The subject of measuring exhibit program return on investment (ROI) has been discussed frequently over the past decade. The International Association of Exhibitions and Events (IAEE) and Exhibit Surveys, Inc. introduced an ROI Tool Kit this past year, and several private companies have developed software packages and technology tools to address the issue. Although there are numerous success stories, the goal of measuring ROI consistently and effectively remains elusive for many exhibitors. Of those companies that do measure return on investment, the range of metrics and methodologies varies widely. Economic conditions and the critical need to prove trade show value on both sides of the equation has motivated trade show organizers and exhibitors to collaborate more closely than ever.

Lack of ROI Standards

One of the challenges for exhibiting companies is that there is no standard set of metrics for measuring ROI. Return on investment has become synonymous with measurement according to Skip Cox, president and CEO of Red Bank, NJ-based Exhibit Surveys Inc. “The strict definition of ROI asks ‘if I invest a dollar, how many dollars in return will I receive?’ The problem in today’s world, however, is that all marketing is integrated. If a visits an exhibit and then buys something two months later, you can’t say that the lead was generated at the trade show,” he explains. In other words, the trade show may have accelerated the sales process but other factors such as advertising, word-of-mouth endorsement and field sales activities may also have contributed to consummating the sale. While some exhibitors focus primarily on lead tracking as a measure of success at a particular show, leads only reveal part of the ROI picture, Cox asserts.

When the ROI conversation is expanded to a discussion about value, the range of metrics and measurement options increases. In his presentation titled Managing Executive Perception of Trade Show Value, Ed Jones, president of Constellation Communication Corp. based in Dunwoody, GA, writes, “If you frame your event program in terms of business improvement, you can use this framework to communicate more effectively with internal customers, external suppliers, members of your team, managers of all levels and disciplines, and your company’s decision makers. You will improve execution. You can demonstrate value.” Jones offers companies “a much bigger model that helps them determine value from show participation,” he says.

Jones envisions exhibitor return on investment in terms of two objectives: business development and marketing communications. Under this larger framework, he identifies four key areas of measurement:

• Revenue Impact: measuring the sales opportunity presented by client prospects
• Customer and Partner Relationship Management: measuring customer retention and revenue growth from existing customers plus increases in profitability as the result of enhanced relationships with suppliers, channel partners and regulators
• Cost Savings: Measuring the cost savings of meeting with customers, prospects, suppliers, media, analysts, etc. at the trade show instead of in the field
• Promotion Value: Measuring the advertising dollar equivalency of promotional activities related to trade show participation

Case study: Kerry

The specific methodology and measurement standards that exhibiting companies choose to use are still dependent, to a certain extent, upon the business model of the organization. Kerry Group Plc of Tralee, County Kerry, Ireland is a supplier of ingredients, flavors and integrated solutions for the food and beverage industry. It participates in the annual Institute of Food Technologists show, Natural Products Expo and several vertical exhibitions in the cereal, snacks, bakery and ice cream market segments. As part of a mature industry with high barriers to entry and a limited universe of customers, competitors and prospects, Kerry’s main goal for exhibiting, says Bob Milam, exhibit manager, is not to come away from the exhibition with new customers but rather to increase the amount of business from existing customers.

Planning for trade show participation at Kerry begins with identifying the top 100 or so customers that will be in attendance. The sales staff weighs in on the specific objectives to be achieved by meeting with each customer. Goals can include introducing a new account team, discussing gaps in service or rolling out new programs. “If we assume that the [business development] is on target and those setting objectives know what they’re doing and what they need to hit their bonuses and keep their jobs, then we measure whether we hit those targets at the show,” says Milam.

Kerry also measures the cost efficiency of meeting with the projected 100 customers. All costs to exhibit are measured against the cost of the same meetings if they were to take place in the field instead of at the show site. “We have concluded that it is far more cost effective to [meet with customers] at the show. Plus, customers are at the show to buy. In the office environment there are gatekeepers and other distractions,” Milam comments.

Milam’s team tracks the number of impressions from booth visitors, banners and other at-show marketing opportunities and compares the numbers with impressions from advertising outside of the show. In addition, public relations are an important component of Kerry’s ROI strategy. It makes an effort to invite media representatives to the booth and track column inches and photos in post-show editorial coverage. Milam then compares the “free” coverage to the cost of purchasing the equivalent amount of advertising space.

Milam estimates that Kerry achieves a 4 to 1 return over investment in its trade show program. Cost consciousness is a major component of the high return. “We choose our staff at the show very carefully. We make sure everyone has pre-defined objectives. We put all of the objectives on the table before hand and choose the personnel that can handle the most objectives across multiple customers. We put specific objectives down on paper to give everyone a clear picture of why they are there and what they need to get done. This translates into productive meetings with a smaller, more efficient staff,” explains Milam.

Case study: Crestron

Rockleigh, NJ-based Crestron manufactures advanced control and automation systems for the audio, video, computer, IP and environmental markets. It participates in residential, commercial and educational exhibitions including InfoComm and CEDIA selling primarily through a distributor channel. Because the sales cycle is protracted, it is difficult to immediately measure the impact of trade show participation on a specific sale. “It is difficult to measure true ROI. If we just measured leads, it would be an expensive show,” says Rosanne Lang, Crestron’s trade show manager. Instead, Creston pursues a more qualitative approach to assessing ROI.

After each major show, Lang sends out a survey to sales staff asking such specific questions as how the clients perceived Creston’s presentation at the show, whether clients agreed to take on the Crestron product line, the level of booth traffic, whether the amount of product was sufficient and well placed in the exhibit and how well staff performed. Responses are used to make changes in the following year or in subsequent shows. “We have been fortunate to be growing every year and haven’t felt the need to formalize the process further,” says Lang.

Based on the feedback from survey respondents, Lang’s company has made a number of adjustments to the exhibit program over the years including changing traffic flow within the exhibit, customizing the content of live presentations, training booth personnel and enhancing pre-show marketing efforts. “The main objective is to get information to in a way they can understand so they can go back to their prospects with enough information to recommend Crestron,” explains Lang. Although the process is informal and unstructured, it provides her team with enough information to make “rational decisions” about taking the program to the next level, she says.