Why business events are one of the most profitable marketing channels

A firm claim: business events are one of the most profitable marketing channels. If that statement just made you frown, then that’s understandable.

There are indeed plenty of channels that allow you to generate more profit, faster and more easily, such as promotions, digital ads, etc. That is correct, at least in part. However, business events – if you approach them well – can be a very profitable choice.

Events manifest in a thousand different shapes and sizes. There is a whole range of types of events and, as a result, a whole range of goals and KPIs that you can achieve through events. Events are a major business contributor across the board, both directly and indirectly. Let’s take a closer look at what we mean by that…

1) Acquiring new customers is more expensive than retaining existing customers

65% of a company’s revenue is derived from the customers it already has. (forbes) Therefore, it’s key to take good care of the customers who already spend their time and money on your business. Business events are ideal for maintaining the bond between your company and its customers: an evening out to a soccer game with dinner included, concert tickets, an afternoon of golf, etc. These are all ways for you to get in touch with your existing customers in a way that feels natural and, above all, human to them. These events also allow you to learn more about your customers’ concerns and to strengthen your bond with them.

The same reasoning applies to employees. Training new employees takes time, and time is money. Staff events can ensure that employees remain satisfied, feel connected and enjoy coming into work. You will be able to retain all that knowledge and talent within the company, etc. In short: an event strategy ensures that you strengthen existing relationships, create continuity and generate growth from the bottom up.

2) Increase efficiency

Certain business events also facilitate growth in a passive way, yet this effect also should not be underestimated. Certain events allow you to increase the efficiency of your own employees, as well as your customers, end-users, contractors, installation technicians, distributors, etc. If you put in place trainings regarding your product or service, the people present during these event will be able to work more efficiently.

Hence, internal trainings lead to more efficiency among your employees. This allows you to achieve multiple goals:

Employees get more work done, in less time. They get to work with more confidence and more knowledge. This results in a higher ROI for your business.
In addition, specific trainings will allow your employees to work safer, with fewer risks on the job. Fewer work accidents and long-term illness mean fewer sudden setbacks and absences coming your way.
You can improve the overall quality of your services. This in turn will result in your customers being more satisfied, which means they will stay with your business for a longer time. Satisfied customers also are more likely to leave reviews, or talk about you to friends and family.

Customer trainings, on the other hand, can trigger unexpected growth. By providing training to your customers, installation technicians, etc., they can start using your product or service more efficiently. As a result, they will have more need for your product or service within the same timeframe, they will deliver better quality services to their own customers and they will experience an increase an orders.

This equals passive growth, which did not require any effort on your end – other than organize an event.

3) The most important advertising channel: word-of-mouth

It’s the biggest cliché in the book, but word-of-mouth really is the most powerful advertising channel. It makes sense as well, as you are more inclined to trust an acquaintance when they tell you about a product or service, compared to an ad you come across on the internet, television, radio, etc.

Business events are that perfect partner in crime which will help you generate word-of-mouth. Organize an event that surprises, impresses and intrigues your guests. You can achieve that effect in several ways:

Invite big names within your industry to come speak at the event. Guests will be eager to tell connections about who the speakers were.
Make sure the event itself is uniquely decorated. Guests like to share that on their social media.
Invite relevant guests who would be interested in connecting with each other. This will make it increasingly interesting to network at the event and will reflect well on your company’s image.
Impress your guests with a refreshing, unexpected angle (in your presentation or demonstration).
Create a unique experience for guests and make the event one that they will remember forever.

4) The most efficient way to sell new products

So far we have demonstrated how business events generate profits in an indirect and passive way. But there are also ways in which business events can generate sales directly. In fact, business events are one of the best opportunities out there to help you generate sales. Specifically when it comes to product launches.

A product launch means you invite your most loyal customers to a dazzling event. As the organizer, this not only gives you the chance to speak to them about your new product. The audience also gets the chance to discover your new product, collection or service up close. Who knows, they might even get to try it out?

At the end of the day, this type of event is the perfect setting for your sales people to close a few deals. You have the audience’s full attention during the event and you have done everything you can to get them excited about your offering.

Numbers don’t lie

Up until now, we have discussed four major points that demonstrate how business events contribute to the profit margins of a company. Whether directly – by creating sales opportunities. Or indirectly – by improving customer retention, generating word-of-mouth or increasing efficiency.

These four arguments all make perfect sense. But let’s also look at some telling figures that clearly demonstrate how business events are one of the more profitable marketing channels. Here are some results from a large-scale study.*

85% of respondents in leadership roles (senior managers, executives, board members, etc.) believe that in-person events have a critical impact on the success of their company.
Although more than half of respondents (56%) reported struggling to demonstrate the ROI of their events, amazing results have been reported among respondents who were able to do just that. 90% of respondents who were able to demonstrate ROI related to events tell us that corporate events are a key factor in achieving their KPIs.

94% of respondents within the media industry believe that event software makes it easier to achieve business goals.
90% of respondents using event software outperformed their KPIs by 20%.
89% of respondents who use event software indicated that the software helps them save time while planning and organizing events. They reported saving up to 360 hours per year.

Is your company already working on business events? Or are you missing out on the added value and the direct as well as indirect impact of these events?

Are you already working on business events, but struggling to organize them efficiently and to visualize their ROI? Contact InviteDesk and discover how our event software can take your events to the next level.

*source: Bizzabo New York