Valuing the intangible
BY PÁDRAIC GILLIGAN , CHIEF MARKETING OFFICER , SITE
PCMA , with the support of Marriott and others , released an interesting White Paper in December entitled ‘ Beyond ROI … to ROE ( Return on Events ): Measuring The Impact of Business Events ’. Working with branding agency , Fruition Co , this White Paper makes a compelling case for a holistic approach to event measurement , one that considers both the quantitative and the qualitative outcomes .
ROI ( dollars out / dollars in ) is one measure , but what other factors contribute to a broader view of an event ’ s impact ? And how do we evaluate , measure , and report on those factors ?
PCMA ’ s White Paper might be new , but the questions around evaluation , measurement and reporting are decades old . They are also questions that incentive travel professionals have grappled with for a very long time . In this regard , the results from this year ’ s Incentive Travel Industry Index do yield up some interesting insights .
Incentive travel has always been linked with financial ROI in that the entire programme is funded from the incremental sales generated by the campaign itself . The campaign produces an immediate uplift in performance ( and revenues ) and the value of this is offset
Most effective measures of program value ( 2020 )
84 %
74 %
71 %
69 %
69 % against the cost of the campaign , meaning it ’ s self-liquidating . ROI is calculated by subtracting the cost of the campaign from the incremental revenues that it generates .
When asked to identify the most important outcomes for a motivational campaign , incentive travel professionals have always ranked financial outcomes , like the example above , in the top spot . That is until this year . This year ’ s Incentive Travel Industry Index ( ITII ), for the first time , deprioritises tangible , financial ROI in favour of the intangible . This year , as our industry battles with what is arguably the biggest challenge it has ever faced , we rank soft power above hard dollars - decisively . We place the highest value on the intangible .
Over the past few years ITII has been tracking a gradual shift from tangible outcomes to intangible ones , from quantitative benefits to qualitative ones , to use the terms deployed by the PCMA White Paper .
This certainly reflected a growing realisation that incentive travel impacted qualifiers and their organisations in ways much more impactful than mere economic outcomes – the relationships built across the organisation between qualifiers and
Senior management already vested in the program
Participant stories
Participant satisfaction or feedback
Return on investment ( ROI ) information
Return on objectives ( ROO ) information
Improved engagement
Enhanced customer satisfaction
Better relationshipbuilding between employees and management
Better relationshipbuilding among emplyees
Increased company sales and / or profits
Increased mindshare in competitive market
Enhanced training or knowledge
Increased individual productivity
Above :
Soft power benefits
Other benefits
3.93
3.90
3.89
3.88
3.80
3.80
3.73
3.68
company officers , for example , or the connections forged between qualifiers .
These were enduring outcomes that impacted positively on company culture , reinforcing values and fostering company loyalty .
The 2020 results indicate that we ’ ve taken another step forward in terms of how we value the intangible . When asked how the future importance of various programme benefits have changed relative to programmes run prior to Covid-19 , the top four benefits are all intangible involving improved engagement , better relationships between employees and management , etc .
ITII 2020 , despite the turbulent year in which it was conducted , shows evidence of an industry growing confident and strong in the realisation that incentive travel is impactful way beyond the obvious ROI that it generates , delivering enduring , intangible benefits that make a serious difference for qualifiers and corporations alike .
ISSUE 110 / CONFERENCE & MEETINGS WORLD / 29