Virtual corporate events are on the rise.
Now that you know how to organize a successful event, attract and entertain the attendees, here’s how to make the event profitable for your company. Everything is explained in this article 💡!
📖 What is the ROI of an event?
The ROI, or Return Of Investment, is a financial indicator that measures the profitability of a project. ROI is based on a benefit/cost ratio of the investment. In other words, it evaluates the efficiency and impact of your online event.
Knowing the ROI of your virtual event will improve your decision making process for the next meetings. You can use this score to plan the future actions to reduce costs and / or increase profits.
🤔 Calculating the ROI of an event, what for?
To measure the impact of your event
No freestyle ! Your corporate event must meet specific objectives and come along with a strong inbound marketing strategy.
The best way to assess your virtual event success is to measure its return on investment, namely the cost of the event compared to the income.
To justify the expenses
Was your event profitable? Did you achieve your financial goals?
You need to clearly know whether the investment paid off. Those figures will provide strong points when negotiating a higher budget at the next virtual event!
To make the right decisions
What worked right? What can be improved? How to communicate better? What are the best channels? Calculating and analyzing the ROI of your event will help you improve the next meetings!
📈 How to calculate the ROI of an event?
Define the main objective of the virtual event
The first question to be answered is : what is the purpose of the event?
How to encourage participants to join in? How to get them to buy your products or services? How to retain your existing customers? How to improve your brand image? The actions to take must be along these lines.
These are the indicators to help you check whether the main objective has been achieved. Of course, these KPIs vary depending on your goals.
Here are some examples of KPIs to measure.
Don't forget to mention the amount of each KPI in order to "transform" each user into turnover ;-)
Calculate your ROI
There are two ways to measure the ROI of an online event.
The regular method is to compare the total cost of the event with the income. The calculation is quite simple: regular ROI = event cost / turnover.
A more advanced method measures the ROI on each phase of the event. The objective is to evaluate the profitability of each step: overall ROI = (benefits - costs of the investment)/costs of the investment.
This deeper method will help you identify effective and relevant actions, and spot what went wrong.
Analyze your ROI
Let's take a basic example : if the organization of your event cost 500 euros and it brought you 1500 euros, the return on investment will be equal to: (1500 - 500) / 500 = 2.
If the ROI :
- is less than 1 😟 your event is not profitable, it is a loss.
- is equal to 1 😶 the result is neutral.
- is greater than 1 😁 congratulations, you have made a profit !
Don't hesitate to compare the event results with your other event setups : duration, presentations, dates are points to compare.
Do not worry, some event benefits can sometimes be palpable only after a long time : for example the first business contacts can lead to an actual deal only several months later.
As you now know, the best way to assess your virtual meeting is to calculate the return on investment. You can now measure an accurate and fair ROI. Your turn now!