Determining where to focus your efforts to maximize your sponsorship value can be confusing. We receive messages and emails all the time from people who tell us that valuation remains one of the most puzzling parts of sponsorship.
We work alongside our clients to develop strategies that maximize the revenue potential for their organization and sponsorship properties. Through this process, we’ve learned that not all benefits are created equal. There are specific benefits sponsorship seekers can focus on developing that can provide the best return on investment (ROI) & return on effort (ROE).
In this post, I want to share ten strategies that go beyond logo placement that you can utilize to take your value to the next level.
Knowledge of your Audience and Willingness to Share Information
Knowledgeable sponsors know their target markets intimately. They know where they live, what they drive, what they care about, heck some of them can even tell you what color shoes they prefer. In order for a sponsor to justify an investment in your organization, they need to know within reason that you can provide an audience that matches within their target markets.
This can sound intimidating at first but the great thing about this is finding out more about your audience is within your control. There are a number techniques that you can employ to start collecting and utilizing data about your audience. Create a survey to send to your database, run focus groups to learn perceptions audience has about your organization and your sponsors, analytics on your website and social media accounts can also offer great insights.
Networking Opportunities
Create built-in opportunities for your sponsors to network with fellow sponsors, your executives, business partners, and your board.
These connections can me immensely valuable to your sponsors as well as your organization. They can solidify relationships, make the sponsor feel valued and elevate the reputation of your organization.
One of the most effective ways we have seen this done is by running a sponsor summit (Click here to learn how to do this)
Revenue Potential for the Sponsor
I recently attended a session where a large financial institution shared that the revenue potential of sponsorship is a major factor when making decisions. If a sponsor can earn back a portion of their rights fee through the gaining of the business of your organization it makes justifying the spend much easier.
When working with a potential sponsor a willingness to partner with them on your business operations as well can go offer immense value on both sides. This can offer improved operations for your organization and your audience through the sponsor’s products and services. Some examples we have seen work in the past are improved payment processing, more competitive rates on loans and improved employee transportation. We do recognize that some procurement policies can limit an organization from utilizing this strategy but that does not limit you from completely offering revenue opportunities for sponsors. Can you offer sales rights either on-site or online for a sponsor can sell directly to your audience?
Activations Based on Audience Insights
You can work with your team to identify ways that potential sponsors can connect with your audience and add value to their experience. This goes beyond putting their logo on your website and providing them space at one of your events. Best practice activations are grounded in knowing who your audience is, what needs they have and then meeting those needs on behalf of the sponsor (We will be following up with a blog post shortly with exactly how to you can do this, stay tuned!)
Number of Partners
By partners who don’t just mean sponsors, although that does not hurt! We mean look at increasing the number partners your organization has in every sense, this can include:
- Media – Look for media outlets that target the same audience you serve
- Content – Partner with like organizations and share content to your networks
- Programming – Programming partners will allow you to tap their networks and extend your reach
- Business – Business partners have a vested interest in your success, look for ways for them to promote your organization
Each of these partners may be able to extend the reach of your partnerships and increase the value your sponsors receive.
Have a Strong Value Proposition
How is the quality of your company or organization’s value proposition? Is it as strong as steel?
If your answer is “no,” or “I don’t know,” that’s not going to cut it when trying to take your sponsorship ROI up a notch.
Your brand value is in part dependent on how you present yourself in professional contexts. It’s also based on hard and fast data, like your audience groups (which you should already have at this point) and your past successes.
If your value proposition is flimsy, you’ll find it hard to get past the beginning communication stages with prospective sponsors.
Remember, sponsorship is about marketing. A sponsor wants ROI, which means investing in worthwhile outcomes. If you don’t have a strong value proposition, many potentially valuable sponsors will pass you by because you’re simply too big of an investment risk.
Value!
One of the best ways to squeeze the most value out of every sponsorship opportunity is to value you assets, activations, and services.
Some sponsorship seekers know this; others don’t. However, in my experience working with hundreds of sponsorship seekers over the years, I’ve noticed that many that realize the importance of valuation don’t necessarily know how it’s done.
Valuing your sponsorship property means attaching a monetary value to your audience, assets, and activations. You may find valuation information from your competitors online, but you shouldn’t copy it directly and apply it to your sponsorship opportunity, as each one is different (or should be!).
The only way to properly value your sponsorship services is by going one at a time and comparing the market value cost against what you think you can offer a sponsor. Some of your services will be above the market value, others at market value, and some below. A mix is okay, but trim the low-value assets as needed.
Failing to value your sponsorship property or doing it incorrectly leaves thousands to tens of thousands of dollars on the table. No sponsor in their right mind will ever tell you they should be paying you thousands of dollars more if you offer your services more cheaply. It’s on you to know!
Good Prospecting
Prospecting for sponsors correctly is an excellent way to enhance your brand value, but more so than that, it can boost your sponsorship ROI. How, you ask?
Good prospects attract more audience attention at your events, programs, and opportunities. Your audience is already associated with those brands or companies similar to the brand, which makes them more willing to engage with the sponsor.
That’s half the battle right there, getting attendees to interact with the sponsor. Then, it’s up to you and the sponsor to create winning assets and activations that keep an audience member’s interest and makes the sponsor brand more memorable.
Prospecting should always occur based on your audience data, not an arbitrary list of the biggest brands in your industry or niche (or even those outside your industry). Ask your audience about the types of brands they use, consume, and enjoy, then seek them and related brands for your prospects list.
Present Post-Event Reports
Look, I get it. You’re not going to be in the mood to do a whole ton of work after throwing a major event. It’s exhausting, and you’re running on fumes going into the big day, but you keep up your energy as needed. Then, when it’s over, you can be as burnt out as you want.
Well, not so fast. You should prioritize putting together a post-event report, also known as a wrap-up report or sponsorship fulfillment report.
Why do I recommend doing that? Well, what better way to prove the ROI you achieved through the sponsorship opportunity than by showcasing images of your successful event, program, or opportunity? Oh, and don’t forget the audience data and other important event metrics, like tickets sold and participation.
When you show the sponsor all you achieved during your working partnership, they may be more willing to strike up a continuous deal. You can usually seek even more money for a longer-term arrangement, directly increasing your sponsorship ROI.
Create Compelling Case Studies
Another excellent idea for driving more ROI and increasing branding during your sponsorship endeavors is to build case studies after every event, program, or opportunity.
The case study should detail how you helped your sponsors and partners. Add numbers, data, and other pertinent details while they’re still fresh in your mind.
Why take the time to put together case studies? They can pay back dividends later when trying to renegotiate with existing sponsors and finding new ones to work with. You will have clout and authority, which puts you on a more even playing field with your fellow sponsors.
FAQs
How Should You Help Sponsors Determine ROI?
That depends on what their objectives are. For example, if they want more social media attention, you’d track mentions, engagement, likes, followers, and subscribers. If they’re trying to build an email list, the relevant KPIs are email opens and click-throughs, organic traffic, and email subscribers.
How Do You Increase Sponsorship Revenue?
Having relevant audience data, a list of audience-based sponsorship prospects, and custom assets and activations gleaned during the discovery session will help you seek out higher-value sponsorship opportunities. You should also compile post-event reports to discuss bigger, longer-term deals with your current sponsors.
Wrapping Up
If you’re displeased with the level of revenue earned by your current sponsorship opportunities, you have plenty of options to increase your ROI for the next one. It begins by building a stronger brand, which you can only do with a solid value proposition and audience data.
Next, you need to schedule a discovery session with a sponsorship prospect to understand their challenges, then create tailored assets, activations, and services. Value your sponsorship property, and don’t forget to track your successes through case studies and reports to maintain your current sponsorship roster and build it bigger!
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Chris Baylis is the Founder and Editor-in-Chief of The Sponsorship Collective.
After spending several years in the field as a sponsorship professional and consultant, Chris now spends his time working with clients to help them understand their audiences, build activations that sponsors want, apply market values to their assets and build strategies that drive sales.
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