What is the ROI of winning an award?

The ROI of Winning an Award Can Be Hard to Measure...For Some.

We often get asked about the value of winning a business award and it is hard to quantify for many people but an article was just published in Belinda Smart in the My Small Business section of The Age that seeks to measure the ROI of winning an award.

The article and the quotes from award winners focus on a few main themes that resonate with the anecdotal feedback we have gotten from previous winners.

Looking Deep and Standing Up

photo of roi-of-winning-an-award-by-emiliokuffer-via-flickrCompanies often focus on the external focus that results in winning awards, yet much of the ROI of winning awards has to do with the fact that for the first time in a long time, writing a nomination forces you to review your current progress toward goals and document what is working and what is not. This simple act can give you tremendous insight on your company so that you can better manage it in the future.

"Even without winning, you look at your business, or a certain aspect of your business, in a way you hadn't before. This regularly leads to new ideas and new approaches, which can result in market innovation and leadership." Vuki Vujasinovic, Click PR

"I probably spent around 20 hours on the 2012 application and it really allowed me to reflect on the business." Carolyn Creswell, founder, Carman Foods

Word of Mouth Works

photo of roi-word-of-mouth-by-newsbiew_pix-via-FlickrMarketing experts agree that word of mouth advertising is the best because your customers are telling others about the positive experiences with your business. So when we seek the ROI of winning awards we have to look at how our customers will now talk about us.

No one likes to buy from a loser, so winning awards allows your customers to have positive facts about your product or brand in their pre- and post-sale conversations. Imagine your customer talking, "They are great, in fact I think they just won a big award."

"Our business is well established with a good level of word of mouth referrals, but the quality of people finding their way to us has increased." Michelle Tate-Lovery, managing director, Unified Financial Services

Immediate Credibility and Differentiation

photo of trust-roi-of-winning-an-award-by-mikebaird-via-flickrWhen buyers are seeking products and services one of the major factors considered in the buying process is the credibility of your company. Regardless of the size or age of your organizations, everyone needs to be more credible. Imagine buying thousands of dollars of widgets from a company that has no experience, no online presence and no known leadership. You can't, right?

The ROI of winning an award has to include a major dose of credibility. Customers have a checklist of factors that have to be met in order to move forward. They have to know that you won't let them down and that your product or company is different that the other guys....otherwise why not buy from them?

"In our industry, where the consumer is unsure about what the financial planning process can do for them and where to go, we're finding being a multiple award-winning firm fosters trust and credibility straight away." Michelle Tate-Lovery, managing director, Unified Financial Services

"It works extremely well when we use it as a differentiator when pitching to customers. It helps us to create creditability about our innovation skills." James Eling, managing director, Extreme Networks

These are just a few reasons nominating your organization, products and people makes sense. Tell us if you think of a few more!

Images courtesy of emiliokuffer, newsbiew pix and mikebaird via Flickr.