Today, I read a survey and was shocked to learn that fewer than 20% of trade show exhibitors track the ROI (Return on Investment) from their trade show campaigns. After I thought about it a moment, however, I realized that this is not that surprising. Most sales and marketing activities are not carefully evaluated so why should a trade show be any different?

Why track Trade Show ROI?

Trade shows are one of the most productive ways to reach new qualified prospects and generate significant incremental sales. If you do not track and measure the success of the show, your company may make the decision to eliminate a critical trade show event and loose sales without ever knowing it mattered. Beyond this, there are other reasons to analyze trade show results and determine how successful you are. An ROI analysis can provide you with information about the most productive elements of your trade show campaign and help you optimize future trade show efforts.

How to measure Trade Show ROI

The first step is to gather the data needed to calculate the ROI.

1. Determine the total costs of trade show and directly associated events. This is the Trade Show Marketing Expense. Include everything include staff, travel, collateral material and follow-up sales and marketing expenses.
2. Estimate the Total Incremental Sales from the show. This is… Total show sales plus New leads in the pipeline and expected sales from these new leads usually based on historic conversion rates plus Incremental sales from existing customers that are the result of the trade show effort.
3. List the other benefits of the show, including:
   Strengthening relationships with current clients.
   Increasing brand awareness.
   Consumer education efforts.
   New product introductions.
   Investor relations and improving perception of your company in the financial community.
   New market introductions.
   Public relations including editorial coverage.
   Competitive intelligence.
   Customer insight and research.

Once the data is collected it is simple to calculate the ROI.

Total Incremental Sales times Net Margin Rate = Net Margin Dollars
Net Margin Dollars less Trade Show Marketing Expense = Profit Contribution
Profit Contribution divided by Trade Show Marketing Expense = ROI
(typically expressed as a percentage.)

So, for example if…..

Total Incremental Sales = $3.5 million
Net Margin Rate = 16%
Trade Show Marketing Expense = $230,000

Then the ROI would be…..

Net Margin Dollars: $3.5 million times 16% = $560,000
Profit Contribution: $560,000 less $230,000 = $330,000
ROI: $330,000 divided by $230,000 = 143%

So in this example, the trade show marketing ROI was 143% plus any other benefits like those listed in #3 above.

What’s your tradeshow ROI? Have you tracked it? Do you plan to?