How to Calculate the ROI of an Event or Trade Show

The best way to track ROI is using this formula:

(Gross Profit – Marketing Expenses) / Marketing Expenses

For instance, let’s say we went to an event and our expenses were as follows:

roi of events resized 600

So, did we have a positive ROI? At the moment, we wouldn’t know, because our sales cycle isn’t instantaneous — it’s a few weeks long. As such, it would take a few weeks before we could look back to determine whether the investment was worth it. But when that time comes, this is how we’ll calculate it:

ROI = (Gross Profit – $100,000) / $100,000

Note that the gross profit number would consist only of deals that happened due to our attendance at the event, so they would not have happened if HubSpot had chosen not to show up. As long as your gross profit — which for HubSpot specifically will be measured based on our LTV:CAC performance model — is higher than your total investment, then you’ll post a positive ROI. It will then be up to you to determine if the ROI is enough to justify continued involvement in the future

 

Read more: http://blog.hubspot.com/blog/tabid/6307/bid/33643/How-to-Calculate-Whether-That-Trade-Show-Was-Worth-the-Investment.aspx#ixzz28IMcbBVJ

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