“Leaders keep their eyes on the horizon, not just on the bottom line.”
Warren G. Bennis, Organizational Consultant
The bottom line at any company is a hungry beast. It demands to be fed, day after day, quarter after quarter. And sometimes, you can’t feed it very much, if at all. In the worst case, you might be asked to cut back in other areas to make sure it can eat.
Corporate events are often one of those areas targeted to help balance the budget. The thought is understandable. An event can be a big budget line item. But feeding the bottom line beast at the expense of your event is a mistake. A big one.
Wise leaders know that well-planned and executed events actually feed the bottom line. How? In the end, every business needs to deliver one thing: your important message.
Hosting a well-planned event allows you to address your target audience (whoever that is) all at once. This expedites the delivery of your message and maximizes its impact. What better way to do it than hosting an event and have all interested parties in one room at one time.
What Does Success Look Like?
First, define what a successful event looks like, and what a strong return on your investment (ROI) looks like. The most common answer for both success and strong ROI is financial growth. But how much financial growth often depends on your company size and the kind of industry you’re in.
Growth – It’s More Than Just Sales!
Does growth mean strengthening your company’s brand recognition, launching new merchandise and new services, increasing long-term sales, and/or generating immediate revenue?
Holding a live event puts you, your products and your employees face to face with customers. They can experience your brand, your company personality and your product in person. That leads to sales, word of mouth advertising and social engagement. In fact, here are five kinds of customer-focused events that will grow your business for sure.
“A little thought and a little kindness are often worth more than a great deal of money.”
John Ruskin, Artist
Growth could mean more than increased revenue, though. What about improving company culture and morale, reducing staff turnover and rewarding high achievers? Showing appreciation at a company-wide get together builds employee loyalty and increases employee retention. That old saw about all work and no play is true. Putting a little fun, which corporate events can be, back in the job, improves morale and creates an environment that boosts motivation. Other goals are equally as important as profitability, too. Events are excellent opportunities for informing participants about specific company initiatives, programs and services.
“Earn trust, earn trust, earn trust. Then you can worry about the rest.”
Seth Godin, Entrepreneur
Build Trust To Boost The Bottom Line
Events are also an ideal way to build trust with employees and stakeholders, because trust improves the bottom line. An event can emphasize a theme that will improve productivity and encourage positive behaviors, like improved employee performance, aligned company-wide values, decreased customer and employee turnover and increased employee job satisfaction. Employees who are happy can increase their productivity by as much as 20%. And as Nobel laureate Paul Krugman one said, “Productivity isn’t everything, but in the long run it is almost everything.”
“An investment in knowledge pays the best interest.”
Training conferences have a different impact on an organization’s bottom line. The cost to hire, train and ramp up a new employee is expensive, no matter the industry. In fact, the cost of losing an employee can range from tens of thousands of dollars to as much as twice the employee’s annual salary, according to Josh Bersin, Leading Industry Analyst. Programs that focus on employee training reduce these expenses by taking advantage of economies of scale and ensuring that everyone is on the same page at the same time.
Need more? Learn the top 5 reasons to host an employee event this year.
“Giving feels good, but it’s also good for the bottom line. Charity is a viable growth strategy for a lot of companies. Our customers get excited to be a part of what we’re doing.”
Blake Mycoskie, Founder of Toms Shoes, Author, Philanthropist
Give To Get
Companies that include a charitable component to their events also benefit, and not just from the warm glow of giving. According to the latest annual survey by Giving USA regarding philanthropy in America, 83% of employees prefer to work for a company that supports causes and charities. Better yet, a full 93% of consumers want to know what companies are doing to make the world a better place, in order to decide where to spend their own money. These statistics directly affect the bottom line.
Companies can directly benefit from supporting nonprofits in many ways. Read all about how corporate philanthropy programs can positively impact your business.
As you see, good ROI for live events can be measured in many ways. Whatever your goal, a strategically designed and well-executed event can feed your hungry bottom line in ways that bring rewards far above their cost.