Holiday Greetings to All!

Was budgeting for your 2007 shows any fun?  Probably not.  

Perhaps your boss challenged your show choices, and your booth sizes.  Or maybe someone in Finance questioned your efforts to put more money into promotions or staff training. 
Or maybe you had to justify keeping your budget in favor of greater spending on other marketing mediums, like e-marketing, or print ads.

And maybe you didn’t need anyone else to ask you these questions, because you’d like to answer them yourself.

So how can you avoid these budgeting headaches next time around?

If you didn’t measure your show performance in 2006, you’re stuck for your 2007 budget.  But there’s always 2008.  This article shows you how – and why -- to measure your 2007 shows, so when you budget for 2008, you can make much better decisions – and keep more of your budget, too.

Read on, and enjoy!

Bill Dierberger – Vice President of Sales & Marketing

First, set up a plan that includes all of the shows and events in which you must participate along with those that you feel your company should participate.  Use a spreadsheet to capture all of the essential cost details pertaining to each show.  If you need some help in this area, click here  to see an example of just such a spreadsheet.  Note that there is space allotted to measuring results.  You may need to modify your sheet to accommodate goals specific to your own program.

Second, gather all the results you’ve measured from your 2006 shows to project expected results and prioritize the individual shows in your 2007 plan.  Warning: you can only do this if you have set goals and measurable objectives for shows, and recorded the results as each show was completed.  Then you have the means to justify your new budget.  You also have the means to cut back in your plans without doing damage to the most powerful elements.  Bottom Line: you have the confidence and flexibility to easily cope with uncertainties in budget direction.

Let’s look at a simplified example to see how this process works.  Suppose that you set a goal of qualifying 150 sales-ready leads from a major national show.  Your actual lead count is 165.  For a second show you set a goal of 120 leads, and you gather 108 leads.  The results are shown in the table below.  Before you conclude that the first show deserves all of your attention, you need to determine the ROI for both shows based on ultimate outcome of the leads.

Table 1.   Show Performance Based on Leads Goals

If the leads from the first show converted to sales at a rate of 15%, and the typical customer spent $6,000, then the show accounted for $148,500 in sales.  If the second show leads converted at a 20% rate and this group of customers spent an average of $15,000, then this show accounted for $324,000.  If you were using your 10’ X 20’ exhibit and staff of four to work both shows, you spent about $12,000.  Your ROI for the first show is 12.4 to 1, and for the second is 27 to 1.  The second show attracted a significantly stronger decision-maker who bore a much better purchasing budget – this show should carry a higher priority in the plan.

Table 2.   Show Performance Based on ROI

You can apply this kind of information to all of the shows in your schedule for next year.  When it is done you will have a ranking system that will allow you to determine which shows get more emphasis and where to cut if you are required to reduce your program budget.  This is how you can be sure that you are preserving the most power in your plan.  It is far superior to simply cutting xx% from every show’s budget.

In addition, you need to be prepared to discuss the importance of non-measurable goals to your company.  There are some reasons (and very good reasons) that you want to have presence at an event or trade show that cannot be precisely measured.

For example, it may be very beneficial for your company to be associated with the leaders in an industry or market segment to be considered in more request-for-proposal processes.  This inclusion can lead to direct increases in market share for your products or services.  You cannot measure directly the outcome of this influence, but it is part of the benefits you look for in your show planning.

You can also use the ROI information to compare the benefits to your company of exhibiting at an event versus running that quarter-page ad in a popular trade magazine.  The better prepared you are for serious discussion, the better you can help your company make the most of its marketing dollars – and it all comes back to measurement.  So, how do you have a great 2008?  Commit to disciplined program measurement now.

Trade Show and Event Calculator

To keep your trade show budget, you must prove your program's success.  Before you can prove it, you must first measure it.

Skyline Exhibits
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