According to IEG, a leading research company in the sponsorship industry, in 2010 sponsorship expenses for North American companies grew 3.2% to US $ 17.2 million. The amount of money that companies invest in sponsorships is expected to continue to increase over the next five years. Companies sponsor sports, arts, entertainment and nonprofit causes through offering products, services or financial support to increase brand loyalty, raise awareness and visibility, and drive web traffic and sales. Sponsorships are effective fundraising supplements or marketing campaigns.
It is best to think of sponsorship as an association. Creating a global sponsorship plan that includes evaluation measures is essential to ensure that all aspects of your relationship are beneficial to both parties. Evaluating sponsorship increases the performance, legitimacy and ultimate success of a sponsorship relationship.
Create a list of clearly defined results that you plan for sponsorship to achieve. If you are looking for sponsorship as part of your marketing plan, define how many people you want to reach, how many new customers or consumers you are looking for, and how much you expect sales and website traffic to increase. It also clearly defines what you can give through sponsorship. Include specific financial figures taken from your budget, inventory, services and support staff.
On the contrary, if you are looking for sponsorship for your company or event, define what your financial needs and all other necessary resources are. It also defines what benefit an organization or individual will receive through your sponsorship of events, program or organization. An example of a sponsorship outcome for a voluntary health organization seeking sponsorship for a half-marathon to support free community health clinics for at-risk youth is: “All sponsors will receive the advertising space to publicize the mark on our events, on our website and on all printed marketing materials. ”
Measure the data of each result by calculating ROI (ROI), or return on investment. ROI is a common evaluation measure to determine profitability. To calculate the ROI, you must first calculate the gross profit of each result. For example, consider the result, “All sponsors will receive the advertising space to publicize the brand in our events, on our website and in all printed marketing materials.” To calculate the gross profit, collect data on the amount of money brought from each sponsor’s advertising for this campaign.
Calculate the total investment in obtaining or offering the sponsorship. Add the cost of staff hours dedicated to sponsor communication, marketing costs, website costs and other costs related to sponsorship. Use this total investment figure in the calculation of all results.
Use the following formula to calculate the return on investment: ROI = [(Gross Profit – Investments) / Investment)] * 100
Track and report behavioral statistics. To measure behavior, it creates a process for monitoring sales increases during the full sponsorship campaign, compared to the previous 12 weeks and the same period of previous years. It encodes all leads and new clients generated during the sponsorship period and tracks the conversion rate after three months, six months and one year.
Follow the emotional connections. The emotional pull of a sponsor or the cause can increase customer or consumer loyalty over time. The development, nurturing and monitoring of the emotional connections of customers and consumers is a critical element of a successful sponsorship. Send a survey to customers and consumers to follow the results of emotional connections. Create an incentive for individuals to answer surveys, as a free product. Ask questions such as: “How did you feel after attending the event or program X?” and, “How do you feel about our association with X?” It also requests recommendations or preferences for sponsors, future events or programs.
Collect all the data in an annual evaluation report. Use this evaluation report to guide future relationships with sponsorships. Present the evaluation report to your staff and share the results with the sponsor or sponsored event, program, team or organization. A critical factor in the evaluation of success is a commitment to the process. Think about the time to prepare and present the evaluation report as once a year to evaluate and nurture each sponsorship relationship. The time you spend will ensure a solid basis for future relationships.
If you are an organization looking for sponsors, keep a calendar of all events and sponsorship income, so you can demonstrate the growth of your fundraising team. The point in measurement success uses the results to shape and motivate people who work closely with sponsors and program development.