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%
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.
If you would like me to talk to you about this in relation to your events, then please contact me; mark.saxby@C2events.net +44 (0) 7785 550088