Of all the marketing tools and resources in your arsenal, one of the most important strategies is a referral program. Nielsen discovered that people are four times more likely to make a purchasing decision when referred. There’s tremendous persuasion power in a referral.
With every positive event planning client experience you create, you have an opportunity to build an even deeper relationship ripe for referrals. If you’re not incorporating a robust referral program with your event planning business now, here are the top advantages to persuade you to get started.
1. Referral Programs Are Incredibly Cost-Effective
So many other aspects of your marketing, advertising, and sales strategies have associated costs. And before you tap into any of them, you’ll need to verify the ROI potential in results. Referral programs are dream solutions for event planners because they’re so cost-effective and far more affordable to facilitate than traditional tactics. You’re using the existing client relationship to encourage referrals and warm leads. There’s more trust involved, less expense to initiate and manage, and real results with a referral program.
2. Referral Programs Net High-Quality Leads
When your existing event clients refer your brand and services to someone else, there’s already trust built in, even if you don’t know the referred party. This means every referral you receive is high-quality and already slightly sold on the idea of working with you. While other marketing and sales methods have you sifting through cold and disqualified leads, a referral program nets high-value, quality leads almost every time.
3. Referral Programs Grow and Track Word-of-Mouth
Word-of-mouth is still a very powerful tool for your event planning business. But it’s terribly difficult to track in terms of metrics. However, when you have a referral program in place, you can start to evaluate and track analytics associated with word-of-mouth results.
4. Referral Programs Build Brand Loyalty
Multiply your potential for loyal event clients with a referral program! Because referrals are built on experiences and trust, each new referral is already one step closer to being a loyal customer. And as you curate these new events, your community of brand ambassadors will only continue to grow. It’s a natural fit method for event planners, too, since referrals are rooted in trust and relationship experiences.
5. Referral Programs Are Pay-Per-Performance
How many times have you invested in a marketing campaign or sales initiative that didn’t quite pay off for you? Referral programs can eliminate the guesswork because it’s a pay-per-performance model. This means you can incentivize your best clients for referrals, but you only “pay out” when a successful referral has been made.
Keep these insights handy as you look to develop or improve your event planning business’ referral program. And learn more about referral incentives, marketing techniques, sales strategies, and emerging trends for the events industry by attending The Event Planner Expo 2023!
