Events are generally immensely valuable for associations. They can enhance professional development, drive membership growth, foster community and facilitate networking. Therefore, they are considered worth the investment for many associations. However, when contemplating the overall value versus the cost of such events, one primary factor stands out above others in terms of importance: the event ROI. The following information will tell you everything you need to know about calculating and improving your event ROI as an association, ensuring you get the most benefit from any event you host.
What is Event ROI?
Event ROI refers to the return on investment an association gains from hosting an event. It measures what is gained from the event, compared to what was spent to make it happen. While in many cases, this figure is used by determining how much revenue is derived as a result of an event, that is not the only measurement that is important to associations. After all, money in versus money out isn’t always the standard for associations when determining event ROI. For example, in terms of associations, an event ROI can also be measured in what is gained from hosting an event. The following are some additional values that can be derived in addition to the simple cost of registration fees and ticket sales which are the most basic forms of revenue for an event:
- Lead Generation: For associations and businesses alike, gaining new leads can be a big benefit of an event.
- Pipeline Value: This is the business deals that might come about due to the event or deals struck at the event.
- Partnership and Sponsors: It can help to offset the cost of an event to collaborate with other associations or businesses and can even help fortify those relationships by benefiting the sponsors as well.
- Social Media: Events make a great setting for social media posts and press mentions about your association, which can lead to even more memberships.
- Brand Recognition: Another benefit of an event and what can make it valuable outside ticket sales is greater brand recognition for your association.
- Marketing Content: Events create the ideal backdrop for marketing videos that you can then use within your marketing materials year round.
Event ROI Formula
Although the value of an event is subjective and can be based on more than mere ticket sales or registration fees, there is a way to quantify the event’s success in an event ROI formula. To put it most simply, this looks like the following:
Event ROI= [(Event Gains-Event Costs) / Event Costs] x 100
Event gains, as we have already discussed, can involve, and often does include, more than mere ticket sales to attend the event. For associations, you can also benefit by increasing member engagement, promoting sponsorshipsv and more, in addition to ticket sales.
The cost of an event is the expense spent on planning and putting on the vents. This can include paying staff for planning time as well as paying them to work the event. It can also include the cost of the venue rental or item rentals, the marketing costs related to the event, the tech required to put on an event, along with the materials or swag given out at the event. These are all part of the costs of any event and have to be considered in the event ROI.
Association Based Example
While the exact numbers spent on any event will be unique to your association. The following offers a simplified example of the type of event ROI for an association. This can be used to exemplify what real-world numbers might look like for your association:
- Revenue Total for Event: $50,000 (this amount is earned from booth rentals, ticket sales, sponsorships and more.)
- Expenses Total for Event: $30,000 (this number would include catering costs, marketing, staff costs, venue rental and more.)
ROI= (Revenue for Event – Expenses Total)/ Event Expenses
ROI=($50,000- $30,000)/ $30,000
ROI= $20,000/ $30,000
ROI= 0.67 or 67%
This is just a general look with some non-specific numbers that showcases how an ROI is measured in real life.
What a Good ROI Looks Like
Obviously, the success of your event will be based on various factors. Success metrics should be based on your overall goal or point of the event. In other words, an event might not be a revenue success but could be considered valuable by your members and lead to other benefits like member loyalty and additional growth. Of course, this will eventually lead to increased revenue as well, but it might not be as obvious as money spent versus money earned in all cases. In its most basic format, generally, a good ROI for any event is defined as a ROI between 50 and 100%.
Best Practices to Improve Your Event ROI
Now that we have considered the ways in which an event ROI is determined and how to quantify the success of an event in more than simple money earned, it’s now time to look at how to improve your event ROI, no matter your event goal. The following are some practical tips you can put into practice at your next event to improve your overall event ROI:
1. Set Clear Goals from the Start
First up on the list, choose your objectives or goals from the beginning. Do you want the event’s success to be primarily tied to revenue or instead be more related to engagement or member enjoyment? Setting this at the beginning of the process will help you meet your association’s idea of success.
2. Know Your Audience and Personalize the Experience
To get the most out of any event and have it considered a success, tailor your sessions and formats to your member’s needs. This will help you get the most bang for your buck in terms of putting on an event your members will benefit from and enjoy.
3. Streamline Event Tech to Reduce Costs
Avoid the over-proliferation of tech, also known as tech sprawl, at your event. This essentially means you are using too many types of technology, and it is not streamlined or user-friendly. Instead, choose platforms that scale and integrate to your members more efficiently.
4. Maximize Sponsorship Opportunities
Since sponsorships are key to having a successful event, it’s important to build value-driven packages that deliver good ROI to sponsors too, to entice more collaboration. This will entice more sponsors and reduce your cost, improving your ROI.
5. Engage Attendees Before, During and After
It’s important to the success of an event to engage attendees throughout the entire event process. This means that your association should engage them before, during, and then after the event. This can be accomplished in a few key ways. This can include check-ins, polls and then follow-ups after the fact to keep members connected. Surveys are another way to gauge event engagement and even predict repeat event attendance in some instances.
6. Track the Right Metrics
Another important way to improve your event ROI is to track the right metrics. This ensures that you are considering success in the right capacity. The metrics that are key to track include lead conversions, no-shows of members for events, member registration, membership renewals and other key metrics. Knowing this will help you more accurately ascertain the true success an event has had in terms of ROI. Each of these aspects will highlight key information that is important to track when evaluating any event’s overall success, especially as it relates to ROI.
7. Repurpose Event Content
Last but not least, in terms of improving your ROI on any event, don’t underestimate the ongoing value that events provide. For example, as mentioned above, an event ROI can also include the ongoing benefit of having marketing material that can then be used for videos, resources, blogs and more to further promote your association. The more use you can get out of each event in terms of promotional or even educational materials for the future, the more successful the event will ultimately be, long-term. Don’t ever think of an event as a one-and-done happening, but a key investment in your association’s ongoing success.
Make Event ROI Work For You
Events require a significant investment and are often one of the largest expenses in an association’s budget. That’s why it’s important to maximize their impact and improve your event ROI. The strategies above offer a strong foundation but using the right tools can take your results even further.
One simple way to boost your association’s event ROI is by using a solution like MemberClicks. With features that support event planning, registration and reporting, MemberClicks helps you get more out of every event. Try a free demo to see how it can work for your team. Remember that ROI is something you can track, improve and build on. Even if past events have fallen short, the right steps now can lead to stronger results next time.
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