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Article
-Linda Musgrove
-TradeShow Teacher
-www.tsteacher.com
Hello class, it's great to be back for another lesson. This lesson was inspired by a panel session I was participating in organized by EDPA on surviving in this economy. Since we all want to survive, this should be a relevant topic for all readers. Whether you are service vendors, trade show producers, suppliers or exhibitors, we are all experiencing the impact of the economy in some way. The big question is, how do we "survive" until the economy improves and how can we contribute towards the economical upswing?
As you know, companies are looking at their departmental budgets much closer these days and are trying to figure out ways to cut costs. You probably all feel it; unfortunately a lot of times trade shows are one of the first areas where cuts are being made. Although we know this is often an overreaction, we also know this is due to many companies not making the best of their trade show opportunities. So how do we as an industry and individuals address this problem, find ways to keep doing business and keep exhibitors exhibiting? Let's take a look at several questions on that topic and what the answers are to thrive in this economy.
How did the trade show industry fall victim to the economic problems and how can we avoid this from happening again?
Before the economic climate shifted downward, trade show spending was nowhere near as closely watched as it is now. In the past, a lot of trade show spending was based on "what the other people are doing" or what "sounded like a good idea" without really measuring results and ROIs (Return on Investment). Not a lot of thought went into selecting the right shows, booth staff selection and training, targeted audiences, etc. Now that all expenses are exposed to much scrutiny, trade shows are often perceived to be expensive and less cost effective than other marketing options. What management often overlooks is that those cost assumptions and returns are based on old cost/value metrics that date back to the days of uncontrolled spending. Fact is, that trade shows are an excellent and on a per qualified lead basis very cost efficient way to generate sales; provided of course that a company's exhibiting program is properly managed and budget dollars are spent towards well defined goals. Very much like in 2000 when the technology bubble finally burst, the trade show bubble now burst; albeit granted on a smaller and less dramatic scale. All of a sudden there is an expectation of results, fiscal responsibility and measurable value.
Now to the second part of the question, what can we do to avoid this from happening again? Well, first of all, it's still happening; it is not over yet. So worrying about it happening again is somewhat premature. The changes our economy and businesses are going through are fundamental. I don't believe it is a matter of "sitting out" a few years by cutting some costs until things are back to normal. "Normal" is now something different than it used to be. The old "normal" is gone and we have to take a very careful look at everything we do and often make very significant changes to how we do business. We have to re-invent ourselves. If you look at the great depression, less than 10% of what used to be Fortune 500 companies where still in that group when the dust had settled; and the companies that still were had gone way beyond just cutting some cost to make it through the tough years. We have to realize that in order to thrive, we have to provide value that can be clearly communicated and clearly measured. We have to constantly ask ourselves how what we do helps our clients, or if you are a trade show manager, how it helps your company. There is nothing sacred anymore, if it can't be justified with hard numbers, it's not going to be a winner. While history is known to repeat itself, I don't see a big risk of something like this happening again anytime soon. It takes quite some time to become that complacent again.
• Exhibitors:o Make your budget dollars count. Understand the value exhibiting provides for your company and what spending is necessary to achieve your goals. If you don't have all the answers, you can't possibly expect to defend your plans in front of senior management.
o Track all costs and don't spend money unless you know exactly why and the value you expect in return. If you are spending on something you can't fully justify, you are overspending.
o Set measurable ROI (Return on Investment) and ROO (Return on Objectives) goals for each show and measure the ROI and ROO results from each show.
o Report on the results and examine them to determine where your budget dollars are the most effective.
o Explain the value you provide and how you help your customers. If you have a hard time doing this, chances are you need to take a hard look at your offering and make corrective changes.
o Help trade show managers justify spending money with your company by providing ROI tools and hard data.
What can exhibit managers, vendors and trade show producers do to encourage businesses to continue exhibiting and investing in trade show programs?
Education is the key. Your customers, whether internal or external need to be able to understand the value of any trade show program. This requires education, but it also requires hard data. If you can't show ROIs and specific value, you are "in trouble" and you either have to research that information or make changes to your plans, products or services until you can back them up. Below are some resources that may help you with this.
• Industry Statistics and Reports: Vendors and trade show producers have to share trade show industry statistics and reports with their clients to explain the value of trade shows. Exhibit managers can share this internally with whoever manages the trade show budget. Here are a couple of web sites that have good statistics:
o iaee.com (look in the resources section)
o ceir.org has a wide variety of resources throughout their site
o tsteacher.com (look in the resources section)
• Seminars or Webinars: Vendors, trade show producers or exhibit managers can prepare seminars or webinars on the topic of why exhibiting is important and the benefits. Invite the budget decision makers to attend. All this of course only works if you get the decision makers to listen. If you are a trade show producer or vendor, consider offering incentives such as discounts for attending.
What strategies can vendors and trade show producers implement to sustain and/or increase business?
It really is very simple. Provide a product or service that provides a clear, measurable value. Make sure you can back up your value proposition and make sure you customers understand it. Oh yeah, and ideally provide more value for the dollar than the next guy.
Of course this is hugely simplified, but reality is that you need to be able to justify what you are doing with a clear contribution to a measurable ROI. In some cases that will require you to change your pricing. If you think you can't afford to do this, see what your own vendors can do for you. They are feeling the pinch just like you are and might be open to deals they wouldn't have done 2 years ago.
o Look at the advertising, sales, marketing and PR approaches that have worked the best for your business in the past and focus on increasing efforts in those areas. For the items that require an investment such as let's say advertising; speak with the company you are advertising with and make deals with them. They want your business. If you tell them you are having budget issues and you may need to consider alternate promotion for your business, trust me they will be ready to make a deal with you to keep your business! Also speak with the companies you distribute products for to see if they have co-op dollars; this is money they contribute for advertising and other marketing initiative costs.
o Partner with other companies to share the burden of marketing expenses.
o Increase networking; don't just focus on looking for end-users, look for contacts that already have relationships with your target end-users and can refer your business to them!
o Look for alternative marketing approaches; participate in speaking opportunities, write a column on topics relevant to your industry (just like this one), produce an e-newsletter and post the content on your website, become a subject matter expert and inform key media contacts so they can call on you as needed.
Granted, the trade show industry isn't a stock exchange. But mind set and emotions still play a big part in buying decisions. Do what you can to help increase optimism. Reality is, there is still a lot of business out there. It is however harder to earn and if you really think about it, with many companies struggling it is easier than ever to become a leader in your field or industry as long as you provide value and spend your money wisely.
That's it for this lesson. Thank you for your time. Bye for now!
Homework:
This month there is no homework; I suggest that you use this "free time" to think about the viability of your products, services or trade show plans; and see what you can do better.
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