The answer was “No”.
It got us thinking about the basic numbers you need to know for your exhibiting effort. Whether you are looking at a smaller, local show or sponsoring a large event, you MUST know your numbers. So here are the basic numbers you need to get your head (and calculator) around.
Average Lifetime Value (ALV) of a Customer: If you consider the average annual sales for a customer and multiply it by the number of years you keep a customer, that will give you your average lifetime value.
Average Lifetime Profit (ALP): Multiply your ALV by your average profit margin and that will give you your Average Lifetime Profit.
New Clients Required (NCR): Divide your total cost of show by your ALP and that will give you the number of new clients you need to pay for your show presence
Now there are a load more numbers we can go through (and we have in other areas) but this will give you the basics for any show.
From personal experience, Warwick exhibited at a show where the number of visitors was far less than the organiser indicated. But he knew that three new clients would be enough to pay for his presence. Ultimately he only got one new client from that show, but the margin on the client and the lifetime value of the client has been so high that it paid for the show presence many times over.
Knowing your numbers gives you a sense of control so that if things don’t go as you expect, you can still remain focussed on what you are doing and not get sidetracked but elements of the show that don’t count.
So what are your numbers?
At the very least you must know your ALV and ALP. Let us know if you need some help.