Referrals are an important tool for any professional goal — securing new clients for your company, growing your business and obtaining a new job. In fact, studies have shown that for securing new business as a professional goal, offline word-of-mouth impressions drive sales five times more than paid advertising. This makes having a list of referrals handy to share with potential clients or to use for a refer-a-friend program invaluable for growing your list of clientele for your organization.
When your customers are happy with you and the results you provide, naturally they will recommend you when their contacts are looking for services similar to yours. But what happens if the potential client that has been referred to you doesn’t fit your criteria? How can you let them down without upsetting them and the person who referred them to you?
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It’s important to remember that you shouldn’t feel obligated to take on a client or account just because they were referred to you. You should consider a referral as you would any other potential client or job candidate. Before accepting them because someone you know recommended them, you will want to go through all of your regular processes with them. For example:
— What kind of services are they looking for?
— Are they a reputable business?
— How will working with them affect your professional reputation?
— Do they have the proper qualifications, in the case of a job candidate?
If after interviewing the potential client you feel uneasy about taking them on, there are a few ways you can handle the situation.
First of all, if you don’t feel they would be the right fit, it is always helpful to describe your “ideal client” or your niche in your particular industry. Go over what you expect and require of clients along with the kind of accounts that you typically work with. That may be enough for them to reach the conclusion on their own that working together wouldn’t be a good fit.
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If that isn’t enough of a hint, you may have to say something like, “Based on your needs and what you are looking for, I don’t think I can provide you with the kind of attention you deserve.” You could then refer them to someone who would be able to better assist them.
If you do provide the services they want but are concerned about your professional reputation, it can be more difficult to handle the situation. It may suffice to say that you just don’t have the time and resources to take them on as a customer. If the potential client continues to push, you may need to let them know that while you appreciate their interest in you, their business doesn’t fit well with the vision of your business.
The amount of care you will need to take when turning down a referral will also depend on how close you are to the person who sent you the referral. Referrals can come from different ways:
— A potential client saw a post of yours shared by one of their friends who follows you on social media.
— A long-time client refers a good friend of theirs to your business.
— Someone reads an article about your business from a source they trust.
It is good practice to always thank the person who directly referred a potential client to you. Make a phone call or write an email to thank them. Also, take the opportunity to let them know that you won’t be taking on their referral as a client. Explain that after conversing with them that you don’t feel you could provide their referral with the help they need. But it’s important to keep the conversation positive, so try to bring out something nice about their referral, let them know if you told the referral to look into a different company and offer them a small gift for keeping you in mind.
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You can also stay in touch with the potential client that you rejected from time to time, when appropriate. If you are network connections, let them know if you find an opportunity they may find interesting. Send a quick email with an article or an event, letting them know that you appreciated getting the chance to talk with them and wanted to pass on information they may find helpful.
This will allow you to maintain and grow your network connections without taking on business that wouldn’t be a good fit.
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How to Reject a Referral Request originally appeared on usnews.com
