CROWD PLEASERS: The Risks and Rewards of Event Marketing

This ITAC roundtable was held on Thursday November 30th, 2006

Panelists

  • Linda Craenen, Director of Business Marketing (Ontario), TELUS Business Solutions
  • Lori Nave, Senior Director, Marketing Communications, EDS SOLCORP Canada
  • Susan Park, Canadian Marketing Manager, Dell Canada
  • David Rumer, Senior Director, Americas Marketing, Oracle Corporation Inc.
  • Lynne Tait, Director of Marketing, Algorithmics Inc.

The discussion was moderated by Bob Becker , Principal, SMA

Do you plan to spend more or less on events next year?

  • Events are a very important part of the mix. An estimated 25%-50% of the total marketing spend will be on events.
  • For some, the number of events will be reduced but the budget will be increased. Key learning from 2006 was that product demonstrations are important, which results in a more costly event.
  • More money will be spent on proprietary events that are self-sponsored or co-sponsored with a partner.
  • While significantly fewer trade shows will be attended in 2007, for some the goal will be a larger presence at these shows. For others, only one person will attend a show to network, watch and learn and no money will be spent on a display. Some will try to speak at a trade show to achieve a presence but not spend money on a display booth.
Where do events fit in the marketing mix of integrated campaigns?
  • Different marketing tactics are used depending on what stage in the life cycle the target is.
  • Different tactics are used for different target segments. On-line events are used for some while a one-to-one approach is used for others that require a deeper relationship.
  • The movement is towards account-based marketing where account-specific events are used for greater depth of relationship, unlike a typical sales pitch.
  • The goal is to drill down deeper by holding cooperative sales and marketing events so the customer receives a consistent, repetitive message.
How do events differ for customers and prospects?
  • Events are ideal for prospects. Events can also help to reduce the length of time for the sales cycle for existing customers. The challenge is events may result in demand without enough resources to give customers the required attention.
  • The marketing campaign chosen depends on the phase in the pipeline of the target. For those at the top of the pipeline, trade shows and mass mailings are used. When the target is close to a deal, executive briefings, roundtables and thought leadership are used.
What are the most effective methods to promote events?
  • For a large electronic community, an internet blast system is effective. For those that rely on sales people, direct phone calls are best. Telemarketing close to the event date is helpful, although there are always ‘no-shows’.
  • An aggressive recruitment process is used which involves getting the sales people to buy-in. The sales team is given a quota. The event is integrated into every other marketing initiative, such as on the web site and into existing sales calls.
  • Sales is directed to customers who would be most interested in a particular event and only those targeted are invited. This results in a better quality event.
  • Working with business partners has helped increase event attendance.
What follow-up do you do after an event?
  • This is a problem because follow-up after an event requires almost as many resources as before the event, yet not enough resources are given to the follow-up process.
  • The real work of an event is the mundane tracking that takes place afterwards. The number of customers touched and how they are funneled through the sales cycle must be tracked to show the event’s ROI. This requires discipline because the sales cycle typically takes 9-12 months.
  • It is necessary to ‘scrub the lead’ by calling to ensure they qualify. Then the lead is flagged for a sales opportunity.
  • How leads are treated depends on their position within their organization. Influencers are treated very carefully and connected with like-minded individuals with an equivalent position.
  • Follow-up can be very targeted because it is possible to track an individual who downloaded information on a specific product from a web site.
What criteria do you use to measure an event’s return on investment?
  • Revenue is used and must be tracked for an entire sales cycle. While ‘bums in seats’ is nice to know, it all comes down to revenue.
  • Prospects are flagged to show they were touched by various events as well as other marketing initiatives. A system such as Siebel is required to track multiple touches.
  • Brand awareness and PR are also measured to see if there is an increase. No one marketing tactic stands alone – they are all integrated.
How do you determine when to use on-line versus face-to-face events?
  • Webinars can be run even if there are few event registrants. A demonstration can be pre-recorded, posted on-line and then played at any time.
  • Consistently, 50% of registrants actually attend events and of these, only 50% are those who might be interested in the product (others may be competitors).
  • The number of people who attend a pre-recorded event on-line can be tracked, then a live event can be held in an area or for a topic where there is the greatest interest.
  • Webinars work better as a warm-up to an event. It’s best to position them as part of a continuum along with an integrated marketing mix.
  • Webinars may be better for education and training where a response isn’t necessary. They may be better used internally rather than externally.

Questions from the audience:

For a small or medium sized company, how do you recommend spending a limited event budget for the greatest impact?

  • ‘Wrap-around’ events are recommended where attendees are called in advance and invited to a one-hour cocktail reception.
  • Sponsored lunches allow you to have control over who attends. Hire a temp if necessary to call targeted high-level executive attendees and invite them to your own sponsored lunch or breakfast. Sponsoring your own dinner is not recommended because there is more competition from other dinner options offered to attendees.
  • If working with larger partners, pressure them to locate their booth near you at a trade show to create a ‘community’ impression.
How do you determine the right topic to attract attendees?
  • Always start with the objective. The topic chosen depends on the objective and the audience.
  • Determine why the event is being held and why a customer would want to come to the event. There needs to be some value added.
  • Customers often will express what topics are of interest to them.
What will future events look like if the trend continues that events attract fewer but higher quality attendees who are more likely to become customers?
  • The future direction is towards the ‘event of one’, a small, account-specific event.
  • Events will become very personal, self-branded or co-sponsored.
  • Trade shows will have a more specific focus and may move out of the GTA to achieve better response.
  • Events will need to become more creative to break through the noise of other competing opportunities. For example, non-traditional events that offer activities such as family skiing may be better attended.

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