In this age, companies rely on referrals from existing customers to acquire more clients from other industries to fill open positions. When someone recommends a business or individual to someone else, it is a testimonial and an inherent endorsement of their product, service, or technical skills. Sending a thank you to the recipient is a good practice since it motivates them to make even more referrals.
A referral occurs when a network member recommends a business or individual to a prospective client or employer. This might happen naturally during a discussion or as an outcome of deliberate marketing initiatives. The referred individual can therefore send a ‘thank you letter for the referral’ to thank them for being considerate.
This article addresses the importance of sending a thank you letter for the referral and a guide on formatting it. Types of thank you letters for the referral will also be discussed, and samples will aid you in writing.
Download Free Templates
Following are free editable business referral thank you notes that can be customized as per needs:
Why are Referral Thank You Letters Used?
Referrals are bound to happen naturally if a business provides outstanding customer experience or if an individual is skilled in their field. Whenever someone makes an effort to give a recommendation, a letter is an excellent way to thank them and develop goodwill for the future. Showing appreciation for a referral demonstrates that the writer values their time. This gesture helps establish meaningful connections while also displaying good manners.
Thanking someone for a referral makes them feel valued and boosts the likelihood of future recommendations from them. To achieve this, the referred business or individual can send an email. However, sending a thank you letter might be more meaningful. Finally, delivering the letter in person may bear more significance than sending it by mail.
Formatting Referral Thank You Letter
When someone gives you a referral, it is necessary to acknowledge and appreciate them. Depending on the outcome of the referral, there may be varying levels of gratitude.
Follow the steps below to format your referral letter properly:
1- Write your name, physical address, and contact information. Skip one line and write the current calendar date in an easy-to-follow format. Skip another line and write the recipient’s name, physical address, and contact information so they know the letter is intended for them.
For example:
This can be presented in the format shown below:
[Company Name]
[Physical Address]
[Phone Number]
[Date]
[Recipient Name]
[Recipient Physical Address]
[Recipient Phone Number]
[Recipient Email Address]
2- Greet the person who referred you. To give the letter a personal touch, you may write “Mr.”, “Mrs.”, or “Miss” followed by their first name. Greetings such as “Dear Sir”, “Dear Madam”, or “Hello” may also suffice as they create a relaxed tone.
3- In the first paragraph, thank the recipient for the referral. This should be expressed sincerely and briefly to show how much the referral impacted you. Inform the recipient that you value the referral and their confidence in serving you. Write the name of the individual or organization they referred you to and their action.
4- If the referral yielded a positive outcome, outline it in the second paragraph. It is critical to let the recipient know how important their referral was. Showing how the referral benefited you emphasizes your honest appreciation.
5- In the final paragraph, reinforce your appreciation for the referral. If the recipient’s referral yielded a positive outcome, consider giving the recipient a complimentary gift. If the referral came from someone in your field, let them know you are open to reciprocating with referrals.
5- Skip one line after the final paragraph and provide a proper closing salutation such as “Best Regards,” “Sincerely,” or “Warmly,” depending on the degree of formality of the letter. Follow the salutation with your full name, designation, and signature to give the letter a personal feel.
An example of this format is illustrated below:
Best Regards,
[Your Name]
[Your Designation]
[Your Signature]
6- Your letter should be formal in tone, polished, and professional. Ensure that all words and proper nouns are correctly spelled. You can conduct a grammar and spell check with the word processing program.
7- Pay attention to the structure of the letter. Break large blocks of text into smaller paragraphs to enhance readability.
Types of Referral Thank You Letters
There are different types of letters to thank someone for a referral. Discussed below are the most common types of such letters, accompanied by samples to guide you in the drafting process:
Business referral thank you letter
This is used to express gratitude to someone who referred a product or service to a customer/client. It conveys the writer’s appreciation to the recipient for being thoughtful enough to recommend them. This letter aids in strengthening ties with consumers and other companies who may provide their endorsement.
It also helps secure additional referrals, especially if the writer recommends them. Writing a heartfelt letter to thank someone for a business referral allows one to distinguish themselves from the competition.
The letter should express appreciation for the referral in a sincere tone. The rest of the letter can be limited to a few paragraphs. Provide details on how the referral benefited the writer’s business as well. If the recipient’s referral prompted a sale, consider giving the recipient a free service, such as a coupon or discount on future purchases. This is optional but is especially beneficial if the referral culminates in a tremendous benefit for you.
Parnell & Kruger Advocates
214 Terry St.
Delmont, Pennsylvania (PA), 15626
(724) 468-5268
14 June 2023
Kimberly Meyer
289 Garrett Town Ln.
Monroe, Tennessee (TN), 38573
(931) 823-7037
Ms. Kimberly,
I just discovered that our most recent client was referred to us by your marketing firm. We appreciate the referral. We are confident that Parnell & Kruger Advocates was able to meet their needs. That was incredibly considerate of you.
Our lawyers represented the client in court and were able to land a settlement. Your referral played a significant role, as our front office has been fielding calls regarding our rates.
I hope to repay your patronage as soon as possible. I am attending a municipal gala next week, and if anyone needs a marketing solution, I will try to promote your firm.
Sincerely,
[Handwritten Signature]
Patrick Seager
Senior Advocate
Statistical Insight: According to research, referrals are responsible for a 25% increase in profits across all business sectors. Customers who have been referred to a business spend 200% more than other customers.
Real estate referral thank you letter
The real estate sector thrives on referrals. A letter is used to thank an individual who recommended the services of a real estate agent to a prospective client. It is sent when the agent lands a tenant or manages to sell a piece of real estate property.
The letter can be sent with a gift card or coupon to reinforce gratitude. The letter may be accompanied by a gift such as an engraved pen, mug, or gift basket for customers who have given multiple referrals. This solidifies the business relationship and ensures future collaboration. By thanking recipients for their real estate referrals, they feel appreciated and more inclined to reciprocate by making further referrals.
Perry Bloom
Apex Realtors
602 13th Ave. NE
Independence, Iowa (IA), 50644
(319) 334-3961
4 June 2023
Violet Ritter
606 Hudson St.
Jermyn, Pennsylvania (PA), 18433
(570) 230-0083
Ms. Violet,
Thank you for referring Apex Realtors to your colleague. I had a wonderful time working with and finding a lovely condor for them.
You may be confident that Apex Realtors provided a wonderful experience. Your colleague was so impressed with the condor that he commissioned our firm to find him a beach house.
Thank you once again. We strive daily to deliver exceptional service that organically prompts referrals, so yours proves we are on the right track. Thank you for trusting Apex Realtors.
Sincerely,
[Signature]
Perry Bloom
Statistical Insight: Since more than 80% of real estate transactions are referrals, you should provide an engaging experience and thank the customer who referred you. This increases the likelihood of acquiring new business.
Job referral thank you letter
This letter expresses gratitude to an individual of the same network who recommends one for an available position. The letter should be sent to express gratitude for their assistance as soon as possible.
This letter expresses one’s gratitude to a professional contact for their support. It can also help preserve professional contacts, enabling one to gain experience in a particular sector. A contact who receives this letter may be motivated to refer the writer to further vacant openings.
The thank you letter for a job referral conveys the writer’s formal gratitude for the recommendation. The sender may also express in a personal tone how the referral impacted them.
Eden Canute
17530 SE Hemrich Rd.
Damascus, Oregon (OR), 97089
(503) 658-4542
30 September 2023
Ruben Nicolai
341 Bixby Dr.
Milpitas, California (CA), 95035
(408) 262-0672
Mr. Ruben
Although I am still waiting to hear from Rico Hotel regarding the status of my job application, I would like to thank you for your effort in referring me to the hotel manager position. The interview went well, and I owe my success to you.
There were many other applications, but your referral helped me stand out and secure an interview. I am convinced that I will be selected for the role.
Thank you once more for your thoughtful referral. It means a lot that you took time out of your busy schedule to assist me with my job hunt.
With Thanks,
[Signature]
Eden Canute
Final Words
A thank you letter is an effective way to express appreciation to an individual for their referral. The letter should be no more than one or two paragraphs long. In the first paragraph, simply thank the recipient, followed by a few brief details about the effect of their referral. Should you see the need, include another paragraph to encourage future collaboration with the letter’s recipient.
Furthermore, writing a thank you letter to someone who has referred you is important because it helps you build a lasting connection with peers in your field who can help you progress. Follow the tips in this article to write a compelling letter that effectively conveys your gratitude.