SKO ROI: A Human-Centric Approach to Measuring Success
Hosting a Sales Kick-Off (SKO) event often leads to an overwhelming focus on quantifiable metrics: How many attended? How engaged were they? While these numbers are essential, they only provide a partial view of the event's success. To fully appreciate the impact of an SKO, we must delve deeper into its effects on our people and organization.
Engagement Over Attendance
The primary metric for many SKOs is the number of attendees. It’s tempting to equate higher attendance with greater success. However, a more meaningful indicator is engagement—how involved and responsive attendees are during the event. Engagement reflects the immediate impact of our efforts and provides a clearer picture of the SKO’s success.
Measuring Engagement
Engagement can be measured through various means such as live polls, Q&A sessions, feedback forms, and social media interactions during the event. High engagement levels indicate that attendees are not only present but also actively participating, which is a stronger indicator of the SKO’s effectiveness.
Key Results Post-Event
Percentage Increase in ACV (Annual Contract Value)
A crucial metric post-SKO is the change in ACV. An increase in ACV suggests that the SKO has effectively enhanced sales capabilities, contributing to an uptick in Monthly Recurring Revenue (MRR). This metric isn’t just about numbers; it reflects the enhanced skills and motivation of the sales team.
ACV Formula:
ACV = Total Contract Value / Total Years in the Contract
Total Sales Increase
Comparing sales from the quarter before the SKO to the quarter after offers clear insights into the event's effectiveness. This comparison, minus the cost of hosting the SKO, provides the clearest measure of ROI.
Intangible Benefits of SKO Evaluation
Shorter Sales Cycles
A successful SKO should shorten the time from lead generation to deal closure. This reduction not only boosts total sales but also reduces Customer Acquisition Costs (CAC).
CAC Formula:
CAC = Cost of Sales and Marketing / Number of New Customers Acquired
Reduced Employee Turnover
SKOs that foster a sense of belonging and demonstrate employee value can significantly reduce turnover. Lower turnover translates into savings on recruitment and training costs, as well as reduced lost productivity.
Reduced Training Time
Effective SKOs deliver memorable and impactful training, reducing the need for repeated instruction. This efficiency allows the sales team to focus more on selling, thereby improving overall sales and ROI.
Boost Team Morale and Employee Satisfaction
There is a strong correlation between employee satisfaction and performance. An SKO that boosts morale and satisfaction can lead to a more motivated and productive team.
Direct Feedback from Sales Reps
Listening to sales reps provides practical insights that might otherwise be missed. Similar to how a factory worker can pinpoint production issues, sales reps can identify and address challenges in the sales process, leading to continuous improvement.
The Role of SKOs in Aligning and Inspiring Teams
In essence, an SKO isn’t just an event; it’s a catalyst for meaningful change. It sets the stage for executives and frontline employees to align, share, and grow together. It's an opportunity to collectively refocus on our shared mission and vision, ensuring that every participant feels integral to the company’s journey, irrespective of their role.
Measuring Human Impact
This approach to measuring ROI goes beyond financial metrics. It emphasizes the human impact—how well we inspire, engage, and elevate every member of our team. When employees feel valued and inspired, they are more likely to contribute positively to the organization’s success.
By focusing on both quantifiable metrics and intangible benefits, we can gain a comprehensive understanding of an SKO’s success. This holistic approach ensures that we recognize and appreciate the true impact of our efforts, fostering a culture of continuous improvement and sustained growth. In doing so, we measure success not just in financial terms but in the enrichment and empowerment of our people.
Ready to Transform Your Company Culture?
There’s no better way to invest in your team than an SKO. Our expert planners work with you to prioritize engagement over attendance and harness the full potential of your SKOs to transform company culture, energize your teams, and drive sustained growth. Schedule some time with us today. Together, we can measure success not just in numbers, but in the lasting impact we have on our organization and its people. Let’s make our next SKO the most impactful yet!
MAGGIE KENNEDY
Maggie Kennedy is the co-owner of Kennedy Events is a large-scale event management company based in San Francisco, Los Angeles, and New York City. Our team creates stress-free conferences and events with a positive impact, which allows our clients to resonate with their audience. Kennedy Events specializes in producing flawless product launches, award ceremonies, fundraisers, and multi-day conferences while keeping our eye on retention and engagement goals.
About Kennedy Events
Kennedy Events began with one goal in mind—to produce high-level corporate events with just as much strategy as style. Maggie founded the company in 2000, found her match in Paige, and in 2011 the two became official partners. Since then, these two resourceful and brilliant creatives have pooled their strengths to build one one of the most the most sought after corporate event companies in San Francisco, New York, and Los Angeles.
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