Measuring ROI from networking

Networking events have long been recognised as valuable opportunities for professionals to establish connections, build relationships, and expand their professional networks. However, when it comes to measuring the return on investment (ROI) from networking events, many individuals and organisations struggle to determine its true value. The challenges of measuring ROI from networking events are real and how can we create potential strategies to gain insights into their effectiveness.

Attending events

Before we look into ways to measure the ROI of a networking event, it is highly important to discuss your work-life balance.

Your own time

Attending networking events on your own time can be a strategic investment in your professional growth and development. While it may require sacrificing personal time and committing additional hours outside of regular work, the benefits can be significant. By proactively participating in networking events outside of working hours, you demonstrate a genuine commitment to expanding your professional network and staying updated with industry trends. It showcases your dedication to personal and career growth, positioning you as a proactive and ambitious professional. Furthermore, attending networking events on your own time allows you to engage with a wider range of professionals who may not be present at company-sponsored events, providing unique opportunities for new connections and collaborations.

On the flip side protecting yourself and ensuring you are not taken advantage of in your own time is essential for maintaining a healthy work-life balance and preserving your well-being. It is common for professionals to feel pressured to constantly be available and accessible, even outside of regular working hours. However, setting clear boundaries and asserting your rights can help prevent others from encroaching on your personal time.

The Employer

As an industry, it is essential to prioritise and promote a healthy work-life balance for employees. The demanding nature of the events industry, with its long hours, tight deadlines, and high-pressure environments, can easily lead to burnout and negatively impact employees' well-being.

Setting realistic workload expectations, providing adequate staffing and resources to avoid excessive workloads, and promoting flexible working arrangements when feasible. Offering options such as flexible schedules, remote work, or compressed workweeks can enable employees to better manage their personal commitments and responsibilities.

Decisions

To make an informed decision, research the event thoroughly. Look into the agenda, speakers, and networking opportunities it provides and also assess what relationship you are looking at getting from the event. Assess the relevance of the event to your professional goals and the potential benefits it offers. Consider the value of the connections you may establish and the knowledge you can gain.

Furthermore, evaluate the long-term impact of attending the event during work hours or using your own time. Consider the potential career growth opportunities, industry insights, and connections you can make. Reflect on the potential benefits of expanding your professional network and the impact it may have on future collaborations or opportunities.

What is ROI

ROI stands for Return on Investment. It is a financial metric used to evaluate the profitability or efficiency of an investment by comparing the return or benefits gained from the investment to the cost of the investment itself. In essence, ROI measures the return or value generated from an investment relative to its cost.

Measuring ROI is vital for strategic decision-making, resource allocation, performance evaluation, and accountability. It enables businesses to optimize their investments, drive profitability, and ensure sustainable growth in today's competitive landscape.

Quantifying

One of the primary challenges in measuring ROI from networking events is the intangible nature of the outcomes. Unlike more tangible marketing activities, such as lead generation or sales conversions, the benefits of networking events are often difficult to quantify. Networking is a long-term investment that focuses on relationship building, trust development, and brand awareness, making it challenging to attribute direct monetary value.

Objectives

To measure ROI effectively, it is crucial to establish clear and measurable objectives for attending. These objectives could include expanding the professional network, generating new business leads, accessing industry insights, or enhancing personal brand visibility. By setting specific goals, it becomes easier to track and evaluate the outcomes against the initial investment.

Metrics

While measuring the true impact of networking events can be complex, certain quantitative metrics can provide valuable insights. These metrics may include the number of new contacts made, the number of business cards exchanged, the number of follow-up meetings scheduled, or even the number of new business opportunities identified. Collecting and analysing these metrics can help gauge the immediate impact of networking events.

Assessment

In addition to quantitative metrics, qualitative assessments are essential for understanding the long-term value of networking events. This involves evaluating the quality of connections made, the level of engagement during conversations, the relevance of contacts to one's industry or goals, and the strength of relationships established over time. Qualitative feedback through surveys, testimonials, or post-event evaluations can provide valuable insights into the impact of networking events on professional growth and business development.

Relationships

Networking is an ongoing process, and the true value of networking events may only be realised over an extended period. Tracking the progress and development of relationships established at networking events is vital to understanding the long-term impact. This can be achieved through relationship management tools, customer relationship management (CRM) systems, or regular follow-ups to assess business collaborations, referrals, or partnerships that may have resulted from initial connections.

Your Gut

When attending networking events you may be used to relying on your gut in the decision making process. While relying on your gut instincts can sometimes be valuable in decision-making, it is not always the most reliable or effective approach. Gut feelings are often based on intuition and personal experiences, which can be biased and subjective. Making important decisions based solely on intuition can lead to inconsistency, errors, and missed opportunities.

Instead, it is advisable to employ a more structured and analytical approach to decision-making. This involves gathering relevant information, conducting thorough analysis, and considering various factors and perspectives. By relying on data, facts, and evidence, you can make more informed and objective decisions.

However, it is essential to strike a balance between intuition and analysis. Sometimes, your gut feelings can provide valuable insights or guide you when faced with ambiguous or complex situations. In such cases, it can be beneficial to combine your intuition with data-driven analysis to make well-rounded decisions.

Overview

While measuring ROI from networking events presents inherent challenges, it is not entirely impossible. By setting clear objectives, utilising quantitative metrics, incorporating qualitative assessments, and tracking long-term relationship development, professionals and organisations can gain valuable insights into the effectiveness of their networking efforts. Although the direct financial impact may be challenging to measure, the intangible benefits of networking, such as industry knowledge, personal growth, and reputation building, should not be underestimated. Networking events remain valuable opportunities for professionals to expand their networks, foster meaningful connections, and open doors to future opportunities, making them an essential component of professional growth and success.

It is important to consistently measure the return for both the company and also on your own personal time. Too many people just attend an event over and over again never getting any results and just flogging the same product in the same way. Networking is about connections and attempting to sell to someone all the time and not reading the other person can lead to no return on investment and just a waste of your time.