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1. How do you determine which elements contribute to the Meeting Benefit figure? The specific benefit derived from a meeting is entirely dependent on the objective. There isn’t a standard answer for what comprises a meeting benefit, because every meeting ideally has its own objectives that are developed to address the strategic imperatives of the hosting organization, current business conditions, future initiatives, etc. That said, some examples of specific benefit for a sales meeting might include:
In most organizations, each of these elements has been monetized, so that a company knows what percentage of market share they have, how much they want to have, and the impact on the bottom line of that increase. 2. Once you have the list of meeting benefits, how do you use it in the calculation? You have to take the total monetary value of the benefits received, and then isolate the effects of the value derived from the meeting, as distinct from other channels. Example: The sales meeting shortened the sales cycle of a product from six months to five months, resulting in increased profit of $1,000 per unit. Before and after the meeting, the regional sales VP was making more frequent visits to his team in the field, while at the same time, there was a new national advertising campaign targeted to raise the awareness of the potential customers. When the measurement was conducted, it was discovered that the sales VP visits helped bump the productivity by 20 percent, and the ad campaign was responsible for approximately 35 percent of the increase. Therefore the total monetary impact of the meeting was 45 percent of the increased profit, or $450 per unit. It is that figure--$450--multiplied by the number of units sold, which is used in the calculation to determine meeting benefit. 3. What are the elements of the ROI calculation? Using the above example, if we assume we’ve sold 1,000 units with a shorter sales cycle, recognizing a per unit increased profit of $450, we would have a $450,000 meeting benefit. Assuming the fully loaded costs of the meeting (including direct and indirect costs) were $300,000, the formula would look like this: 4. Is there a “standard” rate for the percentage of ROI that a meeting should deliver? There is no standard rate, since every meeting is different, and is dependent on the objectives. After conducting an ROI study for the same meeting a few times, however, you would be able to determine a realistic expectation. However, it will be an expectation for that one meeting--or meetings like it in the same organization, not necessarily a figure that can be transferred across the board or made into an industry “standard.” 5. Can meetings other than sales meetings have quantifiable measurement? Sales meetings are relatively easy to measure, but they aren’t the only ones that can be measured. Some examples of other measures include:
6. How would you apply the ROI model to academic conferences, where the purpose is to exchange ideas, meet colleagues from other institutions, etc.? Sometimes the objectives of a meeting don’t include a financial ROI. In that case, you would want to identify the level to which you want to measure. In this example, you may want to determine that you want to quantify the learning that occurs at the meeting (Level Two), as well as the connections that take place after the conference (Level Three). Both of those measures can be articulated clearly, and the data collection is relatively simple. One element that makes the ROI Methodology so accessible is the acknowledgement that not all meetings can or should be measured to Level Five, which is the financial ROI. It is the responsibility of the meeting planner or owner to make the decision about the appropriate ROI measurement level. 7. Doesn’t ROI immediately improve if you hold the meeting at a cheaper location, assuming the content is the same? No. There are several guiding principles of the ROI Methodology. One of them says that we have to follow the chain of impact. In other words, if we hope to have a positive Level Five ROI, we have to have favorable results at Level Four, Three, Two and One. So, if we meet at a cheap location, we might successfully reduce our meeting cost, but if the attendees aren’t happy (Level One), they probably won’t learn much (Level Two), which means they likely won’t apply what was supposed to have been learned (Level Three), and there won’t be any business impact (Level Four), which obviously doesn’t achieve the Level Five financial ROI. 8. Can you recommend a database or tool to track ROI? In most organizations, each of these elements has been monetized, so that a company knows what percentage of market share they have, how much they want to have, and the impact on the bottom line of that increase. One that I’ve had great success with is Meeting Metrics. Meeting Metrics has been in existence for many years and has been working on the measurement of meetings. A few years ago, they integrated the ROI Methodology, so it is a very comprehensive and complete tool. For more information, you can go to www.meetingmetrics.com or contact Ira Kerns at 212. 426.6222. 9. Can you give examples of good Level Three questions? As stated before, all measures are dependent on the objectives. For Level Three, the measurement of whether or not actions learned at the conference are being applied on the job can take many forms. One could be questions of the attendee (how frequently are you using the new customer service scripts on a weekly basis), to performance reviews by a supervisor (has the person consistently used the new customer service scripts), to employee records (has the goal of increasing the customer service scores improved). In almost all cases, the application measures involve more than just the input of the person attending the meeting. Also, it always takes place after the conference. 10. Can the ROI Methodology be used for trade shows and exhibits? Absolutely! This seems to be one of the areas that has historically had very little specific measurement. However, if the objectives are well written and the measurements well defined before participating in the show--actually before even deciding whether or not to participate--the same principles and practices of the ROI methodology can be applied. Earn CEUs: |
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