The return on investment is a way of expressing the contribution to profit made by an event in the corporate world. The profit is the net value created by the event minus the event costs. ROI is the profit expressed as a percentage of the cost of the event and the first planning objective.
The event ROI objectives are set for Level 5, the desired ROI from the event. To create value to stakeholders is necessary to achieve the change in behaviour of the participants, in the business world or its contribution to the mission of a non-profit organisation. From this level, objectives are cascaded downwards to Level 0.
The event ROI Methodology has six levels of objectives and evaluation: Measuring Level 0 – Target Audience. Measuring Level 1 – Delegate Satisfaction and Learning Environment. Measuring Level 2 – Learning. Measuring Level 3 – Behaviour. Measuring Level 4 – Impact. And finally, Measuring Level 5 – ROI Calculation.
If you have a good set of measurable objectives to start out, the rest is easy and the result is almost guaranteed. For every event it is recommended set three behaviour objectives and then measure one of them for a few participants. There are many ways to collect data, but is worth considering a well thought out questionnaire.
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The ROI Methodology is a further development of Donald Kirkpatrick’s model first published in 1959. His model had four levels; Satisfaction, Learning, Behaviour and Results. Jack Phillips added ROI as the fifth level and made the model operational through practical tools and guiding principles in the 1980’s.The methodology is explained in more than 60 books.
Post written by Carmen Rafecas.