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 21

How does anyone determine the success and ROI of a party, networking event or even a golf outing held during a conference or event?

Hospitality and other ancillary events abound at trade shows and conferences.  Most of the ones I have attended were not planned to deliver much in the way of ROI.  However, it is quite practical for receptions, mixers, networking events and even golf outings to produce important and valuable accomplishments for your company and to expand the value derived from participation in the main marketing event or trade show.  Here is how…

My model for event value considers four overall benefit categories for any face-to-face activity.  These four questions will lead you to plan for and establish measures for your accomplishments.  Not every event will provide accomplishments against all four values.  The examples given are in terms of ancillary private events:

1) How will an ancillary event increase sales opportunities for the host? Meeting new prospects and accomplishing the initial steps in establishing relationships benefits sales results.  Sales may be able to provide an estimated value for a new prospect.

2) How will the activity protect and retain existing customers and revenue? A private affair for current customers is a good example. Using an event to protect your existing customer base and then to up-sell a customer provides value you can prove for the company. Current customers may be introduced to new programs or incentives at an ancillary event.  Explore customer retention rates, the average revenue value of a customer and estimated cost to replace a lost customer for your value estimates.

3) How will the event save the host money? Bringing high-value contacts, prospects, partners and suppliers together at the same time to see something or someone (such as an executive or expert) in one place may avoid several future trips and perhaps, events at your company’s additional expense. A great example is a mixer for the press and media when your company is launching a new product.

4) How much exposure will the event generate for the host company's products and brands?  Exposure is counted in the form of impressions. This is the same metric used in advertising and PR efforts. Use signature ancillary events and their associated promotion and publicity to position your company, products and priority messages. Another worthy objective is to establish your company as a thought leader by providing provocative and valuable content during the event. If possible, seek out assistance from your communications team members to help you estimate what the exposure generated at an event may be worth.

Develop your event plan to deliver accomplishments in each of the four elements of value.  Then you can apply metrics to document achievements.  

The basis for all measures is personal interactions.  Counting interactions with people who fit targeting criteria is the basic measure for elements 1 - 3.  Estimate a value for each person "activated" via their interaction with your team at the event for each of your defined goals. The activation may be to become a committed lead, to resign as a customer, to attend a function in lieu of a future one, or to receive your images and messages.

For value #4, Promotion, count impressions made on people. Impressions are visible or audible images of your company's brands and messages that fall on the eyes and ears of many different target audiences addressable through the events. Use your advertising cost per impression as a guideline to estimate value.

If you collect and report any results in the form of accomplishments in any or all of the elements of value listed above, your management will be more confident with their investment and with you as a competent manager of the business.