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 current market conditions, organisations have cancelled 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.

Practicing what I preach, I have listed below public workshops and events that I will be speaking at over the next few months.

I could have postponed these activities until someone told me the downturn is over and it was safe to return, however experience tells me that activity leads to results.

Public Workshops

How to Attract More Business November 23

A one day workshop for people who need to become effective in business development.

Presenting to Attract More Business November 24/25

A two day workshop for people who need to become effective in business development presentations

How to Attract More Sponsors December 7/8

A two day workshop for people who need to become effective at attracting sponsors and corporate partners

Speaking

  • Associations Forum in Sydney, August 11
  • Parrimark Technology Client Conference in London, September 2
  • Sponsorship Australasia Conference in Sydney, October 29
  • International Not-For-Profit Conference & Exhibition (INCE) at Sunshine Coast,, November 11-13
  • Cultural Development Collective (CDC) in Sydney, December 2
  • Professional Conference Organisers (PCO) Conference in Canberra, December 14
  • Fundraising Institute of Australia (FIA) Conference in Adelaide, February 22, 2010