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[ A more formal and rigorous version of the methodology described below is submitted to the International Journal of Event Management Research, Griffith Business School, Griffith University, Australia]
EMPIRICAL MATHEMATICAL FORMULATION
A very important question for a sponsor for a Conference is to have a measure of RoO (Return on Outcomes) and RoI (Return on Investment). It is equally important for the organizers is to present a quantifiable value while having a consistent, data-based, factored and realistic “benefit model” for the sponsors. These benefits can be modeled under RoO (Return on Outcomes – expected) and RoI (Return on investment – financial).
CALIBRATING THE KEY PARAMETERS AND ESTABLISHING RELATIONSHIPS
RoI in money terms can be estimated from the weighed average of RoO (Return on Outcomes). Every sponsor has some outcome in view and these outcomes directly or indirectly influences RoI. The monetization constant is that multiplier that has some impact on RoI. For example, for a Conference having a sponsor putting stall containing merchandise, monetization in terms of sales revenue at the conference depends on expected outcomes like position of the stall, visibility, announcement during conference of itself and any discount etc if available.
RoO has two major components – a) Measurable in money terms directly b) Immeasurable in money terms directly but can be compared based on reference scales. These scales are to be calibrated for each sponsor depending on the priority of their RoOs.
RoO LISTING (For a sponsor X )
For each sponsor, one can imagine the following :
Sponsor Expected Outcomes (raw ROO):
Sponsor Budget (Investment): INR / $
RoO LIST order of priority as received from the Sponsor through dialogue and deliberations
- Direct Sales
- Lead Generation
- Customer Success
- In-event inquiry
- In-event interest with chance of escalation
- Brand Visibility across demographics
- Eyeballs – in-event and other media
- Social Media impact
- Positioning and packaging
- Brand Perception (comparative
- Feedback – raw and refined
- Empathy Quotient
- Fan /interested penetration
- Post-Event support and actionable intelligence to measure and make decisions
For the RoO, enablers/deliverable can be mapped
- Segmentation (Attendees)
- Speaker Association (Relevance, Context)
- Media (Local) (Tier and Penetration/Circulation on with Social Media)
- Ambiance / Free time to discuss
- Opportunities / incentives to socialization (e.g. cocktail, musical event)
- Brand Mentions (imprint, eyeballs, duration, prestige)
- Shared post-event Analysis
• For each outcome (blue column), we write down enablers and their rating
• Multiply by proper co-efficient (weighed average) as found from ROO priority
• Multiplier for enabler from historical data (e.g feedback gathered and then applied with a reality check factor)
• Now, we calculate RoI = K* ROO ; where 0 < K < 1 and K is bench marked on three bands. These bands are classified as LOW / MEDIUM / HIGH levels of investment from the sponsors.
The empirical model can be tweaked for separate sectors and specific RoO cases.
Confidence intervals on the reliability of RoI and RoO can be ascertained with more data fed to the mode.
[ This methodology is referenced at the design of Wordcon 2017/18 – 3rd International Conference of Freelancers, to be held on 9th February 2018, The Park, Calcutta, India.]