Allen writes that:

While the healthcare convention marketing industry is still fundamentally sound, it appears that budgetary pressures are the “new normal,” and results measurement will become increasingly important to help exhibitors make better investment decisions and justify their convention marketing programs.

The survey was taken in December 2010 so it’s fresh data.  According to the survey:

37% of HCEA’s healthcare exhibitor members expect decreases in their convention marketing budgets in 2011, while 18% expect increases.

Other key results of the survey include:

• Roughly two-fifths (40%) of members plans to decrease the size of their exhibits by an average of 17%.

• Almost a third of members (33%) plan to decrease the total number of conventions they participate in for 2011, while 29% plan an increase.

• Two-fifths (40%) of members plan to increase their participation in regional and local events.

• About a third of convention marketing members plan to decrease certain sponsorships and promotions.

The survey also assessed the perceived importance of critical issues faced by healthcare exhibit marketers including:

• legal and regulatory compliance – 97% ranked this with high importance (as compared to 82% in 2010)

• cost containment – 82% ranked this high importance (as compared to 94% in 2010)

• booth traffic generation – 79% ranked this as highly important (as compared to 94% in 2010)

• ROI/ROO – 72% rated this as being highly important (as compared to 78% in 2010)

You can read Allen’s full article at the EIC blog here.

On behalf the Metropolitan Pier and Exposition Authority, I am proud to announce that a new day has dawned in the Chicago convention industry. On May 27, 2010, the Illinois General Assembly enacted historic legislation in response to your demands for a sweeping transformation in the way business is conducted on MPEA premises. As a result of this legislation, show management, contractors and exhibitors will realize immediate and long-term benefits, and Chicago will become an even more competitive and attractive destination for conventions, trade shows, expositions and meetings.

While this legislation is effective upon enactment, the implementation process has only just begun. Preliminary preparations have long been underway, and the Authority will soon finalize a full-scale implementation plan in cooperation with its key partners. Certain changes will be implemented promptly. Other changes are wholesale modifications to the way business is conducted on our premises and thus will require a lengthier implementation period. The following examples illustrate the myriad complex tasks now required:

• While the legislation expands the type of work that exhibitors may perform in their booths, it directs the Authority to develop rules and regulations to ensure that these new exhibitor rights are exercised consistent with the training and safety requirements for such work.
• Exhibitors may now unload and load privately owned vehicles using non-motorized hand trucks and dollies in areas designated by MPEA for such purposes. The Authority must evaluate the logistics of this new policy and identify the areas where such unloading and loading may occur safely.
• The legislation establishes new rules governing when show managers and contractors may charge exhibitors for labor services on a straight-time, time-and-one-half or double-time basis and how such services must be billed. The implementation of this provision will require an audit of current wage structures and a new communications piece regarding labor costs and billing practices.
• While the legislation eliminates “stand-by labor” and requires all union stewards to be “working stewards,” it authorizes the Authority to exercise its discretion to determine whether more than one working steward may be necessary depending on the building or show at issue. The Authority will develop protocols for evaluating when more than one working steward may be required.
• The legislation establishes a new Advisory Council to represent the interests of all stakeholders and regularly advise the Authority on critical operations issues. To illustrate, the Authority now has the legal right to determine the work jurisdictions of “show labor” and crew sizes when appropriate on MPEA premises. The Authority may only, however, exercise these rights after consultation with the Advisory Council. For this reason, the Advisory Council will be established as promptly as possible to facilitate a resolution of these important policy considerations.
• At present, MPEA’s FOCUS One is the exclusive provider of electrical services to show managers and exhibitors. By virtue of the legislation, MPEA may no longer serve as the exclusive provider, and customers may now choose either an in-house electrical contractor or an outside electrical contractor approved by the Authority. The Authority will begin to develop a list of approved electrical contractors and modify the FOCUS One model to accommodate this change.
• The legislation requires itemized billing statements for utility services provided by MPEA and establishes pricing guidelines for food and beverage contracts. An audit of current practices and new communications pieces are necessary to implement this change.
• The Authority is solely responsible for administering and enforcing these new legislative requirements and must now establish the necessary governing regulations and enforcement mechanisms, including procedures for audits and contract reviews.

As the above issues and others are resolved, the Authority and its partners will then be required to amend current agreements and substantially revise existing MPEA policies and procedures, including, but not limited to, the following:

• License Agreements
• Registration Agreements
• Right of Entry Agreements
• MPEA Meeting Planners Guides
• Exhibitor Manuals
• MPEA Facility Protection Guidelines
• McCormick Place Exhibitor and Utility Ordering Guides
• Informational Publications on the MPEA Website

Undoubtedly, a great deal of work remains to be accomplished. MPEA and its partners embrace this challenge and reaffirm their commitment to implement this historic legislation in the most expeditious, efficient and communicative manner possible. Until further notice, you should continue to rely on existing agreements, arrangements, practices and policies. In the meantime, the Authority will continue to finalize the full-scale implementation plan and will communicate with you promptly upon its completion.

As has been said before, we are truly grateful for your support and diligence in this important endeavor and appreciate your insight and patience as we continue this collaborative venture. The future of Chicago’s convention industry is bright, and the best is yet to come thanks to your dedication and commitment.

The Rogers Company is offering a free E-Book on Maximizing Trade Show ROI. The document covers every gamut of Trade Show ROI from reducing costs to increasing the effectiveness of sales and marketing.

Typically not measuring trade show ROI goes unnoticed when sales are robust and profits are good or if the overall economy is strong. But when the bottom drops out, as it always does, for some reason or another, we’re left with CEO’s, COO’s, CMO’s, and the scariest “C’” of them all – the CFO – asking why the heck you’re spending all this money on trade shows?! What’s the ROI?

Some great companies, regardless of size, have figured out a way to measure ROI. Whether they’re using some of the methods noted earlier in this e-book, including full utilization of CRM programs or a home-grown program to measure their results, they’re quantifying and they’re spending accordingly. Others don’t have a clue. They just go to trade shows because, as we’ve heard them say, they’re worried that they’d be conspicuous by their absence.

Download the full document by filling out the form below.

The Exhibit Industry Council (EIC) recently released its first  Best Practice:  Full Disclosure and Control of Exhibitor Costs.

From the EIC press release:

The purpose of this Best Practice, as stated in the recommendation, is to increase exhibitor value and improve the effectiveness of event marketing, to advocate for the full disclosure over trade show and event marketing costs, and to guide the industry in making adjustments that will support its financial future and continued presence in the corporate marketing mix.

At TSF, we believe that exhibitors should know more about what they are paying for.  This helps exhibitors determine ROI and the most efficient way to make their trade show experience successful.  In that spirit, we’re hosting a petition supporting the main principals of the EIC Full Disclosure and Control of Exhibitor Costs.

This is an important movement for the entire trade show industry and those that use trade shows to market products and do business.  We won’t publish or sell your name — the purpose of this document is solely to make important changes in the industry

The Petition

The Exhibit Industry Council (EIC), comprised of five major trade show industry associations, was formed to define and advocate for exhibitor-focused Best Practices for trade shows, conventions, congresses, and private events. The goal is to unite all industry stakeholders to support reputable, consistent standards.

Currently, there are conditions in the industry that impede the value exhibitors gain from face-to-face marketing events specifically conventions and trade shows. This Best Practice Guide outlines these conditions and suggests “best practices” to overcome the challenges created in this otherwise productive and effective sales and marketing environment.

Exhibiting companies need to understand the total cost of event participation to make decisions about which events will provide a sufficient ROI to their marketing plan. In order to understand and control costs, exhibitors need full disclosure of pricing by the organizers as well as general service contractors (GSCs) before exhibit space contracts are signed. This helps exhibitors make informed financial decisions before the event and also eliminates surprises down the road.

This petition calls for:

• Greater cost transparency for exhibitors
• An end to practices such as bundling and forced shipments.
• Discounts to be offered to both the exhibitor and the exhibitor’s third party contractor
• The elimination of hidden benefits such as undisclosed discounts between the general service contractor and the trade show, convention, and congress organizers.
• An end to exclusive facility contract, allowing all qualified suppliers who meet the technical requirement to compete for the right to provide goods and services in a given facility.

Trade Show ROI: Fact or Fiction? Objective or Subjective? Measurable or Intuitive?

Recently I was talking to a senior marketing executive for a major trade show organizer and I asked if they were getting besieged by exhibitors demanding a better return on their trade show investment. Were people asking them to help improve their trade show ROI? I expected him to say, “Oh yeah, this is the number one issue we’re facing – other than rising show costs.” Instead he said, “No not at all. You can’t measure trade show ROI. It’s impossible because every company is different.” Okay I agree with the latter part of his comment but it’s because every company is different that it is indeed possible. Many companies can calculate their ROI; they just don’t, for a variety of reasons.

Typically not measuring trade show ROI goes unnoticed when sales are robust and profits are good or if the overall economy is strong. But when the bottom drops out, as it always does, for some reason or another, we’re left with CEO’s, COO’s, CMO’s, and the scariest “C’” of them all – the CFO – asking why the heck you’re spending all this money on trade shows?! What’s the ROI?

Some great companies, regardless of size, have figured out a way to measure ROI. Whether they’re using some of the methods noted in our previous two articles, including full utilization of CRM programs or a home-grown program to measure their results, they’re quantifying and they’re spending accordingly. Others don’t have a clue. They just go to trade shows because, as we’ve heard them say, they’re worried that they’d be conspicuous by their absence.

So what’s the solution? Well, it’s as simple and timeless as a golden ring: close the loop. track costs, track sales. Simple? No. Possible? Yes. It is achievable for most companies if they learn how to communicate their needs to those who can give them the tools to measure the results.

As a means of face to face marketing, trade shows or trade fairs are the oldest form of marketing. No one needs a history lesson on this – it’s simply a fact. Companies who make widgets that attach to other widgets inside of a big widget don’t typically advertise on TV or in the Sunday circulars. Yet their customers know about their widgets and they buy their widgets in large part because of their exposure at trade shows. So historically we know that shows work – it’s just that now everything needs to be quantified.

In today’s world every company faces the same challenges and the same decisions, especially when it comes to marketing. Is print still viable? Does Twitter make sense? Am I better off with a website or a blog? How do I track leads? Where do I get leads? Are my salespeople selling or just taking orders? Am I getting anything out of my trade shows?

We, like you, don’t have definitive answers to any of these questions because every company is different with different channels of distribution, so the answers will be unique to your company, your budget, your systems and most importantly, the quality of your communication.

In this series on Trade Show ROI we’ve tried to present some solutions using both quantitative (CRM) and qualitative (Start with What You Know) methods, but in the end, in this world of constant electronic linkage, the only thing that’s indispensable is excellent communication because everything begins and ends with it.

Do your marketing department and your accounting department talk to each other? After all, marketing is the “hunter” and accounting is the “gatherer”. The two functions are closely tied to each other but how often is accounting involved in decisions relative to customer relationship management systems and trade show ROI?

Talk to management – tell them of your intentions to measure trade show and event ROI. Be proactive – make them your champions if you can. Then talk with accounting and IT. You catch more flies with honey than vinegar especially if the vinegar is mandated from above. So you be the honey. It’s your job to let the experts in their areas give you the tools to do your job

Buy lunch for the accounting department; bring the IT guys new Wii games. In other words, enlist their help. Trade show ROI is measurable but only if you close the loop. You get leads from the show. If you can’t take the time to qualify them and you know your salespeople won’t follow-up on them, there are companies who will provide this service for you. Some solutions can be very economical, so that at the end of the day instead of having a pile of 300 vague leads from a show you have 30 qualified leads that your sales force will be happy to go after. So you can outsource this function in need-be.

Put your leads from each trade show in queue. IT can help with this. Put them somewhere so they can be tagged by show and then tie that to order-entry so that it can be tracked for one year after the show. After one year, you now have your costs from the prior year’s show and you have your report showing how many of those leads converted to sales. Now you will have a ratio which is something that accounting and management will love. For example, if your trade show cost, $100,000, and first year sales from leads received at that show, were $500,000 this gives you a 5:1 ratio – not bad. Most folks in accounting and management would be quite happy with that. In fact they would probably be ecstatic.

If your CRM doesn’t work with your accounting system then sit down with your finance department and develop a strategy so the two can work together even if some type of “bridge” needs to be created in-order to link the two.

We are the most connected generation in history, yet there are times when we actually communicate very little. As Descartes once said, “I think therefore I am.” Well in today’s economy it would be just as fair to say, “I measure therefore I still have my job,” and good communication is the key.

Eventelligence™ adds value to your tradeshows, corporate events, meetings, and large consumer events by providing effective tools and solutions to maximize event ROI. Contact The Rogers Company today to discover how we can help you with your Eventelligence™ needs.

CRM programs were supposed to be the cure to the woes of sales and marketing. If you don’t know already, a CRM (Customer Relationship Management) is software that can track every single contact, transaction, sales call, bill, and delivery that is entered into the system. Basically it puts an incredible amount of information at your fingertips to help make smart choices. If you don’t have CRM software in place, there are a whole range of options in terms of price and functionality. GoldmMine, ACT!, SalesLogix, and PeopleSoft are some popular choices. Many of these programs offer free trials and on-line tutorials in order to determine their efficacy for your company and its products and services.

With all of the information CRM systems provide, you would think it would be easy for a company to determine their ROI from a trade show or any other marketing effort. Unfortunately, it’s not always that easy. A spread sheet may not reveal the full extent of your trade show success or failure. Here are a few strategies for getting more out of CRM systems when it comes to trade shows:

1.) Walk Down to Accounting

Many times marketing and sales just never talk to accounting unless there’s something wrong; but your financial folks can be of great assistance in helping determine trade show and event ROI. Along with your IT department, they can work at the front end of the process when researching CRM programs to see if the CRM can integrate with your other accounting software including and most especially “Order Entry” and “Shipments by Client”.

In addition, accounting can provide information that can either verify or inform output from a CRM. Who are your biggest customers? Who are your smallest? Who are your top twenty customers? What percentage of total sales do those top twenty represent? Were any of them a new customer this year? When did their orders come in?

By asking questions like these, you can get clear information based on facts. Accounting doesn’t deal in vagaries (or at least it shouldn’t). Asking accounting some fact based analytical questions can help you create a connection with your trade show marketing. If a trade show contact is recorded in your CRM, compare the sales timeline with accounting to see if the trade show had an impact. If there are new customers this year, were they noted in the lead list from a trade show? Did you see your top five customers at a trade show? Or did you see the 20% or your customers that make up 80% of your business?

(Sometimes CRM systems are actually linked to accounting — so the trip down to their office may not be necessary. But do it anyway, chances are you’ll learn something and they’ll enjoy the company.)

2.) Look at What You’re Not Getting

A CRM can tell you who you met at a trade show and whether or not that lead turned into a customer, but you have to use that information to find out who you’re missing at your trade shows. Companies tend to look at success and build on that. It’s a sound strategy, but if you use it exclusively, you’ll miss opportunities at trade shows. Also look at the types of customers you’re not seeing at your booth. How can you attract them? How can you design and promote your trade show booth to appeal to a new demographic without alienating the old one? Building on the holes in your CRM can also help you build business, even in a slowing economy — there are only so many investment dollars to spend and you may have tapped out an existing market. Exploit the markets you currently aren’t reaching with new strategies.

3.) Create Customer Stories

With all of the complex data that a CRM can output, it’s tempting to just look at it as a pure expression of fact. In fact, a CRM may be able to recite 100 facts about your best customer, but it cannot tell you exactly why they are your best customer. Use the information from the CRM as well as from sales staff to find out why some relationships begin at a trade show and why they grow. If the CRM shows several leads turning into sales in the months after a trade show, talk to the sales staff to find out why. These narratives can be powerful because they combine the gut feelings of sales with the hard facts that only a computer can retain.

Creating customer stories will also make it easy for sales and booth staff to understand last year’s successes so they can duplicate that success this year and beyond.

Another strategy is to create aspirational stories — who are the customers you want? What impact will your trade show exhibit have on them? Are you trying to work with bigger companies? What scenario might attract them to your booth and win their business? Aspirational stories help determine everything from exhibit design to trade show execution, to sales strategies and marketing collateral.

CRM programs are incredibly helpful in tracking the marketing and sales activity that go into a successful customer relationship. CRMs not only can also help you measure the success you’ve had at a trade show, but they can help you shape a more successful marketing and trade show strategy in the future. Bottom line -better ROI.

Contact The Rogers Company to learn how Eventelligence™ can provide effective tools and solutions to maximize event ROI.

Trade show contractors have commissioned a study to look into why and are blaming labor. The following is from an article by Kathy Bergen at the Chicago Tribune:

…the average straight-time labor cost in Chicago is $66.30 an hour, compared with $42.62 in Las Vegas and $26.83 in Orlando, according to the study by two major trade show contractors at McCormick Place: Freeman and GES Exposition Services, which is being renamed Global Experience Specialists. Those figures reflect the cost to the contractors and include benefits and payroll taxes.

These stark differences and others were outlined in a report shared with the Metropolitan Pier and Exposition Authority, the state-city agency known as McPier that owns and operates McCormick Place and is trying to cut exhibitor costs there. A copy was obtained by the Tribune.

The analysis examines pay and rules for the four unions that have contracts with Freeman and GES, including the Teamsters, riggers, carpenters and decorators. And while these cost elements grate on many trade shows and exhibitors, there are other complaints as well, ranging from the in-house electrical service to the price tags on food and beverages.

Still, the analysis shows some big labor-cost gaps between Chicago and its top rivals, which have fewer unions doing the same work. A couple of snapshots:

•Chicago requires the presence of four non-working union stewards for the duration of the show, including setup and tear-down days. The cost for 12 days, in two halls, is an estimated $50,915. In Las Vegas, only one non-working steward is required, at a cost of $8,183; in Orlando, none is required.

•Chicago contracts require a standby labor pool of 10 tradesmen during the event, which can cost at least $40,333 per day for a four-day show in two halls. Las Vegas and Orlando require standby pools of two, at an estimated daily cost of $5,455 in Las Vegas and $3,434 in Orlando.

So which is it? High profits from the presenters or high labor costs? Or both?

For more perspective, we recommend our own look at the topic in Drayage Debate, Part I and Part II.

No wonder exhibitors are upset.

Jay Levine did a segment on (Chicago’s) McCormick Place losing tradeshow business.

Labor is shooting back at the idea that it’s them that’s making all the dough. Their evidence? Drayage bills.

They showed that an exhibitor can send a piece of equipment from China to LA for $4,000. Another $1,800 for truck to McCormick Place from LA. Cost to get it from the dock at McCormick Place to the exhibitor’s booth space? Just $17,000!!!

Then they interviewed the Gen.Mgr at McCormick Place and he said, “No question about it, the contractor for the show is making very big profits.”

Looks like labor and McCormick Place management is so tired of being made the scape goat that they’re both willing to point the finger at the show organizers.

Determining trade show ROI is a long road paved with facts and stats, but like the old saying goes, every long journey starts with the first step, so when beginning the journey of determining trade show ROI, start with what you know.

Instead of beginning with so many unknowns, start with something you do know. Ostensibly you know your customers — they’re a wealth of knowledge about your trade shows and events and your overall marketing program. They can tell you what’s working and what’s not.

So it’s easy, right? If a customer says: “I met you at a trade show and liked what I saw. Three months later, I purchased your product.” then you can put them solidly in the trade show ROI column, right? Hold on! What about the brochure they received? What about the advertisement? What about the call from the salesman? Doesn’t all that count? Isn’t there a way to determine which of those things contributed most to the sale?

There’s no easy way to tell because at that point you’re trying to get inside your customer’s head. Asking them to determine which marketing tool had more influence would require some very sophisticated survey techniques that may not get you to the truth. So how do you get useful information from your customers?

1.) Start with a profile

Divide your customers into broad categories: Completely new customers who basically “walked in the front door”; returning regulars who seem very loyal to your brand and methodical clients who researched a long time before making a decision. These can be anything you want, but limit it to four or five categories. These profiles will help you organize information more easily as you identify what kinds of customers you have and why they bought from you.

2.) Look at Their Stories

Why did these customers buy from you? What influenced their decision? Where did they talk to you or first hear about you? This “customer narrative” gathers the facts about how and why you made a sale and continue to make sales.

Existing sales can also tell us what the gateways are to a sale and how they’re connected. So if a customer says that they were influenced by an advertisement, a trade show, and a sales call, try to put that together into a story. Which came first and what followed thereafter? What wouldn’t have happened without the other?

3.) Look at the Facts

It’s important to create some pertinent facts about your sales and marketing. How many companies that appear on your lead list, are actually already customers? How many customers came to your booth at a trade show? How many leads did you collect? How many of these leads were followed-up?

These hard facts help separate theory from reality. Many times people at all levels of business have pet theories about marketing activities. Make sure that, at the very least, you understand some of the things that are working. There will still be a lot of holes in your knowledge, but at least you’ll know what you know and what you need still need to learn.

4.) Determine What You’re Losing

There’s a story from WWII that is possibly fanciful, but could shed some light on this problem. Looking at returning bombers from missions over Europe, aircraft designers were trying to figure out which parts of the planes to add extra armor. They could see heavy damage in certain parts of the planes more than others, but finally decided to place armor exactly where the damage didn’t exist. Why?

The theory was that the planes damaged in those areas, simply didn’t return from their missions.

You have the same issue in determining ROI or the effectiveness of your trade show campaign. Your customers can tell you which tactic worked for them — but look for the piece that is consistently missing. Where are you not reaching customers? Why aren’t they finding you? If you’re getting customers A,B, and C, why not D,E, and F? Build on what’s working but also examine if some of things that aren’t effective for customers A, B, and C might work for the others. In the end focus on what works with each specific market or customer and leave everything else behind.

Finally, there’s no magic answer to ROI. But there is a process for determining what is working within your company and what is not. It may sound simple to do more of what’s working and less of what’s not — but that’s the essence of successful marketing. A trade show is no different. Your quest for ROI really is a quest for more leads and, ultimately, more sales. Instead of cutting based on lack of ROI or poorly defined ROI, use the tools above to determine where the shortfall is and concentrate on fixing it.

The Rogers Company has the resources you need for a successful trade shows, events or branded environments. Contact us to learn how Eventelligence™ adds value to your trade shows, corporate events, meetings, and large consumer events by providing effective tools and solutions to maximize ROI.

You can view more videos at our YouTube Channel: http://www.youtube.com/tradeshowfeed