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Use the Payback Ratio to Report and Compare the Value of Your Events

December 11, 2011 By Editor

by Ed Jones

Measurement Tip No. 7
A great tool for conveying the value of your marketing events is the payback ratio. This is the ratio of the total value of estimated revenue, cost savings and promotion value gained through event activity, divided by the event cost. It is expressed as $XX-to-$1, for example, $42-to-$1. The payback ratio serves not only as an indicator of event efficiency, but also as a useful way to compare past, current and future events.

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