How to Calculate ROI on Trade Shows

Calculate the ROI of Your Trade Show Appearance

As we move past the worst of the COVID pandemic, we’re all enjoying a return to a more normal life. But we’re also thinking carefully about what we want our new normal to be. The pandemic jarred us from the busy auto-pilot many of us had been living in. In our work lives, we are rethinking how much business travel is actually necessary, and trade shows are part of that reassessment. With all of the cost, time, and energy they require, businesses are asking: are trade shows worth it?

There are a number of factors that go into calculating the ROI of a trade show or expo. Leads, sales conversion, and brand awareness are just a few of the considerations. In this article, we’ll explore how to measure the potential success of an industry trade show, so you can make the best choices for your business.

Why Trade Shows are Worth the Investment 

Your business has a variety of strategies for generating sales, building brand identity, and increasing revenue. Trade shows, however, provide a combination of unique advantages. Expos allow you to have face-to-face interactions with a captive audience and to receive immediate feedback from potential clients, among other benefits. 

Lead capture service iCapture provides some helpful statistics on what makes trade shows a good investment:

• You have an audience ready to buy! 92% of trade show attendees are looking for new products.
  
• You can establish new clients! 77% of executives found a new supplier at their last expo.
  
• While trade shows are expensive, the per-lead cost is significantly lower than meeting each client at their office ($142 per meeting vs. $259).

Clearly, trade shows are a smart investment for most businesses. But deciding which (and how many) events to attend requires some research and strategy.

How to Determine the ROI of an Event or Trade Show

If you’re deciding whether to return to a trade show you’ve attended before, you’ll need to know how to measure that trade show’s success. ZoomInfo, a B2B database platform, provides a handy formula for calculating the ROI of a previous trade show: You subtract your expenses from your profits to find your net profit. Then you divide that number by your expenses:

(Profit - Expenses) / Expenses

“The ‘Profit’ number only includes sales made as a direct result of your trade show appearance,” says ZoomInfo. “Of course, you won’t have these figures right away. You must complete a full sales cycle before you can determine exactly how much profit you generated.”

With this calculation on hand, you will be ready to answer questions: are the trade shows I attended last year worth it? These stats help you determine whether you should attend again, adjust the amount you invest in the event, or try a different expo.

ROI Goes Beyond Financial Returns

When asking “are trade shows successful?,” there are considerations other than direct, short-term ROI. Expos are also investments in the long-term growth of your business and are an important part of your overall marketing strategy.

Here are few of the advantages of trade shows that can continue to pay off for years after the event:

• Generate New Leads: Not all potential clients are ready to buy right away. But trade shows put your brand in the minds of up-and-coming businesses that may need your products and services down the road.
  
•  Collect Contacts: At your expo booth, you can build your marketing email list to keep potential clients apprised of offers and new products. Trade shows also help you build connections with potential business partners.
  
• Boost Effectiveness Through Giveaways: When you host prize raffles at your booth, you can increase your new leads and contacts.
  
• Grow your social media following: Make sure your social handles are prominently displayed, so you can get the long-term benefit of new followers.
  
• Build brand trust: Putting a face to your company is powerful. Whether you’re talking to an established client or a potential lead, face-to-face interaction builds trust.
  
• Increase brand recognition: Your logo should be everywhere at your booth, especially on the custom merch that you give away at trade shows. The more people are exposed to your visual brand, the more likely they will think of your company when they need your services.

Utilize Giveaways at Trade Shows

Logo-branded custom gifts draw visitors to your booth and help them remember your brand long after the event is over. Merchology specializes in putting your logo on high-quality merch that clients will want to keep and use every day!

Check out our custom gifts and accessories page to start your search for the perfect giveaways for your trade show booth.

Contact Us

When you’re done calculating your trade show ROI, it’s time to start preparing! Contact us at Merchology to find the perfect custom giveaway gifts to increase the benefits of your expo booth.