According to EXHIBITOR Magazine's 2015 Sales Lead Survey, only 35 percent of marketers track the percentage of leads sourced at trade shows that yield actual sales. And less than half of exhibitors routinely calculate the return on investment of their trade show participation. See the complete article at www.exhibitoronline.com
So let' take a holistic view and calculate the value of trade shows.
Image: www.exhibitoronline.com
To help you measure the value of TRADE SHOW exhibiting, here is a tried-and-true, four-step method.
THIS IS A GLANCING SUMMARY OF A DETAILED PUBLISHED ARTICLE AT EXHIBITOR ONLINE
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STEP ONE
Identify the Estimated Impact on Your Company's Revenue
First, gather the following information:
Number of sales leads. Identify the number of booth visitors who commit to a sales contact or other specific sales-related step after the show.
Close rate. Estimate the average percentage of trade show leads that ultimately result in a sale or contract.
Average value of a sale or contract. If you'll be promoting multiple product lines at the show, develop a weighted average based on the level of interest for each product in your exhibit.
NOW, DO THE MATh
Number of sales leads x Close rate x Average value of a sale or contract
= Estimated Revenue
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STEP Two
IDENTIFY THE SAVINGS
Yes, if done correctly, trade shows can also you money.
Average cost of meetings. Determine the average cost of meetings (executives, sales, channel partners, strategic alliances, technical experts, association members, investors, and industry analysts). Consider facility-rental fees as well as time, travel, and related expenses.
Field-sales costs. A well-executed program may eliminate two or more sales calls in the field that a salesperson would have to otherwise make.
Name-acquisition costs. Trade shows provide hundreds of new, qualified contacts.
Other cost savings. Calculate the value of other cost-savings activities at the trade show, such as reuse of creative materials for field-sales activity or for future corporate events.
NOW, DO THE MATh
Average cost of meetings + Field-sales costs + Name-acquisition costs + Other cost savings.
= EStimated Revenue
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STEP THREE
Quantity the number of impressions generated at a show. Include the pre-show, post show and at show impressions.
NOW, DO THE MATh
Impressions from direct marketing + Impressions from media coverage
+ Impressions from on-site promotion + Impressions from exhibit
= Total Impressions
TOTAL IMPRESSIONS X DOLLAR VALUE OF EACH IMPRESSION
= TOTAL VALUE OF IMRESSIONS
Want to calculate TARGETED IMPRESSIONS. See details here.
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Increase Impressions at the show
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STEP FOUR
Now Determine the Pay Back Ratio: Pay Back Ratio is not the same as ROI. This ratio takes into account more than just revenue generation, making it a more holistic valuation of your exhibiting program.
HOW TO CALCULATE IT?
Estimated Revenue + Total Cost Savings + Total Promotional Value
= Total Estimated Value Derived from the Event
Now, Calculate the Pay Back Ratio
TOTAL ESTIMATED VALUE + TOTAL EVENT COST
= PAYBACK RATIO
This payback ratio will help you quantify the value of each trade show and compare one event to another in an apples-to-apples manner. It will also help you answer the following questions: Does this trade show bring enough value to our organization to justify exhibiting?
