Final answer:
Managers can measure a sponsor's ROI by following three steps: establishing clear goals and objectives, tracking relevant data, and calculating ROI.
Step-by-step explanation:
Measuring a sponsor's ROI (Return on Investment) is an important task for managers. Here are three steps they can follow:
- Establish clear goals and objectives: Managers should work with sponsors to define the desired outcomes and identify key performance indicators (KPIs) that can track progress towards those goals.
- Track relevant data: Managers need to collect and analyze data related to the sponsorship, such as sales or website traffic, to determine the impact of the sponsorship on the business.
- Calculate ROI: Using the data collected, managers can calculate ROI by subtracting the costs of the sponsorship from the benefits generated and dividing that result by the costs. This will provide a percentage that represents the return on the investment.
By following these steps, managers can effectively measure a sponsor's ROI and make informed decisions regarding sponsorships.