innovation


Is Your Event Leaving Money On the Table?

When I launch an event, one of my goals is to ensure that, from the very beginning, we are doing everything possible to maximize profitability. Given that goal, I’ve become pretty savvy about identifying opportunities where an event could generate a greater gross margin. The trick, of course, is to go beyond that step and take the necessary actions that avoid leaving any money on the table.

There are a number of signs that an event’s not operating to its full profit potential. Often, it’s a matter of being attuned to situations where things might be going “fine”, but your experience and expertise suggest that there are opportunities to do better. Here are five scenarios:

 

1) You lack a crisp value proposition

If you can’t explain in a concise and compelling manner why exhibitors or attendees should come to your event, then you’re really operating with the hope that your prospects can figure it out for themselves and then act. And, as the saying goes: “hope is not a strategy.” Garbled, unclear messaging will leave some of your prospects confused and uncertain. Uncertainty is not a pathway to maximizing sponsorship and attendance fees. It’s the road to lost revenue.

 

2) Exhibitors and attendees are wildly enthusiastic

This might seem counter-intuitive. When your target prospects are clamoring to sign up for booth space and conference registrations – and not balking at the fees – that’s obviously a good sign. Consider it as validation of your value proposition in terms of why your event is worthy of the investment and different from – and better than – others.

But also consider whether it’s a signal that your fees might not be priced appropriately for the demand. Is there an opportunity to raise prices (how much is up to you) the next time? Consider this year’s event as an investment in knowledge that should inform next year’s plan. Otherwise, the money you don’t make is just lost forever.

 

3) There’s a lack of urgency in actions or communications

It’s difficult to imagine anyone who would take on the risk of running an event, but not figure out how to instill the necessary sense of urgency about getting the money needed to pay all those incoming bills. But that cavalier attitude about cash flow often exists! The maxim I followed at my first events job was that you wanted 80% of the exhibitor money collected at the time you announced the conference program. Admittedly, that is a high bar to meet but doable if it’s your discipline.

More typically, for an existing event, you should try to rebook as many previous exhibitors as possible and attempt to get attendees to commit to the next year (If you can). And the ideal time is while the event is happening or shortly thereafter. From this, it follows that you want to have incentives (e.g. money-back guarantees for attendees, free stuff they can’t get otherwise) that make it worthwhile for exhibitors/attendees to commit early.

 

4) You don’t reach out, either in person or on the phone, to your attendees

This indicates an ‘I don’t care to know my audience’ attitude and it’s an unforgivable flaw to be found in any event professional who doesn’t personally know at least 10 attendees. Engaging personally with your customers is the best way – the only way – to know what they care about. And what they care about is what drives where they will spend their money.

Perhaps this is illustrated by a recent argument I had with someone at an industry event where concerns were raised about where her industry was going. Yet, at the same time, she argued that she had no time to speak with 10 attendees a month. To me, that kind of time spent is an investment that will pay off in the future. Ask the right questions and you’ll know where your industry is going. And you’ll be well positioned with the right offer to take advantage.

 

5) Your event isn’t making enough money

This is the toughest situation because it’s real, tangible, and has an urgency that requires prompt action, especially when you have other choices to make money. It could be attributed to a variety of reasons, some of which I have already listed above. If this is your scenario, you should probably hire someone from outside who can give you a fresh perspective on the likely causes and the prospective remedies that may not be obvious to someone inside who works on the event daily.

 

Whatever the situation, leaving money on the table is a bad strategy. It leaves opportunities both for new and old competitors. So why would you do that?

 


What Drives You to Succeed?

What drives people to succeed?  What prompts people to do what they do – and try to do it better over time? And to compete and do it better than others? Try searching online and you’ll find that it’s the kind of question that prompts a lot of inquiries; depending on how you look, it could be in the tens of millions. Clearly, trying to understand what motivates people is one of those elemental questions. Some people look at successful people and try to figure it out that way. There are thousands of books to help.

 

Back in the middle of the last century, Abraham Maslow looked at things more fundamentally and proposed a “hierarchy of needs” – the things that motivate behavior. He suggested that people start with certain basic “physiological” motivations (basics like food, shelter, clothing, etc.) and they then proceed up the ladder to finally reach what he called “self-actualization” (spiritual/emotional motivations like values, faith, helping others, etc.) In the years that followed there’s been a lot of debate and criticism about the model. The reality is that it’s hard to find something that fits everyone.

 

Rather than try to establish some set of universal truths, perhaps it’s best to look inward. I am sure that each of you can point to things that keep you focused. For me, the types of projects in which I’m involved provide a clue. Event ‘firefighting’, launching events, and sales are all high pressure, time-sensitive, mentally taxing, and extremely stressful. There are times when circumstances reach the point at which I’d just like to give up.

 

Despite any difficulties I encounter, I never quit. Why not?

* Is it the challenge of pulling through when things are difficult? Yes.

* Is it the need to make money? Yes.

* Is it the need to expand my horizons and test myself? Yes.

 

But while all those incentives are true, they are not the biggest reason. The biggest reason is right next to me as I write this piece. It’s my daughter Annabelle.

 

I find that even when I find myself in the toughest situations, super stressed and beset with despair as to whether things can be worked out, picking up my daughter can make those difficulties fade away.

 

Who or what does it for you? As I have gotten older, it’s the people, not the things that make the tough things worth doing.

 

Is it the same for you?

 

 


The Era of Pushback

People would prefer to engage in activity that preserves the status quo rather than pursue something new because the status quo is safer and proven. One can expend as little effort as is needed, and try to extract the biggest benefit from what’s been done previously, taking comfort and security in knowing there’s an established precedent for achieving success. Often people will do what’s been done and hope that no-one notices it’s the same. They prefer a proven path rather than blaze a new trail. The result is often an old product, packaged in a new box, with lots of time and effort spent on promotion.

 

Why is this considered the way to go? Because we’re in an “era of pushback.”

 

What’s that? It’s the scenario where your boss wants to maintain profits and do so without risking anything. That boss will push back on anything new that you might want to try because their focus is on next quarter’s and year’s numbers.

What explanations are given?

  • The opportunity cost of investing time and money on something new means you’re not investing in what’s already proven to work.
  • There’s a possibility that whatever new endeavor is being contemplated just won’t work.
  • You won’t make your numbers and anything that jeopardizes the numbers must be avoided.
  • This new idea that you’re proposing? Nobody but you, gets it.

Far worse than any of the above, is if you feel the company culture dictates that if you fail you’ll be punished somehow.

 

Attempting anything new is hard. Many will falter at the first obstacle. But the good news is that if you’re not stymied by the ‘barriers of no’ you will reap the rewards. Why? Because you’ll be exploring new opportunities when others won’t dare. Even if you ‘fail’, you’ll have developed the habits associated with creation, overcoming obstacles, and innovation. That predisposition is the prerequisite for exploiting new opportunities or, better yet, actually creating those opportunities.

 

Unlike your competition, who are selling last year’s product, perhaps with a new name….

 

Go get ‘em, Tiger!


Success Requires Getting Burned

Although my business is now successful, in December of 2005 I was at a crossroads. After six months of R&R that had followed the end of a difficult events job, it was time to get back to work. I chose to open my own event consulting company, a perilous decision given that 8 of every 10 new businesses will fail within 18 months of their founding.
 
Yet I survived and am now thriving. Why? Am I significantly smarter than the 80% of entrepreneurs that do not? Probably not. To what do I attribute the difference? Because I have been burned.
 
That’s “burned” as in having failed, as in having had to grind for years, hustling and scrounging to get to where I now am. But mostly I was burned. In what ways?
 
  • I got my start in sales, but within months I was put on probation for having missed my sales quota – even though I had the worst territory amongst 18 sales reps. Think Glengarry Glen Ross. That burned!

  • At Lufthansa, I was told I’d never succeed as a sales rep. That burned!
 
  • For an assignment in the Netherlands, I was told that the project for which I had flown 3000 miles would be a failure because I lacked direct experience and was only 22 years old. It burned!
 
  • While working in Boston, the major sponsor of my biggest event commanded that I produce a solution to a problem that they had created, and do so by 6 AM the following morning. I remember feeling my scalp get scorched that time.
 
There are countless other occasions – personal and professional – when I have tried things and not succeeded. There were jobs I wanted, dates I sought, grades in school for which I worked, etc. And not getting them left me feeling burned.
 
If you have failed at something, yet got back up and tried again and again until you succeeded, then you know what I mean.
 
You can’t truly savor victory until you have been burned by failure. That experience is the best fuel to becoming better than the next guy, making your quota, or launching an event and hitting a home run with it.
 
Currently, I carry a part-time sales quota of $1 Million – and I’m launching successful events every year. Neither situation would be possible without the failures I’ve listed. And I anticipate – even welcome – possible future failures, recognizing that they will similarly propel me forward.
 
Burn, baby, burn! Keep it going and try new things. For those that do so, I salute you!

Transcending the “Culture of No”

Recently, I was thinking about two different types of change that I’ve observed in the world: progress and innovation. Both forms of change represent advancement, but in very different ways. Progress typically happens in a linear fashion, where the new is often an extension of what already exists. It represents advancement, but advancement that is measured in increments. Progress represents doing something better than the current way, but generally not doing something fundamentally different.

 

Innovation is disruptive and, thus, non-linear. It is the exception and it’s why those cited as being market disruptors (Airbnb, Uber, Netflix, Apple) stand out. The disruption of innovation is scarcer and, in most cases, not predictable from what has already happened – or already exists – in the current environment. It approaches an existing situation with a totally new approach or sees new opportunities and acts on the possibilities.

 

Dealing with the ‘Culture of No’

What is the source of friction that makes change, whether it be progress or innovation, difficult if not impossible? I would argue it’s attributable to the ‘Culture of No.’ The incumbents, those who have achieved some degree of decision-making power, don’t want to absorb the risks of changing how things are done. There’s little to no incentive to change and incumbents would rather keep doing what they are doing until it doesn’t work anymore. After all, they benefit from the status quo; with the status quo, they are in charge.

 

Evidence of this kind of philosophy can be found in statements like:

  • “If it ain’t broke, don’t fix it.”
  • “Keep your head down, after all we (the bosses) know best.”
  • And my favorite, from a past boss, “Your goal is to always to do the least and make the most.”

 

Note that I’m not the first to consider the ‘Culture of No’ and its impact. If you search online, you can find reference to it here.

 

The Drivers of Innovation

Innovation requires a different motivation, an impetus to change the “what” or the “how” of things in ways that are profound. It comes from an innate motivation to do things differently and more importantly, better. There must be an incentive to make a change and a willingness to try when there is no assurance of success. In most cases, the motivation won’t come from entrenched incumbents. It will come from those who are not predisposed to the current ways of doing things, but rather are open to trying new things. In some cases, they are compelled to try them.

 

Let’s flip the model on its head, much like Netflix and others have done. If no one is doing anything new in your market, consider that as an opportunity for someone else (a disruptive entity, perhaps like yourself) to try a new way. The result might be incremental progress (doing something better, faster, cheaper, more profitably) or something truly transformative in its innovation, perhaps with a new community developing around it. But neither result will happen unless there is an impetus to try new things and a willingness to accept that they might not work. After all, there is little significant reward without an appetite for risk.

 

I’d like to provide a brief shout out to Joe Pulizzi and Robert Rose for their interesting book, Killing Marketing. It offers a nice blueprint for how to seize the opportunity for disruptive approaches in the marketing space.

 

Consider your own situation. Are you entangled in a ‘Culture of No’ or do you represent Those Who Will?


Warning: Event Launch Disaster Ahead 1

 

I recently read an article in Convene which captured the mistakes that were made during a two-year effort to launch a content marketing event in Europe.  For those who have not read the story, the conference manager of LavaCon – a successful, though relatively niche, US-based event – had been urged by a number of his exhibitors to try to replicate that success in Europe, where it was assumed that it could attract a new set of attendees.

 

In 2016, the conference manager tried to do so in Dublin, but failed. Undaunted, but presumably having learned from that first year’s experiences, he ran the event again this past May (again in Dublin, but in a different venue) only to falter a second time. Why did two successive efforts fall short of expectations? Simply put, he had some bad luck with an unexpected competitive event, but compounded the problem with some rookie mistakes.

 

Despite the lack of success, I still take my hat off to him. First, he had the courage to launch something new. Second, though it didn’t work, he still agreed to share his experiences in ways that could benefit others. How many of you would be willing to do that?

 

What factors contributed to the poor results?

  1. A lack of local market knowledge, such as an understanding that “bank” holidays in that region are not exclusive to banks, so should be avoided when scheduling a conference.
  2. The fact that a significant presence of target companies situated close to a conference location does not ensure that the right level of employee – senior decision-makers – work at those offices and are likely to attend.
  3. A misjudgment about the price potential attendees in Dublin would be willing to pay.

 

Why did those factors hurt his event?  In his own words, “because of the market research I didn’t do, and still haven’t done yet.” I believe that he’s correctly identified most of the problems and he has my congratulations for finally getting it – after two white knuckle rides. There is nothing worse than suffering the stress of a launch, then failing, and then suffering the same fate the following year.

 

Are there lessons you can learn from this?

  1. Hire someone from the target market area (or who knows it) for initial and ongoing advice about the feasibility of launching and sustaining an event. For example, Ireland is not Europe. Effectively there is no “Europe” as far as events are concerned; events are, if not local, then certainly regional.  That should guide decisions about location – and expectations about attendance.
  2. Ensure you do market testing and P&L analysis to understand the financial risk involved and the likely outcomes, given the many contributing factors. Approach any opportunity with a model that includes an understanding of what “success” is.

 

In addition, other questions I would ask to qualify an event opportunity are:

  1. In terms of attendee research, has any testing been done to see whether you can draw an audience to make the numbers work?
  2. What is the size of the target email audience on the attendee side and can it be expected to support the paid attendee number in your model? For example, I believe you need 100 names for each expected paid attendee, all other variables being accounted for.
  3. Were speakers and exhibitors engaged early on to help get attendees?
  4. Was there a budget with best- and worst-case P&L’s scenarios established prior to the decision to launch?

 

As I mentioned, this particular event manager is courageous and honest; I salute him for that.  But the things that I reference above seem common sense guidelines to me and reflect the advice I give my clients prior to a launch.

 

Are you equipped on your next launch or are you heading down a potentially rocky road?


Does Your Event Have a Dark Side?

The recent revelations of misbehavior by different individuals and organizations has got me thinking about human nature more broadly. For each of us there’s a public side that we want others to see. It reflects our positive attributes and generates favorable responses from those around us, both personally and professionally. But there’s also another side – a darker side – which we hide from others. This dark side often is the home of those naked ‘drivers’ of behavior that we prefer to hide or disguise. It is that dark side behavior that the press craves to uncover amongst the famous and powerful.

Within the events market there’s a less nefarious form of this behavior. Event managers promote their conferences and trade shows as venues that will engage buyers, deliver wonderful experiences, and generate return-on-investment (ROI) for both sponsors and attendees. The assumption is that you’ll want to return year after year because the events offer value.
 

Do You Deliver to Expectations?

More often than not, however, event organizers promote a vision that the reality does not deliver. Many events fail to fulfill the promises made by their organizers, leaving both attendees and exhibitors disappointed. Why is this?

Because meeting the needs of every attendee and exhibitor is a difficult task and it may not be in the organizer’s control. Or even in their interest, given that events must find an economical “middle ground” that delivers value while making a profit. But another, less defensible reason is that some organizers will do whatever is needed to promote a particular vision for an event, with little intention of meeting the needs of the ‘buyers’, as long as the vision allows the organizer to make money. In effect, they’re cheating the very people who make running an event possible, and profitable in the long run.

Some examples of this are:

  • A well-known event grew so large that it compromised the experience of attendees who struggled to get from one hall to another, were jostled by the crowds, and were required to wait in line for everything.
  • An organizer saved money by eliminating a convenient exhibitor lounge with proximity to the show floor that allowed staff to rest and have lunch (on the organizer).
  • Organizers who cancel conference tracks because prospective attendance is down, but disappoint those attendees who’ve registered and booked flights based on the original – marketed – agenda.
  • Shows that cram extra booths into low traffic areas that will deliver poor results to the exhibitors.

 

Clearly, event organizers must hit their numbers. And that can mean cutting expenses. But too often the motivation comes from the dark side of the business – greed. It’s truly short-sighted thinking that compromises the future in deference to exploiting the present.

The bad news for these types of organizers is that event attendees have become more sophisticated than ever in judging value. Those organizers who fail to recognize that sophistication and fall short of delivering that value will pay the price.

 

Are you in danger of going to the Dark Side?

 


Are You Your Job Title?

Many people tend to consider the respect – perhaps even deference – that’s given to them as part of their job to be attributable to them personally, rather than connected to their role within a business. That belief often only lasts until they leave their position, perhaps due to a layoff or a decision to take a different position. At that point, they may find that the status they previously enjoyed has disappeared or is a mere fraction of what it was.

 

The Event Mechanic! has a Rough Start

I found this to be true when I started The Event Mechanic!, having left my prior role at IDG World Expo. I had believed that all I needed was to put up my shingle and the phone would ring off the hook with consulting gigs. After all, I had run one of the world’s most famous tradeshow brands – Macworld among others.

The reality was that when I left behind my Group VP title most of the status went with it. This was an extremely rude awakening as I began to build my new business and make a living as an independent consultant. As has been mentioned in a past article, the next three years were extremely hard slogging in trying to ‘catch up’ to where I was before. It required that I become an expert business developer, as in “if you don’t catch something, you don’t eat dinner” kind of business developer. I am doing fine now, but for a while it was somewhat frightening and enlightening.

 

The Opportunity for You

Why bring this up?  Because I see significant opportunity for all of us For those who know their event stakeholders personally, as was previously written), the benefits could be huge.

How? Imagine hiring the former VP of Sales of your top exhibitor to sell your show. Or bringing in one of your conference speakers to build the content of your program. Or have them join your advisory board and take a hands-on approach to help make your program better.

All of us know people who are in transition for instance. They are no longer their former titles. But you can use foresight to ensure that you keep in touch with those who have innate value and consider how they can help you create better events. In many cases, they may know your event market better than you!

A lesson to the wise: Learn to leverage the resources which may be under your very nose! It will certainly pay off….


Reactive or Proactive: Are You A Follower Or A Leader?

 

Most people in business are followers. They are the people will neither create anything nor be the first to jump opportunistically on a new market or innovative theme. There’s nothing inherently wrong with that, but without innovation or creation, nothing new or transformative will emerge. It takes someone with a creative spark for innovation to occur.

But it takes more than that spark; creation is not without its costs. The way forward often involves you in a zero-sum game, as the time and attention invested in current activities can preclude a similar investment in what is new and unproven. Few among us have the resources to be fully committed to both the existing, as well as the new. You therefore must find a workable mixture that combines both approaches, or commit to one or the other. The process of creation and adoption of new things is outlined in Geoffrey Moore’s seminal book: Crossing the Chasm.

 

What is the threshold of market adoption? 

The threshold for market adoption of something new is when the majority embrace the innovation. Sometimes, as with Uber or Netflix, it can happen quickly. In other circumstances, it is more gradual, as with Amazon.com. The tempo of adoption often is a matter of how strong and entrenched are the incumbents and what barriers to adoption lay ahead of the innovation. But the process is usually the same; either new things are adopted or they fall by the wayside when the creator runs out of the patience needed to support growth – or the money needed to fuel that growth runs out.

The art of creation is both difficult and risky. If it weren’t, we’d be awash in innovation. But we are not; challenges abound. Given those challenges, most choose a ‘wait and see’ approach. While that’s often a fair, defensible position (given that profit and loss are at stake), it also limits your ability to capitalize on the advantages of being a creator).

 

Could you be a Value Creator?

Let me pose a question:  What would you create (what innovation would you champion) were profit and loss, as well as time and resources, not at stake? Do you even know what you would try to do?

I believe that there’s a connection between being proactive and being creative. Being proactive in terms of an event requires anticipating the future. Tactically, it’s identifying issues and addressing them before they become threats.  Strategically, it’s figuring out the need for something new, perhaps before your prospective customer knows they want or need it (e.g. Apple’s development of the iPhone.) Creators often don’t have the constraints of budgets, thus are free to imagine different approaches – or entirely new and different products – because they are not burdened with the obligations of profitability, at least in the short term.

 

Are you a Follower or a Leader? 

I’ve frequently said that growth requires proactivity and creativity. Simply following others can be a long-term recipe for failure, though it may be the easier choice in the near term.

Is your organization capable of creating?

 

 

 

 


Copying Your Competition − The First Step on the Road to Event Failure

An interesting column in last month’s Convene advocated working with your competition or co-opting them as competitors so that everyone can benefit. The piece included a link to a Harvard Business Review article that has a great quote:

‘It’s not who your competition is, but what it is.’

This means that you need to consider your competition as encompassing any alternative ways your prospect might follow to solve their problems instead of attending your event. If those competitors can succeed in persuading your prospects that they are indeed a better alternative to you, then they will persist as a threat and your event may suffer.

 

What is Competition?

This led me to think about the meaning of “competition” in terms of an event. In my mind, competition validates the presence of demand for events in a particular market segment and such demand represents an opportunity to make money. However, there are many events (including some big industry ones) that merely convey the idea that they are valuable (like an Emperor’s New Clothes Syndrome) than actually are delivering. Eventually their customers wise up and we’ve all seen examples of this if we’ve been around.

If you are spending considerable time focused on your competition, consider that as time that you are not spending trying to figure out the needs of your customers. And without a focus on your customers, you are unlikely to anticipate the future needs of the market or the competitors that await you in that future.  Without a forward-looking perspective, even if you are a dynamite promoter, your time will eventually come. Or perhaps better said, the end of your time will eventually come.

 

Do you know what influences your Customers? 

I believe that few event owners truly know what drives their customers, often because it’s both difficult and time consuming to find out. Chasing the competition is far easier than charting your own course. But it risks leaving the fate of these events at the mercy of decisions that competitors make, rather than pursuing a path of their own choosing.The quest for value an how to spend your limited time continues and the bar is higher than ever, given the demands of everyone’s time.

 

Be Proactive with Building Customer Relationships

My simple prescription to combating [what I call] a “me, too” event is:

  1. Care about meeting the demands of the attendees, visitors, exhibitors and partners of your events;
  2. Come to know people in each category. And know them in person, not just as a voice on the telephone or a digital message on a computer screen;
  3. Get creative about new ways to meet the demands of your customers and don’t be afraid to try those new approaches;
  4. Build a community of people outside of your company who can help you achieve the above tasks.

 

Follow these steps and, rather than following your competition, you’ll be able to see everyone else in your rear-view mirror, struggling to keep up….