Calculating an event’s impact may seem like a daunting task. Often overwhelmed and confused in trying to figure it out, many corporate event planners abandon the effort. This is a huge mistake, as knowing the positive impact of an event allows planners to bring more to the table when pitching their next project and it allows them to change event logistics to increase impact. The best way for a corporate event planner to calculate their event’s impact is to keep things simple by using three tried-and-true methods.
1. Calculate economic impact
The quickest and easiest way to calculate economic impact is to gather numbers from local hotels and alternative accommodation venues. Numbers can be compared to those of previous years when your event was not held. It’s very important that you not limit yourself regarding the area in which you gather numbers. The city center isn’t the only place attendees stay. Talking to hotel and Airbnb owners will give you a great idea of just how far from the center attendees booked accommodation.
If you want to take things a step further when calculating economic impact, an event impact calculator can be an excellent resource. Modern calculators are able to take data from multiple sources and add up economic value. Calculators are gaining popularity among event and tourist planners because they’re able to quickly analyze data and come up with accurate numbers. The calculator can be used as an outside third party that’s extremely influential when presenting future events.
2. Calculate spending
Direct spending, indirect spending, and the halo effect can be calculated to give you a good idea of return on investment (ROI). Here’s what we mean by this:
- Direct spending. This is the easiest number to calculate. Direct spending is money that is spent on goods and services that directly affect the outcome of your event. The majority of your event’s spending is direct.
- Indirect spending. Numerous things fall under the category of indirect spending, but their total value is far less than that of direct spending. The best way to think of indirect spending is money that’s spent on event support—money that didn’t affect your event’s outcome.
- The halo effect. Often left out of event planners’ calculations, the halo effect is very important. It refers to all promotion that your event generated to the destination. Promotion that you would normally have to pay top dollar for but didn’t pay a penny. Examples include radio, television, and social media coverage and internet traffic. Incorporating the halo effect into your calculation gives you a great idea of your event’s true impact. ROI from the halo effect can be huge. When you show real numbers to law and decision makers, they are bound to be impressed.
3. Community impact
No true value can be attached to the impact your event had on the community, but it shouldn’t be neglected. Why? Because the good thing about community impact is you actually don’t need a number. Lawmakers and community leaders are well aware that their communities need support from events to thrive. If you can provide them with specific examples of people from your event giving back, your event’s impact will be well understood. And you’ll be much more likely to host another event in the area.
The true impact of your event can be calculated using a combination of numbers. Calculating economic impact and spending are simple and easy, and illustrating community impact is straightforward. If you follow these methods, the work that you put into calculating your event’s impact won’t take up too much time, and your results will pay future dividends. If you have any questions about planning an event that can positively impact the community you’re in, please contact us today to speak with one of our event-planning specialists.