Return on investment (ROI) is a crucial element for event organizers when measuring the performance of their events. For this reason, marketers often track their event performance using a return on investment method. This allows for the extraction of important information by analyzing the data of an event’s performance, helping event planners to facilitate their next event. In this EventX blog, we will let you know how the return on investment method works.
What Does Event ROI Mean?
Event ROI refers to the value that an event has generated against the cost spent in holding the event. The higher the ROI, the more value generated from each unit of cost. This means that event organizers should aim to utilize their resources in minimizing costs to hold effective events. Value does not only refer to the actual revenue generated by events, it also includes the number of attendees and value produced by sponsorships, partnerships, etc.
Likewise, when it comes to cost, most people instantly think of issues directly related to financial expenditure, such as renting venues and labor costs. However, in this situation cost does not only refer to money, but also includes time and opportunity costs.
Identify an Ultimate Event Goal
Before you hold an event, you have to confirm your event goals and what you want to achieve. ROI can be one of the metrics used to measure the value generated by the event in comparison to the effort you put in.
You can set any goals that you want to achieve. For example, building brand awareness, generating leads, or attracting as many attendees as you can, and these goals are easily measured. After you have identified a primary goal, you can write it down and think about what other goals you want to achieve. But remember, these other goals are not the priority; you’ll eventually have to focus and put effort into striving for your primary goal.
Set Objectives to Achieve Your Ultimate Event Goal
When you have set your ultimate goal, you have to think about what steps will achieve it. It is crucial for event organizers to set a clear objective.
How does one set an objective? It has to be measurable and usually uses numbers to represent that measurement. Let’s say your goal is to increase brand awareness. You can take a look at the number of event attendees and how many of them have reached your social media platforms, like Instagram and Facebook. For instance, you might set a target that of the 1000 people who attend your event, 20% of them will reach your social media platforms. Alternatively, if your goal is to increase sales through an event, you could set an objective that 10% of event attendees turn into customers. Remember to try to use numbers that represent your objective so that you can measure it easily!
Start Boosting Your Event ROI Today!
Now you should have a better understanding of how event ROI works! Do you want to know how to manage the ROI for your events in a smarter way? Click here to learn more about how EventX can help with that!