Measuring ROI When Exhibiting and Sponsoring At Conferences
Exhibiting and sponsoring at conferences can be a significant investment for companies, making it crucial to measure the return on investment (ROI) to ensure that these efforts are worthwhile. However, calculating ROI in the context of conferences involves more than just tallying up costs and direct sales; it requires a comprehensive understanding of various metrics, including brand exposure, lead generation, and long-term relationship building.
We will explore the key methods and metrics for measuring ROI when exhibiting and sponsoring at conferences, helping you to make data-driven decisions for your future investments in your exhibit management software.
Measuring ROI is essential for several reasons:
Justifying Expenses: Conferences can be costly, with expenses including booth space, promotional materials, travel, exhibitor management software and staffing. Demonstrating ROI helps justify these expenses to stakeholders.
Optimizing Strategy: Understanding what works and what doesn’t allows you to refine your approach, focusing on high-yield activities and eliminating those that don’t deliver value.
Budget Allocation: Accurately measuring ROI helps in making informed decisions about where to allocate your marketing budget for maximum impact.
Setting Future Goals: Measuring past performance provides a benchmark for setting realistic goals and expectations for future events.
To effectively measure ROI, it’s important to look beyond just the financials and consider a range of metrics that reflect the broader impact of your exhibiting and sponsorship efforts.
Here are some of the most important metrics to consider:
Number of Leads Collected
Count the total number of leads gathered during the event through booth interactions, networking, or digital engagement tools such as lead retrieval systems. Usually with exhibit management software and a good lead scanning application, this can be done seamlessly.
Lead Quality
Not all leads are equal. Use criteria such as job title, company size, industry, and buying intent to assess the quality of leads. This can help determine whether the event attracted your target audience.
Lead Conversion Rate
Track the conversion rate of leads from initial contact to a sales opportunity. This can provide insights into the effectiveness of your lead-nurturing efforts post-event.
Direct Sales
Measure any immediate sales made during or directly after the event. This is the most straightforward metric for calculating financial ROI.
Sales Pipeline Impact
Consider the value of leads added to the sales pipeline as a result of the event. Calculate the potential revenue from these leads, even if the sales cycle extends beyond the event.
Customer Lifetime Value (CLV)
For existing customers who attended the event, calculate the impact on their CLV through upselling, cross-selling, or improved retention rates.
Booth Traffic and Engagement
Use tools such as foot traffic counters, engagement tracking software, or manual tallies to measure how many attendees visited your booth. Engagement metrics like dwell time or interactions can indicate the level of interest. Usually a good exhibit management software can track this information.
Social Media Engagement
Monitor mentions, shares, likes, and comments related to your brand on social media platforms during the event. High engagement levels suggest increased brand awareness.
Media Coverage
Track any media exposure gained from the event, such as mentions in industry publications, interviews, or feature articles. Assign a value to this exposure based on the reach and credibility of the outlets.
Cost Per Lead (CPL)
Calculate your CPL by dividing the total event costs by the number of leads generated. This metric helps assess the efficiency of your lead generation efforts and provides a benchmark for comparing different events.
Audience Reach and Impressions
Total Attendee Reach: Consider the total number of attendees at the conference as a measure of potential reach. While not all attendees will engage directly with your booth, this number provides context for your overall exposure.
Impressions from Sponsorships
If you sponsored sessions, lanyards, or other event elements, calculate the number of impressions based on attendee exposure with your sponsor and exhibit management software. This can include banner ads, logos on materials, or mentions during keynotes.
Return on Objectives (ROO)
Not all ROI measurements are purely financial. ROO considers whether you met specific objectives set before the event, such as launching a new product, gaining media exposure, or strengthening relationships with key partners. Tracking progress against these objectives provides a more holistic view of success.
Calculating ROI: A Step-by-Step Approach
Calculating ROI for conferences involves comparing the financial gains from your participation against the costs incurred. Usually this can be done with a good exhibit management software. Here’s a step-by-step guide:
Step 1: Define Your Goals
Before attending the event, clearly define what success looks like. Your goals might include generating a specific number of leads, achieving a certain amount of press coverage, or closing a defined value in sales.
Step 2: Track All Costs
Accurately track all costs associated with exhibiting and sponsoring, including:
Booth space and design
Travel and accommodations
Marketing materials and giveaways
Sponsorship fees
Staff time and wages
Lead retrieval and technology costs
Step 3: Measure Financial Gains
Sum the financial returns generated from the event. This includes direct sales, the value of leads generated (using average deal size and conversion rates), and any revenue attributable to increased customer retention or upselling.
Step 4: Calculate ROI Using the Formula
Use the standard ROI formula:
Financial Gains
−
Total Costs
Total Costs
×
100
ROI=
Total Costs
Financial Gains−Total Costs
×100
This will give you a percentage that indicates the financial return relative to your investment.
Step 5: Adjust for Non-Financial Gains
Include any non-financial benefits, such as brand exposure or strategic partnerships, to get a comprehensive view of your event performance. While these might not have immediate financial value, they contribute to long-term business growth.
Exhibit management software for Measuring ROI
Several tools and technologies can assist in measuring ROI from conferences:
- CRM Systems
Integrate your lead retrieval tools with a CRM system to track leads throughout the sales funnel. CRMs can provide detailed analytics on lead quality, conversion rates, and the impact on your sales pipeline.
- Exhibit Management Software
Event management platforms, specifically exhibitor management software, often include built-in ROI tracking features, allowing you to monitor metrics such as booth traffic, session attendance, and attendee engagement in real time.
- Analytics and Reporting Tools
Use analytics tools to measure digital engagement, such as Google Analytics for tracking website visits or social media analytics for monitoring brand mentions and interactions during the event.
- Lead Scoring Software
In addition to exhibit management software, lead scoring software can help prioritize leads based on their likelihood to convert, providing a clearer picture of the potential revenue impact of your event participation.
- Best Practices for Maximizing and Measuring ROI
Set Clear, Measurable Objectives
To effectively measure ROI, start with clear, measurable objectives that align with your business goals. These could range from generating a specific number of qualified leads to achieving a set amount of media coverage.
Pre-Event Marketing
Maximize your ROI by driving targeted traffic to your booth through pre-event marketing efforts. Use email campaigns, social media promotions, and personalized outreach to attract attendees who match your ideal customer profile.
Engage with Attendees During the Event
Interactive experiences, such as demos, contests, or live product showcases, can increase engagement and lead generation at your booth. Ensure that your booth staff is well-trained to engage with attendees, capture leads, and convey your brand’s key messages.
Follow Up Promptly with Leads
The speed and quality of your follow-up can significantly impact lead conversion rates. Use automated follow-ups through your CRM or personalized outreach to keep your brand top-of-mind for attendees after the event.
Evaluate and Refine Your Approach
After the event, conduct a thorough evaluation of your performance against your goals. Analyze which aspects of your participation yielded the best results and where there is room for improvement. Use these insights to refine your approach for future events.
Overcoming Common Challenges in Measuring ROI
Measuring ROI from exhibiting and sponsoring at conferences can be challenging due to the difficulty of quantifying certain benefits, such as brand awareness or relationship building. To overcome these challenges:
Use Proxy Metrics
When direct measurement is not possible, use proxy metrics like social media engagement or website traffic increases as indicators of success.
Incorporate Qualitative Feedback
Gather feedback from booth visitors, partners, and staff to gain insights into the qualitative impact of your participation.
Align with Sales and Marketing
Ensure that your sales and marketing teams are aligned on goals, definitions of success, and follow-up processes to create a seamless measurement framework. A good process, CRM, and exhibit management software can make this easy.
Measuring ROI when exhibiting and sponsoring at conferences is crucial for understanding the value of your investment and making informed decisions about future participation. By tracking a comprehensive set of metrics, calculating ROI systematically, and using the right tools, you can accurately assess the impact of your efforts and optimize your strategy for maximum return.
As the landscape of events continues to evolve, along with the supportive exhibit management software, a data-driven approach to measuring ROI will ensure that your company not only justifies its investments but also continuously improves its performance in this competitive arena. Whether your goals are financial, strategic, or brand-oriented, a clear focus on ROI measurement will help you unlock the full potential of your conference and sponsorship activities.
