THE PAYBACK RATIO
A NEW METHOD TO EVALUATE ROI
ROI ANALYSIS IS THE HOLY GRAIL FOR A TRADE SHOW AND EVENT PROFESSIONAL. It’s also often cited as the biggest obstacle to justifying the value of a trade show or event program, but it doesn’t need to be. Most who embark on the trail of event ROI analysis are confounded by insufficient or inconsistent measurement and forecasting frameworks. Many don’t even seriously attempt measurement for fear of the added workload, seemingly arcane calculations, or a fear that the effort may undermine their budgetary justifications.
It’s time to forget everything you know about trade show and event measurement. The Payback Ratio will help you to:
- Demystify the inputs and outputs required for a rigorous calculation of event ROI and provide a single number to gauge and justify your investments
- Evaluate the relative merits of events and trade shows of vastly different size, scope, type, target market and budgetary allocation
- Provide a consistent mechanism to evaluate results of all event marketing initiatives and to generate forecasts to determine the potential value of possible additions to your event schedule
The Payback Ratio is the single metric that you should be using to evaluate and justify your efforts. It can—and should—be used to help determine your resource allocation for each event, which events should be considered for addition or subtraction from your schedule, and what investment levels may be required for an event to achieve the desired goals. Forecasting an expected Payback Ratio and developing wide-ranging tactics to maximize this ratio are central to the success of the gps360 Event Planning Process.
There are no shortcuts to successful trade show and event measurement. The Payback Ratio will, however, eliminate the confusion and guesswork that is so often a part of the forecasting and measurement process.