a) Average duration of the sales cycle. This helps determine your influence window for events.
For example: Say your average deal cycle spans 30 days. If you host an event 90 days prior to a deal closing -- and prospects from that account attend -- that event probably didn’t influence the sale considerably. On the other hand, if you host the event 15 days prior to close – when prospects are weighing and evaluating their options – that event likely did influence the deal closing.
b) Average deal size. Understanding this metric can help you forecast event ROI before deals even close, using the formula Deal Size X Number of Prospect Accounts in Attendance.
For example: if your average deal size is $50,000 and your event draws 100 different prospect accounts, you could forecast that the event could impact as much as $5,000,000.
c) Average conversion rate. To be more precise with your forecasts, you need to understand average conversion rates. This is the formula: Deal Size X Number of Prospect Accounts in Attendance X Conversion Rate.
For example: say your average account-to-deal conversion rate from event attendees is 15%. The calculation would be $50,000 (average deal size) X 100 (accounts) X 15% = $750,000. In other words, you can forecast confidently that your event can help drive $750,000 in revenue.