9 METHODS TO MEASURE YOUR REAL EVENT ROI It’s easy to be swept up in the excitement of preparing for a special occasion. Even while you want your guests to have a good time, you shouldn’t see event preparation as a selfless task. Planners like you organise events with a specific goal in mind.
You have a lot on your plate if you’re responsible for organising the year’s largest bash, including guest lists, advertising, and food.
However, you should still make sure that the event is profitable for the business. After all, spending thousands on a lavish event that doesn’t boost sales is a waste of money.
If you’re responsible to your superiors or the accounting department, you know how important it is to demonstrate the return on investment of any marketing events you throw.
Obtain the Best Occasion Management Software
Let’s dive into the nine ways we utilise to demonstrate the monetary and non-monetary value of your event.
Normalized Price of a Product or Service
Of course you’d want to make a profit on every transaction, but let’s be honest here: you really want customers to shell over as much money as they possibly can. A successful event would result in an increase in average selling price. If the average sale value of your conference attendees increased from $200 to $500 thanks to your upselling efforts, that’s money in your pocket.
Leads with a greater average order value from your yearly conference are a fantastic sign of event ROI.
Ratio of Return
How many events do you put on annually? You may compare your events side by side and determine the ROI for each. If you ever find yourself in a position where you must cut down on your schedule, you will be able to put more energy into the activities that provide the greatest return on investment.
All event costs and income must be known in order to determine return on investment. Some expenses, such those associated with labour or outside suppliers, might be difficult to estimate. If you want an accurate picture of your event’s return on investment (ROI), make sure to account for all of your costs.
To get the return on investment (ROI) %, use the following formula:
[Total Revenue – Total Expenses] / Expenses X 100
So, if the trade event cost you $25,000 and generated $50,000 in sales:
$50,000 – $25,000 = $25,000
$25,000 / $25,000 = 1 X 100 – 100% ROI
How can you gauge whether or not individuals are familiar with your brand? If you don’t have access to an analytics service, here are some more ways to gauge brand recognition:
Understanding the world through the ears of others
Participant feedback forms
This can be done mechanically by certain analytics solutions. Brand awareness may be quantified, providing you with data to show the event’s financial success to the planning committee.
Branding Return on Investment (ROI) Goals Accomplished
The return on investment (ROI) should be calculated differently depending on whether the goal is to raise awareness, boost income, or improve attendee participation. We recommend establishing KPIs before your event so that you can evaluate its success by gauging how well it met its goals.
Meeting your Key Performance Indicators is a measure of your event’s success. Make sure you use the SMART method to plan your event. Your event’s success may be measured by looking at the Key Performance Indicators (KPIs) you met and the KPIs you fell short of during the post-event analysis.
An indicator of event ROI is the quantity of leads obtained there. However, this is difficult since not all prospects can be converted into paying customers. However, leads are valuable to your sales force, and the average value of a lead may be calculated using sales pipeline software.
The quantity of leads is one metric of event ROI since each lead has a monetary value. Here, you may be even more specific by quantifying the value of your leads in terms of:
Sign-ups for Brand-New Accounts (if you do account-based marketing)
Earnings From Sponsorships
Tell me about the money you made from sponsors. Your event’s bottom line and return on investment may benefit greatly from securing sponsors, who can both lower ticket prices and boost revenue. Sponsorships are an excellent indicator of return on investment since they demonstrate that sponsors care about your event.
Margin of Gross Profit
Comparable to the return on investment percentage, the gross profit margin can never go over 100%. Gross profit margin analyses how much money was produced for each dollar that was spent rather than the return on investment. This is just another metric by which you may evaluate your financial prudence.
Revenue is subtracted from earnings to determine the gross profit margin. If you had $100,000 in sales and $60,000 in profit, then you would have:
The profit margin is 60% ($60,000 / $100,000).
Depending on the nature of your event, the typical profit margin might be anywhere from five to 10 percent across all sectors. Profit margins are an indicator of how well you were able to capitalise on this opportunity, thus the higher they are, the better.
To calculate your NPS: (NPS)
Although it is important to consider the economics, there is also a subjective emotional dimension to events that might be difficult to measure. You want people to leave your event having felt something, but how can you demonstrate that they really like you?
The ROI of an event may be measured in part by the feedback it receives from attendees. Determine the level of enthusiasm for your event or product using Net Promoter Scores. An improved Net Promoter Score (NPS) indicates that your event was well received by its participants, which should lead to more sales in the future.
Return on investment may be easily calculated using registrations. Launch the event management software and compare the number of attendees for this specific event to the total number of attendees for all events. An increase in signups might be considered a positive return on investment.
Registering and checking attendance is a must. When there are many sign-ups but few attendees, it’s important to examine the numbers to figure out what went wrong. In order to gain a more accurate picture, it’s important to include both registrations and attendance.
In search of ways to increase the return on investment for your event?
We Must Alter Our Course Now.
Whether you’re trying to reach people locally or globally, events are the way to go. The issue is that you have to put in a lot of work and money to be ready for this event, which reduces the amount of money you make. Just because your event went off without a hitch does not mean you can claim triumph. Considering the financial implications of an occurrence is essential.
A fresh approach is required to increase the return on investment for an event. Teaming up with Endless makes sense. Or, why not attend Keaton Watson’s webinar, “How to Measure Event ROI?” Our tech-first methodology provides more accurate tracking of event returns. View our case studies to learn more about the successful implementation of our innovative event planning tactics.
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