Calculating Sponsorship’s Financial ROI

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To examine this issue SponsorMap™ begins with the survey respondent first. By analyzing the behaviour change of consumers we can extrapolate at a larger level to derive the overall impact on sales or customer value.

This chart below shows how incremental growth is obtained as we look at the increase on key brand metrics and attribute it to a combination of passion or gratitude ratings that are sponsorship specific.

Pre–sponsorship research involves capturing basic information on respondents just prior to commencement of a sponsorship activity. The same consumers are recontacted after the event when the complete main survey takes place. Pre-event measures include a sponsor’s brand performance indicators that also include specific survey questions that would enable us to establish the value of a customer on consumer.

These questions on consumer value need to be customized for each industry and market. For example previous calculations we have done for such industries mobile telecommunications ask about such things as monthly spend and pre-paid or regular subscriber variables. FMCG categories are different again where we established frequency of purchase and price category. To gauge value for a sponsor we would use also use a sponsor’s key variables or survey questions that determine the customer value as the basis to align with the existing approach.

By using the results of the post-event survey with the same respondents we are able to isolate the actual impact of the sponsorship. The incremental growth is normally driven by those most passionate about the property and also aware of the sponsor (‘Passionates’) and but in many cases sponsor appreciation can also be a strong driver which is apparent in from the Gratitude Index. A good activation strategy for example will result in higher Gratitude Index ratings. It is the analysis of the sponsorship that will inform us which one is working stronger in this case for a sponsor and it also informs a sponsor specifically what can be improved.

To derive a customer value figure for a particular event or series of events we simply determine the increment in consumers driven by the sponsorship and use this to calculate sales by multiplying against average customer value. This analysis is providing a more financial estimate, which is a key question many ask when the merits of sponsorship investments are evaluated. This is illustrated in the diagram below. In this case the client conducted both SponsorMap™ to assess the market potential and SponsorMap™ at major events. The matrix shown is a simplified analysis for the mobile telecommunications market sponsorship ROI. [singlepic=1,480,360,watermark,center]

Every sponsor has its own general matrix for the market which can be developed as a rich information source.

There Are 2 Responses So Far. »

  1. […] Calculating Sponsorship’s ROI SponsorMap also has a great article up which serves as a thumbnail guide to determining the ROI of a sponsorship that your client is running. If you’re looking at getting a client into a sponsorship, or if your client is wondering just how much return they’re getting on their sponsorship, this is a must read. […]

  2. Good article. I’m glad to see there is a way to track the ROI for sponsors. If potential sponsors see examples of ways others have done it and had great ROI, it may be an easier sell.

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