- January 16, 2017
- Posted by: Joel Shields
- Category: Asset Valuation, Sponsorship, Sponsorship Prospecting
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 five 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.
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.
Take a look at your current sponsorship offerings and determine which of these strategies you can employ immediately to increase your value to sponsors.
Joel Shields is a consultant with The Sponsorship Collective. Joel has a passion for helping organizations apply best practices to increase their sponsorship revenue. He has managed every aspect of the sponsorship process with Non-Profit, Municipal, Arts & Culture as well as Large Event properties. Joel works with our clients to strengthen their go-to-market strategies and uncover opportunities for new revenue.