How to Think About the Trade Show ROI
Sunday, May 29th, 2011All companies – including ours – want to know what they get from their marketing efforts. Trade show marketing expenses are no different – companies want to know what they get for all the money spent. Frequently, we hear from customers who are skeptical that they get value. But most companies, if they track the right metrics, would realize trade shows can be very effective investments. Here are some pointers.
One of the biggest misconceptions is that trade shows are about sales at the show. Sure, it can happen. But think about the complexity of a sale from a buyer’s perspective – they need to identify the best set of product needs and match that with the available products and then determine the optimal timing. Even in a perfect world, that would rarely all come together in the course of a 3 day trade show. Look, if it does, run with it. But just because it doesn’t, don’t think trade shows aren’t for you.
Instead of sales, think about leads – and leads are just future sales. They represent potential future customers for your company’s products. Many businesses that focus solely on sales don’t spend enough time filling the lead funnel – and the lead funnel is the future of your business. That’s where trade shows have such benefit.
In a typical product evaluation your customers are usually remote – they’re looking on the web or they have your brochure. If they have information on your competitor’s products it’s also usually just collateral. The best thing about a trade show is that they are in person which is a benefit for them and for you. Being in person gives your customer a “ 3-dimensional” experience with your products. They can see a demo, pick it up, check it out. And being in person gives your company an opportunity to engage in their process of gaining knowledge – and you can build a relationship. And this is an active selling process – you have an opportunity to direct the discussion and evaluation.
The result is that your likelihood of closing can go up dramatically versus a passive process. The thing that muddies the issue is that your customer then leaves. Now what? You follow up post show. You get the additional information they asked about. You find out how their evaluation went and if they identified new criteria for their decision. And you get an update on timing and plan a follow up with them. And all of these steps improve your odds of closing.
It’s often hard to calculate the return on all of this – it’s a bit “squishy.” But the average company in a 100 square foot booth can get as many as 50-100 qualified leads in the trade show booth over a 3 day show. You’ll close some proportion of these leads (they came to see you, after all), but they are all potential future customers. The average 10 x 10 booth and expenses will cost $6,000-$8,000 so that works out to be as little as $80 per qualified lead. And even if you ignore the fact that the trade show environment is far superior to making progress than a 1:1 call, there’s no way your 1:1 sales calls cost as little as $80.
Trade shows are among the most effective types of marketing investments. The buyers are on the trade show floor, your company has 3-dimensional opportunity to promote and you get significant relationship building opportunities. The returns, in terms of lead acquisition, are generally much less than most other types of face to face marketing.
Impact Displays sells trade show displays and trade show graphics for companies that want an effective combination of value and service. The Company also offers trade show tips to improve your trade show success. Impact Displays can be reached by calling 877-217-2681 or by emailing info@impact-displays.com.
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