May 2005
Step-by-Step: Sponsorships

Five steps for creating, customizing, pricing and selling sponsorships

By Dawn J. Grubb

1. Create impressive opportunities
Salespeople should huddle with show management, marketing and operations to brainstorm sponsorship opportunities. A good starting point: the post-show debriefing. Discuss sponsorships that were offered, opportunities that were missed, additions customers requested, and improvements to maximize profits next time.

Don’t discount customers. Sit down with them and discuss their needs. Customers want tailored solutions for specific needs, so forget the one-size-fits-all approach. Sure, you can pique customers’ interests with a few packaged options, but the best proposals are customized.

Trade outs are excellent win-wins. Say your customer, a cable company, offers a service that could trim your expenses. Negotiate advertising in exchange for a sponsorship package of equal value.

Future trends could include more title sponsorships. While you probably won’t see an event completely named after a sponsor (think NASCAR’s Nextel Cup), it’s becoming more common to see “YXZ Show, sponsored by ACME Inc.”

2. Customize sponsorships to show ROI
Determine what metrics customers will use to gauge success, then build the sponsorship around those metrics. These may include:
• Brand name awareness — seeing their name everywhere.
• Business leads — driving traffic to their booth.
• Media coverage — getting reporters to cover their product launch.

Gather data during the show to prove the value of the sponsorship. Collect newspaper clippings and take lots of pictures: attendees mingling in the booth, stopping to check out the sponsor’s display, enjoying the branded giveaways in the conference goodie bag, reading the program featuring the sponsor’s logo, etc. Or capture video footage of attendees on the escalator looking at the sponsor’s signage or sitting in a seminar room before the program begins watching a slideshow (think movie theaters) with the sponsor’s marketing message.

Put these materials into a manual that you can give to the sponsor after the show to prove ROI.

3. Use the sales process to educate customers
Often customers won’t know, or appreciate, what they need. Educate them. Hold seminars or one-on-ones on how to develop pre-show promotional objectives and what show and post-show activities can boost their “remembrance factor” with prospects.

Develop case studies from past sponsorships to demonstrate the power of a good sponsorship package.

4. Price sponsorships accordingly
Start by doing your homework. An Internet search will shed light on others’ prices. Also consult your peers and industry publications. Some may be guarded about sharing exact numbers, but you’ll get a ballpark idea.

Also consider your costs. For an $800 coffee break, double that — at least — for the sponsor’s cost. Plus, take into account the cost for staff time and facility handling fees. Far too often organizers under price sponsorships, thinking of them as a way to pay for show expenses rather than a way to increase revenue.

The key? Start high and negotiate down. You’ll have a fair price if customers accept your offer.

5. Build and maintain relationships
Customer service is 80 percent of the sponsorship. You want sponsors to have such a positive experience that they’ll come back next year — and upgrade. Selling high-value, customized sponsorships demands high-level, personalized service.

Start with your sales team. Does your exhibit sales team have enough manpower and time to devote to sponsors’ needs, both during and after the sale? Probably not. Consider a separate team for sponsorships who’ll work hand-in-hand with your exhibit and conference sales teams, sharing leads and information. Commissions for sponsorships are typically higher than exhibit sales because the profit margins are higher.

Follow-up is crucial. Constantly communicate with sponsors, ensuring deadlines are met and details covered. Be prepared by developing a:
• Marketing manual — offers information about creating press materials and direct mail and successful marketing techniques for pre-, during and post-show.
• Production manual — includes specs for printed materials (preferred format, deadline and production contact).