For modern event planners, one of the most important KPIs (key performance indicators) to take note of, is your ROI (return on investment).
After all, the only reason why organisations invest in events, is to get a profitable return. If you’re an event planner, these are the 5 basics of event ROI that you absolutely must know.
- Know how to calculate your ROI. First things first, you need to know how to calculate your event ROI. If you don’t already know the formula, don’t worry – it’s simple.
Event Revenue minus Event Expenditure.
That’s it. Although as you’ll see in the next point, calculating your event “revenue” may or may not be as straightforward as it seems.
- Although ROI is often measured in dollars and cents, it doesn’t always have to be. Branding opportunities gained, leads gathered, or an increase in consumer awareness (measured through website traffic, social engagement, etc.), are also good measurements of ROI – and the success of your event.
- Positive ROI is a great way to pitch for follow up events. Rather than trying to beat rival contract bids with a lower price, or by throwing in more freebies, convince your prospects that you’re better by showing undeniable proof with positive ROI results from a previous (and hopefully similar) event!
- Always set a target for your ROI. Many event planners simply do their best to put on a fantastic event, then cross their fingers and hope for a positive ROI. The industry’s most successful event planners, don’t. They plan to hit a certain ROI percentage, measure their results, then analyse how they can do even better next time.
- Measure your ROI! This should be obvious, but it really isn’t. Today, most event planners don’t yet measure their ROI. Make it a habit to do so from today, and you’ll soon have an edge over the competition.
Need advice (or useful tools/mobile apps) to get this done? Contact the experts at PowerVote for friendly, personalised and professional advice.