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How to Calculate the Return On Investment of a Trade Show

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Ready to invest in a trade show? It’s a great idea, but before you take the plunge, you need to understand how to measure your return on investment (ROI) to make sure it’s worth it.

Let our trade show booth manufacturers explain everything you need to know about calculating trade show ROI. Learn how to maximize the benefits of your investment so that your company can get the most out of participating in an event!

What is the ROI of an event?

ROI, or Return on Investment, is a key indicator of profitability. It measures the relationship between the profits and costs of an event or other commercial effort. In other words, ROI evaluates the success of an event by comparing the benefits with the costs of participating. Benefits can be measured according to your goals, which could include sales, revenue or any other performance indicator.

By calculating your ROI, you can easily evaluate the cost of participating in a trade show and whether or not your event was a success.

Why calculate the ROI of an event?

Calculating the ROI of an event helps organizers in two specific ways.

First, it justifies the investment to management by showing that the money invested in marketing and events brings concrete and measurable results. The success of an event can only be proven by predicting the ROI and then measuring the results.

Calculating ROI makes it possible to measure marketing effectiveness. Analyzing what worked and what didn’t during an event helps you make informed decisions for the next time: change the format, adjust the target audience, redefine the event budget, etc.

How to calculate the ROI of an event

Calculating the return on investment (ROI) of an event can be difficult, as positive outcomes are not always immediately visible. For example, it may take several months before you can measure improved company awareness or new business contacts generated from an event. Begin measuring the ROI by focusing on what you can evaluate with certainty. Use this formula:

ROI = (Profit – Costs)/Costs.

The profit represents the benefits of attending the show, such as sales or qualified leads, and the costs include all the investments necessary to participate, such as booth rental, travel and accommodation, communication and booth manufacturing costs. It is important to include all costs in you calculation, no matter how small.

Step 1 – Define your main objective

First, define your primary goal in attending the event. The context, stakes and objectives will differ depending on the type of event (trade show, congress, conference, etc.) and the target audience (customers, partners, prospects, employees, etc.). However, B2B events can be categorized according to 4 main business objectives:

  • Increase awareness and build brand image
  • Generate qualified sales leads
  • Inform and retain customers
  • Network and improve reputation

Step 2 – Define KPIs to track this objective

To verify whether you have achieved your goal(s), choose indicators to track to measure your success. For example, if the objective is to increase awareness and build brand image, relevant KPIs could include:

  • Enrollment
  • Media coverage
  • Presence on social networks, etc.

If the goal is to generate qualified leads, KPIs could include:

  • Lead generation
  • Opportunities
  • Lead qualification, etc.

Step 3 – Collect data for tracking KPIs

After defining your goals and KPIs, it’s time to gather relevant data with the help of an event management platform. Choose a platform that will allow you to collect and track all event data in real time.

Step 4 – Analyze the results and improve your strategy

Last, analyze the KPIs and compare them to your predefined objectives to determine whether the event was a success. Use what you have learned to identify areas of improvement for the company’s future event strategy.

There are several ways to analyze event data:

  • Compare the data from several editions of the same event
  • Compare your data with competitors or partners as a benchmark
  • Compare data from 2 different event formats, taking into consideration the length of the event, participation, etc.

Tips for improving trade show ROI

To improve trade show ROI, try adopting effective strategies to reduce costs and increase benefits. Here are some tips for reducing the amount you need to invest to participate in a trade show:

  • Plan ahead to avoid last minute expenses
  • Choose less expensive alternatives for every aspect of your participation
  • Share costs with other companies or partners
  • Use less expensive technology

To improve results, set clear goals, train your staff, and offer special promotions to attract visitors to your booth.

It is also a good idea to design an attractive trade show booth with bright colors, attractive lighting and eye-catching visuals that attract visitors’ attention. Opting for an eco-friendly trade show booth will give an extra boost to your brand image.

Another way to promote your presence at an event is through effective social media trade show marketing and communication, before and during the show. A good communication strategy can help you generate leads before an event and interact effectively with visitors while it’s taking place. Finally, don’t forget to follow up with qualified leads and use information you collected to personalize your communications and guide prospects through the buying process.

totm exposition helps you get the most out of trade shows

Attending a trade show can be a worthwhile business investment. Follow the tips we’ve shared today to maximize profits, minimize costs and achieve an optimal ROI.

Go ahead and plan your next trade show appearance now! If you plan properly, you can boost your visibility, increase your brand awareness and generate new business opportunities.

If you are interested in organizing an event, contact totm exhibition. We are committed to helping businesses succeed at trade shows of all kinds.