THE TRADE SHOW ECOSYSTEM

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1 7 Hendrickson Avenue, Red Bank, NJ Fax White Paper THE TRADE SHOW ECOSYSTEM Creating and Sustaining the Environment for a Successful Event Authored by: Jonathan Skip Cox, CEO Exhibit Surveys, Inc. December 2013

2 Introduction Trade shows and exhibitions are among the most active and lively forms of marketing. Stemming in part from their face-to-face nature, such events truly do come alive when the show floor opens. What we experience while at an event is really an ecosystem, a network of interactions among different constituents that, when functioning properly, provides for each member of the system and satisfies its needs. When each constituent of the trade show ecosystem contributes to - and derives value from - the overall ecosystem, a vibrant and successful event ensues, one which is also likely to have good prospects for the future. Ecosystems can, however, also fall out of balance, both in nature and in the trade show universe. When even one member of the system is not deriving the value it requires, then the alignment among the constituents suffers, putting pressure on everyone, as well as the system as a whole. Our trade show ecosystems can be fragile, and they are susceptible to many different influences, both internal and external. Rapid growth of the attendee population can certainly be positive, assuming that accommodations are made by both the exhibitors and the organizer that will satisfy the needs of those new attendees. Organizers may be able to sell more exhibit space for the upcoming show, but if there is not a corresponding increase in attendance, the system could appear to be lacking the vitality of previous editions EXHIBIT SURVEYS, INC. Page 1

3 The Constituents In order for us to delve more deeply into the trade show ecosystem, we must identify the constituents, as well as the requirements that each of them expects from their participation in the system. The key stakeholders in the trade show ecosystem include: the Organizer the Exhibitors (and Sponsors), and, perhaps most importantly, the Attendees. There are also other constituents in the ecosystem (for simplicity referred to as Suppliers, including contractors and other service organizations), and they can be integral in generating some of the perceived value of an event, but our focus will be on the relationships among those key stakeholders. For each constituent of the ecosystem, there are baseline requirements that each is looking to achieve. Each participant in the trade show is looking for VALUE, specifically: The Organizer o Whether a not-for-profit association or a for-profit independent firm, the organizer is looking to achieve some return on its investment (ROI). o It is likely that other organizational goals must be met, such as a society s obligation to educate its membership, or an association fulfilling its role as an advocate. The Exhibitors (or Sponsors) o These constituents are also looking for a measure of the return on their investment (ROI), such as the leads from the event that will ultimately turn into sales. o Beyond the financial return, exhibitors are also likely to measure the ROO their return on objectives as it relates to impacts on branding, customer contact, marketplace research, etc EXHIBIT SURVEYS, INC. Page 2

4 The Attendees o The attendees have come to the event, looking for valued information, such as content from sessions, from the show floor, or even from networking opportunities made possible by the event. o Attendees have also chosen to come to the event, because they are seeking personal interaction the face-to-face nature of the trade show is a preferred means of communicating for them. Value Assessment In order to check the health or take the temperature of the ecosystem, it is important to perform a Value Assessment, that is to determine what value each constituent is looking to derive from their participation in the show, as well as to characterize their level of satisfaction with their perceived value. By doing so, we can also begin to appreciate the strengths and weaknesses of each constituency as to its contribution to the overall health of the system. Furthermore, we might be able to make a judgment as to the value being good or bad, but it is crucially important to be able to say why it is so. What are the factors that are actually driving the value for each constituent? A thorough value assessment makes it possible to fine-tune an event and plan for the event s future in a way that the value being delivered is optimized in accordance with each constituent s specific requirements, not favoring one party over the other. The exhibitors at an event organized by a trade association are likely members of that group, but delivering value to these exhibitor/members cannot be the association s sole objective. The attendees must also derive sufficient value from their participation to make for an effective marketplace. A medical convention may have an obligation to provide CME credits (continuing medical education), but this focus must not divert attention away from the fact that there is an exhibit show floor filled with paying customers who derive their value from having ample opportunities to interact with the delegates EXHIBIT SURVEYS, INC. Page 3

5 The Organizer-Attendee Relationship There are things that organizers must provide within the context of a show that are also valued by the attendees. As mentioned previously, attendees are looking for highly-valued content, which can come about through educational sessions, networking opportunities, and having the right mix of exhibitors on the show floor. Attendees are anticipating a collection of exhibits that encompasses the breadth of a given industry, providing them with the chance to perform a thorough survey of market opportunities. In cases where there are no concurrent educational programs, the content being sought out by the attendees must be available on the show floor. Finally, the attendees must be able to gather this content in a very positive way, making a focus on the attendee experience paramount for the organizer, who must be constantly on the lookout for new ways to make the show floor more enticing. There are no one-way relationships in this ecosystem. Attendees do provide value to the organizer in return for what they receive. Attendees enable the organizer to meet organizational goals. The previous example citing medical shows offering CMEs is a case in point. One of the organizer s goals is to provide education, and the attendees are there to play their part in that bargain by enrolling. In addition, the attendees also influence exhibitor satisfaction to a great extent. The level of attendee activity can fulfill some of the exhibitors requirements of the show. As satisfaction among exhibitors increases, so will the retention rates, as well as the organizer s chances of selling exhibit space at the next event. The Organizer-Exhibitor Relationship Exhibitors at any event are paying for the opportunity to interact not just with any group of attendees, but instead with a targeted and qualified audience. Not only must the organizer deliver the right audience in order to satisfy exhibitor requirements, but also in the right numbers. Along the way, the organizer is also providing for a positive exhibitor experience. If there is dissatisfaction with the exhibitor s experience with the general contractor, or with labor, the hotel or even the shuttle buses, the potential ripple effect of this negative experience risks damaging the perceived value of the event. Given two relatively equal shows, the exhibitor is more likely to continue going to the one that causes fewer headaches throughout EXHIBIT SURVEYS, INC. Page 4

6 In most cases, the vast majority of an organizer s event-based revenue stems from exhibit space sales. The exhibitors are indeed the lead source of revenue, but they also perform a significant role in attracting the attendees for the organizer. Attendees who are coming to a trade show want to know which companies will be represented. Not only the big companies, but also the innovators in the industry, known for bringing new products and services to the market, are definite attendee draws. The Exhibitor-Attendee Relationship The unique relationship between these two constituents in the ecosystem is perhaps the most important of all and yet it remains largely outside of the organizer s direct sphere of influence. Nevertheless, if the organizer delivers the right value to both the attendee and exhibitor populations individually, there is reason to expect that the interaction between the exhibitors and attendees will enjoy a greater chance of success. In order to fulfill their most important role within the ecosystem, the attendees must engage with exhibitors. They came to the event seeking information within a face-to-face environment, but they must remain active on the show floor to deliver fully on this promise. Exhibitors will welcome well-conceived attempts to increase attendee activity on the show floor. Tactics like the booth passports stamps, or providing lunch or even cocktails on the show floor, are often tried often with limited success in achieving actual engagement between attendees and exhibitors. Locating some educational content on the show floor, placing good intrinsic value in the midst of the exhibition, can be a powerful option to explore. In the end, it will be the resulting interactions with attendees that will deliver ROO and ROI to the exhibitors. The attendees seek that highly-valued information, and the exhibitors must be able to provide it, in the fashion the attendees expect. Dissatisfied attendees can leave an event and complain that the exhibitors failed to provide the desired solutions, or that the exhibit booths were staffed by the wrong people. Exhibitors must commit enough of the right resources to satisfy the attendees desire for a 1 to 1 engagement. The audience profile, as well as where attendees are within their consideration process, will determine the type of booth staffers they most value. Perhaps the attendees really needed to speak with engineers. High-level executive attendees are most likely to seek out their peers among potential suppliers, and their absence in one exhibitor s booth can spell doom if they are to be found in a competitor s EXHIBIT SURVEYS, INC. Page 5

7 Creating and Sustaining a Healthy, Balanced Trade Show Ecosystem In order for a trade show to be balanced and healthy and able to grow, organizers need to control as many of the variables in their direct relationships with attendees and exhibitors as they can. In so doing, the organizer will set the stage for a successful event, enabling positive interactions between the right buyers and sellers within the context of the marketplace they have created. A regular evaluation of the constituents, along with research into the strengths and weaknesses of the value proposition that each brings to the other, will enable organizers to understand what is working - and what is not. Where are the pain points? What areas are not delivering as much value as had been hoped? Benchmarks can certainly be helpful, but is a 60% satisfaction rate good or bad? Are certain metrics changing over time? Hopefully they are improving. Only a thoughtful, structured analysis will lead to the right conclusions, not only for the organizer, but for every constituent of the trade show ecosystem EXHIBIT SURVEYS, INC. Page 6

8 Reprint Permission Depending on how the materials will be used, Exhibit Surveys, Inc. usually grants permission for a limited amount of photocopying and/or reprinting of white paper materials. A fee may be charged when materials are reprinted in a book or magazine. However, Exhibit Surveys, Inc. reserves the right to refuse reprint requests. All requests must be made in writing (see contact info below). Please include your address and contact information so that we can reply to your inquiry. Allow at least five business days for your request to be processed. Permission grants are for one-time use only. You must re-request permission to reprint for any additional reprinting/photocopying beyond your original request. This includes making additional photocopies or reprinting an article even if you plan to reprint the same article in the same manner first specified. Skip Cox, CEO Exhibit Surveys, Inc. 7 Hendrickson Ave. Red Bank, NJ T F skip@exhibitsurveys.com 2013 EXHIBIT SURVEYS, INC. Page 7