Are you measuring ROI on your corporate events?
Did you know that events industry directly contributes $115 billion to the US GDP every year?
Yes, you heard that correctly!
In recent times, corporate events have risen to the fame. And right so. With all the benefits (and glitz and glam) they bring on the table, even the small companies – who are often limited in their budget – have joined the mix of this growing fandom.
Traditionally, the purpose of such affairs was rather definite like generating leads, launching new products and rewarding employees. However, the approach has taken a big shift today, with companies organizing corporate events just for the sake of it. Maybe to grab eyeballs, to stay relevant in the news or to be a part of the trend—but with no direct business goals.
While this idea might sync in well with the extravaganza of companies with budget that of Fortune 500, for SMEs it’s a successful recipe to big financial troubles ahead.
Different corporate events have different benefits….
- Conference and Seminars: To attract new clients or customers
- Press Conference: To announce something important
- Team Building Events: To foster trust and reliability among the team members
- Product Launches: To introduce new product(s) or service(s) in the market
- Executive Retreats: To celebrate achievements and milestones, and to rejuvenate
…but the investment is all a waste if done with no strategy
Every corporate event must have clear-cut goals that are backed with definite and well-planned strategies. If you aren’t clear on the ‘what, how, when and why’ part, the event, unsurprisingly, will fail to yield any noticeable outcome.
The success of such business events largely depend on how they are planned. But most importantly, the success of the business depends on how the Return On Investment (ROI) and Return On Objective (ROO) of these events are measured. Sadly, many companies overlook the later part, spending the least of their time in measuring the return on such a big investment of their time and money.
Importance of Measuring ROI of your Corporate Events
Did the event help you achieve your objectives? Did it help your brand get the exposure you hoped for? Did it manage to attract the number of clients or customers that you were looking for?
Are your employees happy and satisfied after the recreational event? Did you and team make any important decision on business dinner or golf event? What did you achieve from the award ceremony?
These are some fundamental questions whose answer depends on the success or failure of your corporate event. How do you determine whether it was a success or disappointment? By measuring ROI.
The measured number also helps the next time, in organizing even a grander and more rewarding event.
But again, things are easier said than done!
Challenges of measuring ROI of Corporate Events
Measuring ROI of the events still remains one of the most challenging tasks for the corporates. Many of them fall short on the “how to” part—how to measure this metric?
In fact, according to a survey, 22 percent of brands do not have a way of measuring the return of their events. And 70 percent of those respondents admitted of their inability to successfully deliver and measure ROI.
Indeed assessing return of any business event is difficult since there are no hard formulas to conclude the result with explicit numbers.
So the challenge for the companies is to take up different measures – or associated metrics – to come up with an approximate ROI value. Depending on your corporate event type, goals and more, associated metrics could be anything, from number of press mentions, leads generated and prospects gathered to number of attendees, transactions closed, partners/employees recruited.
So if you’ve just organized a corporate event or are planning to, it is rather imperative that you care obsessively about its ROI. Sure it’s tricky. And demands to be smart—but you can be smart, can’t you?
This is the first in our 4-blogs series that discusses the significance, benefits, challenges, and strategies of measuring ROI of corporate events.