Q&A
Innovation Keeps the Consumer Electronics Association Thriving
To learn about the Consumer Electronics Association’s philosophy of innovation, Convene Contributing Editor Sara Torrence, CMP, paid a visit to CEA headquarters in Arlington, Va., and went straight to the top. President and CEO Gary Shapiro and Karen Chupka, senior vice president, events and conferences, for the International Consumer Electronics Show — the largest exhibition in the world — shared their strategies for success.
CONVENE: It seems to me that the Consumer Electronics Association (CEA) has been at the forefront of innovation in association management - responding to your members' and customers' needs in the 21st century, as well as changing to remain a relevant, dynamic organization. How do you do it?
Shapiro: Since its founding 82 years ago as the Radio Manufacturers Association, our association has been technology-based. And today, more than ever, we have to stay one step ahead of the ever-changing technological environment. First of all, we have a policy of "inclusiveness" - both for our membership and for our show. That means members and exhibitors from small companies, as well as large, well-known companies. Eighty percent of our members have under $10 million in sales each year. The large companies who started the association, and have previously been its backbone, are in favor of this approach. They believe in the power of small companies. Inclusiveness also means listening to everyone's ideas and giving them value.
Chupka: Anyone who has some relationship with consumer technology can be involved in the International Consumer Electronics Show (ICES). Anyone who has a good idea and a prototype can exhibit. The show exposes their creation(s) to the world market. As a matter of fact, we have a turnkey operation for small displays of one product: a 3'X6' exhibit area that only needs to be staffed by one person (who may be the company's staff). We place these smaller displays in high-impact areas - around the entrance to the exhibit floor. Because we provide these entrepreneurs with access to wider markets, those who are not members of CEA eventually join.
Shapiro: I'll tell you a story of how this has worked, and has benefited the association. Some years ago, our immediate past chair of the board, Kathy Gornik, packed up her car with a prototype device, as well as food for the days of the show, and drove from Lexington to Chicago, where the Consumer Electronics Show (CES) was held. She took orders from around the world on the exhibit floor, and was able, in time, to expand her business to one of the largest in its category: Thiel Audio. She is a true entrepreneur, who has given back to the association many times over, serving on our board longer than any other member. Remember, even Bill Gates once started with a small company! He has told me that he credits the growth of Microsoft to the CES and other exhibitions.
CONVENE: You have grown your association from just 100 member companies to more than 2,000 in the 15 years that you have been CEO. How did you accomplish that growth? How did you and your board come to the decision to focus on that kind of growth?
Shapiro: We started with a five-year strategic plan, to grow our association to 1,000 members. We achieved this goal in only three years by reaching out to small companies and entrepreneurs. This was not my idea; it came from one of our vice presidents. But we didn't forget the "big boys club" - the people who brought us to the dance. This expansion was based on clear direction from the larger companies. Our chairman of the board at the time was from Panasonic, and he endorsed the concept completely.
CONVENE: Clearly, you have grown your show by thinking outside the box. What specifically have you done? Shapiro: The International CES is the centerpiece show for the world of consumer technology. At our last exhibition in Las Vegas, we had 25,000 international attendees. We have partnered with international entities to develop a show in China, and there is another partnering opportunity on the horizon, which will help us to grow our reach to international markets. When we work with a local partner, we design a show as they want it. We build on their experience in the region. You don't have to have "ownership" of a show. Ownership implies control. We want collaboration.
Chupka: Our show is organized into 20 to 25 TechZones (called "pavilions" in other shows), based on the technology featured. We collaborate with magazines, companies, entrepreneurs, even other associations to pull these TechZones together. At the most recent ICES in Las Vegas, we placed the "small entrepreneurial" TechZone at a nearby facility - the Sands Convention Center - and provided a shuttle system utilizing 220 buses from the Las Vegas Convention Center to the Sands. This placement was not a downgrade: The Sands Center is one of the 10 largest convention centers in the nation. This TechZone was extremely popular.
CONVENE: I know that staff members visit member companies to learn about their "culture" and their needs. What other strategies do you use to keep your ear to the ground? Shapiro: We conduct a phenomenal amount of market research; as many as 15 surveys a year of all different constituencies, including exhibitors, press, attendees, even those who did not attend an event. We have several customer groups, which meet regularly. And we are constantly redefining our customers, looking for new markets. Our sales team and membership team collaborate closely. More than 80 percent of our exhibitors are members. Our sales team visits exhibitors' offices. Their job is 365 days a year, not just before or after the show. We go to other trade shows to learn best practices that we can incorporate into our events. In turn, our members and exhibitors view CEA as a provider of business opportunities. Chupka: We listen to our volunteers and heed their advice. We talk with our vendors - the exhibit service contractors and AV providers who work on other shows. They offer a great deal of advice on improving our products and providing customer service. All of our senior management staff attend and speak at other events. One of our neatest methods of receiving feedback and involving customers is our "Last Gadget Standing" contest. New, "cool" products are introduced at the show. Attendees vote on their favorite product using audience response systems. The winner is the "Last Gadget Standing."
CONVENE: How have meetings and exhibitions contributed to your knowledge base as far as adapting and changing?
Chupka: In a sense, our events are the "research and development" of our association. Customers attend our meetings, give us feedback, and become members because they identify common causes on which to work. New communities form within the association. Our division boards meet monthly via telephone; a member of the event staff is involved, so that the feedback can be incorporated into event planning. Also, deliberations of our standards-setting bodies are fed into the programming for our show and meetings. We conduct 12 to 13 events every year involving our customers. However, our dialogue with customers is not just event-based. We have year-round contact.
At each of our events, we focus on the overall experience of the participants. We want them to feel comfortable and welcome, even at the very large shows. The CEA staff is trained to serve as "concierges," if you will, helping people find their way, and answering questions. The staff is empowered to make on-the-spot decisions, such as offering cab fare or providing change. The focus is on customer service. Everyone who attends is a customer, not just the CEA members. This approach, in turn, makes the participant want to return to the show, and, hopefully, to join the organization, if they are not already a member.
Shapiro: In our event programming, we try to stay ahead of the curve. Each year should be fresh and exciting. Keynoters are movers and shakers … the Bill Gates' of the world. We strive to make our exhibition fresh and new as well. Providing real substance in programming is very important. If you have a show that is long on substance, but has a few logistical glitches, it will still be an "A" event in the minds of the participants. However, if the logistics are perfect, but the program is short on substance, it will always be a "B" event.
CONVENE: There's a pattern here of constantly adapting to stay dynamic. If you were to give other association executives your top three pieces of advice for staying dynamic and relevant in today's fast changing world, what would they be?
Shapiro: First, recognize that for most people it's a close call on whether or not to attend your event, either because of competing events, or other business reasons. Make each event fresh, exciting, and relevant. Second, recognize that good ideas can come from anywhere: staff, members, exhibitors, suppliers. Be open to these ideas. Actually, I have no good ideas; I recognize good ideas from others. Lastly, psychology is important to have a dynamic, fascinating event. If you don't enjoy what you are doing, people will see that and respond accordingly.

