An Attitude of Gratitude

Believe it or not, there is actually something more important in the followup process than converting referrals into clients. It’s making your referral sources feel glad that they sent some potential business your way.

If you’re a gardener, this analogy will resonate. In the grand scheme of things, it’s neither here nor there if one of your tomato plants doesn’t bear fruit one season—what’s really important is that you keep the soil healthy and fertile so it can produce more plants for you next year. And to do that,
you’ve got to feed it, pamper it, and protect it.

Here’s a surefire process for making sure your referral sources feel appreciated and well cared for. Upon getting a referral:

1. Thank the referral source. Sending a thank-you note (free registration required) is compulsory, even when a referral doesn’t pan out. Do it immediately upon receiving the referral, and handwrite it on nice stationery or a notecard. Promise to keep the source posted on your progress with the person he’s recommended, if you feel comfortable about doing so. Taking time to acknowledge a referral source’s help and express your gratitude is not only common courtesy, it also positions you well for getting more referrals down the road.
2. Act quickly to contact referrals. Whether you prefer lunch meetings, phone calls, e-mails, or regular mail, it is important to make contact with referrals right away, so that you demonstrate respect for your referral source’s willingness to share information with you.
3. Provide updates. Don’t assume that prospects will report back to referral sources that you’ve contacted them (although you should always treat prospects as though that were a certainty). It’s very helpful to keep referral sources—especially current clients—up to date with your progress on the referred lead, whether the news is good, bad, or neutral. When referral sources know you are actually acting on the leads they’ve already given you, they’ll be more likely to give you more.
4. Say thank you again. When you actually sign up a referral as a client, express your gratitude with a nice gift. Choose something appropriate that shows you know the referral source and his or her interests; the more personal, the better.

Studies show that these tokens of appreciation nearly double the rate of repeat referrals—and considering the lifetime value of a new client that you're able to sign up thanks to the generosity of your referral sources, it’s just the right thing to do.