Understanding ROI – How to Get the Results and the Personal Credit You Deserve from Your Events Programs!|
ROI - In the Simplest of Terms
Events are a business improvement tool. They provide a Return On Investment by making and/or saving money. To make or save money, participants must be persuaded to act in a manner that benefits the host.
Specific Action Delivers ROI
Only events that are focused to drive participants to act (i.e. drawing the prospect into the purchase cycle or changing the employee's job behavior) will deliver results.
Consider the value of planning your next program around this question:
“Specifically, what do we want the participants to do as a result of participating in our event?”
Properly planned events:
o Reduce the cost of sale
o Increase revenue
o Reinforce existing relationships with customers, partners or employees
o Increase the speed of sales, production or decision making
In addition, many events create valuable exposure and promotion for your company.
The Team that Executes the Basics Wins
Too simple? Maybe not. “Razzle dazzle” may win a game, but a winning season depends upon consistent execution of the basics.
Billions of dollars are squandered each year on ineffective exhibits, conferences and meetings. Yet, some companies produce as much as 70% or more of their total business through contacts initiated at marketing events. Companies use internal events to motivate their employees to record performances. The difference is having a plan to secure a commitment for action from the participant linked directly to profit improvement. These actions must link directly to revenue generation of expense reduction. Leading the prospect to the order, lowering the cost of sale, improving decision making, increasing productivity or quality, in turn increase employee and customer loyalty. These are all examples of profit improvement outcomes.
When is the Last Time You Really Got Back to Basics?
Most of you have too many deadlines, not enough staff, and the next event looms on the horizon. There are constant changes in your market, your strategy and your products. All of these constraints can prevent you from doing things the way you would like to. Getting back to the basics of producing events that generate an attractive return on investment depends upon simplifying your planning process and execution to focus on what matters to the bottom line.
The fruits of a well planned event may be classified as “Payback.” Payback( i.e. Return on Investment) comes from four sources:
1) Revenue (Increase in Sales)
2) Customer Relationship Management (Customer and Revenue Retention)
3) Cost Savings (Efficiencies using events as the catalyst)
4) Promotion or Communication Value (Equivalent Value of Advertising Required to Achieve Similar Promotional Impact in the Market, or for Internal Events, the Cost of Alternative Means of Communication)
These values, when added together and divided by an event budget, produce a payback ratio. Actual payback ratios, on recent road show seminars for companies like IBM, range from $80 to $240 dollars in sales and savings for every dollar spent. How do they achieve these goals? Their plans include specific "actionable" outcomes - actions that often begin at the event. These actions tie directly into the sales cycle, and can be tracked and reported.
Get the Returns You Deserve - By Creating the Right Mix of Events and Activities
Most companies readily admit they are unsure if they are getting any positive results from their current events. They are equally unsure how to change their legacy approach, especially in light of new, alternative media. The opportunity to diagnose and implement changes in your event programs to produce identifiable return on investment has never been greater. Constellation Communication can help you determine where you should invest, how much you should spend and how to deliver bottom line impact. We will help you get the results you expect and deserve.
Get the Personal Credit You Deserve for Managing Events to Deliver Business Profitability
A major goal at Constellation is to help event and communications managers get the credit they deserve for managing profitable event programs. Many of our top clients carry their event measurement reports with them for their annual performance evaluation. A number of our clients directly attribute a part of their career success to the event planning and measurement programs supported by Constellation. Read the case studies and articles in the "Solutions" section of our website for examples.
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