The Case for Measuring ROI

In recent years measuring the return on investment from incentive programs and meetings has been a hot topic in our industry. Since ROI measurement proves the value of program expenditures to Procurement, Sales/Marketing and Corporate management it makes it easier for suppliers to re-qualify for future programs. It is ultimately the best way to create a successful relationship.

There is greater emphasis on measuring the return on investment in today’s market. Some planners are required to justify value. Others simply understand that it is a wise business and career decision. Incentive suppliers say that Requests for Proposals increasingly ask for information relating to measuring program results.

Incentive’s ROI Facts Report in 2003 found that 59% of respondents were measuring return on investment from incentive marketing programs although only 50% were required to do so.

Trade organizations have highlighted this trend toward measurement and have taken steps to make the process easier for their members. The MPI Foundation reports “…ROI is THE single most important tool for a meeting professional. In today’s economy, with more and more meeting professionals answering to their Procurement office, the emphasis on ROI has never been more important.”

Donna Oldenburg, in her article, ROI Incentive Programs: Driving People, Driving Profits, for the Incentive Marketing Association says, “ROI analysis helps a company determine the impact of an incentive program across the entire operation, something that is crucial to avoiding long-term problems.”

And, the SITE Foundation states, “To say that a sales incentive program was successful in terms of meeting certain objectives is one thing --- but it is in the boardroom that actual financial pay back is most hotly debated ... providing a true ROI measurement requires ‘causal proof’ that the program had a direct and inarguable impact on the numbers.”

If all industry organizations agree on that one point --- that ROI measurement is a necessity in today’s world --- why is it still not routinely built into to every program? It appears that, for the most part, suppliers and planners simply lack the knowledge or the tools to do that part of the job.

fourCE.org develops strategies for companies to reap maximum benefits from incentive marketing programs. We work with both users and suppliers of incentive programs to enhance their success through implementation of customized management and marketing solutions.