УДК 33

The impact of event management on business: an analysis of roi and kpis

Александровская Лали Юрьевна – студентка магистратуры факультет Высшей школы управления Финансового университета.

Abstract: The article is dedicated to exploring the impact of event management on business. In the article, we consider the significance of events for modern businesses, delve into the concepts of ROI and KPIs in the context of events, review research and statistics validating the importance of events for businesses, and provide examples of companies that have successfully leveraged events. We also discuss methods for selecting relevant KPIs and explore the factors that can influence event performance and their impact on ROI and KPIs. The article offers insights into how to optimize ROI and KPI metrics for effective event management and emphasizes the multifaceted influence of events on business success. It concludes by providing practical tips for mastering the art of event management and achieving strategic objectives through well-planned and executed events.

Аннотация: Статья посвящена исследованию влияния управления мероприятиями на бизнес. В статье рассматривается значение мероприятий для современных компаний, анализируются понятия ROI и KPI в контексте мероприятий, рассматриваются исследования и статистика, подтверждающие важность мероприятий для бизнеса, а также приводятся примеры компаний, успешно использующих мероприятия. Также обсуждаются методы выбора актуальных KPI и исследуются факторы, влияющие на результативность мероприятий и их воздействие на ROI и KPI. Статья предоставляет понимание того, как оптимизировать показатели ROI и KPI для эффективного управления мероприятиями и подчеркивает многофакторное воздействие мероприятий на успех бизнеса. Завершается она практическими советами по освоению искусства управления мероприятиями и достижению стратегических целей через хорошо спланированные и выполненные мероприятия.

Keywords: events, business impact, ROI analysis, key performance indicators, event management, event success, strategic planning, audience-centric approach.

Ключевые слова: мероприятия, воздействие на бизнес, анализ ROI, ключевые показатели эффективности, управление мероприятиями, успех мероприятия, стратегическое планирование, ориентированность на аудиторию.

INTRODUCTION

Nowadays, events have developed into essential instruments in the corporate environment. It greatly influences an organization's performance. Events, such as industry conferences or product debuts, are essential for fostering connections, sharing information, and increasing brand awareness. Since we consider events to be dynamic, a more thorough comprehension of their quantifiable effects on business is necessary.

Key performance indicators (KPIs) and return on investment (ROI) are two important measures for evaluating that influence. While KPIs include customer satisfaction, lead generation, attendee engagement and also brand exposure, they also provide a more detailed assessment of an event's efficacy than ROI, which measures an event's financial success in proportion to the investments made.

Part 1. The significance of events for business

In today's corporate environment, events have become main instruments for accomplishing a variety of strategic goals, building partnerships and accelerating growth. Studies and data support their enormous importance. Furthermore, a chain of successful examples demonstrate how events are important to accomplishing company’s goals[1].

According to research, 63% of brands say that in 2022 they have executed more or the same number of live events than they did in 2019. Attendance has recovered faster at b-to-c live events, compared to the b-to-b sector. 64% of consumer-facing brands say their events have reached 76% (or greater) of an attendance level compared to 2019. This compares to only 45% of b-to-b live events that have reached this level (76% or greater). The next budgeting planning cycle is expected to get back to a more “normal” pattern—a total of 78% of brands say they expect their budget for next year to begin to be planned by October or before[2].

Let's talk about successful businesses and cases. In the IT world, Apple's carefully planned product launch ceremonies are worldwide famous. They are a major source of sales as well as great anticipation. These occasions serve as examples of how well-planned events can increase income and brand awareness.

We can also take into consideration the annual Dreamforce conference hosted by Salesforce as a shining example of a gathering that cultivates ties with customers. It helps promote networking and information exchange and attracts thousands of people. This is why Salesforce's standing as a pioneer in customer relationship management has been cemented by this incident.

SXSW is another example of a city-wide event that has made Austin, Texas, a center of technology, music, and cinema. This case exemplifies the positive economic effects which events may have on nearby companies, promoting tourism and stimulating the economy.

Part 2. ROI analysis in events

Nobody would argue that ROI analysis is a vital component in assessing how events affect companies. It always offers a precise and measurable way to assess an event's financial success. To calculate ROI for events, one compares the profits realized to the expenses incurred for preparation and execution.

There are many actions that need to be followed in order to determine ROI for events. Firstly, the event's goals must be distinctly defined. These can include generating income, obtaining leads, or promoting one's brand. Secondly, every expense related to the event must be included, including venue rental fees, marketing charges, employee salary, equipment prices and every other thing which might show up. Finally, the amount of money the event brought in may be computed. Sales of tickets, sponsorships, goods and any other revenue generated specifically from the event might all fall under this category[3].

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where net profit is a total revenue generated from the event minus all costs;

event costs are the sum of all expenses incurred for the event.

ROI is pivotal for businesses as it quantifies the financial success of an event, helping determine the effectiveness of resource allocation and the event's impact on the organization's finances.

Part 3. Key performance indicators (KPIs) for events

It is very important to choose and specify KPIs for events in order to evaluate their efficacy and meet predetermined goals. It offers a detailed understanding of an event's performance, including more than just financial gains and taking into account other aspects of success.

The very first step is to clearly define the event's goals. Events may include information exchange, lead creation, brand exposure, and consumer interaction. KPIs have to be in line with these goals. The SMART criteria (specific, measurable, achievable, relevant, and time-bound) should be met by KPIs. They must be relevant to the goals, time-bound, measurable for simple assessment, doable with the resources at hand, and particular to the event's purpose.

One needs to keep in mind that KPIs have to be customized for the particular objectives of the event. For example, whereas lead generation and sales conversion may take precedence during a product launch event, attendee happiness. Knowledge retention may be the main goals of an educational conference. To make sure KPIs are both realistic and challenging, benchmark them against previous performance and industry norms[4].

Part 4. Things affecting event ROI and KPIs

Many elements can influence an event's performance and its effect on ROI and KPIs. ROI and KPIs are directly impacted by the objective clarity of certain events. Unfavorable outcomes might show up from not very realistic aims. In this case, it is crucial to establish quantifiable and straight goals in the beginning. It is important that the event is relevant to the intended audience. If KPIs are impacted by a mismatch that means that it can lead to low customer satisfaction. It also should be mentioned that ineffective marketing techniques can cause low attendance, which affects many other aspects[5].

Perfect event execution is something that everybody should be working on. Poor planning and in some cases malfunctioning technology or even problems with the schedule may discourage people from coming. Unfortunately, it lowers participation and attendance of people. Events that are scheduled in time or near each other may have a positive effect on several KPIs. Recessions and other economic downturns, which are not really rare nowadays, can have an influence on revenue generation and attendance. It’s not really hard to guess what impact it can cause on ROI.

Part 5. Tips for effective event management

Taking into consideration all the negative things, which by chance can affect the metrics like ROI and KPIs, it’s quite easy to think about how it may be enhanced and adjusted. Optimizing ROI and KPIs is made possible by thorough event preparation, which includes setting clear objectives, doing audience research, and strategically promoting the event. It’s not enough if events are not specifically designed to cater to the requirements and preferences of the target audience. If those things are optimized, it will boost KPIs for sure. In order to improve attendance and lead generation, it is essential to use complete marketing techniques. The obvious and straightforward options such as email campaigns, social media marketing, and digital marketing can contact and engage potential attendees[6].

Interesting content increases satisfaction and attracts more people. Top-managers should include regular data analysis to see what kind of problems they are facing or they are going to face in the future. It may include feedback from guests or any other metrics related to event management. Risks related to circumstances outside of your control can be reduced by anticipating problems and making backup measures. Implementing new technologies in business may make it easier to gather pertinent data for analysis.

CONCLUSION

To sum up, one can say that the examination of events' importance for businesses emphasizes their crucial position as modern success drivers. These events, which range may independently vary, have become strategically important. KPIs and ROI are two important measures which are usually used to define an event's financial and qualitative success.

Success motivated by events is demonstrated by well-known companies like Salesforce's Dreamforce and Apple's product releases. The impact of variables on event performance emphasizes the necessity of comprehension in order to maximize ROI and KPIs. Only in this case events may be fully realized with careful preparation, audience-focused strategies and efficient marketing.

In conclusion, it becomes obvious that events are essential for reaching strategic goals, increasing brand awareness, and boosting income. The instruments for measuring both financial and qualitative success are ROI and KPIs. Businesses navigating a shifting business landscape might benefit from this information.

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