How To Calculate The ROI Of A Tradeshow

Determining the return on investment, or ROI, of a tradeshow requires an understanding of multiple numbers. To begin, it is important that each dollar that is spent have a purpose and be accounted for.

Unfortunately, monitoring tracking costs for a tradeshow is not always easy. Labor costs seem straightforward when it comes to contractors, however employees are a different story. If your company is like many others, then your staff is often multitasking. This is why timesheets that indicate where staff hours are to be assigned are so important in tradeshow accounting. The same goes for the use of company equipment and any consumables that are purchased and shared with other events.

One of the big questions about staff time is whether executives include in the final accounting numbers for a tradeshow. Unless an executive is specifically working on making a particular tradeshow a success, then those hours do not need to be accounted for. The executive compensation normally runs in a much different circle than everyone else’s.

All other external costs must also be accurately accounted for in a tradeshow ROI. This is why a tradeshow is operated similar to a project and the event manager to a project manager. Cost codes are applied and determined for each and every show. Good accounting always makes it easier to justify tradeshows and determine spending for the coming year.

The return on a tradeshow can be even more difficult to determine. You can work out a system with your sales staff where each product sold as a direct result of the tradeshow can be tracked, but you may find that number to be small. The best approach is to monitor the increase in activity as associated with the contacts made at a tradeshow. As an example, if there was a significant amount of sales from individuals in Kansas City that attended the tradeshow, then this would be evidence that your attendance was a success.