The value of running events in a downturn
Some organisations take a very short term and narrow view of the effectiveness of their events and activities; they measure their success in terms of immediate cost and return, forgetting the concept of Lifetime Value.
Lifetime Value is the total amount of business that is generated year after year either directly or indirectly (through referrals) from a client, customer, sponsor or donor.
Lifetime Value is as vital to your organisation as compounding returns are to your investments.
A $100,000 event that generates a $100,000 client is seen as not successful.
If the $100,000 client stays with you for 10 years, you have a $1million client.
If you had cancelled the event, you would have missed out on $1 million dollars (the Lifetime Value).
In response to tough market conditions, organisations cancel activities and events.
I think this is short sighted. By cancelling an event or activity you effectively:
- withdraw your brand from the market place
- allow a competitor to jump in and take your place
- turn off your prospect pipeline; and
- miss out on the potential Lifetime Value of business
Besides the financial return, events allow you to:
- keep your organisation top of mind
- generate a deeper understanding of your organisation's capabilities
- build your brand and give your organisation personality
- build relationships, so when people want to buy or give, they buy from you or give to you
- create the opportunity for dialogue with existing and potential customers
- acknowledge and reward existing customers; and
- sow the seeds for long term growth
How else would you generate these same outcomes?
Cold calling, direct mail and advertising? I don’t think so!
Where do you want to be, pole position or back of the grid?
People’s needs haven’t disappeared, they’re just on hold and you need to be in pole position when they decide that it’s time to buy or give again.
Have the courage to keep activity going, keep your organisation at the front of the grid and sow the seeds for long term rewards.