7 Rules for Staying Afloat
Published in the March 12, 2004 BBJ
Think about it. What’s the most common rationale for committing personnel and dollars annually to trade shows? The most common answer I hear is “if we didn’t go, people in the industry will talk about us and wonder what happened to us.” In other words, the trade shows may not be paying off, but we can’t change.
Of course, if your marketing resources are plentiful and trade show expenditures are a proportionate expenditure in a balanced marketing program, then by all means, go for it. Even in the real world of severely limited funds, there can indeed be some compelling reasons to exhibit at appropriate trade shows. Most important is a “wow” factor. Introduce a product that must be seen to be appreciated. It should be demonstrable and comprehensible. If your product tastes, looks, feels, smells, sounds or runs impressively—well beyond what remote messaging can communicate—trade shows could be a very effective marketing tactic. Moreover, trade shows reveal competitors’ tactics and you can soak up information about buyers and the market in general. On the other hand, merely attending can obtain the same intelligence.
Too many trade show exhibitors overlook the hidden costs of exhibiting at the typical trade show. Everybody tallies the costs of booth space, booth rental (or ownership), drayage, carpet, furniture, caste removal, electricity, electronics and other equipment rentals, premiums, giveaways, samples and the like. Some remember the dollars spent on hotels, celebratory dinners, meals, airfare, and rentals. However, others forget the time (and its cost) spent preparing for the show, traveling to and from the show, at the show, following up on the show, and recovering from all of the above. In some cases, travel is accounted for in a separate budget and not associated with the trade show.
Not only are expenses high, but returns are often low. Exhibitors compete for fewer and fewer attendees while attendance by prospects declines, but exhibitors remain to “keep up with the Joneses.” Moreover, many companies waste through delay or neglect many more leads than they ever convert into sales. I have seen companies with hundreds and hundreds of completed but unprocessed or unread entry forms from booth visitors going back as far as three years.
So trade show participation tends to cost more and deliver less than most companies realize, but how does that make it like owning a boat? The saying goes that “a boat is a huge hole down which the owner pours money.” Similarly, all the expenses and effort invested in exhibiting only beget more expenses and effort. To try to bring the dead horse to life, companies buy expensive sweepstakes prizes, hire celebrities, advertise the booth location before and during the show, entertain lavishly at dinners and in hospitality suites, etc. – sometimes accounting for the measures.
So, what’s the best approach to trade show participation?
Before agreeing to exhibit at a trade show, send qualified staff to attend. Assess its likelihood of return. Who are the competitors? How much do they seem to be spending on extras? What will it take to stand out? Characterize the attendees—level, interest, tire-kickers or buyers?
Examine the numbers:
- For the trade show—is attendance down and exhibitor cost elevated as it is at many trade shows?
- For exhibition—calculate associated travel, promotion, labor, etc. as a category for trade show support
- For returns—sales; qualified leads, leads
- Comparison of 3 and 4 for ROI.
- When all the numbers are in, compare to other means of sales and marketing on a cost per lead, per sale basis.
- Follow up on leads. Track for the following year.
