Measurement Tip 26

Measuring The Exposure Generated at Trade Shows and Events

 

Ask a marketer why his company attends trade shows and events and his first answer will likely be “Exposure,” “Branding,” or “To maintain a presence in the industry.” Generating leads or influencing sales are usually cited after exposure related goals. However, few companies have a method to measure this exposure. Instead, most companies base their success or failure on the number of visitors to the exhibit and the number of leads generated. Both are important indicators, but more is required to provide a good indication of the value of exposure.

For these reasons, it is important for companies to develop a methodology for measuring both the quantity and quality of exposure at trade shows and events. Exposure provides a surprising level of value and is an important element in justifying participation and expense. Measuring exposure can also provide a better understanding of how events factor in the overall marketing mix. With it, marketers can compare the value provided by the event program to that of advertising, promotions and other marketing media. Exposure evaluation also provides insight into how events generate leverage for other media.

 

Measuring Quantity of Exposure

The amount of exposure is the obvious place to start. One technique for measuring exposure is to estimate the number of audience impressions achieved by various tactics and activities associated with participation in a specific trade show or event. A forecast estimate of potential impressions can be used for decision-making regarding the size and types of presence and promotion activity at an event.

The following methodology is a simplified overview of how to measure the quantity of impressions generated at an event. We will assume that the marketer researched the event and ascertained that the target audience will be present in sufficient numbers that justify participation. 

First, obtain an accurate count or develop an estimate of 1) total show attendees and 2) the subset who fit your target marketing profiles. These numbers are essential in calculating gross and targeted impressions. Gross impressions are a count of the number of times your messages, or product or company brands are seen or heard by anyone at the show. Targeted impressions, i.e. visual and audible connections with those attendees who fit your target audience profiles, will be a subset of your gross impressions, among those who fit your target audience profiles. Gross impressions have value. For example, highly respected and well-known brands tend to perform better in financial markets. Targeted impressions have an impact upon sales ready prospect development and probability of sale.

Next, approximate the number of times individuals are exposed to your individual event marketing program elements. For example, the number of times the typical attendee will pass your exhibit over the course of the show will be based on factors such as your location in the hall, the number of exhibition hours and days and the number of other exhibitors competing for their attention. For instance, if your exhibit is in the front of the hall and the show is three days in length, you might conclude that the average participant passes your exhibit coming and going from the hall on two of the three days. That would provide an four opportunities to see for the entire group of exhibition participants. If the exhibit is in the rear of the hall, the average attendee may pass only once during the show providing only opportunity to see. (Obviously not every person will see your exhibit, however many people will see it multiple times. For simplicity, we assume they somewhat cancel out unless there is more sophisticated tracking in place.)

You can analyze all other aspects of show participation in the same way. Pre-show communications, such as a direct marketing program provide the opportunity to make several impressions on each attendee with a heavy concentration on targets. A banner in the front lobby may be seen multiple times daily by most participants. A sponsorship may place your logo on signage, print and web media giving you even more impressions per attendee. An ad in the show program might give you one additional impression per attendee, while an ad on the back cover of that same program might give you three or more.

After you have identified the number of gross impressions each element of your marketing program is likely to produce, you can estimate the number that were actually targeted impressions using percentages derived from studying the show demographics and your own exhibit visitor demographics if you track them. You would use a much higher target factor for a targeted mailing than you would use for exposure to your exhibit.

If advertising is part of your show plan you may include impressions from that as well. With the estimates of total gross and targeted impressions you are armed with an important answer to the question “What do we get out of this show.” 

Estimating the Cost and Value of Impressions

If you desire you can report a qualitative but useful value of the equivalent cost to generate impressions created through an event by other means such as advertising or direct marketing. Other marketing campaigns may be measured by numbers of impressions, resultant qualified sales leads, contacts and closed business, etc. That would be a useful structure to apply to your event marketing element. This estimated value can help justify your show investment. A case in point is a division of 3M that used a particular show to introduce a new product to the market at a very well targeted show. Unaided awareness of the product name and description was measured after the event and extrapolated to a percentage of the entire U.S. market. The advertising and corporate communications VP estimated advertising expense required to create an equivalent level of unaided awareness among targeted buyers was more than twice the entire show budget! And speed to market was cut by over approx. 50% due to the "sales call equivalents" held at the show that would not have occurred with advertising. 

These same concepts can be used to estimate the value of sponsorships and promotion opportunities offered by a show or event. Estimate the number, types and value of the impressions a sponsorship will generate. Add in some qualitative evaluation such as the good will that will be extended to the host association for example. This assessment of potential value will help you evaluate which opportunities will likely to give you the largest return on investment or perhaps lead you to negotiate the cost using your estimated value. 

Measuring Quality of Impressions

The next step is to measure the quality of the impressions you’ve made. This gauges your efforts’ success not just at getting in front of your audience, but in creating the impression or image you want. It is a valuable tool that enables you to identify your success and pinpoint specific weaknesses that can be improved upon at future events.

The best way to get a definitive reading on the quality of the impressions made at a trade show or event is through a formal survey. Many marketers skip this step and base their evaluation on the feedback they receive from the customers and prospects they meet with at the event, but this method comes up short because it ignores those who didn’t interact with your staff, thereby failing in the opportunity to learn how to attract them next time. 

Start with a blind, pre-event benchmark study to ascertain the current level of awareness and the perceptions of your company or product represented in the event audience. Repeat this after the event to see what you’ve accomplished. Your accomplishment will be the movement of each variable in a positive or negative direction. Include questions that document the retention of specific messages, quantify the recall of your presence in comparison with your competitors, and give you the opportunity to learn how to connect more effectively with your audience in the future. You can even re-qualify the potential of the event by finding out what percentages of the participants have interest in your products and services. There are a number of specific measurements such as purchase intent, brand preference and net promoter™ scores that can be applied to assess the quality of your communication. 

Measuring the quality and quantity of exposure at trade shows and events gives marketers data on their return on investment that goes beyond the more obvious measures of leads and sales. It gives a true picture of the value received and goals accomplished in proportion to the dollars spent, in terms that are readily compared to the results from other marketing activities. And, because relatively few other companies are doing this, you can get a jump on the competition.

Heather DeLoach

Project Manager, Constellation Communication  

For assistance with your trade show and event marketing program, please contact Constellation Communication +1.770.391.0015

*Net Promoter Score is a registered trademark of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.

 

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 6

"Sales Opportunities" Are an Effective Measure of Marketing Success - and May Help You Ease the Gap Between Sales and Marketing

I have often said that the sales team is the primary customer of the marketing team. The marketing function is primarily focused on creating sales opportunities and improving the probability of sale for the company. This is for good reason. In most companies the pressure for sales results is constant. The entire financial strategy for a company begins and ends with the sales forecast and sales results. That is why so many companies put such a heavy emphasis on leads, using the number of leads as the primary measure for trade show success.

For those reasons, most companies would like to correlate actual sales results with event marketing activity. This is possible for some, but impractical for many. Some companies take orders on the show floor. That situation is easier, the measure of success is the total value of the orders written. For many others, sales occur long after the event is over, and often through one of more layers of channels, making it difficult if not impossible to track. Add to that, a multi-year sales cycle. In the defense industry the sales cycle may be a decade or longer from initial engagement to sale. Also, converting a lead to a sale often requires significant participation by the sales team, presenting the question of how much of the eventual sales value is attributable to having made the initial contact and engagement with a prospect at a trade show?

Of course there is a lot more to be gained at trade events beyond generating leads, however for this discussion we will keep the focus on the link between marketing and sales. At worst this link is perceived as a disconnect. At best, marketing is seen to have a direct influence on the level of sales. For example, a call center might be known as a marketing function, but if they write orders they are a sales function. Therefore, it is worth considering if a trade show effort should be evaluated on the ability to generate bona fide sales opportunities for nurturing and closing by the sales team.

The most basic question that must be answered by the sales team is, "What do we want a qualified visitor to do as a result of engaging with us at an upcoming show?". The answer must be a specific step that is feasible and will involve a targeted individual more deeply in the normal sales cycle and to a point where the certainty of a sale can be estimated. So, it follows that the simplest measure of success might be how many real sales opportunities were generated by activity at this event.

To go a step further, we can place an estimated value upon the sales opportunities generated by gathering some additional input from the sales team. To estimate the value of the sales opportunities (aka leads counts) you will need to know two things:

1) What is the estimated percentage of your committed leads (i.e. people who interact with your staff and make a commitment to a specific follow-up action such as a sales visit) that eventually result in a sale? This may be known internally as the "close ratio" or something similar. Ask sales for this number, and remember it will only apply to real leads that represent a targeted individual who actually takes the next step you specified.

2) What is the average value of a sale that results from a committed lead/visitor from this show? Again, the provider of this information is the sales team. They will also explain how they prefer to view this value. Valuation perspectives might include initial contract value, annual value or a continuous service, lifetime value, etc. Service businesses may use the value of revenue over a period such as a year or more.

In planning for next year’s event cycle, take time to make an appointment with the sales team and jointly define the measures of success for your event marketing program.Effective targeting and attraction are prerequisites to an effective sales activity. These are within the domain of marketing. Engagement is the activity that begins to span the marketing and sales functions. Engagement should result in moving well-targeted individuals directly into an important step in the sales cycle for a company. Prospects reached through marketing activity must commit to a step (action) that the sales people agree is an important step in their process. If this agreement is reached, the proverbial gap between marketing and sales will be erased.

To summarize, here are few suggestions: 1) keep to emphasis on selling. 2) focus your marketing activity on two things a)defining and finding targets and b)engaging and interacting with them in a fashion that results in participation in a specific action that your sales team has defined as the next step. Then, count your success by the number of sales opportunities generated and assess the value of your investment using the estimated value of those opportunities.

Measurement Tip 5

Customer and Prospect Feedback May Be Most Important to Your Marketing Events

Although ROI and efficiency measurements are important, customer feedback on the value and effectiveness of your events may be the most valuable information you can get.

Events are communication and engagement tools with the goal of gaining specific, desirable behavior from participants. This behavior only occurs if participants are persuaded and motivated to act. To know how well your event marketing program accomplishes these goals and how you might change future events to be more effective requires insight through the eyes of your customer.

As a reminder, there are three critical success factors for a marketing event:

1) You must attract enough of the right people to participate in your program, i.e. those who can act in a beneficial manner
2) You must give participants information and an experience that is persuasive and conclusive
3) You must gain their commitment to act in a manner that benefits your company and accomplishes your goals.

Therefore, the following categories of information are essential for understanding how well your program performs on these critical accomplishments:

• Who are they (demographics of your visitor base as compared to the event base)?
• Why did the participants come?
• What did they learn as a result of visiting your exhibit or event (…if anything, and
what was most valuable to their future plans)?
• What do participants plan to do as a result of their visit (specifically will they take the
steps you have specified necessary to achieve results)?

There are several ways to collect this information. There are advantages and disadvantages for each method. In some cases, a mix of research techniques provides the best results.

On-site survey techniques, such as random visitor intercept surveys, allow for participant profiling, immediate feedback on the visitor's experience and prediction of post event behavior, such as purchase intent. On-site research provides actionable information regarding how well your exhibit is organized, how to arrange and manage customer flow and the effectiveness of your message hierarchy. Visitor tracking within your exhibit or event is also possible through a number of technologies.

Post- event survey techniques can provide validation of customer behavior. Did the visitor receive a follow-up or progress through the next steps of your program? What specifically did they do? What did they buy and from whom? Was their exhibit or event visit a factor in their buying decision, etc? Post-event surveys are also good for testing your event's impact on brand awareness and retention of specific product marketing messages.

On a grander scale, you can reach out to your entire leads universe quarterly or annually to validate the effectiveness of follow-up by your company and to create a projection of actual purchasing results including an estimated amount of sales. You can perform statistical analysis on your program data to see which factors most influenced customers who bought or identify those who were satisfied or dissatisfied with their experience with your company.

ROI and efficiency measures are important, however making the right changes in future events is much easier when you have good customer feedback. Decide which survey techniques will work best to validate and improve your results in the business development and communication objectives for associated with your program.

The Academics of Experiential Marketing

Here are the academics of experiential marketing for those of you who are interested. I have thirty plus years in trade show and event strategy, planning, measurement and ROI (my ethos).

Experiential marketing is highly effective communication, designed to elicit a response and a behavioral result from the receiver. It is therefore, by definition persuasive. Persuasive speech (including writing) is founded in three forms of rhetoric or persuasive proof: (this is the very condensed version and these to some degree follow one another.)

Aristotle's "On Rhetoric" described experiential marketing 2,400 years ago.
"Persuasion is clearly a sort of demonstration, since we are most fully persuaded when we consider a thing to have been demonstrated." The three components are as follows:

1) "Ethos" is an appeal based on credibility of the speaker. This is heavily intertwined with brand.

2) "Logos" is an appeal based on logic or reason. Our presentations, demonstrations, sales collateral, web content should all be driven by logic, i.e. leading the viewer to a logical conclusion(this is a study in and of itself).

3) "Pathos" is where the emotions come into play. Pathos is appeal based on emotional response. Much advertising is emotionally oriented. Admiring or wanting to be like the celebrity who wears the cool watch for example.

For our purposes here EXPERIENTIAL MARKETING is about helping the prospect come to and through the emotional decision to act, because they "feel right about it." That can come from interacting with the product, feeling good about the personal interactions with the staff or sales team, feeling lower risk due to confidence in your credibility and logic. "Trial" is the ultimate risk reducer and emotional compliment. Testimonial is a form of vicarious trial. Great design and proper mood also facilitate these transitions.

Our tools in the exhibit and events world are: (not intended to be a complete list)

• Visual Communication and Information Structure: How concepts are presented. Message hierarchy for example (another great course and topic)
• Color: Color is quite capable of influencing psychology. Contrast is important for establishing priorities.
• Sound: Music is a powerful mood changer.
• Graphics: A picture speaks a thousand words.
• Interactive Experiences: Graphics on steroids, that can be presented in a customer contextual perspective and engage the participant.
• Human Communication and Interaction: Very helpful in sealing the deal.

This topic is a very rich opportunity to use communication and experience to maximum advantage. It personally excites me. Weak messaging is one of the top inhibitors in trade show and event marketing. If you are interested in more detail, I am available to teach seminars on effective event communication. Contact me though the Constellation Communication Corporation website www.constellationcc.com

Ed Jones
Constellation Communication Corp.