Measurement Tip 24

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 –

Participants will make upgrades to systems and products and purchase new offerings learned about at the conference.  Designers or integrators may incorporate more of your products into their designs and offerings.  Applicable measures: Conference related 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

 

 

 

 

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