We firmly believe that as a form of marketing and method of communicating with potential and existing clients, events are one of the top ways for doing just this. They’re personal, engaging, and – as technology continues to evolve – becoming even more futuristic and exciting for visitors and exhibitors alike. The possibilities are almost endless; but whilst events are undeniably lucrative, measuring that effectiveness can be a difficult task.
As we discussed in a previous article related to measuring ROI, the structure of events and the free-movement of visitors and exhibitors can make it particularly tricky. Jennifer Hawkins, the Marketing Director for DoubleDutch, shared her professional insights on calculating event ROI with the Event Manager Blog website and broke down some ways of gathering accurate data on this metric.
Firstly, work out the total cost of executing an event. This covers venue costs, booth sponsorship and the cost connected to the time invested. Whilst the first two points are fairly qualitative, the second requires an estimation of the time invested before, during and after a show. This may not be totally accurate but will still help in calculating the total cost of an event.
The next stage is to review the quantifiable elements of an event, such as revenue generated, new deals created and new customers garnered. All this stage requires is some simple maths; but there are other elements that deserve attention and that are less objective: the value of increased networking and improved brand recognition, for example. Assigning value to these subjective elements is one way of trying to turn them from intangible elements to quantitative ones.
Finally, combine all the above elements to create a ROI ‘grade’ for the event in question to quantify its effectiveness and impact.
Figuring all this out is where tech can help. As well as giving an event the added ‘wow’ factor, technology and professionally managed, specialist event-focussed services can help businesses understand ROI and gather important data from visitors and delegates. The brandWallet system from us here at DB Systems is one service capable of doing just that.
Do you think Hawkins’ suggestions on how to measure event ROI are accurate? Can you think of other things to consider? And what about the subjective elements listed above – do you think these need to be considered and do they genuinely add value to the final ROI estimation?