Corporate events are a critical strategy for growing your business and expanding your network. Virtually all small- to midsize firms leverage them to accelerate their growth and sell more products.
Of course, the only reason for attending a corporate event and setting up a stall is to achieve a return on investment (ROI). You want to get more money back than you originally put into it. Otherwise, the business case doesn’t make sense.
Unfortunately, measuring ROI of your corporate event is challenging. There are many hidden variables.
However, some clever firms have figured out how to do it. Here’s what you need to know:-
The ROI Formula
The basic formula for calculating ROI is:
ROI = (Benefits – Costs) / Costs x 100%
This means that you subtract the total costs of your event from the total benefits, and then divide the result by the total costs. You multiply by 100% to get a percentage value.
For example, if you spent $15,000 on an event and generated $30,000 in revenue from it, your ROI of your corporate event would be:
ROI = ($30,000 – $15,000) / $15,000 x 100%
ROI = 50%
In other words, you got back an extra 50 cents for every dollar you spent.
The Benefits of your Corporate Events
That’s the basic formula, but you need to include a complete rundown of the costs and benefits of running your event.
Annoyingly, the benefits can be tangible and intangible, such as:-
- The amount of money you make from sales, donations, and sponsorships
- The average value of the leads your event generates
- The improvement in your brand awareness
- Greater employee engagement
For the intangible benefits on this list, you’ll need to come up with a figure that captures the value. All intangible benefits eventually become tangible, but it can take several years.
The Costs of your Corporate Events
You’ll also need to price up the tangible and intangible costs of your corporate event. Indirect and direct costs directly attributable to your event include:-
- The cost of renting out the venue
- The price of your 8×8 banner for your event
- The cost of entertainment, including paid musicians, performers, and other guests
- The cost of transportation to the venue
- The opportunity cost of the money you spent on the event which you could have directed elsewhere.
- The overhead cost including the amount of money you spent on general business expenses.
- The risk cost, or the money you could lose due to unforeseen circumstances or negative consequences related to your events, such as accidents, lawsuits, refunds, act of god, or reputational damage.
Measuring ROI of your Corporate Event
When measuring ROI of your corporate event, it is best to stick to conventional best practices. Make sure you track and record all data from your event on a spreadsheet or software capable of performing cost-benefit analyses. Compare your results from your latest corporate event with your benchmark result to see if anything changed. Always communicate and report your findings to relevant stakeholders such as management and your sponsors. Find out what worked, and what didn’t.
In conclusion, measuring the return on investment (ROI) of your corporate event is crucial for assessing its success and making informed decisions for future events. By following the steps outlined in this blog post, you can establish clear objectives, track relevant metrics, and utilize appropriate tools and technologies to collect data.
Evaluating both quantitative and qualitative aspects of your event will provide a comprehensive understanding of its impact on your organization’s goals and objectives. Remember, measuring ROI of your corporate event is not a one-time task but an ongoing process that requires continuous analysis and improvement. By implementing these strategies, you can maximize the value of your corporate events and ensure that your resources are effectively utilized to drive long-term success for your business.
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