November 7, 2024
In part 1 of our 5-part series on generating more referrals this holiday season, we unpacked the importance of having a methodic, ROI-generating referral strategy for the holiday season with the Referral Generation Matrix. We argue that creating a 5X ROI on your holiday marketing spend is 100% attainable, by following the 4 ‘P’ playbook; Party, Pop-By, Philanthropic and social Posts.
In part 2 of our 5-part series on generating more referrals this holiday season, we will dive into holiday parties and best practices to inviting the right clients, hosting an impressionable event, without going over budget, and generating referrals along the way.
4 P’s TO GENERATE REFERRALS THIS HOLIDAY SEASON
(#1 THE HOLIDAY PARTY)
While there is no shortage of client event ideas you can host throughout the year, the holidays are a natural time to have an intentional reason to bring clients together and celebrate the season. Since home buying activity traditionally slows during the holidays, it also presents the perfect timing for you to switch from agent to event planner!
As we outlined in our first post discussing the Referral Generation Matrix, generating an ROI on this expense requires we stick to a budget of $3,000, a guest list of 30 people, and a goal of 2 closed referrals from the event. Lets unpack three simple steps to ensure you reach these goals to make for a successful holiday party!
A great client event not only leaves an impression on those attending, but it also creates a chance for you to personally connect with past clients that you may not see on a regular basis. It is why the team at Handshake recommends the ideal event type is a personal dinner or group activity, instead of booking a movie theater or sports event. A group activity like Top Golf, bowling or a cooking class is a perfect way for you to keep your invite list entertained, while you mingle from guest-to-guest to connect. Most group activities have reservations and allow you to confirm your event size well in advance.
If a group activity is not your liking, or unavailable for your preferred dates, consider hosting a dinner party or celebration. While most of your guests may not know each other, everyone enjoys a reason to dress up, get creative, festive and celebrate. Consider hosting a white party, ugly sweater party, or a catered dinner. Especially in a post-covid world, adults are looking for chances to network with others in their community through fun and engaging events.
If your goal is to generate two closed referrals, consider a guest list of 30 people. At a guest list of 30 people, you only need a 6% conversion rate to realize your goal. VERY DOABLE! But keeping to budget means you have to execute on two important factors; 1. Keeping your cost at $100 per person and ensuring your invite list doesn’t exceed 30 people! Let's unpack how to excel at both.
When drafting your guest list, remember the 50% rule. The 50% rule implies that if your invitation is sent within no less than eight weeks from the event date, only 50% of the guest list invited will accept the invitation. This means you need to consider a guest list of ~60 people to invite to the party. But what if my clients love me and more than 50% accept! Well, consider yourself a great agent and friend, but valid point. You don’t want to jeopardize your budget, so an easy way to ensure your event is limited to only 30 guests is by being upfront in your invitation! Make clear that in your invitation that due to constraints of the venue, your invitation is limited to the first 30 guests who accept. These are simple tactics you can use in your invitation process to ensure your event draws maximum guests, without going over budget.
Now, keeping your budget per guest to $100 is quite simple. When soliciting bids from venues, caterers, simply inquire on what the entire cost for 30 guests will be, then divide by 30! Just be sure to consider additional costs like food + alcohol, gratuity, group size fees, etc. When keeping your cost per guest to $100, consider a food budget of $50, alcohol of $25 and gratuity, taxes, fees of $25.
Let’s be clear, when we talk about generating two closed referrals from your event, we’re not talking about soliciting for referrals at the event! People value authenticity. Your customers want to know that you value the relationship and their previous business, without feeling obligated to provide more to you. So, use the holiday party to deepen relationships and showcase your value as a friend and real estate advisor. Consider using the acronym MITS when engaging with your guests:
Holiday parties are an important tool in the agent toolkit, if they’re done effectively. Be sure to apply these principles this year and message us when you generate referrals and see success!
In part 3 on ways to generate referrals during the holiday season, we discuss pop-by visits. Who should you target, what type of gifts will have a meaningful impression, and best practices to ask for referrals.
