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ROI

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We spend millions on meetings and events yet very few people are held accountable for spending all this money. if you´re a non believer you´re thinking it´s simply not possible to measure ROI on meetings and events. I think it is. Let´s first ask, how do meetings and events create value to participants, organisers, exhibitors, sponsors and other stakeholders In fact, there´s only one mechanism for any kind of meeting or event to create value. The participants have to do something. If the participants do nothing as a result of attending your meeting, there is no value, never. It's not possible. Changing participant behaviour is the only mechanism known to mankind for creating value from meetings and events, and it´s not enough that they just think or feel something, thinking and feeling does not create value. They have to physically do something. Most of the time it´s something they do after the event, sometimes during, and we have to make them do whatever we want them to do at the lowest possible cost. If we spend too much money or too little, money is wasted. Every item in the budget just like every part of the program has to support the change in behaviour. Planning a meeting or event is a step by step process starting by setting the impact objective. Sales for example. Then we have to set objectives for what participants should do to generate those sales. Then we need objectives for learning and satisfaction The first thing we measure when we start evaluating is satisfaction. Satisfaction with hospitality, such as the venue and the food, and satisfaction with the content. Did the participants experience what they came for? If they did, we probably had a good learning environment and learning is the second level of objectives and measurement. Now, I know you're saying not all events are educational, sometimes we just create memorable moments. Well that is learning too. In fact, we have four different types of learning. The first one we call information learning. We learn information about the product, a company or about business trends or the experiences of other participants. There is some information learning at just about every meeting or event. That´s the first type. Secondly, we have skills, learning how to do something At our user group conference participants learn how to use the new release of the software At a medical congress, doctors may learn a new medical procedure, that's skills learning. The third type of learning we call attitude learning Now, my wife is a teacher at a primary school in Norway and at her school there are children of 43 different nationalities And she says, "it's very important for the children to learn good values and attitudes". The fourth type of learning, we call relationship learning Learning to know other people, or elephants It´s what the Germans call "canon learning". Why do sales people want customer hospitality events? to build trust and liking. So, we have information, skills, attitudes and relationships. But learning has no value unless it is applied. So the third level of objectives and measurement is called application. This is the "to-do something", remember? This is what the participants do as a result of attending your meeting or event. The result of what they do we call the impact. This is the real value to stakeholders. Participants came home from your product launch, they compare your product to the competition, that's what you wanted them to do. As a result, hopefully, they buy your product. That's the impact. The final level in the ROI pyramid is just a simple calculation. We take the cost of the event and subtract that from the sum of all the impacts What do we have then? Value minus costs, that's profit. ROI and profit is the same thing ROI is just profit as a percentage of the cost. But before we can do that calculation, we have to deal with what we call the isolation issue because we ran an advertising campaign at the same time So, how do we know whether the sales increase came from the meeting or the advertising? we can always find out. The best method is always to use a controlled group experiment, but we have other quicker and simpler methods as well. Sometimes we also have the conversion issue. Your business impact was higher productivity, and less staff turnover as a result of the management training seminar. Now, we have to convert that into money value. You may think that's difficult, but you'd be surprised to find how many have done it already. This is what we call the ROI methodology

Video Details

Duration: 6 minutes and 8 seconds
Country: United Kingdom
Language: English
Genre: None
Views: 42
Posted by: valentinams on Apr 19, 2014

A short video presentation about ROI

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