5 Factors to Consider When Measuring ROI
Within any industry, ROI is an important factor when determining the success of your business. Many fail to realize however that ROI is more than just monetary.
It’s understandable to be wary of shelling out money when you’re unaware of the potential return you’ll receive but there are many more factors to consider when measuring ROI!
We’ve put together these 5 factors to consider when measuring the ROI of an event so that you are best equipped to organize your strategy and successfully grow your business.
The most common reason you may want to measure ROI is to determine the profit you’ve made. In this case, you need to go after numeric indicators and make a total evaluation of the money you’ve earned. The total revenue refers to the money you received after an event. The real profit, on the other hand, is the actual earnings that go into your pocket (or into your company’s pocket) after extracting all the investments you made to execute your services.
Another aspect you may be interested in is finding out how your sales pipeline grew after an event. This can be done by evaluating the number of closed sales. By focusing on this measurement concept, you’ll be able to understand the effect your marketing had on the event. On the other hand, you’ll be able to use these measurements to find ways to ensure a future event has a greater sales result.
While likes, retweets, and RSVP’s don’t necessarily add profit to your business, it does help bring brand awareness and greater brand reputation. Aside from the online interactions, clients may use word-of-mouth to recommend your services to their friends, family, and colleagues who could benefit from attending or possibly partnering up with your company and vendors.
With some events, the focus is transmitting an idea or in education professionals about potential challenges they may encounter and ways you can help overcome them. In this case, when you measure event ROI, focus on the number of leads you attracted and the community growth percentage. This will give you a clear idea about the informational impact your event had on your attendees.
Similar to brand awareness, engagement is a powerful way to measure ROI. By encouraging your guests to participate in activities you’ve set up such as live polls or quizzes. The participation results you collect after the event will give you a clear idea about the attendee engagement and give you a better understanding of what they are interested in and what they aren’t.
As you can see, there are multiple ways to measure ROI. From evaluating the social media engagement to calculating the real profit, you can always assess your company’s impact and success. However, it’s important to remember that analyzing event outcomes involves a well-defined strategy. That’s why, before initiating the ROI evaluating process, always ask yourself what your intentions are and what you want to do next with the insights you’ll gain.