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March 2008
Exhibit Engagement Study
Proof that exhibiting in business-to-business shows drives sales
By Danica Tormohlen
Purchase intent — a customer’s stated interest in buying a product — is an average 34 points higher among attendees who actively interact with a brand at business-to-business (b-to-b) shows compared with those unaware of the brand, according to a groundbreaking new study, Measurement of Engagement in B2B Trade Show Exhibits, conducted by Exhibit Surveys Inc. and Gallup & Robinson (G&R) for the Advertising Research Foundation (ARF).
Purchase intent was higher for all 11 well-known global brands measured, including HP, IBM, Xerox, Dell, Intel, Microsoft, Oracle, Cadbury Schweppes, Coca-Cola, PepsiCo and Sara Lee.
It’s something show organizers have always known, but now we have data to support the role shows play in accelerating the sales process. “People who go to shows purchase,” says Skip Cox, CEO, Exhibit Surveys Inc. “Exhibiting in b-to-b shows drives sales.”
Because the shows and companies represented in this study are well-known brands with significant marketing budgets, the results can’t necessarily be generalized across all shows or all exhibiting companies. “This is certainly a ‘big company’ model that we’re talking about,” says Scott Purvis, President of advertising research firm G&R. “There will be differences in how different brands perform at different shows, but there are lots of things that can be applied across the board.”
What makes this study unique is that it attempts to establish metrics that can be applied across other marcom channels. Among the key objectives was to develop a validated, cost-effective protocol for measuring the effectiveness of b-to-b exhibits.
The ARF study was designed to provide data and analysis on four key issues
• Do trade shows drive a strong connection to the brand? Are they more engaging than traditional channels?
• If so, among what groups of people? How far out does the circle go beyond participants?
• In what ways do trade shows drive the connection? How can that be leveraged?
• Does engagement quality drive behavior toward the brand? If so, how can that be leveraged?
The results couldn’t be better for the exhibition industry. “All brand metrics — purchase intent, brand consideration, emotional connection, brand fit, net promoter and brand familiarity — have much stronger correlation to actual sales after attending the exhibition than before,” according to Experimental Marketing: A Master of Engagement, a white paper by ARF based on the study. “The strong implication is that show attendance drives purchase behavior.”
Measuring behavioral engagement at show
On average, 28 percent of attendees actively engaged with the brands surveyed, meaning they visited the exhibit, talked to staff and requested information. Twenty-four percent were passively engaged (aware that the exhibitor was at the show but only looked at the exhibit), while 22 percent were aware that the exhibitor was at the show but didn’t visit the exhibit. Only 15 percent of attendees surveyed were not aware that the exhibitor was at the show.
Both active and passive participation by attendees are strong drivers of brand engagement, but awareness only of the exhibit is a smaller contributor, according to the study. Increasing behavioral participation with exhibits is associated with stronger brand output metrics – purchase intent, brand consideration, emotional connection, brand fit, net promoter and brand familiarity.
Key takeaways on the impact of exhibit participation include:
• Talking to prospects makes an emotional connection and drives purchase intent.
• Looking at an exhibit enhances brand perceptions significantly.
• Merely making attendees aware of presence has some positive effect.
Customer retention and acquisition
The study provides insight on how trade shows are different from private corporate events. “Private shows tend to be customercentric, so they score high because they attract current customers,” says Cox. “With this study, we’re able to establish that exhibits have influence on customers and noncustomers.”
At the shows surveyed, 47 percent of attendees were customers, 44 percent were noncustomers with buying influence and only 9 percent were noncustomers without buying influence. According to the study, current customers represent the greatest opportunity for sales, but about one-quarter of purchases were from noncustomers at the time of the show. And one-third of those attendees personally involved in purchasing were noncustomers at the time of the show.
Forty percent of customers and 27 percent of noncustomers took one or more post-show actions, such as discussing an exhibitor’s products with peers, looking up an exhibitor’s Web site, reading an exhibitor’s literature collected at the show, passing the literature to supervisors or someone else, or recommending an exhibitor’s product or technology seen at the show.
One of the biggest surprises: Trade shows have a unique viral effect similar to pass-along readership for magazines, says Purvis. The positive viral effect of exhibiting extends reach two to three times for customers and noncustomers who actively participate with an exhibit, according to the study. “This is something that probably can be generalized across most shows and companies,” says Purvis.
Ancillary activities
The study also includes an analysis of the relationship between purchase intent and both event-related advertising and participation in ancillary event activities. While event-related advertising was found to provide more reach, participation in ancillary event activities such as hospitality suites, product demos off the exhibit floor and education sessions given by exhibitors, actually provided more lift to purchase intent.
Analyzing the data
The ARF study provides important new data on the effectiveness of b-to-b events. The key conclusions for b-to-b events include:
• Trade shows contribute in important and unique ways to both customer retention and customer acquisition.
• Trade shows have a unique viral effect. They influence the attendees, large numbers of whom also influence their peers. Like pass-along audiences for magazines and out-ofhome audience in TV, event reach calculations should go beyond just direct attendance.
• At a time when people are selective about the messages they receive and the brand relationships they invite, the unique opportunity that events provide to engage customers and prospects interested in learning more about the product or brand should be aggressively embraced.
In addition, the study provides exhibitors with new metrics for evaluating the ROI of trade shows compared with other marcom channels. This study has established baseline data for trade shows. Once other media conduct similar studies using these metrics to measure their effectiveness, marketers may finally have concrete data to make budgeting and resource decisions for their entire marketing programs.
Danica Tormohlen is Editor of EXPO. She can be reached at 913- 344-1303 or email: dtormohlen@red7media.com.
Exhibit Surveys Inc. and Gallup & Robinson designed and executed studies about business-to-business trade show engagement. They conducted pre-show surveys via online interviews immediately before the four events surveyed . E-mail addresses were obtained from the shows. Then they completed post-show surveys among a separate sample of people who attended the events. Respondents to both the pre- and post-show surveys were contacted again approximately 120-180 days after each event to determine sales conversion. Between 200 and 800 surveys were completed per event, for a total of 3,436 respondents.
Excerpted from Experimental Marketing: A Master of Engagement, a white paper by the Advertising Research Foundation based on a new study, Measurement of Engagement in B2B Trade Show Exhibits, conducted by Exhibit Surveys Inc. and Gallup & Robinson.
1. Quantifying size and value of the target audience among total audience is essential to show selection and investment decisions. If a large enough target audience exists, effective exhibit engagement can accelerate the sales process significantly to optimize return on investment.
2. Determine where exhibitions vs. other types of corporate proprietary events fit into the overall event marketing-mix strategy. Trade shows deliver both customers and new prospects, and exhibit engagement can accelerate the sales process among both. If gaining marketshare from new customers is a primary corporate initiative, exhibitions should be an important element of the event mix.
3. There’s both a cognitive and an emotional component of exhibit engagement that drives results, and both are more powerful when combined. Creating an experience for the visitors that’s relevant to and reflective of positive brand attributes is, therefore, as important as the cognitive-related tactics typically associated with exhibiting, such as demonstrations, presentations, sampling, graphics, availability of collateral, knowledgeable exhibit staff, etc.
4. Active engagement (face-to-face interaction) is critical in driving purchase intent and ultimately sales. The incremental investment in bringing a sufficient number of knowledgeable and qualified staff to the exhibition can increase return on the total investment significantly.
5. Merely looking at the exhibit or making attendees aware of brand presence at a show can be an important driver of effective engagement. Ensure that the exhibit visually communicates brand messages without always requiring direct staff interaction. However, active engagement should be the ultimate objective.
6. Involve sales management. In light of the role exhibit engagement can play in accelerating the sales process and feeding the sales pipeline, active involvement and buy-in from sales management in show selection decisions, planning (setting objectives and strategy) and tactical execution is likely to improve sales conversion results significantly.
7. The incremental investment in an integrated approach to exhibition participation is valuable in driving results. Trade-show-specific advertising, promotion and sponsorships, as well as ancillary activities (for example, speakers at sessions, off-the-exhibit-floor meeting/demo rooms, special pavilions, hospitality, etc.) create increased reach and/or lift in results. However, both can experience diminishing returns if over used in any one particular event.
8. Similarly, the exhibitor’s corporate Web site should be integrated into the exhibit’s strategy, particularly for post-show fulfillment. Sales support collateral/literature is rated highly important in making purchase decisions. |
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