The Value of the Ticket in B2B Exhibition: The Importance of an Effective Pricing Strategy

Introduction

In the world of B2B Exhibitions, free or low-cost admission is a widespread practice, rooted in the tradition of valuing attendees as the essential element of the event and using the number of visitors as the most important metric to measure success. However, this strategy has shown weaknesses and is becoming increasingly outdated.

Instead, adopting a value-based pricing policy for access to events can bring numerous benefits for both exhibitors and attendees.

Advantages of an effective pricing strategy:

• Enhancing the experience:

Assigning an entrance fee can increase the perceived value and importance of the event for visitors and exhibitors.

• More motivated and interested attendees:

A higher entrance fee makes attendees more aware and interested in participating, improving the quality of participants.

• Improved marketing and promotions:

A valuable entrance ticket can be used as a marketing lever for targeted and precise promotional strategies, leveraging psychological pricing and techniques such as time-limited discounts, flash promotions, scarcity, and bundle offers.

• Increased effectiveness of complimentary tickets:

Limiting the number of complimentary tickets available for exhibitors increases their value and effectiveness as a marketing tool.

Case study: Positive results of a new pricing strategy

As GRS Research & Strategy , we have supported several exhibition organizers in the Strategic Review process of Registration and Participation in events.

Here we are reported the main KPIs for Exhibitors of a specific B2B exhibitions, which decided to implement a different pricing policy.

In this specific case, the policy involved revising only two easy parameters:

1. The value of the entrance ticket (almost double the price)
2. Accessibility to complimentary tickets (very restricted policy and a limited and specific number for exhibitors)

This case study demonstrated that introducing a specific pricing policy led to significant benefits, mapped in terms of "before and after" trends following the introduction of the new strategy.

-       Increased perception of the event's value

-       Improved visitor quality

-       Increased effectiveness of complimentary tickets as a marketing channel

-       Increased number of actual visitors compared to pre-registrants

-       Economic impact for the trade fair organizer through ticketing

In addition to this:

Positive impact on key KPIs related to exhibitor satisfaction, event importance, and likelihood of return, very positive increase in the event's NPS (net promoter score) for exhibitors.

Adopting a pricing policy also generates a new significant revenue stream, diversifying income sources compared to the traditional model based on selling square meters.

Despite a possible reduction in the total number of visitors (in this case by 20%), the post show analysis shows that non-attending visitors were generally those less interesting for the fair (and therefore its exhibitors), i.e., with lower purchasing and decision-making power.

The value perception of the exhibition continued to increase in the following years

Implementing a precise Registration Policy with a valuable (and segmented) registration ticket can be used as a marketing key for devising targeted and precise promotion strategies, thanks to the use of various systems related to "pricing strategy".

These strategies, commonly called "psychological pricing", are successfully used in many sectors and are based on the perception of value and consumer buying behavior, exploiting psychological aspects to influence purchasing decisions and maximize sales.

Examples of great success in many sectors, which can also be applied in the trade fair industry, include:

-       Time-limited discounts:

Offering discounts for a limited time (early bird) creates a sense of urgency in consumers and greatly helps with pre-registration for the event.

-       Flash promotions:

An offer like "This week only: 30% off!" encourages the customer to make a purchase decision more quickly to not miss the opportunity.

-       Scarcity:

The scarcity strategy is based on the idea that people attribute greater value to things that are difficult to obtain. A trade fair could, for example, offer a limited edition product or one with specific features

-       Bundle offers:

A bundle offer consists of providing multiple products or services together at a reduced price. An exhibition could offer a package at a lower price compared to purchasing individual products separately, encouraging combined purchases and making the customer perceive greater overall value.

Other useful techniques in an "evolutionary" phase after starting a strategic journey on pricing policies can include other forms of "incentivization," enhancement, and maximization:

-       Prices ending with "99":

A product priced at €89.99 may seem more affordable than €90, even though the difference is only one cent. The lower price creates a perception of greater convenience.

-       Loss leaders:

This strategy involves offering a product at a very low price to attract customers' attention, with the goal of getting visitors on the website in the hope that they will purchase other products besides the loss leader.

These are just a few examples commonly used by those who adopt an advanced pricing strategy, demonstrating a remarkable ability to influence participation decisions, purchasing, and maximizing sales, as well as significantly enhancing the event's perceived value and positively influencing Exhibitors' KPIs. Adopting these strategies in exhibitions can have a positive impact on visitors' interest and engagement, contributing to the event's success.

As always, a strategic approach, a strong focus on measurement and understanding the purchasing process's indications, and, of course, the right tools are necessary.

In this regard, both GRS Research & Strategy and Info Salons are pioneers and undoubtedly among the most experienced in the world.