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CHAPTER 1

WHY TRADE SHOWS MATTER EVEN MORE IN THE DIGITAL AGE

It’s hard to say exactly what it is about face-to-face contact that makes deals happen, but whatever it is, it hasn’t yet been duplicated by technology.

—Paul Graham, computer scientist, entrepreneur,

venture capitalist, author and essayist

The digitally connected world

From a worldwide population of over 7.5bn in 2017, there are 3bn active social media accounts, with people spending on average 2.5 hours a day scrolling through Facebook, Twitter, LinkedIn, Instagram and every other existing and emerging platform. That’s 2bn active Facebook users, 500m of us on LinkedIn and over 1.3bn Twitter accounts plus Instagram, Pinterest, YouTube and all the others. In addition to all this frenetic social media activity, it’s estimated over 269bn emails are sent globally every day with the average office worker receiving over 121 emails a day (Tschabitscher, 2018). The culmination of all this activity resulted in a staggering 2.3 trillion dollars of global on-line consumer spending in 2017 with predictions that this will grow to over 4.4 trillion dollars by 2021 (Statista, 2017). Therefore, you’d be forgiven for assuming that the internet was the holy grail for generating sales growth in our digitally engaged era, but the numbers only tell half a story. Dig a little deeper and all is not quite as promising as it first seems. Ninety-six per cent of people who discuss brands online don’t follow the brand itself suggesting that although they are being ‘talked’ about there isn’t necessarily a deep or sustainable relationship (Hainla, 2018). There are an estimated 270m fake Facebook accounts and of the 1.3bn Twitter accounts, only 300m are live, with only 1/3 of those being accessed daily. Whilst LinkedIn markets itself as a network for building business relationships, the average CEO has almost 1,000 connections (Sikandar, 2018), implying that whilst broad, the connections are unlikely to be deep or trusting. And remember those 269bn emails that get sent every day – almost 50% are registered as spam and never even make it to their intended recipient (Sikandar, 2018).

As a brand or service fighting to make itself heard in a crowded digital marketplace, the competition is tough with 65m business pages on Facebook, 500m daily Tweets, 300m company pages on LinkedIn (Sikandar, 2018) – not to mention the 95m images which are uploaded to Instagram every day and the 75bn ideas currently listed on Pinterest (Aslam, 2018). Admittedly, there are tools, software and agencies that can help ensure marketing content is generated and targeted so it hits the most relevant audience but that can suck up time, money and resource for any business regardless of size.

Digital revolt

In addition to the mass of noise on social media, there is a growing tide of disengagement, with suggestions that our love of (un)sociable media may be reaching a tipping point. Growing reports of fake news, tampering with political elections, invasive advertising, jealousy over aspirational lifestyles, invasion of privacy, trolling and cyber bullying are leading us to question whether as a population we’re starting to crave more human, emotional and meaningful relationships. Research from software provider Kapersky found that almost half of all respondents felt jealous when their friends’ posts received more likes than their own (Ismail, 2017). Unsurprisingly 72% of people were frustrated with invasive advertising that interrupted their communications or distracted them from a transaction they were looking to complete (Ismail, 2017). Millennials particularly seem to be deserting the social media channels they have grown up with, seeking instead more immersive brand experiences which they can feel a part of. According to Origin, a Boston-based market research group, 34% of Gen Z’ers are saying goodbye to social media while 64% have decided to take a break from it (McAteer, 2018).

This trend is flowing through into brand planning, evidenced by the significant growth in experiential marketing budgets in recent years with organisations instead looking to invest in real-life experiences to build relationships and drive loyalty. Experiential marketing covers a broad range of different tactics but could include consumer roadshows, sponsorship, trade exhibitions, pop-ups, permanent installations and even augmented reality. Campaign research reported that in 2017 Chief Marketing Officers expected to allocate between 25–50% of marketing budgets to experiential tactics over the next 2–5 years. The research showed that positive results were being generated from deeper interactions with customers in both the Business-to-Business (B2B), selling through a third party and Business-to-Consumer (B2C), selling directly to the end user, environments with almost 60% agreeing that live events create the opportunity for deeper and more sustainable relationships which drive more frequent and higher value transactions.

Case Studies of High Impact Experiential Campaigns 2017

1. Organisation: David Lloyd — ‘Run For Your Bun’ Café

Objective: To demonstrate how healthy food and exercise form part of a balanced lifestyle

Execution: Located in London, this pop-up witnessed customers ordering their healthy and nutritious lunch, following which they had to participate in a vigorous 10-minute workout before they were given their food. The activity targeted office workers to show how they could incorporate exercise into their day.

2. Organisation: Adidas – ‘D Rose Jump Store’

Objective: To introduce a new line in basketball footwear to the UK

Execution: Pop-up stores aren’t a new concept, but Adidas’ ‘D Rose Jump Store’ in London was a cut above the rest. Chicago Bulls point guard Derrick Rose was in attendance to challenge fans to win a pair of free trainers by taking them off a shelf that happened to be 10 feet in the air. It was a relevant, exciting and memorable experience for all the children and parents who took part.

Trade show traction

The B2B trade show and exhibition industry is certainly benefitting from the growing interest in experiential with over 31,000 certified events globally each year (UFI, 2014). Outside of the official events recorded with industry researchers, there are countless other smaller, regional and local roadshows, expos and networking events where suppliers and customers can discuss opportunities for working together. In one of their sourced blogs Eventbrite, the world’s largest event booking provider, suggests that in the UK alone, the exhibitions sector contributes over £193bn to the economy through attracting global visitors and exhibitors as well as supporting UK based suppliers. They go on to explain that over 1.3m business events were held in the UK in 2017 with an estimated £40bn being spent in the local economy (Eventbrite, 2018).

Almost 4.5m companies exhibit globally at trade shows every year, welcoming over 260m visitors to their stands demonstrating the scale and power of live events (UFI, 2014). There are a number of reasons why an organisation will choose to exhibit at an event including generating new leads, launching a new product or service, building relationships with existing customers or to be part of an industry conversation (see Section 3.1, SMART objective setting). Regardless of the objectives a company sets for the specific event, the ultimate aim is to grow sales and profits and trade shows are increasingly being seen as a high potential platform through which to do it.

Ninety-one per cent of visitors state that attending a trade show impacts on their buying decision in some way (GraphiColor Exhibits, 2017), be that positively or negatively. From a well-planned and executed exhibition stand, a visitor takes away the perception of quality, reliability, value and trust. From a poorly planned exhibitor, the visitor leaves disappointed and anxious about how difficult any future relationship might be. Yet for those who do not even exhibit, a visitor could be impressed by the investment, quality and offer delivered by their competitor and choose to do business with them instead. It is worth noting at this point that we talk about a visitor ‘doing business’ in the future as trade shows of today facilitate making a connection for future business, rather than generating high value sales at the show itself. The roots of trade shows can be traced back to the medieval era when producers and craftsmen would travel between towns to showcase and sell their wares either to individual customers or to guilds on behalf of the town. The industrial revolution witnessed the evolution of trade shows into industry specific events focussed on selling products to a target group of commercial entities. Throughout the twentieth century events became a trading floor for deep-cut discounting and ‘deal-led’ activity where the cost of the show was minimal compared to the loss of profit on eye-watering deals. Increasingly trade shows have become a forum for bringing together those with a common interest to satisfy a conscious need and establish how they may work together in future. There are still some events which are highly transaction led but if this is not aligned to your specific objectives, some quick research should eliminate these shows from your radar (see Section 3.2, Which show?).

Trade shows facilitate a deeper conversation with a prospect than could ever be achieved in a 240-character tweet or Facebook post. Trade shows open up a conversation based on the buyer need, to understand how your product or service can help save them time or money, generate more profit or simplify their processes. Equally, it can also establish very quickly where your product or service isn’t able to help meet the needs of the visitor and enable both parties to respectfully move on to more lucrative opportunities. Forty-seven per cent of marketers believe events are a highly efficient and effective way to reach and engage with multiple customers and prospects (Marketing Charts, 2013). The key qualifier here is being able to identify ‘higher quality’ prospects and leads, as having taken the time to understand the key problem a prospect is facing and how your product solves it, the follow up conversation becomes more effective and targeted.

Studies by the Centre for Exhibition Research (CEIR) and Exhibit Surveys, Inc. show that closing a lead generated at a trade show costs almost forty percent less than a lead generated from the field.

(CompuSystems, 2010)

A polite referral, or a review of a lead database, don’t start to explore at a deeper level how a product meets a need, or whether two organisations can, and more importantly want, to work together. Trade shows and exhibitions bring together interested buyers and sellers who can collaboratively solve problems for mutual growth. Whilst social media and digital marketing tactics can deliver scale this often lacks depth, reaching only a tiny minority who may be in a position to buy. Whilst scale may benefit in driving brand awareness, without the depth of a conversation there is minimal opportunity for a buyer to understand whether a product or service can meet their needs.

Trade shows and exhibitions, although relatively expensive compared to social media activity, can be more efficient in bringing large numbers of an interested audience under one roof for a period of time. In just a few hours, organisations can engage with hundreds, if not thousands, of self-selected potential buyers that would take them months, if not years, to visit in the field. One area which we should emphasise at this point is that exhibitions are expensive, in time, money and emotion and they are not going to be the golden bullet which delivers 10,000 new customers the day after the show closes. To expect that would be unrealistic. This book is not intended to save you either time or money, in fact there are times we will encourage you to spend more. Exhibitions are expensive when you consider them in isolation and they take time, commitment and energy. Research from the USA suggests that companies are now investing up to 33% of their annual marketing budgets into trade shows (Levin, 2017) with respondents in a recent study stating that 47% of them plan to maintain budgets whilst 30% state that they are planning to increase theirs (Exhibitor, 2018). Budget will depend entirely on a number of variables but even if the average UK cost were £20,000 including all time, accommodation and travel expenses, stand fee, design and build etc. this looks expensive versus a couple of pounds to promote a Tweet or Facebook advert. However, the social media platforms cannot deliver the depth of relationships and the foundations of trust that can be built through an initial conversation with a visitor who has already declared an interest in your offer simply by attending the event.

Measuring return – yes you can!

Whilst it is possible to share data relating to the value of the industry in terms of spend, it is much more difficult to evaluate the value of business generated from investing in trade shows. As social media and digital have become increasingly popular, a growing number of tools, systems and agencies have popped up to offer analytics and metrics to justify spend based on the number of clicks which subsequently convert to a sale. Why then, is it so difficult to measure for trade shows? The main reason is the lack of follow up from exhibitors with over 87% of leads collected at a show never being contacted by the exhibiting company (Davis, 2018). On average, 64% of stand visits at trade shows are from delegates who are not an existing customer of the exhibiting company but are interested in their product or service. Over half of all visitors go on to purchase from an exhibiting company within a year of meeting them at a trade show or event (Display Wizard, 2018) and an average of 51% of trade show attendees request that a sales representative visit their company after a show (Matthes, 2018). To reflect on those stats for a moment, only 13% of leads are followed up after a show, yet those exhibitors are doing business with just over half of all the visitors, therefore it is not difficult to image what the real value of trade could be if only all exhibitors followed up on their opportunities (see Chapter 5, Evaluation). It is this lack of evaluation and an inability to determine a real return on investment that has seen trade shows lose popularity in recent years in favour of digital marketing tactics which are easier and more visible to measure.

Ninety-five per cent of marketers agree that live events provide attendees with a valuable opportunity to form in-person connections in an increasingly digital world.

(Endless, 2018)

Despite the lack of statistical evaluation on the return that trade shows deliver, there is a renewed interest in events, especially in light of the previous discussion regarding the need for deeper and more meaningful interactions with potential buyers. In a recent survey, over 91% of exhibitors stated that they believed trade shows and exhibitions would continue to be a critical element of their marketing strategy for the foreseeable future (Skyline, 2011). In addition to that, event organisers themselves are growing their own footprint with 88% of the US and European organisers stating they would be looking to add additional shows to their portfolios and expect visitor numbers to rise (UFI, 2018).

Therefore, would it be correct to assume that trade shows are the priority marketing tactic for organisations and brands should focus solely on investing in such events? Well, no, it’s not quite that simple. As anyone involved in marketing will appreciate, an effective strategy depends on executing a range of tactics based on customer or consumer insight. Investing in trade shows or exhibitions is not a marketing strategy in its own right, as much as exhibiting at a show ‘just because you always have’ is not a strategic marketing tactic. The most effective investment in a trade show or exhibition will be made when it is supported by a range of other well thought-through and directed marketing tactics which appeal directly to solving the customer problem. We will discuss in future chapters the critical need to identify a customer problem and understand how your product or service helps resolve that, but once that is defined, several different methods could and should be employed to help close a sale. A trade show is just part of the on-going dialogue with a customer or consumer that establishes rapport and builds trust.

Although we have discussed a growing sense of unease and suspicion towards social media, research showed that social networks are now the most influential forum for both on and off-line purchasing (40%), ahead of the brand’s own website or traditional media. Therefore, with a very broad audience and a relatively low cost of advertising it would be a brave organisation which chose to ignore the power of digital and social media altogether. In Chapter 3 we will talk about pre-show marketing in which we discuss how powerful social media and direct marketing can be in ensuring that the right visitors are coming to your stand when the show is open. This clearly demonstrates where on-line and off-line marketing techniques can work in parallel to achieve a stated objective. Even where pre-show marketing reaches more broadly than your specific target audience, it is still part of the conversation in building brand awareness and articulating how you meet a need.

We very often have clients who will ask ‘But why do I need to do a trade show when everyone just stares at a phone all day now?’ – which is a fair question! If nothing else, a trade show will give you the opportunity to spend a couple of days actually engaging with humans and sharpening up your inter-personal skills! Aside from that, social media and digital isn’t enough on its own for very many companies, in the same way that just broadcast media, or PR or trade shows on their own wouldn’t be enough. Powerful marketing comes from the ability to target and execute effective techniques that complement each other and build an on-going conversation with your customer. It isn’t a competition with marketing tactics battling each other for precedence (although we’ve sat in many budget planning sessions where it’s felt like that). Trade shows give you relevant content to talk about on social media and social media gives you a wide platform to talk frequently about what you’re doing at the show. It’s all about being part of the same conversation!

Today, people don’t trust companies. One of the things marketers want to do is to humanise their brand. What better way to do it than put a live person in front of them?

—Jackie Huba, dynamic keynote speaker, bestselling author and expert on customer loyalty and evangelism

Summary

Although it may seem that digital and social media is taking over the world, there’s a growing bank of evidence that would suggest as humans we’re starting to look for deeper and more meaningful experiences, especially from those organisations we are considering buying from. Trade shows become powerful as a tactic alongside social media and digital to help engage with those existing and potential customers at a deeper level.

In summarising why trade shows are even more relevant in the age of digital and social media it’s worth considering the following key points:

• Although there are over 3bn social media accounts globally, many are either fake or inactive with the remaining platforms generating significant noise and competition

• Increasingly the global population is becoming suspicious of social media and turning away from it in search of deeper and more meaningful engagements – this includes from brands and organisations

• 31,000 registered trade shows are held annually every year with over 4.5m exhibitors and 260m visitors proving that they are still highly popular and relevant as a customer relationship tactic

• Ninety-one per cent of visitors state that their buying decision is affected by what they see at trade shows – both positively and negatively

• The cost of converting a sales lead generated from a trade show can be almost half the cost of converting a lead generated from other sourced such as referral or lead databases

• Fifty-one per cent of visitors buy from an exhibitor that they have met within 12 months of the show

• Trade shows rarely work in isolation and the digital and social media tactics available today are of massive benefit in maximising success at a trade show as part of an aligned marketing strategy (the subject of our next chapter).