September 2007
Exhibit Sales 2.0
New structures, motivators, productivity tools and performance metrics for selling in the new “event” environment
By Maxine Golding
Seven years ago, Dan Cole, Vice President of Sales and Business Development for International CES (www.cesweb.org), did the unthinkable. He did away with geographic territories for the exhibit sales team. He increased the number of items to sell and spurred internal competition with incentives. He initiated face-to-face consultations with 300 strategic bellwether accounts. And he concentrated on the proper metrics for what has become an intensely entrepreneurial operation.
What used to be “all about relationships” is now “all about relationship management,” says Cole.
It’s almost an understatement when Tom Corcoran, President, Corcoran Expositions (www.corcexpo.com), a Chicago-based trade show marketing and management company that specializes in assisting associations with booth sales, says: “Everything is a lot quicker to fulfill.” It takes just a few clicks on the computer to dispatch an e-mail and marketing piece and set a follow-up date to talk again. Web sites with interactive floor plans, show data, exhibitor prospectus and marketing opportunities allow sales reps to walk customers through material in real time, as if they were in the same room.
It’s a new world for exhibit salespeople today. They’re expected to sell much more than booth space and maximize revenue and service for every account. And it’s a new world for show organizers who must manage, train and motivate these sales teams for peak performance. Find out how to apply technology tools, new incentives and performance metrics to keep your sales team highly productive and your shows thriving.
Structuring the Team
How to structure today’s sales operation for optimum productivity? Let us count the ways. Some show organizers delegate stakeholder accounts to salespeople trained or experienced in integrated sales. Others require their sales reps to sell all products across the board. Vertical segmentation of accounts is gaining traction. Lead generators build the pipeline for sales reps.
For each of its 91 events, Advanstar Communications Inc. (www.advanstar.com) determines the sales structure that will best service that group of customers. Account lists vary from alpha
distribution to geographic territories to any setup that ensures salespeople an equal earning opportunity. Larger shows may utilize a separate sales group strictly for renewals.
“In markets where one person makes the decision on booth space and media, we want one person serving that customer,” says Georgiann DeCenzo, Advanstar Vice President. “That approach, however, doesn’t make sense in the licensing market, so separate specialists deal with booth space or media products. And sales deployment continues to be a challenge in this market because of the many buyouts and mergers.”
Five years ago, exhibit salespeople and advertising sales executives operated separately for Reed Exhibitions’ (www.reedexpo.com) larger U.S. expositions, like the National Hardware Show and Vision Expo. There was “plenty of animosity to go around,” says John McGeary, Vice President Sales. Now both are paid on the sale, no matter who closes it, giving everyone a real stake in working together. And in the past, when Reed might have had one person sell one show year-round, today a salesperson can be drafted to help another team for a short period or work on other projects.
The classic 80-20 rule still holds, says Stephen Pia, Founder and Media Sales Trainer/Coach, COACH MEdia (www.coachmedia.net). For a 300-exhibitor show, 60 exhibitors can represent 80 percent of revenue. Consequently, show organizers must assign appropriate resources to protect these stakeholder accounts. Yet Pia believes too many shows make a mistake in choosing great salespeople to own these accounts. “You want solid sales producers, yes, but they must be equally good at client care,” he asserts.
Another good reason to gravitate to accounts identified as high-value: It’s a much more efficient approach that holds salespeople more accountable for their results, says John Parke, CMP, President and CEO, Leadership Synergies (www.leadershipsynergies.com), a Prince Frederick, MD-based company that provides sales performance and process improvement solutions.
At International CES, business development managers carry both bellwether and current customers, but the latter group is divided by categories. As for prospects, Cole doesn’t want these “rotting in a database,” so he initiated a “30-day rule.” If there has been no qualitative discussion within 30 days, anyone on the sales team can make the call.
“I would rather have prospects receive calls from three different people in three days — although that hardly ever happens — rather than no one paying attention,” he says. “So our people are constantly scrubbing the database.”
Goals and Measures
Show organizers today pour an enormous amount of history, analysis and critical thinking into sales goal-setting. How well is the show hitting its attendee and exhibitor audiences? What energizing effect will new partnerships, list development and advertising opportunities have on the show? How resourceful are salespeople in responding to actions — such as exhibitor downsizing — that will make it difficult to achieve goals?
In Reed’s systematic approach, a spreadsheet covers three years of history for square footage, advertising, sponsorships and growth potential. This is broken down by salesperson and account. Goals for total revenue and stretch revenue are set, and performance is tracked weekly. “While we all talk in ‘sales footage,’ at the end of the day we’re really measured in dollars,”
says McGeary.
Advanstar is equally metrics-driven. It tiers accounts by size and prospect potential and assigns requisite sales activities for each level. A Tier A account — prime prospect, market leader or influencer, which may not necessarily be exhibiting — receives at least four sales visits per year and “touching” a minimum of once a month. Half of those service requirements represent the minimum contact for a Tier B account. Tier C accounts receive a quarterly touch and D accounts an annual one.
The emphasis is on meaningful interactions, which Advanstar defines as talking to someone who can actually make a decision. Quality phone calls and visits are measured in a “call-to-sale ratio,” which vary with the marketplace. “Each sales manager has a number, understands it and tracks it,” says Melanie Wood, Director of Corporate Sales and Management Training for Advanstar. “In our minds, nothing happens until a connection takes place and a salesperson is communicating with that customer.”
After an Advanstar show, every exhibitor will be called and asked a checklist of questions that hit touchpoints of customer needs. Based on needs, history and market trends, show management will set specific goals for that account. Overseeing two groups and close to 40 salespeople, DeCenzo religiously tracks the weekly and monthly revenue targets by tier and by existing and new customers.
When Corcoran’s sales team trolls prospects, he’s looking for 50 outbound calls per session (grouping calls for one set of shows in the morning and another in the afternoon), a total of 100 calls per day per person. Figuring out how many salespeople to assign to a show isn’t difficult, he adds; it’s all in the math.
“It takes between six and eight contacts — not counting those who drop out over the phone — to get a new exhibitor to commit to a show,” he says. “A salesperson who can bring in three new contracts a week is doing pretty well.”
Angelo Varrone, CEO of ExpoNation LLC (www.exponation.net), a Roswell, GA-based event production and management company, builds a zero-based
budget based on where salespeople say the business will come. As expected, some will be too aggressive and others too conservative in their projections. When ExpoNation looked at the 2006-2007 landscape for its Digital Signage Expo, Varrone felt comfortable projecting 10 percent exhibit space growth — which in the end turned out to be 20 percent.
Motivational Forces
A bit of everything — short-term incentives, tiered commission levels, accelerators or stretch goals, and recognition — goes a long way. Compensation plans should be “simple by design and put more emphasis on actualized revenue rather than activities,” Parke says. “The more frequent the payouts, the more hungry salespeople get.”
The more individual the incentives, the better the results, says Pia. For example, Sally Rep has a weekend place on a lake, so every week Sally gets to leave at noon on Friday if she achieves her goal. John Rep loves to show off how well he knows the industry, so he gets to lead the weekly sales meeting if he hits his number.
At SmithBucklin Corp. (www.smithbucklin.com), a Chicago-based full-service association and trade show management company with 235 clients, semiannual bonuses for sales employees correlate to performance. Then, at all-staff meetings and sales outings, the company spotlights individual achievements. While such recognition is numbers-driven, says David Weil, Senior Director of Convention and Tradeshow Services, it also provides an opportunity to share stories on how salespeople are succeeding in reaching their goals. “We like to talk about how salespeople make the difference for their show clients, and this creates a lot of energy in the room.”
After Reed salespeople hit their basic goal, their commission percentage doubles. Every advertising and sponsorship item is credited at the same level, keeping salespeople fixed on goals and not on what pays a higher commission rate. And management refocuses the team based on the greatest need at the time. For example, The Fashion Show at PGA was coming up short with only 10 customers, when to be really good it needed 20. Everyone was taken off task to present every apparel customer with the value proposition of this show feature.
Reed supplements individual compensation with programs like the twice-yearly “Golden Ticket” contest. Every salesperson gets 52 tickets to hit their weekly goals. For the $20 million PGA Merchandise Show, each of eight salespeople will aim at $2.5 million; for New York Comic Con, the goal is $1 million for each of two salespeople. Each week that salespeople make their goals, they can put that week’s ticket in the contest. The more tickets in, the more opportunities to win prizes. Out of the top 20 salespeople who put in the most tickets, one will win $2,500. The contest used to be held once a year but, because it gets the sales teams so pumped and excited, it was worth doubling up.
Cole also keeps the International CES sales team tightly focused on the prize. Revenue goals at CES are based on a percentage increase of the show’s 1.7 million square footage (although there’s not much available and desirable space). This is set a few weeks after the January show is over and divided into monthly tracking goals. Every night thereafter, Cole publishes
“The Daily Flash,” quantifying exactly what was sold that day.
By giving every member of the team a share of any exhibit upgrade after the show and conversely a hit on any downgrade or cancellation, CES keeps them from working against each other. Occasionally a kicker is thrown in. For example, if a revenue point is achieved over the next 15 days, the person who sold the most will receive a gift certificate. New business is tracked per individual, and the competition is intense for the annual crown for exceeding all stretch goals. Indeed, Cole has thrown down a more personal gauntlet: If any salesperson tops $1.5 million over his stretch sales goal, Cole will shave his hair into a buzz cut and circulate his photo as a wanted poster.
Bonus incentives for a short spurt do indeed work like a charm. Corcoran saw last December that the sales team would have to complete seven contracts a week to fill the exhibition floor for a May show. He started the push by doubling commission for three weeks. “Nothing is like money on the table for salespeople,” he says. But they’re equally motivated by competition, so Corcoran always posts results because it’s important to recognize people both when they’re doing well and when their name is at the bottom of the list.
More than Space
Exhibitors today view their event participation through a whole marketing prism. The booth is no longer a one-off buy, but just part of the event experience for customers and prospects. “The days of just sponsoring a coffee break are over,” says Weil. “We’re really selling access to our markets.”
For show organizers, that has caused a sea change in their sales process.
SmithBucklin salespeople are spending a lot more time — especially with anchor accounts — understanding client objectives, matching those with appropriate
show activities and rolling everything into an account action plan. It’s a consultative approach that requires salespeople with higher skill sets and education, those who can “work through the opportunities and understand their value,” Weil says.
For bellwether accounts, International CES’s business development managers can package every service and satellite activity, from Web site and print advertising to area and event sponsorships. At the same time, they’re incentivized to work with two third-party contractors who handle specific CES inventory: one deals with on-site signage, while the other focuses on unconventional sponsorships. Ancillary activities are weighted and bring more credit toward the annual revenue crown. At CES, it’s not just about exhibits — although exhibit space remains the major sales focus. It’s about strengthening vendor relationships with the entire organization.
Most clients don’t want to deal with more than one person, and that’s especially relevant to a smaller company like ExpoNation, which has no choice but to use its sales team to sell exhibit space, directory advertising and sponsorships. And since the sales team is motivated toward a dollar goal — not a square footage goal — it makes absolute sense to provide them with multiple items to sell.
With Advanstar’s customer-centric approach, salespeople are trained to find out what customers need and then identify the optimal channels for exposure, rather than “slam them with all opportunities,” says Wood. The process even has its own acronym: ACT (for Advanstar Customer Targeting). But markets sometimes throw a curveball. For example, many exhibitors at Licensing International Expo, an appointment-driven show, watch consumer product trends closely and won’t decide until three months out what they want to present, says DeCenzo. This can leave salespeople and clients with less time to collaborate on expansive programs.
Pricing Pushback
As long as a show grows and broadens its appeal, it can hold the upper hand on exhibit pricing. But rising costs for everything surrounding the booth — from shipping, drayage, labor, decorating and promotion to travel, lodging, food, entertainment and energy surcharges — deeply sensitize exhibitors to space rental rate increases. And salespeople usually bear the brunt of the pushback.
For CES, whose exhibitors are members of the association, there’s a compelling case for fiduciary responsibility on rate increases. Members pay close attention to what competitive shows charge and the expenses associated with exhibiting; some even produce their own line shows. So it’s critical for CES to demonstrate value for investment, and it helps salespeople when rate increases are limited to every third or fourth year.
Advanstar’s DeCenzo prefers a modest increase every year to a larger one at longer intervals. “We do a complete analysis of the top 40 exhibitors and their estimated spend on other areas, such as decorating and food and beverage,” she says. “There’s a tipping point when an exhibitor will say, ‘It’s way too expensive now.’ ”
Keep in mind: An increase in space rental rates doesn’t necessarily translate into more revenue. Any rise must be timed correctly or a show organizer can find itself with a shrinking show and an unintended impact to the bottom line, cautions Weil. On the other hand, adding value-laden features, such as matchmaking or year-round community, helps the sales team elevate a show out of the competitive landscape and justify a rate increase.
Maxine Golding is an award-winning writer and editor with more than 20 years of experience in the meetings, expositions and hospitality industry.
1. Preset prospect interviews on site. This major effort for Advanstar holds huge potential to accelerate the sales process, says Melanie Wood, Director of Corporate Sales and Management Training. “Sometimes we forget the power and significance of what we have to offer — which is very visual.” She trains reps to walk prospects through the attendee experience and help them visualize their product being shown in the best location or their sponsorship of the registration booth.
2. Set up VIP days. Invite 20 prospects who couldn’t get in or chose not to exhibit to “VIP Days,” says Stephen Pia, Founder and Media Sales Trainer/Coach, COACH MEdia. “Let them taste your event as an attendee, sit in a session and get a dinner pass. In exchange, they agree to listen to your presentation.” One of his clients closed $4.5 million in business over the past two years using this strategy.
3. Revive the coaching role. Too often personal mentoring of salespeople from their direct supervisor is missing today, says John Parke, CMP, President and CEO, Leadership Synergies. “Leaders get the most out of their sales force by meeting one-on-one for private discussion every quarter,” he says.
4. Put on a Webinar. Many prospects are intimidated by a one-on-one meeting and don’t want to be sold, says Pia. He suggests show organizers focus on a vertical territory and invite prospects to a monthly Webinar about the show. Even better, get attendees to participate on the call.
5. Beef up training. For its August in-house sales-training workshop, Reed Exhibitions created scenarios like this one: a major bellwether exhibitor for 20 years wants to cancel to run its own corporate event. “We’re trying to empower salespeople to handle more difficult situations,” says John McGeary, Vice President Sales. “Internal resources — like a tool that helps customers measure ROI or access to the database to prove we really deliver their big-box retailing customers — help overcome objections and reinforce the value of the event.”
6. Get granular on reporting. With the speed of selling today, show organizers must have the capacity to drill down into their database. “Our reporting is point and click, with data uploaded every night,” says Georgiann DeCenzo, Vice President, about Advanstar’s CRM system. “We make decisions based on facts.” A red flag comes up when a salesperson is 5 percent behind goal due to an exhibitor on the fence, another’s budget cut or a company buyout.
7. Service the Web-only buyers. More customers are willing to buy show products and services exclusively over the Web and that can save salespeople time and show organizers money. “For these customers, e-mail is their preferred way of communicating,” says Parke. “It gives them power, control and plenty of time in between contacts to
formulate their response.”
8. Renew on site. While many shows use Web-based technology to quickly sell premium positions for the next show and free up salespeople post-show to focus on expanding the base, many do not. “You get a big leg up when you can do space draws at the current year’s show,” says Angelo Varrone, CEO, ExpoNation LLC. “We can sell 70 to 75 percent of next year’s show and collect 10 percent deposits within 30 days.”
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Using technology to increase efficiency
To break through the web of technology that insulates prospects, show organizers are equipping salespeople them with real-time tools to make them more professional, consultative and productive.
“What I like is the fundamental change in how the software is delivered – off the Web,” says Corbin Ball, CSP, CMP, Corbin Ball Associates (www.corbinball.com). “The paper-based ways of doing things were so much more inefficient; everything today can be done in real-time and more easily tracked. And show organizers can do more with the same or less staff.”
Here’s a sampling of what our sources are using:
• Salesforce.com. On the road 60 percent of the time, business development managers for the International CES make extensive use of this Web-hosted customer relationship management (CRM) application. It allows salespeople to access their account database and information on demand, from wherever they are. And it can be customized in nanoseconds, says Stephen Pia, Founder and Media Sales Trainer/Coach, COACH MEdia.
• In-house CRM software. Reed Exhibitions continues to get solid results from its in-house sales account system, says John McGeary, Vice President Sales. Salespeople can attach a PDF of the sales kit and e-mail it to customers through the system, rather than have to switch to an e-mail system. Similarly, Advanstar’s Data Mart internal CRM system helps salespeople catalog customer and market needs as they track progress against goals.
The use of CRM technology is no longer optional, says John Parke, President and CEO of Leadership Synergies. However, salespeople don’t want to spend time gathering information that’s never going to be used. So he advises show organizers to narrow the fields that salespeople are expected to populate and limit the reporting expectations.
• Exhibition management software. Interactive, Web-based programs from vendors that allow exhibitor prospects to view the show floor plan and get data, information and rates in real-time. For example, ExpoNation uses EXPOCAD and Corcoran Expositions A2Z Inc. programs, which improve the quality of sales interaction while they track and report exhibit space sales. |
