reinvent your tradeshow: nurture your exhibitors for success
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Increase your exhibitors\' ROITRANSCRIPT
Reinvent Your Tradeshow: Nurture Your Exhibitors for
Success
Terry ArthSusan SchwartzSam Lippman
Introductions
• Terry Arth, CMP, Vice President, Meetings & International Programs, National Association Chain Drug Stores (NACDS)
• Susan Schwartz, CEM, President, ConvExx and Show Manager, SEMA
• Sam Lippman, President, Integrated Show Management & Marketing (ISM) and producer ECEF and Large Show Roundtable
IntroductionsResponsibility• Show and Meeting Management• Contractor/Supplier• Hotel/venue/destinationExperience• 2 years or less• 3 to 6 • 7 to 14• 15 to 25• Over 25 years
Where We are Today
• 2010 – year two of the Great Recession• In 18 months U. S. household wealth down 20% • 1 in 7 Americans employed by city & state
governments – many almost bankrupt• Residential & commercial real estate excesses• Xmas Day – more Kindle than paper books sold• iPhone – instant information, networking and
purchases
Center for Exhibition Industry Research (CEIR)
Center for Exhibition Industry Research (CEIR)
• All titles, CMOs especially, believe tradeshow organizers should be held very accountable for audience quality
From Stein/Rogan – BPA Worldwide Exhibitor ROI Research Survey
Future of Tradeshows
If your show’s total revenue is down, when do you expect it to rebound?*
5%
9%
16%
36%
24%
9% January 2010July 2010
January 2011July 2011
January 2012Never
* Asked of 180 executives at ECEF 2009
Future of Tradeshows
Exhibitions in the U.S.A. • CEIR Index – companies, NSF and attendance down • Sponsorship revenue down• August 2008 to 2009 – overseas travel down 26%• CFO’s and Procurement buying marketing services• Media companies with too much debt• Green/carbon offsets • Less freight = less $ for GSC• Fewer/cheaper rooms = less $ for CVB’s• Venues under increasing pressure to book events• TSEA, HCEA, CEMA = exhibitors’ voice
Exhibitors in the U. S.• Budget flat or decreasing• Quarterly approval of budgets• Greater emphasis on ROI • Changing from “buying concrete” to
demanding customized, integrated opportunities
Questions?
Adding Value to a Super Show - SEMA
Susan SchwartzPresident, ConvExx
Show Manager, SEMA
It’s Not Business As Usual
• Walk in Your Customers’ Shoes• Just because it is, doesn’t mean it should be or
can be anymore
It’s Not Business As Usual
• What are the Hot Buttons?– Finding New Customers– Contractors and Pricing– Association Outreach
New Customers
• Matchmaking• 1,000 Guaranteed Leads• New Markets
Contractors & Pricing
• Exhibitor Value Packages• 1,000 lbs complimentary material handling• Special deals from every contractor• Hotel prices• Transportation prices
Association Outreach
• Exhibitor Appreciation Party• Appreciation Gift Cards• Extra Seniority• Payment Plans• No price break vs. price break
Questions?
Creating Value for an Industry
Terry ArthVice President, Meetings & International
ProgramsNational Association of Chain Drug Stores
(NACDS)
How We Got There Cash Cow• 1992 – 2000 Received an additional $1M net revenue
annually from Cash Cow, half from price increases, half from growth.
• 1992 – Competitor develops comprehensive hosted buyer program based upon the 60/60 model. 60 manufacturers matched with 60 buyers with guaranteed 20 minute appointments plus follow up notes for each meeting.
• 2000 – The Mt. Everest of profit is achieved
Cash Cow
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
1992 1993 1994 1995 1996 1997 1998 1999 2000
Income Expenses Net
How We Got There Declining Cash Cow• 2000 – The Mt. Everest of profit is achieved
• 2001 – Outside competitor produces 30 events per year with net profits averaging 20 – 30%.
• 2001 - 2009 the decline begins in earnest as the following graph shows in detail.
Declining Cash Cow
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Income Expenses Net
Our Response!• 2001 – 2004 Re-energized exhibit and buyer advisory
boards, verified outcomes with outside consultants, achieved senior management buy-in for hosted buyer program.
• 2004 - “Meet the Market” launched, our hosted buyer program that guarantees up to 10,000 appointments in one 8 hour day for small to medium sized manufacturers.
Buyer Appointment Schedule
11:42 am – 11:52 am LELO, Inc.11:54 am – 12:04 pm First Quality12:06 pm – 12:52 pm Lunch
Exhibitor Appointment Schedule
10:54 am – 11:04 am CVS 6,200 Stores11:06 am – 11:16 am Kerr Drug 97 Stores11:18 am – 11:28 am Navarro 32 Stores
Results!• 2004 – 2009 “MTM” grows from 50 hosted buyers to
350 (approximately 300 of our exhibiting companies currently participate in this program)
• 2009 and beyond? “Meet the Buyer”, designed for large manufacturers and buyers, successfully beta tested in 2008 and 2009 on two of or our large events.
Results!• Best practices from Declining Cash Cow
implemented across all events have helped improve bottom line performance.
• Smaller events are used as laboratories were new ideas are tested and refined for larger events.
Rising Star 1
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Income Expenses Net
Rising Star 2
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Income Expenses Net
Declining Cash Cow + Rising Stars 1 & 2 =
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Income Expenses Net
Time to figure out our next move!
What Does the Future Hold?• Will the big box tradeshow concept of the 80’s & 90’s
survive?
• Will hosted buyer programs be the norm?
• What is the next generation of events and will we be ready for it?
80+ Events Per Year
International for Profit Competition
“The easyFair concept gets back to trade show basics – but in the modern context”.
“Efficient Collaborative Retail Marketing (ECRM) provides Business Solutions by integrating Process, Vision and Technology. Comprised of category & season specific Efficient Program Planning Sessions (EPPS), ECRM is helping retailers and manufacturers improve sales, reduce expense, and go to market faster and more efficiently”.
Domestic for Profit Competition
50+ Events Per Year
What are you doing differently now - externally - to strengthen your show?*
45%
29%
11%
15% Providing executive attendees with personalized programs
Outsourcing more in-house projects /procedures to improve results
Changing the format of your show (hours, days, co-location)
Using the web to increase the “duration” of your event
Future of Tradeshows
* Asked of 180 executives at ECEF 2009
What’s Next?
• Show Producers – charge per NSF or for _______?
• General Service Contractors – how to diversify from drayage?
• Exhibitors – more vocal and signing up/paying later – our response?
• Venues/Cities – the German model?
Questions?