While preparing for an upcoming speaking engagement, I took a few minutes this past week to look back at six different RFPs from the first quarter to spot emerging trends.
I found that all six of the RFPs had three things in common. Each of them wanted a strategy to generate an audience. Each of them wanted “ROI.” Not one of the six included any success metrics.
One of the six did mention that they had specific requirements regarding ROI. I started to get hopeful. When I reached the section where they defined “ROI,” deep down in the RFP, it turned out they meant lead capture. Lead capture is important, sure, but let’s remember that lead capture is just data. It’s not ROI. It’s not even a metric.
What is the difference between ROI and Metrics? Does it really matter? Fair warning: this is one of my pet peeves.
ROI is a calculation based on an accepted accounting formula. Ask any CFO and he can tell you how to figure ROI. It is a type of measurement, a very specific type of measurement. One that is resource intensive – I’m talking time and money – to produce. Beyond ROI there are lots of other units of measurement – metrics – that event marketers can use. Unfortunately, too many industry professionals label them all as ROI – kind of like calling all tissue Kleenex – but they aren’t.
Instead of getting all wound up over ROI, I suggest we start asking ourselves two relatively simple questions.
First: What does success look like? Take the time to list the criteria for a successful outcome. You may have only one criterion or you may have several. The items on that list are your goals and objectives, your results or desired outcomes.
Once you’ve established that list, take a look at it and ask one additional question: How do we measure each of these outcomes? The answer to that question is your success metric.
Heads up: if you can’t find a way to measure the outcome, then it probably falls under the category of “intangible results.” Some very worthwhile goals are often intangible. In today’s world of hyper-scrutiny, just make sure that you have other outcomes with clearly defined success metrics. That’s the way to show program value.
What does success look like for your program? How do you measure it?