How to start calculating ROI on Event Marketing activity
Determine the success of an event, an integral component of your marketing strategy, with this easy to follow how-to on calculating your return on investment (ROI).
The purpose behind event marketing plans is to generate customer loyalty, increase engagement, generate sales, raise funds, and create brand awareness. It’s proven that event marketing works, so how do you measure the success of your results?
Gather the information in the first four steps: your objective, your key performance indicators (KPIs), the goals of the event, and the value earned for each KPI. Once you’ve determined your points, you’ll have all of the information you need to start calculating ROI and properly plan your event marketing goals and strategy.
Steps to start calculation:
- Outline the purpose and objective(s) of your event.
- Decide what measurable Key Performance Indicators (KPIs) you will use to evaluate the success of your event.
- Assign goal targets for each KPI
- Determine the weight of each KPI based on level of importance to the brand’s values, objectives, and goals.
Let’s start with a basic example
Step 1: Purpose & Objectives
Brand X wants to reward existing high valued clients. Their objectives are to increase brand loyalty, inspire new customers to engage, generate referrals and sales.
Step 2: KPIs
To keep things simple we will just use three KPIs in this example.
Step 3: Goals
Assign your goals with KPI values.
- Attendance goal: 5000
- Sales goal: $10,000
- Engagement goal: High Engagement
Step 4: Weight KPIs
The final step is to determine the weight of each KPI.
In this case, the main objective is to reward existing clients, therefore attendance and general satisfaction will be weighted higher than sales.
- Attendance = 70% of success rate
- Sales = 10% of success rate
- Engagement = 20% of success rate
Basic calculation example:
- Attendance result: 5,000
- Sales result: $7,000
- Engagement results: 8/10
Time to Score:
Attendance 70/70 (Goal: 5,000 Achieved: 5,000)
Sales 7/10 (Goal: $10,000 Achieved: $7,000)
Engagement 16/20 (Averaged four-star ratings)
93 /100 = 93%
Once an event can be measured, an effective cost-benefit analysis can take place. A thorough cost benefit analysis includes costs associated with each KPI, a comparative analysis against other marketing channels, and explores areas for refinement and growth.
Event marketing can be quantified and is an invaluable marketing channel. To start calculating ROI on an event marketing activity, define the purpose and goals of your event marketing plan to clearly determine the KPIs that will become the basis of the calculation.
Stay tuned for our next blog which will go over KPIs used in calculating success on Event Marketing activity.
by Zaheeda Merchant
For more information on event marketing and best practices tailored to your brand, contact us at firstname.lastname@example.org. Consultations are free!