ROI Using a Destination Management Company (DMC)
After attending a UK networking event towards the end of last year, I’ve taken it upon myself to examine the return on investment (ROI) associated with planning events. In a recent study, 80% of marketing experts said that hosting live events is critical to the prosperity of their company (Source: Bizzabo). For a business event to be successful however, a company should see it as a way to add value and create a positive Return on Investment (ROI). Using a Destination Management Company can help boost your event and produce the ROI needed to drive a business forward, especially in terms of promotion and brand messaging.
Why measure ROI?
A good DMC recognises the fact that an effective event will secure both repeat business and new clients for a company. Measuring ROI is a good way of showing this success and moving forward. You can build on the event experience for your customers, increase profits and boost your brand recognition. Measuring ROI also makes managers accountable for the event outcome, giving them the motivation to improve internal processes and ultimately the customer experience.
Setting your ROI objectives
Most importantly, you need to carefully select the factors that you want measuring. You may find yourself actually tweaking your event when you have decided these factors. For example, you may want to expand your client base or improve customer satisfaction. Your event objectives might be entirely sales driven, or you may wish to boost the image and outreach of your branding.
ROI is generally measured in two ways; the first is performance and the second financial. If your company is performing well, then it is natural to want this success to be reflected in the business profits. On the financial side, good objectives may include looking at monetary savings made against the benchmark rate, or even against the client rate. On the performance side, a good objective could include improving the perception of the trustworthiness of your brand.
Keeping focused on your objectives
A DMC will be intrinsic to help plan your event, with the purpose of staying focused on your ROI objectives. In the organisation stages, they can use local knowledge and expertise in order to appeal to delegates. They can plan everything from logistics, to the coordination and implementation of your event activities. Utilising the services of a DMC is the same as using a highly specialised business consultant. They can help you to tailor your event to the objectives that you want to achieve, making sure that they are adhered to. Generally, when you decide to measure the results properly, then they improve – this is incredibly motivating for everyone.
Evaluating the success of your event
In the short term, evaluating if your event went to plan is extremely important. You want to know whether your client’s expectations were met and whether the event delegates have retained new skills and information. You also want to know if the target audience was on point. This is where using a DMC can put you at an advantage because their level of expertise in this field can elevate the quality of your event. There are three key questions to ask when evaluating the success of your event:
- Have relationships with customers and clients improved?
- What do the participants do as a direct result of attending the event?
- In comparison with the costs, has additional value been generated?
How do I measure ROI?
When measuring delegate and client feedback, post-event questionnaires can be time-consuming – there are currently better methods than this. Bespoke event apps and pop-up questionnaires can be worked into the event at key moments, where they will be better received. They are also an excellent way of making your delegates feel that you truly value their opinions and contribution. You want to be able to evaluate the success of your brand’s messaging and the event’s appeal quickly, accurately, and in a way that is not intrusive.
A DMC can help to incorporate snap polls and even voting technology into your event. Companies that are regularly keeping track of ROI always actively look for different elements to measure and the tech to evaluate delegate feedback is constantly moving forward.
What about the long term?
From a UK perspective there are over 1.3 million business events held annually in the U.K. alone (Source: Eventbrite). It is important for companies to start looking at these events as being an investment into the business, to build on for the future. Many corporate clients put too much focus on securing the budget for an event, but not on the effect that the investment may have afterwards. Measuring ROI can only help improve business functionality and client/customer relationships in the long term.
Using a DMC for your event is part of this investment process. A good DMC has an in-depth local knowledge and will be able to implement important details of the event, from activities to logistics. This means that your company has the time to focus on using the ROI to build a better business.
To get in contact with a local DMC office, register online, search your destination, star and select multiple destinations and then view your shortlist. Click ‘Request for a Proposal’. Then complete the RFP and press submit. You will now have your account set-up to able send your event proposal directly to DMC offices and receive proposals faster than ever! #keepitunique