How to Handle a Referral the Right Way, From First Call to Thank You

When a fellow member hands you a referral, they are lending you their reputation. The person on the other end trusts your referral partner, and that trust is now riding on how you show up.

Handle it well and you win a customer, strengthen a relationship and make it more likely you will get the next one. Handle it poorly and you can lose all three. Here is how to get it right.

Step 1: Get the details before you call

Before you pick up the phone, make sure you know what you are walking into. Ask the member who gave you the referral:

How do you know this person?
What do they need, and how soon?
Are they expecting my call?
Is there anything I should know, like their budget, schedule or concerns?
What is the best way to reach them?

A minute of context can save you from an awkward first conversation.

Step 2: Reach out quickly

Speed matters. Try to make contact within 24 hours, and the same day if you can. A fast response tells the prospect you take them seriously, and it makes your referral partner look good for recommending you.

Open by naming the connection:

"Hi, this is Sam, the pest control guy Jennifer told you about. She mentioned you were dealing with scorpions and said it would be okay for me to call."

That one sentence turns a cold call into a warm one.

Step 3: Listen first

Resist the urge to launch into your pitch. Ask questions and let them explain what is going on. People want to feel heard before they hear a recommendation.

Good questions to start with:

What prompted you to look for help now?
What have you tried so far?
What would a good outcome look like for you?

Step 4: Deliver what you promise

This is where referrals are won or lost. Show up on time. Send the quote when you said you would. Communicate if something changes. If the job is not a fit for you, say so honestly and offer to help them find someone who is.

Remember that you are representing two businesses: yours and the one that sent you.

Step 5: Keep your referral partner in the loop

Your referral partner wants to know how it went. A quick update at each stage shows respect and builds trust. For example:

"I reached out to Mark this morning and we are meeting Tuesday."
"Sent the estimate today."
"They decided to move forward. Thank you."

Even if the referral does not turn into business, let them know. A closed loop is better than silence.

Step 6: Say thank you

When a referral turns into business, thank the person who sent it, both privately and in front of the room. In BNI, members report closed business at the meeting, which gives credit where it is due and shows everyone the referral system is working.

A few extra ways to show appreciation:

A handwritten note
A shout-out in your weekly presentation
A coffee or lunch on you
The best one of all: a referral back to them

Step 7: Follow up with the customer

After the job is done, check in with the customer. Make sure they are happy and ask whether there is anything else they need. This is also a natural time to ask for a review or to see if they know anyone else who could use your help.

Common mistakes to avoid

Waiting days to make the first call
Treating a referral like a cold lead
Forgetting to update the person who referred you
Overpromising to win the job
Only saying thank you when the referral turns into a sale

Fall is a busy season, so be ready

As the West Valley heat starts to ease in September, a lot of people get back to the projects they put off over the summer. Many businesses see things pick up this time of year. Make sure you have a simple system ready, such as a notes file or a spot in your CRM, so no referral slips through the cracks.

The payoff

When you handle referrals well, people notice. Members become more confident sending you business, and they start describing you to others in more detail. That is how one good referral turns into many.

Want to be part of a group that takes referrals seriously? Join us on a Thursday at 7:00 AM at Brothers Family Restaurant in Peoria. Plan your visit.