Summary: Exhibiting at events can deliver strong ROI by providing direct access to your target audience, boosting brand awareness, and generating valuable leads. Post-event follow-up is crucial for success. Understand tangible and intangible ROI to maximize your investment.
Event ROI is a key indicator of an event’s success and profitability. It’s also one of the metrics decision-makers use to determine if they’ll exhibit in the future.
If you’ve exhibited at an expo in the past, however, you know that sales don’t always happen then and there. Instead, the event is the first step in a lead nurturing journey. How do you measure event ROI in a B2B context, where the sales funnel tends to be longer and more complex?
As discussed in previous chapters, face-to-face marketing is powerful. It can significantly reduce the number of touchpoints necessary to close a deal. We know events have value, but understanding event ROI is more complex than looking at a simple ratio.
In this chapter, we’ll break down the complexities of return on investment at events. Continue reading to learn how to make every moment on the floor count.
Understanding ROI for Exhibiting at Events
Event ROI measures the benefits gained from exhibiting compared to the costs. It helps exhibitors assess whether the resources spent on participation resulted in profitable returns.
Some resources are financial. For example, consider booth fees, travel, promotional materials, and staffing costs. Resources also include time and effort, which are valuable in the fast-paced world of small business.
ROI is important because it justifies the resources used to attend and exhibit at an event. It can help you determine if business conferences and trade shows are the right marketing channel for your business.
A common misconception is that event ROI is a single number or percentage. In reality, there are two key categories of trade show ROI.
Tangible Event ROI
Tangible ROI is what you traditionally think of when you think about return on investment. It refers to the measurable, direct outcomes of exhibiting at an event. The formula for calculating basic ROI is (Profit from event – Cost of event) / Cost of event.
Elements of tangible ROI include:
- Sales revenue
- Number of qualified leads collected
- Cost per qualified lead collected
- Number of deals closed as a result of the event
Intangible Event ROI
Intangible ROI is more difficult to measure because it isn’t based on data. It refers to the other valuable benefits gleaned from exhibiting at an event.
Examples of intangible ROI include:
- Increased brand awareness and visibility
- Networking opportunities
- Market insights
- Long-term business growth
- Educational opportunities at the expo
Ultimately, event ROI is the determination that the benefits outweigh the costs of attending an event. You should consider the lifetime value of attending events, too, which mostly derive from intangible benefits.
Attending with a Goal in Mind
As event ROI includes intangible benefits, it’s important to attend with goals in mind. What are the performance indicators you wish to track, and how will you determine if you’re successful?
Most small business owners attend expos with one of the following goals in mind:
- Building brand visibility and awareness among their target audience and industry peers
- Networking to build relationships with potential clients, partners, and industry influencers
- Generating sales leads
- Customer education and retention
It’s possible to define key performance indicators for all of the objectives above. Using a lead generation tool and CRM platform can help.
For example, you most likely know that the ROI on email is as high as $36 for every dollar spent (or 3600%). If you grow your email list during the event, consider tracking list size before and after as a KPI. You can segment your list based on leads generated at events. Thus, when an event lead converts, you can use that data in your ROI calculation.
You can also track success using:
- Social media mentions
- Website traffic spikes
- Press coverage
You may need to attend an event more than once to gather enough data. This makes it easier to adjust your approach and compare tactics. You can also consider using competitor data as a benchmark to measure your own success at the event.
Why Exhibiting Leads to a Good ROI
Whatever your goals, trade shows and expos are unique opportunities to boost ROI. They are concentrated, immersive experiences.
At events, you can showcase your brand’s value to a large audience in a short time. They are more proactive and less passive than typical marketing channels. Face-to-face engagement at events can significantly expedite a long, complex sales process.
Here are other factors at events that contribute to a strong and measurable ROI:
- Direct exposure to your target audience. Attendees are looking for your solution and eager to talk to you about it. Attendees tend to arrive in a buying mindset.
- Face-to-face engagement opportunities. As discussed in Chapter 2, in-person engagement helps build trust, demonstrate expertise, and forge memorable relationships.
- Brand awareness. Just by showing up, you increase your brand visibility within your market. It’s a simple way to build trust and grow your authority.
- Opportunities for direct sales. Depending on your product, you may be able to offer event-specific promotions to close deals on-site.
- Access to industry insights. Gain insight into competitor strategies, industry trends, and customer feedback, which can shape future business decisions.
Remember, every relationship at an event matters. Customers who first engage at an event may develop into long-term, high-value clients. Thus, expect to increase ROI over time.
Post-Event Analysis and Follow-Up
The truth is that most of the magic happens after the event has come and gone. Your event ROI depends on how you follow up. Engagement with event leads should be timely, personal, and specific.
Aim to schedule as many demos and meetings as possible. Ideally, aim to meet with decision-makers who may or may not have been in attendance.
Whatever your goal, attending a business expo is an efficient, effective marketing strategy that leads to ROI over time. Register to exhibit and discover our powerful lead generation and B2B marketing for yourself.