Maximize vendor event ROI for your small businesses
Is this vendor event worth it? Get our tips and tricks to maximize your returns. Presented by Chase for Business.
- Vendor event ROI includes both financial gains and intangible benefits, such as brand awareness and networking.
- Business owners can boost ROI by lowering costs through business collaborations and elevate engagement with effective pre- and post-event marketing.
- A memorable, accessible booth that features a compelling brand story and diverse payment options can drive event success.
You’ve invested significant time and energy into your vendor event — now, make sure it pays off. This article breaks down the many facets of vendor event ROI, so you can reap the benefits and make the most of your participation. Read on for tips and tactics to unlock your event’s full return on investment (ROI) potential.
How to measure event ROI beyond just revenue
ROI is a measure of the benefits you receive from an event compared with the costs. While the goal for most vendors is to make money, ROI isn’t a simple profit-and-loss calculation. Events can also build brand awareness, generate leads and produce other non-monetary wins.
What is tangible ROI?
Tangible ROI can be directly quantified with numbers. It’s the most direct way to see whether the event was a profitable investment. Here’s the formula for calculating your event’s profit-related ROI:
ROI = (Net profit / Total investment) x 100
A positive ROI means you earned more than you spent. While a good ROI can vary widely depending on the industry and event type, a percentage between 50% and 100% is often considered a good return. To calculate your net profit and total investment accurately, you can break down your analysis into key event ROI metrics:
- Revenue metrics: Ticket sales, sponsorships, merchandise or product sales
- Attendee metrics: Number of new leads, customer acquisition cost, average revenue per attendee
- Operational metrics: Cost savings from efficiencies, vendor or staffing optimizations
What is intangible ROI?
Intangible ROI refers to the non-financial benefits you gain from participating in an event. These benefits are valuable to your business’s foundation and long-term growth and can be more important than immediate sales. They can include:
- Brand building and awareness: Events can elevate your brand’s visibility and recognition.
- Networking and relationships: You can foster new connections with customers and other businesses.
- Market research and feedback: Events give you an opportunity to gather insights and direct feedback on your products and business from potential customers.
- Industry knowledge: You can stay updated on trends and competitive insights.
Choosing the right vendor event with the right customers
Every business has unique objectives and audiences, and each type of vendor event has its own advantages, drawbacks and overall vibe. Through careful planning and consideration, you can choose a vendor event with the right aesthetic and tone to attract your ideal consumer.
Pre- and post-event marketing to boost ROI
Participation is just one part of a successful vendor event. To truly maximize your ROI, it helps to leverage marketing both before and after the event.
Pre-event marketing strategies
The more you promote your participation ahead of time, the more likely you are to draw customers to your booth. Consider email marketing like sending a newsletter to your dedicated customers and posting engaging social media content like behind-the-scenes glimpses of your preparation for the vendor event, sneak peeks of products you’ll be selling or countdowns to the event to build anticipation.
Post-event marketing strategies
To solidify brand awareness and nurture the relationships you’ve built, you’ll want to follow up on leads with personalized messages and thank-you notes to customers and new contacts. To continue the momentum, consider posting content from the event online or sending a highlight reel to your mailing list.
Co-branding or sponsorship opportunities to reduce costs
Participating in a vendor event can be pricey, but collaborating with the event organizer, other small business owners or investors can help you lower costs.
- Co-branding with another business: Sharing a booth or space — and the cost of participation — with a complementary business could be a great growth strategy for both parties. For instance, if your business sells baked goods, you might team up with a coffee vendor.
- Sponsorships with event organizers: Sponsoring an event gives you a dedicated presence in the event promo materials. Your logo or name could appear on banners, social media posts and event announcements without having to pay for a booth.
- Partnering with an investor: If your business has limited capital but large growth potential from participating in an event, an investor or incubator program may be willing to help establish a temporary business location. This type of partnership could offset some of your costs up front for a cut of the profits or a share of your business.
A memorable story to build your brand
Creating a memorable brand story to share with your consumers is crucial for building brand awareness because it helps customers recognize and connect with your business on a deeper level. From coming up with a business name and designing a logo to establishing your purpose and core values, every detail can set you apart from competitors. When you brainstorm your story, think about:
- Your why: Why did you start this business? What’s the problem you are solving?
- Your values: What core beliefs guide your business decisions?
- Your journey: How did you start with an idea and end up where you are today?
Strategic booth setup to invite customers
The way your booth is arranged can instantly grab the attention of visitors and showcase your brand identity. Consistency across your display makes your space inviting, professional and memorable. Here are a few factors to consider:
- Branding: Keep your colors, logos and messaging consistent across your display on signage and tables and other physical booth elements.
- Visibility: Let your bestsellers shine at the front, use a mix of display heights and create a clean and organized browsing experience that draws customers in.
- Interactive elements: Encourage people to not only stop by but stick around with live demonstrations, free samples, games or any hands-on elements.
Booth organization to streamline the experience
In addition to looking professional and creating a good browsing experience, an organized booth allows you to focus on engaging with customers rather than spend time searching for products. Being able to quickly identify your bestselling items makes planning your inventory for future events much easier.
Diversified payment methods to increase sales
To ensure day-of transactions run smoothly, consider a point-of-sale system that allows you to accept payments. Offering multiple payment options could directly increase sales by making it easier for customers to say yes. Here are alternative payment methods to consider:
- Credit and debit cards
- Mobile payment apps
- QR code payments
- Tap-to-pay through cards or mobile wallets
Exclusive event offers to attract traffic
Whether this is your first time participating in a vendor event or your hundredth, it’s smart to try out new sales tactics to see what best increases your revenue. For instance, limited-time offers like a discount valid only during the event, a free gift with any purchase or a bundle deal can create a sense of urgency and encourage customers to make a purchase on the spot.
Bundled products and tiered pricing to encourage sales volume
Bundling products with tiered pricing is a great way to encourage customers to spend more while giving them the feeling of “spending less for more.” For instance, if something at your booth is “buy one, get one half off,” your customer may be more likely to purchase a second item to receive the discount.
Real-time customer interactions to build relationships
Meeting customers in person is at the heart of any event. Welcome visitors to your booth and share your story. Don’t be afraid to ask a few questions in return, such as what brought them to the event or what they’re looking for. This shows genuine interest and can help you better understand and meet their needs.
Turn a simple conversation into a lasting customer relationship by having a system in place to exchange contact information so you can follow up later.
Vendor networking to build your community
Your primary goal at the vendor event is to engage with potential customers and make sales, but it’s also a chance to connect with and learn from entrepreneurs and small business owners who share a similar path. Discussing challenges, best practices and strategies with others can build your community and may even lead to potential co-branding opportunities. That’s ROI that pays off long after the event is over.
Marketing materials or swag to create brand recognition
Even on a tight budget, small branded items like keychains, pins or postcards are tangible reminders of your business. Memorable swag can create a lasting impression on your booth’s visitors and help them find you in the future.
Post-event newsletters to follow up with potential customers
Once you’ve connected with potential customers at a vendor event, the next step is to follow up with them through a newsletter. Some elements to consider include:
- Personalized messages: If possible, thank specific visitors and include anecdotes or details from your conversation to make it memorable.
- Post-event survey: Ask attendees for feedback on your products, services or booth experience to show you value their feedback.
- Social media: Invite visitors to connect with you on social media and share event highlights to keep your brand top of mind.
- Exclusive offers: Encourage first-time purchases or repeat customers with a limited-time offer or discount.
ROI analysis and optimization for future vendor events
After you’ve had a booth at a vendor event, it’s time to reflect and improve. Make smarter, more profitable decisions for events in the future by thinking about what went right, what went wrong and what could have been better:
- Did the event meet your financial goals?
- Was your tangible ROI positive? Also consider your intangible ROI, like new connections, leads or increased brand awareness.
- Were you prepared for the day’s challenges? Did you have the right tools, staffing and materials?
- Which items sold best and which didn’t? Analyze why some products performed better than others to guide inventory and promotions for future events.
FAQs about vendor event ROIs
Still have questions about making the most out of an event and measuring event ROI? We have answers:
Is a vendor event worth joining for small businesses?
If you choose the right vendor event and go in with a clear plan, it can help you increase visibility, generate sales, get direct feedback from customers and network with fellow small business owners.
How can I measure the vendor event ROIs for my business?
Measure tangible ROI by tracking sales and new customers and intangible ROI by tracking leads, networking and increasing brand awareness.
How can I improve the vendor event ROIs for my business?
After the event, reflect on what worked and what didn’t, track sales, follow up with leads and use those insights to plan smarter, more profitable events next time.
