By Jack J. Phillips, phd
No one dresses in formal wear without hopeful expectations, and neither should your trade show exhibit. Companies spend thousands of dollars in the production of an exhibit, but very little in tracking the success of it.
To add to this mystery is the fact that the success of exhibiting can be measured in a credible, methodical way that is accepted by top executives. This first column provides insight into why trade shows are not routinely evaluated and what must change in the industry to make evaluation a more acceptable and legitimate part of the process.
If you ask the typical exhibitor at a trade show
what percent of the entire cost of the exhibiting process is allocated to measurement and evaluation, the answer would most likely be rounded to zerow. This oversight is even more blatant when considering that in most other activities, measurement and evaluation is an important part of the functional process. In many processes, the cost of measurement (which is actually data collection) and evaluation (using data to make decisions) may command as much as 15 to 20 percent of the cost of the process.
Measurement and evaluation should always be a part of the trade show exhibit, just like planning and designing the exhibit, developing the material for distribution, and preparing team members to work there.
So why is trade show measurement and evaluation stuck at zero? There are many reasons for this. For many exhibitors, measurement and evaluation is considered to be add-on, extra work, and not as enjoyable as other tasks, so it is often not planned or executed well. The follow-up to evaluate success is rarely achieved.
The cost of measurement and evaluation for the trade show process should be compared to the trade show budget. Consider the total annual budget – not only the exhibit fees, travel, and the time of those involved, but all expenses tied to the exhibit. When all of these costs are considered, three to five percent should be spent on measurement and evaluation. This is necessary to plan for measurement, collect the data, use the data in meaningful ways to drive improvements, and ultimately, show the success of the exhibiting process.
For a company, financial statements are an aggregation of data collected and converted to money (measurement). Evaluation is the process of analyzing the statements to see what should be changed. It is unlikely that a company executive will ever say, "I don't think we really need financial statements. Let's have faith that things are working and continue to make the product and the sales force will continue to sell it. There's really no need to see where we are and whether or not changes should be made."
Obviously, this comment would be foolish and would describe a company that is potentially doomed for failure. In today's economic climate, exhibitors must collect data, analyze the data in meaningful ways, and then make decisions about the process. Measurement and evaluation should always be a part of the trade show exhibit, just like planning and designing the exhibit, developing the material for distribution, and preparing the team members to work there.
Next month we will focus on estimating the value of the audience, the starting point in the decision to exhibit at a conference.
*Editor's Note: Developed and offered by the ROI Institute, this series of eight columns will describe the ROI Methodology, an approach that collects or generates up to seven types of data to show the success of a trade show exhibit. Following step-by-step processes with user guidelines, this documented methodology is one of the most utilized and accepted business evaluation systems in the world, with more than 5,000 users. Both the Meetings Professional International (MPI) and the Professional Convention Management Association (PCMA) have endorsed, supported, and offered this methodology to their members. These columns show how the process works to develop the impact and ROI for exhibiting at a trade show. Here are the planned columns:
- Why is measurement an issue?
- The value of the audience
- Types of data: setting objectives on five levels
- Success at the trade show: Measuring exhibit performance
- The initial data: Measuring visitor reaction and takeaways
- Now some action: Measuring visitors' actions
- The number one goal: Measuring business impact
- The holy grail: Measuring ROI
Look for the following seven in the months to come.
Jack J. Phillips, PhD, is a world-renowned expert on accountability, measurement, and evaluation. Phillips provides consulting services for Fortune 500 companies and major global organizations. The author and editor of more than 50 books, he conducts workshops and presents at conferences throughout the world. His expertise in measurement and evaluation is based on more than 27 years of corporate experience in the aerospace, textile, metals, construction metals, and banking industries. He is chairman of the ROI Institute, Inc., and can be reached at 205.678.8181 or by email at [email protected].
