Posts Tagged ‘marketing ROI’

How to Tell if a Trade Show Is a Black Hole?

Monday, August 16th, 2010

I’ve already admitted to having a nerdy love of trade shows.  The right trade shows, that is.  You know, the ones where potential customers show up with business cards proclaiming they have a big budget and a deep desire to spend it on your service within the week. The ones where the trade press elbow each other to get over your carpet line and into your booth to do a feature on your latest widget.

Well, it’s possible.  I’ve even seen it.  But how do you know what kind of results you’ll get before you commit to the show?  Electronics Midwest looks like a good show to me (Rosemont, IL, September 28-30).  The web site tells you everything you need to know about the actual show—schedules, conferences, exhibiting, workshops, events, floor plans, how to get there, where to stay.  This is all good.

But what if you’re thinking about being a first-time exhibitor?

The web site lists the types of equipment, systems, supplies and services attendees are looking for at the show.   But there are no demographics.  And nothing remotely like a BPA audit report or circulation statement that magazines have.

In defense of Electronics Midwest, I’ve never seen it for other trade shows either.  It costs a lot of money to gather that kind of info.

But it costs a lot of money to exhibit, too.  So I scouted around on the web site and saw a list of other companies that exhibit, which gives me an idea of who else thought this show was a worthwhile investment.  And the titles of the sessions help me out.  Who’s delivering papers is another clue.

None of it’s a substitute for really good info on attendees, though.

And, if it’s not being too demanding, I’d like to know who’s coming from the trade press, too.

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Of Trade Shows and Sailboats

Monday, August 9th, 2010

How are trade shows like sailboats?  They are both black holes into which you throw money.  Only a trade show is supposed to give you a return on that money.

In a recent IPC post, Trade Shows and Black Holes, Terry Costlow cites a study that says nearly 70% of sales leads, many of them from trade shows, are not pursued by the sales force at all.  I assume that does not mean that 70% of leads are not quality leads.  Rather, I’m guessing no one has done the research to find out if the leads are quality or not.

It’s also possible the leads are junk.  Perhaps the “leads” are a collection of cards or names gathered at a trade show that were never quality to begin with.  Trade show attendees exchange their business cards for whatever trinket the exhibitor is handing out, without any thought to actually trying to connect with a viable prospect.

Regardless, companies that invest in trade shows need to invest a tiny bit more to have a lead generation and follow-up strategy.  Some considerations might include:

  • getting the attention of your target market, rather than every Tom, Dick and Harry that passes by your booth;
  • training your salespeople to bring prospects over the carpet line and qualify them on the spot;
  • capturing the qualified leads with enough detailed info that tells you whether prospects should be sent a letter and targeted collateral material or whether they should get a phone call pronto from the right regional salesperson;
  • nurturing the leads that are not yet sales; and
  • documenting the results so you can calculate the return for each trade show.

And speaking of follow-up, in my last blog I promised to post some blogs I follow on my blogroll, but ugh.  Ran into technical difficulties.  However, I also promised to share some viable EMS blogs with you.  One is the IPC blog mentioned above, and another good one is Technology Contractors Daily News’ blog.  Which ones do you like?

Now that we’ve talked about getting a return on trade shows, how to get a return on a sailboat?  I have a little Butterfly sailboat that must be 25 years old, requires almost no up-keep and every time I take it out I’m delighted with my investment.

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Virtually as Good as a Trade Show

Monday, July 12th, 2010

As a B2B marketing person I’ve always loved trade shows.  Where else do all the trade press and your competitors and customers converge in one place—all with common interests?  People who are looking to buy are all in the same room with people who are looking to sell.  Trackable sales leads are flowing like a river from an identifiable source.  Gotta love it.

But according to a Forbes article, trade show revenue in the U.S.—about $12 billion annually—was expected to contract nearly 7 percent last year.  Trade shows require significant investment—booth space, exhibit design, videos, collateral materials, and most expensive of all—travel and expenses for the sales team.  No wonder people don’t think they can afford trade shows.

There is, of course, a cost for not participating—lost opportunity.  You can’t get sales leads from trade shows if you’re not there.  But now, with virtual trade shows, you don’t have to be physically there.  You can “man” your booth from your office computer, or, well, any computer anywhere.  That saves a bundle in T&E.  Other things are cheaper, too, in the virtual world.  Entry fees, exhibit design and build.  All you need is one representative from your company to be on deck to instant message visitors to your virtual booth.

I do still like the visual, physical, meet-and-greet trade show.  There’s no substitute for seeing faces, talking to actual people in person.  But if it’s a luxury your company can’t afford, check out the virtual shows.

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ROI Is King

Tuesday, June 29th, 2010

At least that’s what “roi” means in French, “king.”  What does “ROI” mean to marketers?

I just saw the term used loosely again, in a feature article of B2B magazine.  A sophisticated marketer referred to his program to measure marketing effectiveness as his ROI program—you know, click-throughs, webinar sign-ups, landing page hits.  Aaaugh!

Why do marketers insist on using this term incorrectly?  It has a very specific meaning. Basically, ROI is the profits generated over and above the initial investment and expressed as a percentage of the investment. It’s a financial gain—not an increase in awareness, not market share, not the number of leads you get or click-throughs to your web site.

As marketers, we should be aware of the importance of language.  We should understand that precise wording makes meaning clear.  We should know that it’s critical to be accurate with words if we want to communicate with the best possible results.

Yet, we continue to misuse this term, Return on Investment.  Worse than sloppy language, its misuse demonstrates—no, trumpets!—our ignorance.  We must use the term carefully, because we need to interact with people in our finance department if we want to calculate ROI according to best practices in our own company. We need guidance from finance to determine what constitutes gross margin, how to define what our investment is, and so much more.

How can we ever hope to work with our finance department if we persist in using finance terminology incorrectly?  It’s a problem I’ve been kvetching about so long that I wrote a book, www.marketingroitruth.com.  Okay, I’ll get down off my soapbox.  For now.

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