirty customers and prospects over three days at a major event, consider the savings to your company.

Would a trip for the CEO to meet with those same customers individually cost $10,000 or more?

If you use the media center at a big show to accomplish a major announcement or product launch, how much is saved compared to doing it independently?

When you reduce the number of sales calls from five to two for qualified visitors reached through your shows, what is the impact on sales expense?

When you develop new digital graphics, video, web pages and social media for a major show, how many times will those assets be reused in the future and for how many purposes?

The examples are endless. Expense reductions are the greatest and most varied opportunities available to you as an event marketing manager. Expense related accomplishments should be a part of every show plan.

Other measures will be discussed in this series as well. Cost efficiencies, such as Cost per Visitor, exhibit efficiencies such as Number of Visitors, communications efficiencies such as Number of Impressions, and even measures on the overall show or event such as Traffic Density.

A good measurement program will show if your events are paying off for the business and if they are being managed for optimum efficiency. Measurement will also show you how to improve your accomplishments in both categories. I hope you tune in each month as we expand on the knowledge and skills to justify and improve your events and elevate your status in the organization.

If you have any questions related to event measurement please call us at 770.391.0015

Ed

Suite of On- Line Tools Now Available to the Exhibit Managers

I was a bit surprised to realize that we now have a complete set of on- line tools to support exhibit managers with some of the most important success steps in their program:

• On- Line Planning and Measurement Tool - (Simple and Full ROI. Joint venture with Exhibit Surveys, The Trade Show Planning and Measurement Tool)
• On- Line Pre- Event Staff Orientation and Training - (Simple and Comprehensive versions, annual license and per user fee, low cost for small shows)
• On- Line Post Event Staff and Stakeholder Survey - (Turn key, providing internal customer feedback, database of results analysis over the event year, by product group or division, 24/7 access to results and analysis)

Our goal is to make inexpensive, automated support for tasks that have a high degree of influence on effectiveness and efficiency of the exhibit program. Exhibit and event managers rarely have time for additional tasks, yet these tool provide essential support for measurement and accountability across a wider range of people in the organization.

Call me if you would like to know more about automated support for your program.

Fear of Negative PR Not the Only Reason for Budget Cuts

An exhibit manager chimed in on a message board recently, to remind us that the perception that shows and events are frivolous or the potential for negative PR exposure are not the only reasons events are cancelled or cut back. "... certainly not because we see the shows as unnecessary, a luxury or some trumped up PR stunt to try and present an image of a socially-conscious corporate citizen - it is simply self-preservation. Significant cuts are necessary to keep many companies in business. The marketing budget is an easy target for quick money - it's a lot harder to carve money out of production if you are already a lean, efficient organization with good strategic sourcing and operations practices in place. It is sad that this has to become politicized. Nothing should be read into the practice of cutting back trade show marketing other than it is simply one of many tools corporations are using to try and get through this recession."

Her response raises the question again, why cut marketing when things are down?

Profit often comes from serving the existing customer base. New revenue is often expensive to obtain and expensive to support, partially answering the question "why do companies cut sales and marketing budgets during an economic downturn?" Leaning out the organization as Karen has indicated and keeping the revenue streams you already have is a common approach.

Many companies are shifting weight to Customer Relationship Management at events in which they continue to participate, aka "putting their arms around their existing customers." Keeping the business you have safe from price attacks by starving competitors, offering solutions to existing customers that help you both mutually deal with the economy, and making sure that you get any additional business that is to be had from your current accounts are productive goals for events in the near term. Scheduled meetings with top accounts, where you offer real support and solutions for weathering the storm are a wise investment of time and resources.

So, if you are still counting leads as a major part of your event measurement, count meetings with high value accounts at least equally in your measure of success.

What Do Other Companies Spend at Tradeshows?

Comparing Total Spending at Trade Shows

Using a Cross Industry Benchmark of Cost per Square Foot

Clients ask us, “How does our trade show spending compare with that of other companies?” Specifically, what are the benchmarks for total cost of a typical trade show appearance, including all activities except staff time and travel expense (items typically not reflected in the trade show budget)?

It is easy to find references on “spending per square foot” as a comparative index. However, the numbers we see significantly under estimate total spending. Many of the references we found indicate a cross industry average cost of approximately $60 per square foot, including space rental. The most often cited number for a "new build" is ~$150/ sq. ft. Many exhibit managers are shaking their heads wondering how this can be true!? The most likely answer is that these indices do not reflect total show budget but a subset of spending directly related to the exhibit.

To address this need, Constellation ran the average “cost per square foot” data on the actual results from several hundred events in our database. These trade show programs were managed by companies in several different market segments.

So What Do Other Companies Spend?

Total Trade Show Spend per Square Foot

(Cross Industry View)

Type of Customer	Cost/ Sq. Ft.	Exhibit Program Size and Scope
Manufacturing (Fortune 100)	$127	Large Domestic
Transportation (Fortune 100)	$137	Medium Domestic
Consumer Package Goods (Fortune 100)	$144	Large Domestic
Medical and Household Goods (Fortune 1000)	$172	Medium Domestic
Exhibit House Clients (Mix of Sizes)	$186	Mixed Domestic
Engineering/Manufacturing (Fortune 100)	$187	Large Domestic and International
Banking (Fortune 100)	$239	Large Domestic
Computer Technology (Fortune 500)	$388	Large Domestic and International

We estimate the average Cost/Sq. Ft. benchmark, on a cross- industry basis, to be $150 - $190/ sq. ft.

This index includes all things that are generally found in an actual event budget, including off-floor activities and expenses such as a customer dinner or event, sponsorships, media, etc. The index excludes staff expenses (time, travel, food and lodging) that are not part of the show budget. Those costs are usually covered by non- trade show budgets based elsewhere in the organization. (Some clients prefer to look at the complete picture and include staff travel cost. This can be estimated by multiplying the domestic traveling staff by $1,000 and the international traveling staff by $10,000. This article deals only with budgets that do not account for staff cost.)

A Second Opinion

As a cross reference, I asked our friend Skip Cox, at Exhibit Surveys, to perform a similar query against their database of hundreds of events. Skip indicated the average spending per square foot, on a cross industry basis was similar to our finding at approximately $170 per square foot.

These numbers are presented as a guideline. They reflect actual results against hundreds of shows. "The index of “cost per square foot” is a useful way to forecast how much money you might need to allocate to do a good job at an upcoming event or to evaluate how well you are managing cost compared to the spending of others."

The average exhibit size reflected in this data is approximately 400 – 500 square feet, i.e. a medium exhibit size. In the table above you will note that some programs were defined as large, where exhibit sizes can average 1,000 square feet or more. Some of the large programs have a lower cost per square foot compared to smaller ones. Other factors you should consider when reviewing this data are 1) the averages reflect excellent, good, fair and poor cost management by different companies, 2) the cost for floor space rental varies by show and industry, 3) the degree of off-floor and off-site activities included varies by industry and company type, and 4) these averages reflect some programs that include international events where cost is almost always 20 – 50% higher. This data represents results from 2007 and 2008 shows.

Using indexes such as Cost per Square Foot is another example of how a good event measurement program can help you manage your company's resources for maximum efficiency and effectiveness.

If you have questions about your specific spending, please contact me and I will be happy to answer them.

+1.770-391-0015, http://constellationcc.com/

Greetings from TS2! What you should know about Web 2.0

TS2 is swinging along in fine form. I have not heard the final attendance count but there are plenty of people here and the sessions have 40 + people in them.

I attended a session on Web 2.0 and social networking. Joyce McKee, who runs http://letstalktradeshows.com was interviewed live by Michael Hart, editor of Tradeshow Week. She did a great job explaining the basics and giving straightforward advice on these topics. I suggest you visit her site if you are trying to figure out what you should do as an event manager in the world of cyberspace publicity, and for perspective on most other trade show related topics. By the way, Web 2.0 is really more of a concept than anything real, at least in my opinion. It centers on linking people and concepts together as a fundamental ingredient of web activity. Think Facebook, LinkedIn or Event Peeps.com as examples.

Mike Olson Sr. Mgr. Trade Shows at Ratheon and I present tomorrow at 4:30 PM - How to Manage Executive Perception of Trade Show Value. I think it will be a great session with lots of detail.