How do you measure and report on the return on investment (ROI) of your events?

1 What is ROI and why is it important?

ROI is a financial metric that compares the benefits and costs of an investment. It is usually expressed as a percentage or ratio that indicates how much profit or value is generated for every dollar spent. For example, if you spend $10,000 on an event and generate $15,000 in revenue, your ROI is 50% or 1.5. ROI is important because it helps you evaluate the effectiveness and efficiency of your events, justify your budget and resources, and demonstrate your contribution to your organization's bottom line.

2 How to calculate ROI for your events?

To calculate ROI for your events, you need to identify and quantify the benefits and costs of your events. Benefits are the positive outcomes or results that your events produce, such as revenue, leads, sales, donations, brand awareness, customer satisfaction, or employee engagement. Costs are the negative outcomes or expenses that your events incur, such as venue, catering, marketing, travel, staff, or equipment. The basic formula for ROI is:

ROI = (Benefits - Costs) / Costs x 100%

However, depending on your event goals and objectives, you may need to adjust or modify this formula to account for factors such as time, risk, opportunity cost, or intangible benefits.

3 How to set and track event goals and objectives?

Before you can measure and report on the ROI of your events, you need to set and track event goals and objectives. Goals are the broad and long-term outcomes that you want to achieve with your events, such as increasing sales, building relationships, or educating customers. Objectives are the specific and measurable steps that you need to take to reach your goals, such as generating a certain number of leads, registrations, or feedback. To set and track event goals and objectives, you can use the SMART framework, which stands for Specific, Measurable, Achievable, Relevant, and Time-bound. For example, a SMART objective for an event could be:

Increase the number of qualified leads by 20% within six months after the event.

To track your progress and performance, you need to define and collect key performance indicators (KPIs) that align with your objectives. KPIs are the metrics that you use to measure the success of your events, such as attendance, conversion rate, satisfaction score, or net promoter score. You can use tools such as surveys, polls, analytics, or CRM software to collect and monitor your KPIs.

4 How to collect and analyze data for your events?

In order to collect and analyze data for your events, it is essential to plan ahead and use the appropriate tools and methods. You must decide what data you wish to collect, how it will be collected, when it will be collected, and who will collect it. Additionally, you must ensure that the data is accurate, reliable, and relevant. Common sources and methods of data collection for events include registration forms to collect basic information such as name, email, company or industry; surveys to measure satisfaction, expectations, learning outcomes or behavior change; analytics to measure reach, engagement, traffic or conversions; and CRM software to track sales pipeline, follow up actions or revenue. To analyze the data, it is necessary to organize and visualize it before interpreting the results. Comparing the data with goals and objectives allows you to identify trends and patterns as well as draw conclusions and insights. Tools such as spreadsheets, dashboards or reports can be used to analyze and present the data.

5 How to communicate your results to stakeholders?

In order to communicate your results to stakeholders effectively, it is important to tailor your message and format to the audience and purpose. You should emphasize key findings, achievements, and recommendations, as well as demonstrate how your events brought value and impact. It is also necessary to be clear, concise, and credible, and use evidence and stories to back up your claims. Reports can be used to provide a comprehensive overview of your events, including the background, objectives, methods, results, analysis, and conclusion. Presentations are useful for providing a brief summary of your events with the highlights, outcomes, and feedback. Lastly, infographics are helpful in providing a visual representation of your events with facts, figures, and stories that can capture attention and simplify information.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?