Measure the ROI at Trade Shows (Using the Right Mix of Creative and Promotional Products)
So ask yourself, will a person who is buying a $20,000 scissor lift need, want or care about a $1.00 item? Who knows. However, let's look at it another way: same scenario, but using the 12 percent statistic.
There will be 2000 buyers attending the show. If 12 percent of those buyers want, need, can afford and have the ability to pay for that scissor lift, that's 240 real buyers. If you can get the majority of those buyers to come through your booth, has it been more cost effective? If you divide 240 (12 percent of 2000 attendees) that gives you a budget of $8.33 per recipient, and you can do a lot more with that budget than you can with $1.00. That $8.33 can be used for pre-show invitations, nicer gifts at the show and a follow mailer that is consistent and theme driven. You can evaluate your criteria and see the measurable results:
Send out 240 pieces/invitations. At the show 120 buyers came in as a result of the invitation (50 percent response rate). You take your leads and do the needed follow-up and:
- Of the 120 buyers, 60 buyers purchase (that's 25 percent of the 240)
- If you then divide the $2,000 by 60 actual purchases, that means your cost to reach (cost per objectives met, or CPOM) and sell each buyer was $33.33
- Now, given in this case the average cost of this model scissor-lift is $20,000, multiply by 60 and that's $1.2 million in sales
Would you spend $33.33 to gain a buyer of a $20,000 piece of equipment? To get a firm number on the total trade show costs and the true ROI you would need to obviously include all of the associated trade costs: drayage, booth rental, electric, shipping, meals, lodging, etc. Divide that number by the total number of purchasers and there is your true ROI of your trade show experience.