Event attendees, increasingly digital, possess a lot of information, share it, seek greater added value and demand unique experiences. In this context, companies have been subjected to a process of innovation and constant adaptation to remain competitive and attractive to their target audience.
The key to success lies in analyzing the economic results once the event has come to an end. But how do we transform the data into objective and useful information for decision making? To do this we need to know what ROI or Return on Investment is and how to calculate it effectively.
Read on to find out what event ROI is, how it is calculated and all the benefits it can bring to your business. Let’s get started!
What is event ROI and how is it calculated?
If we want to improve the management of future events and increase our income, it is necessary to talk about what ROI is. The Return On Investment (ROI) indicates the amount of profit obtained as a function of the expenses invested to carry out the event. The formula to calculate it is as follows:
Income – expenses / expenses x 100 =ROI
In many cases it can be difficult to measure the impact of events following this rule, since not all benefits are economic, immediate or quantifiable. To know what to measure and how to measure it, we must keep in mind what the real objectives of the event are. Depending on this we will be able to obtain some data or others to measure the real value generated by the event.
But… How do we achieve this? By defining the key business or quality indicators, the so-called KPIs (Key Performance Indicators), and we must establish which are the most important ones for the event from the beginning.
Define the KPIs of your event
When organizing an event it is important to define objectives that are specific, measurable, achievable, relevant and based on a specific period of time. To know if we have achieved what we have proposed we will use key performance indicators or KPIs.
Keep in mind that there are objective and emotional indicators. The firsts are much easier to measure, it is enough to interpret the figures. With the emotional ones you cannot extract percentages to determine the success of the event, in this case we recommend focusing on knowing the user experience to try to optimize it as much as possible. For example, did they participate in the event activities, did they express their satisfaction through social networks or surveys?
There are many indicators that can be used to gather data and measure an event, which will later help us to redefine the strategy for future editions. Some of them may be:
- Determine the total and actual profits obtained.
- Brand awareness. You can focus on social media and web traffic indicators: for example, visibility, new leads, number of clicks or engagement.
- Sales revenue. Here you can rethink the marketing of your event, if necessary.
Reasons to know the ROI of your event
When we do the analysis of any activity, event or business, we can try to interpret the data to correct mistakes, add improvements, but above all to maintain what works. There are many benefits of evaluating the impact of your event. Some of them are the following:
Improved management and planning
Having objective information on everything that happened at the event allows you to know what generated revenue, and conversely, what resulted in losses. Therefore, the results of the ROI measurement will determine the planning and management of the next events.
Increase your average ticket
Knowing where we are going to invest more or less in the future can affect the average ticket, which is one of the best KPIs to calculate the real revenue of an event and, based on the resources we have, use one strategy or another to increase the average ticket per user.
Expand your sales possibilities
The monitoring information of the KPIs proposed at the beginning of the event allows us to increase revenue. Measuring ROI in events generates objective insights of everything that happened during the event that you can use to increase the impact of your strategies.
When you know perfectly the purpose of the event, what you want to measure and which indicators you are going to pay attention to, it is advisable to digitize the measurement process to achieve all these benefits.
Measure event return on investment with Gofun technology
What we do not measure we cannot manage in an optimized way. The use of technology in events allows us to obtain real-time data during the course of the event. Our Gofun software incorporates NFC technology in wearables such as wristbands or cards, which together with business intelligence, allows us to extract information from everything that happens at the event. Another metric that allows us to analyze this technology is the access control, recharges, ticket sales and consumption, products out of stock or the capacity in real time, among others. We help you measure the success of your events based on the established KPIs. Contact us!
