Do You Know How to Measure Your Trade Show Marketing's Value?
Do You Know How to Measure Your Trade Show Marketing’s Value? It can be a challenge to identify just how much revenue is generated at a show; most deals are not closed right on the show floor. Since you are likely generating leads to funnel to your sales team, you may not see actual numbers for days or even weeks after the show closes.
While you may not be able to get firm numbers, you can get an idea of how much you have generated by considering the following figures:
• The number of leads generated: How many prospects visited or provided enough information to be considered a lead for your sales team?
• What is your typical close rate: what percentage of leads actually result in a sale? Your sales team can provide this information.
• What is the value of a typical sale? How much revenue is generated by a sale?
Use these figures to get a rough idea of the revenue generated by a specific show with a simple calculation:
(Total # of leads at the show) X (Average Close Rate) X (Average revenue per sale)
Being armed with this figure can help you maximize your marketing budget – since your figures are actually coming from your sales team, you should be able to get easy buy-in from that department when it comes to investing in marketing.
Savings Matter, Too
Exhibiting at a trade show exposes you to a wide audience all at once and gives you access to individuals you might have to travel to meet with. Any money saved contributed directly to your bottom line, so be sure to include any potential savings when you consider your marketing plan’s actual value.
• Meeting cost: How much does it cost you to meet with a client in person? A typical meeting could cost thousands in travel and expenses, so the ability to meet in person in your branded space saves money every time you meet with a prospect. Calculate your average meeting cost, including all partners, rental fees, and time and travel expenses.
• In person sales retention: If your reps regularly visit clients for retention purposes or make regular sales calls, than an exhibition allows you to cover one or more visits per client. Include the cost of your average sales call and determine how many calls a single show will eliminate to get an idea of your potential savings.
• Cost of leads or lists: If you are buying targeted lists, each name or lead has a cost associated. Tally up the number of leads you generate at a show using this figure to determine what you would have had to pay for the leads you acquired.
Calculate your savings with this formula to get a true idea of how much your exhibit marketing is benefiting your bottom line:
(Meeting Cost x Number of meetings held at show) + (In Person Sales Call Cost x sales calls at show) + (Cost per paid lead x number of leads generated) = your total per show savings.
The promotional activities you do, the amount of awareness you raise for your brand and the eventual payoff of your visit are less tangible, so identifying your key revenue generating and cost saving figures allows you to gain a clear understanding of the return on your marketing investment.
To learn more about making the most of your exhibitor marketing budget and how to create a successful tradeshow booth for your business, contact us.
We’re here to help ensure your continued success and to make sure you are getting the best return on your marketing investments.