The 21st century has seen the events industry elbow its way on to the parliamentary agenda and take to the world stage during the 2012 Olympic Games. Return on investment (ROI) has been a key tool in promoting the industry’s legitimacy, helping build a strong case for events being the vanguard for effective brand messaging.
The ROI movement has certainly had its share of evangelicals in the events media. Emboldened PR campaigns, with titles like Events Mean Business and Britain For Events, tout the fiscal benefits of holding an event with ROI and return on objective (ROO).
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This all sounds great in theory, but in the majority of cases companies, are either not undertaking ROI evaluations at all, or failing to act on their findings when they do take measurements, thus missing the aim of the process. Amanda Hanlin, director of global sales for meetings, groups and events at HRG, says it’s what companies choose to do with ROI measurement that counts, and inaction is all too common. “Often, our clients take no action at all after undertaking a thorough ROI measurement,” she says. “This is sometimes because after measuring an element of an event, and putting a large resource into this, it can be time-consuming to reverse and start afresh the next time.”
Even ROI’s greatest advocates admit it is the exception rather than the rule in corporate events today. “Why senior management lets people get away with spending large amounts of money and time without accountability is still a mystery to me,” says Elling Hamso, managing partner of the Event ROI Institute. ”You should ask them why.”
Absolute Corporate Events managing director Chris Parnham agrees that ROI is something that’s championed by agencies more than corporate clients. “Good event management agencies recognise that the way to secure repeat business is to be able to show how effective an event has been.”
One such agency, Corporate Events, has been keen to champion ROI to all its clients. Managing director Andy Ashley says ROI is something a company may not have allotted in the budget, but it is well worth pursuing, if done right. “Successful ROI measurement involves careful reflection on what you want measured. When implemented, it can result in important tweaks to your event,” he says. “Any company seriously investing in how best to appeal to delegates should consider ROI measurement, because it’s about seeking continuous improvement.”
Hamso says that measuring ROI should be the standard operating procedure for any organisation. “We have had travel policies for decades,” he says. “Why don’t we have policies for how we set objectives, approve budgets and measure results for meetings and events?”
Setting objectives is the crucial first step according to HRG’s Hanlin, who says that, typically, the ROI measurement covers the consolidation of a whole meeting programme, not just an event itself. “ROI is usually measured in two ways – financial and performance. On the financial side, for example, we look at savings achieved against the benchmark rate or against a client rate, or the best available cancellation charges.”
Stay focused
Hamso adds that when you have clear, relevant and measurable objectives, whoever is planning the meeting will focus on achieving those objectives and nothing else, so your event delivers more value. “It becomes a self-fulfilling prophesy – if you decide to measure results properly, the results will be much better,” he says.
For the Event ROI Institute, there are several criteria to look at, including whether the target audience was on point; whether the client’s expectations, in terms of hospitality and content, were met; and whether delegates remember information and skills.
Hamso says: “We ask whether we have changed attitudes, whether the meeting built relationships as intended, and what participants did as a result of attending the meeting. Finally, how does the value generated by the event compare with the costs – what was the ROI?”
This comes down to dedicating time and budget, according to Parnham, who says that companies are often short-sighted, and miss out on future savings as a result. “Many corporate clients put a disproportionate – but significant – effort into securing their budget for the event. Once the budget is granted, companies often disregard the effect of the subsequent investment,” he adds.
For HRG, ROI measurement is a huge task that can span multiple markets, and can affect thousands of delegates. “We’re measuring across 43 markets in some cases,” says Hanlin. “The focus is more on the level of savings we are achieving and, if someone has denied savings at some juncture, then we analyse the reason why that occurred and then make sure the next time they book it is done strictly within policy.”
Good timing
The way to define savings for the majority of HRG’s clients is to set a benchmark of either a client negotiated rate or, if they don’t have one, they can use HRG’s negotiated rate. “We tend to agree on the definition of the savings beforehand and examine how they will measure this upfront. We make sure we are comparing a given choice to various different options,” says Hanlin.
If your timing and strategy is wrong, however, all this measurement can become stilting and ruin the delegate experience, according to Ashley. He says that instead of post-event questionnaires, which can be time consuming, there are superior methods.
“Pop-up questionnaires on bespoke event apps can be timed to appear at key moments, like immediately after a plenary,” he says. “These are a great way to make a delegate feel their opinion is valued. The ways to measure your event’s appeal, or the success of your brand messaging, are becoming quicker, more accurate and less intrusive.”
Ashley also recommends snap polls and voting technology, which he says are easily integrated into an event and engage audiences with instant feedback. Hanlin, meanwhile, prefers to have someone attend an event and spring questions on delegates in person immediately afterwards to gain fresh feedback.
ROI has become an established, well-proven way to continuously improve your event experience and organisation. Companies that are active in ROI measurement are constantly seeking new elements to measure; and the technology to measure feedback and savings is becoming smarter. The adoption and implementation of ROI is another matter altogether. The tools are there, but using them properly is a separate challenge.
In Hamso’s words, companies need to start looking at events as an investment rather than an expense.