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Understanding ROI
Get the Results and the Personal Credit You Deserve from Your Events Programs!
ROI
Events are a business improvement tool. Return on investment is realized only when you make or save money through an event. To make or save money, the participants must be persuaded to act in a manner that benefits the host.
Specific Action Delivers ROI
Communication programs focused to drive participants to act (i.e. an action that draws the prospect nearer to purchase or changes the employee's job behavior) are the ones that deliver results. Consider the value of planning your next program around this question:
“Specifically, what do we want the participants to do as a result of participating in our event?”
Properly planned events reduce the cost of sale, increase revenue, reinforce existing relationships with customers, partners or employees, or increase the speed of sales, production or decision making. In addition, many events create valuable promotion for your company, not only in the marketplace but with your employees as well.
The Team that Executes the Basics Wins
Too simple? - maybe not. “Razzle dazzle” may win a game, but a winning season depends upon consistent execution of the basics.
Billions of dollars are squandered each year on meaningless “razzle dazzle,” yet some companies produce as much as 70% or more of their total business through contacts initiated at marketing events. Companies use internal events to motivate their employees to record performances. The difference is the plan to secure a commitment for action from the participant that links directly to profit improvement. These actions must link directly to either revenue generation of expense reduction. Leading the prospect to the order, lowering the cost of sale, improving decision making, increases in productivity resulting in greater output and perhaps higher quality, and increases in employee or customer loyalty are all examples of profit improvement outcomes.
When is the Last Time You Really Got Back to Basics?
Most of you have too many deadlines, not enough staff, and the next event looms on the horizon. There are constant changes in your market, your strategy and your products. All of these constraints can prevent you from doing things the way you would like to. Getting back to the basics of producing events that generate an attractive return on investment depends upon simplifying your planning process and thus the execution to focus on what matters to the bottom line.
Payback
When you plan your activities to result in action by the participants, in turn leading to an increase in sales, retention of current business, improvements in employee productivity and loyalty, positive business results are achieved. We call this “payback.”
Payback( i.e. Return on Investment) Comes from Four Sources:
1) Revenue (Increase in Sales)
2) Customer Relationship Management (Customer and Revenue Retention)
3) Cost Savings (Efficiencies using events as the catalyst)
4) Promotion or Communicaiton Value (Equivalent Value of Advertising Required to
Achieve Similar Promotional Impact in the Market, or for Internal Events, the Cost of Alternative Means of Communications)
These values, when added together and divided by the budget for your event, produce a payback ratio.
Actual payback ratios, on recent road show seminars for companies like IBM, range from $80 to $240 dollars in sales and savings for every dollar spent. How do they achieve these goals? Their plans include specific "actionable" outcomes - actions that often may begin at the event. These actions tie directly into the sales cycle, and can be tracked and reported.
Get the Returns You Deserve - By Creating the Right Mix
Most companies readily admit they are unsure if they are getting any positive results from their event activities. They are equally unsure how to change their legacy approaches to take advantage of new, alternative media. The opportunity to diagnose and implement changes in your event programs to produce identifiable return on investment has never been greater. Constellation Communication can help you determine where your should invest, how much you should spend and how to deliver bottom line impact. We will help you get the results you expect.
Get Personal Credit You Deserve for Managing Events to Deliver Business Profitability
A major goal at Constellation is to see event and communications managers get the credit they deserve for managing profitable event programs. Many of out top clients carry their event measurement program reports in with them as the basis for their annual performance evaluation. A number of our clients directly attribute a part of their career success to the event planning and measurement programs supported by Constellation. Read the case studies and articles in the "Solutions" section of our website for examples.
Ready to Get Started?
Click here to begin. Let us know what you are interested in discussing and we will contact you immediately.
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