Events take a lot of time and effort to organise, so it goes without saying that you want to make sure yours has been a success and that you’ve achieved the goals you set for yourself. The best way of finding out is by calculating the return on investment (ROI), which assesses how much value you got out of your event versus how much you put into it.
In order to do this, you need to know what your goals for the event are. Are you wanting to make a profit through ticket sales? To build brand awareness? Or maybe to launch a new product? Whatever your goals may be, it’s important to recognise them in order to measure against them. Read on to find out how you should go about measuring the ROI of your event.
Attach metrics to each objective
In order to be able to measure how well your event has reached your goals, you need to attach something measurable against it. For example, if you’re aiming to increase brand awareness, looking at the number of people who attended your event and the level of media coverage are good ways to measure it.
To help you understand your achievements in each area, it’s useful to set some specific goals for each metric. So in the example above, this could be to have 200 people attend your event or to be mentioned in the media ten times.
Gather your data
Now that you know what you want to measure your success off, you need to gather the relevant data. For example, if you’ve decided to base your ROI on the number of people who attended your event and the profit you made, work out how many people attended and how much each person spent.
By the end of this stage, you should have all the information you need regarding how much money the event brought in and by how many attendees.
Work out your ROI
Now all that’s left to do is to work out your actual ROI. To do this you need to look at all the costs involved in planning and hosting the event. This includes all marketing costs, staff, the venue, entertainment, catering, logistics and all the other costs involved in your event.
Once you know exactly how much your event cost you, you can take this away from your total sales revenue and then divide this by the total cost of the event. The final result is then expressed as a percentage, so multiply it by 100 to find your ROI. For example, if an event cost you £1000 and generated £2,500 in revenue, the ROI would be worked out as follows:
£2,500 - £1,000 = £1,500
£1,500 ÷£1,000 = 1.5
1.5 x 100 = 150% event ROI
Although the thought of measuring event ROI might seem scary, it’s not actually that complicated. It’s all about setting some goals and benchmarking against them. The hardest part is gathering all of your data and knowing what information you’re looking for, but if you follow the process above you won’t go far wrong.
Here at Winter Gardens, we provide a wide range of services to event organisers who are hosting an event at one of our venues. You can find out more about our services here.