Law firms often have buckets of issues that are particularly ‘pointed’ and for which there may simply never be a substitute for the trusty (or some might argue rusty) old CRM hammer. These types of issues come in many varieties, but they almost always involve communication, coordination, collaboration, Client service or, most importantly, business development.
Over and over again, I hear marketing professionals and attorneys complaining that they invested a significant amount of money in this or that CRM system and all they got was a mailing list or a ‘glorified Rolodex’. To address this complaint, I have to say that most of the people who make these types of claims have never actually had to do a law firm mailing themselves.
In fact, every single time I discuss CRM success with managing partners of firms of all sizes, from 27 attorneys to more than 1000, the number one frustration that they unanimously articulate involves the inability to communicate effectively with Clients and prospects. They just don’t understand why the firm can't seem to compile a current, correct and easily updated list of Clients and other contacts and why they can't seem to effectively execute something as 'simple' as an e-mail campaign. These issues can be a source of tremendous frustration in law firms...
Millions of people spend an insurmountable amount of time trying to get out of the rat race. Whether you are s six-figure salary earner or a struggling waitress making minimum wage, the simple fact is, the only way to gain true wealth is through self-sufficiency—in other words, the obtainment and maintenance of your own business.
Entrepreneurs are made from a different stock than their “9-to-5” counterparts. While gumption is a trait that must be present for all successful business people, entrepreneurs must be go-getters on a new level to experience true success and longevity—especially in a sub-par economy. If you think you have what it takes to be an entrepreneur, read the following to see how your characteristics match up. When you are finished, check out the U.S. Small Business Administration’s (SBA) Assessment to determine whether you are ready to start your own business.
Patience to Weather the Storm
Most people would agree that the majority of the good things in life take time. That said, how will you know if you’ve put in enough time and effort into your business where you should be experiencing profitability and growth? According to the U.S. SBA, the majority of small business owners do not make a profit until their fifth year in business—that’s if you make it to your fifth year, as 95 percent of small businesses close within the first five years. Are you willing to wait five years or more to see a profit? How will you sustain your lifestyle in the interim?
What about the lucky few businesses that experience profitability almost immediately? Whether it is due to low overhead costs or a revolutionary business idea, if your business makes money from the beginning, congratulations! While this is a great accomplishment, all roads to success, no matter how short or long, have dips and valleys. Successful entrepreneurs must be prepared to handle slow periods and should have a sound plan to do so.
Having an Extrovert State of Mind
While it is not necessary for entrepreneurs to be true experts, for the purpose of launching a business, having an extrovert state of mind can be beneficial. This simply means that you must be willing to spread the word about your new business through networking. While you may plan to use expensive advertising and elaborate marketing techniques, nothing is proven to be more effective than good old fashioned word of mouth. Even in the beginning stages of your business (before you are ready to sell anything), making an effort to network with key players in and outside of your community is critical. You never know who you might meet that could possibly springboard your business to success. If you are proud of your new business, why not shout it from the rooftops?
Flexibility
Having a solid plan is critical to success, so you have a step-by-step guide to lead you through business operations. These plans come in the form of business plans, strategic marketing tactics and public relations strategies. However, successful entrepreneurs must be willing to deviate from those plans when necessary. Just because a tactic has worked in the past, doesn’t mean it will be successful the next time around. Responsible entrepreneurs know the importance of monitoring the effectiveness of all tactics utilized, so they can abandon the less-effective tactics at a moment’s notice.
Passion
Lastly, you must have a true passion for your small business. Without passion, walking away when the journey gets a little rough will always be an option. Passion will also create an inner sense of optimism that is essential for all entrepreneurs. After all, if you don’t believe in what you’re doing, who else will? While it’s wise to always have an exit plan, it should be your last resort, not amongst one of the first options. Only those with passion will last through the storm, and reap profits on the other side.
There is probably no objective that law firms put more emphasis on achieving – or that they fail more frequently at than cross selling. This may be because many law firms or lawyers don’t really understand what cross selling is all about.
Sure, some attorneys will do the work to figure out who could help them. They will identify other attorneys in their firm or professionals outside the firm whose Clients could be excellent potential sources of business for them. A few will even pick up the big, scary telephone and call these people. The real go-getters may even set up a meeting to talk about what they do and how the other person may be able to help them do more of it. And then they sit back and wonder why almost nothing ever comes of all this time and effort.
OK, here is the secret to why cross selling fails so often: like everything else in business development, it’s not about YOU. It’s not about how you can get the other person to help you. Cross selling is about figuring out how you can help the other person. This may sound counterintuitive, I know, but it’s still true. So start by removing you from your cross selling conversations...
If we are going to think or talk about CRM as a tool, I think it begs the question: which tool would CRM be? In the wide world of tools, I think a lot of people would say that CRM is most like the hammer. It’s been around for a really long time. It can sometimes be big, clunky and even a bit unwieldy. It’s definitely not sexy. And if you don’t pay attention to how you swing it, you can certainly cause a lot of damage – and with CRM, it can be way worse than just smashing your thumb.
Additionally, since the dawn of the hammer, which is a pretty long time, there have been quite a few new electronic tools invented, like ERM, blogs and social media, to name only a few. So it makes sense to ask, with all this cool new stuff, do we really even still need the hammer?
Frankly, all of these shiny new tools are great problem solvers - until you are faced with a problem that looks like a nail. This is why none of these new tools have really 'replaced' the CRM hammer as a staple in any first-rate tool kit…
Obviously focusing on referral sources is a really smart bet, but if you want to improve your odds for success, you have to be willing to up the ante and invest the time to educate them.
To really improve your payoff, you need your referral sources to say great things about you. Not just broad generalities, like that you’re a really smart lawyer who works with really great companies and who went to a really good law school. While all of that may be nice, it doesn't set you apart - and it's not likely to get you hired, especially by sophisticated buyers of legal services in the current hyper-competitive legal marketplace. In this game, frankly, being qualified is table stakes. Getting hired requires value – and value is about helping people.
So your referral sources have to understand the value you bring to the table. They should know your area of specialty, your ideal Client, your target market and any niche expertise you may have. Even better, they should be able to convey how you help Clients find creative solutions to challenging problems or achieve superior results.
You also want them to communicate not only that you are a great lawyer, but also that you are a great person to work with - someone who understands the Client’s business and industry, is responsive, provides great service and doesn't overcharge. Ultimately, this will position you as a trusted - and there is no better position to be in.
And yet, despite all the challenges in the past, people are still investing tens or even hundreds of thousands of dollars in CRM systems. In fact, in recent years, the worldwide CRM market revenue has actually grown 12.5 percent, according to leading technology research firm Gartner. Based on this, CRM still seems be very much alive and kicking.
Why is this? Perhaps it could be because CRM is the essential tool for enhancing communication, coordination and client service. Despite all of the new technological developments, when it comes to managing the myriad relationships that are essential to developing – and growing – your business and practice, there is no better tool for the job.
So why would you take the time to focus on referral sources when there are other business development activities you could be spending your time on? First, it’s often much easier to get business from a referred prospect. In fact, research suggests you are almost twice as likely to get business from referred prospects. This is because they have essentially been pre-sold on your services by someone else who presumably had nothing to gain by making the referral.
Leveraging referrals may also be the most cost effective way to get business. Some business development experts have suggested that it may cost up to 400% more to get business from a prospect who has not been referred. It can also take up to twice as long to get business from a prospect without a referral because you haven't yet received that third party endorsement. As a result, unreferred prospects will often require you to demonstrate your experience, participate in a lengthy proposal process, provide a number of references or jump through other hoops, substantially lengthening the business development cycle.
Finally, when cultivated and cared for, referral sources are likely to stay with you longer, utilize more of your services and ultimately spend more with you. And they will often end up being most loyal Clients you have. Oh, and referrals are also free. All in all, it's hard to think of a reason not to focus on referrals. They are as close as you can get to printing money.
