How do you measure the return on investment (ROI) of your networking activities?

1 Define your objectives

Before you start measuring your networking ROI, you need to define what you want to achieve from your networking activities. Do you want to increase your brand awareness, generate leads, build relationships, or gain referrals? Depending on your objectives, you will need different metrics and methods to assess your networking performance.

2 Track your inputs

The next step is to track your inputs, or the resources and time you invest in your networking activities. For example, you can record how much you spend on attending networking events, memberships, travel, or marketing materials. You can also track how much time you spend on preparing, attending, and following up on networking opportunities. Tracking your inputs will help you calculate your costs and compare them with your benefits.

3 Track your outputs

The outputs are the results and outcomes you get from your networking activities. Depending on your objectives, you can track different outputs, such as the number of contacts you make, the quality of your connections, the referrals you receive, the leads you generate, or the sales you close. You can use various tools and methods to track your outputs, such as CRM systems, surveys, feedback forms, or analytics software.

4 Calculate your ROI

To calculate your networking ROI, you need to compare your outputs with your inputs. You can use a simple formula, such as ROI = (benefits - costs) / costs, or a more complex one, depending on your objectives and metrics. You can also use different time frames, such as monthly, quarterly, or yearly, to measure your networking ROI. The key is to be consistent and realistic with your calculations and assumptions.

5 Evaluate your performance

Once you have calculated your networking ROI, you need to evaluate your performance and identify what works and what doesn't. You can use various criteria and benchmarks to evaluate your performance, such as your goals, industry standards, competitors, or best practices. You can also use qualitative feedback and testimonials to complement your quantitative data and get a more holistic picture of your networking impact.

6 Improve your strategy

The final step is to improve your strategy and optimize your networking activities. Based on your evaluation, you can identify your strengths and weaknesses, and make adjustments accordingly. You can also experiment with different networking channels, methods, or techniques, and measure their effectiveness. The key is to keep learning and improving, and to align your networking strategy with your business goals.

7 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?