A referral from a client is a ringing endorsement that could generate new business, and it deserves your thanks. But what form should that “thank you” take — a note, a card or a gift? And when should it be delivered?

“It’s critical to say, ‘Thank you for the referral’ before even meeting with the prospect,” says Dan Richards, president of Strategic Imperatives Ltd. , a Toronto-based consulting company that delivers training to financial advisors.

Show your gratitude through a phone call, an e-mail or a personalized note, he says. Your message could be something like: “Jane, thank you for your confidence in me to your friend Phil. I won’t let you down.”

A small gift can accompany the note, but it shouldn’t be elaborate or expensive. Richards suggests a Starbucks card, with perhaps $10 of credit, accompanied by a note that says, “Jane, I recently started using a Starbucks card for my morn-ing coffee. I thought this might be useful to you as well. So, your next coffee is on me.”

When a referred prospect comes in to see advisor Rob Kelland for the initial meeting, Kelland asks the prospect for permission to contact and thank the client who provided the referral.

“Once we’ve been given approval by the person coming in, we send a personalized letter to the client to say, ‘Thank you’,” says Kelland, director and associate portfolio manager of London, Ont.-based Kelland Group, which operates under the ScotiaMcLeod Inc.banner. ScotiaMcLeod has a policy of giving a small gift to people who provide referrals, he says.

Once a prospect signs on as a client, you can send something more substantial, Richards says. This gift should also be personal, yet should not be so expensive as to make the client feel uncomfortable.

If your client likes Italian red wine, for example, send a bottle with a note that says, “Jane, thanks again for your confidence in referring your friend Phil. I know Italian red is your favourite, so here is a red that I tried recently and enjoyed. I thought that you might enjoy it as well.”

Other gifts may include a CD by the client’s favourite musician or a book by a favourite author. The key, as with every aspect of client communication, is to know your client. “It’s not how much money you spend on the gift,” Richards says. “The idea is to give a gift into which you have put some thought and that says that you appreciate the client who is sending you the business.”

If you are stuck for an appropriate thank-you gift, Richards offers these suggestions:

> flowers or chocolates;

> inviting the person who made the referral and the new client for lunch;

> for bigger accounts, inviting both clients and their spouses for dinner;

> making a contribution to the client’s favourite charity on his or her behalf; or

> inviting the client to a hockey game or other sports event.

Always enclose a short, personalized, handwritten note with your gift. IE