# STEP 8. ROO / ROI – Calculate the ROI

The following is based on the principles of the Phillips Methodology which is a globally acclaimed model for achieving ROO / ROI in events.

Here we are looking at actually calculating the ROI of the meeting.

In Step 6 we looked at calculating the monetary amount attributable to the event having isolated those aspects that were attributable to other non-event related activity. Say, for example, this came to £400,000.

In Step 7 we looked at calculating the cost of the event and ensuring that all the appropriate costs were included. For the sake of this example say these came to £320,000.

Now we need to apply the equation which is as follows;

Financial benefit of the meeting minus the costs of the meeting divided by the costs of the meeting. This should always be expressed as a percentage and therefore multiplied by 100.

So therefore in our example the calculation is as follows;

£400,000 – £320,000 = £80,000. £80,000 divided by £320,000 x100 = 25%

Simple eh!?

Author – Mark Saxby. Since joining the events industry I have championed Event ROO and ROI. This is something I was able to put to the fore as Chairman of Eventia (now EVCOM) during which time I was able to arrange for global ROI guru Jack Phillips to address an audience in London. I have run a series of Masterclasses for M&IT on Event ROO and ROI and spoken on the subject at various events throughout the world.