CRM Success Steps and Strategies - Part 4: Vet Systems and Vendors

Only once you have clearly articulated needs and agreed upon goals, you can begin identifying potential systems to address them. Properly deployed and supported, CRM systems are invaluable because they can do so many things. Even the most basic implementation can provide a centralized repository of clean and complete contacts that can be easily updated firm-wide. They can also assist with core marketing activities such as e-mail campaigns, event management, relationship intelligence, activity tracking and categorization and segmentation of key contacts.

The real challenge is that CRM should probably only do a few things initially – and those things are often different for each firm, office, practice - or even individual attorneys. This means CRM selection must be strategic. During CRM demonstrations, don't be sidetracked by ‘bells and whistles.’ Instead, to prevent losing focus, it can be helpful to create a roadmap in advance of demos to thoroughly assess the relevant functionality. Have the providers dig into the features you really need.

Be sure to also spend time on critical details including privacy and security, how data changes are handled and how the system is hosted. While many corporations have embraced the reality that external hosting may actually be the most secure, at law firms allowing sensitive Client data to float beyond the firm’s firewall into “the Cloud” requires significant discussions….

CRM Success by the Numbers - Part 2: Let Me Count the Ways – and Dollars

So what kind of CRM numbers or metrics might make sense? Ideally, you want to find ones that are particularly relevant to the attorneys and the firm. Often these will be the numbers that are frequently preceded by a dollar sign – ones that relate directly to top line revenue or enhanced growth opportunities, like:

• Increased opportunities for business development
• Increases in revenue from key Clients
• Increases in newly discovered relationships
• Increases in cross selling opportunities between practices and attorneys
• Increases in referral business

Then there are metrics related to dollars saved, which also can contribute dollars to the bottom line. Some of these include:

• Reduction in the amount of attorney and staff time spent on list management  
• Reduction in the amount of time spent on repetitive or redundant tasks
• Reduction in the number of disruptive internal e-mail communications
• Reduction in the amount of time required to input contacts into the firm systems
• Improved tracking and management of marketing and business development expenses

In addition to all of these numbers, there are additional numbers you can select based on the stage of your CRM lifecycle… 

An Apple a Day Keeps CRM Failure Away Part 5 - Slicing the Apple

When it comes to CRM success, there is no one-size-fits-all solution. There are, however, some almost universal ways to fail. Trying to roll out the software to everyone in the firm all at once is one good way. Trying to get the lawyers to sit through point-and-click classroom training is another. Also good: trying to deploy every bell and whistle, feature and function during the initial rollout. These are some sure-fire ways to create frustration - and maybe even cause a minor mutiny among the key stakeholders. Ask any of the firms who have done these things - although they probably won't have time to talk to you because they are in the middle of trying to roll out their system for the second or third time.

In reality, the most successful CRM implementations are achieved one small bite at a time. For instance, because CRM has so many different features, it can - and often should - be implemented differently for different groups. For one practice area, it might allow for tracking activities, for another, opportunities. One group might want to send out eAlerts while another may want to manage events. One practice might want to create an experts database while another wants to track referrals. 

The great thing about CRM is that it can be many things to many users. But the most important thing is to understand that success is also defined by those users. This means you have to engage your end users early and often. But don't expect them to tell you what they want the CRM to do. In most cases, they couldn't... because they have no idea what it can do. Instead, you should inquire about their business needs and issues. What problems are they trying to solve? What processes are they trying to automate? What objectives do they want to achieve? It’s our job to think of all of the ways CRM can help. If we slice the apple this way, then there will be plenty of CRM success to go around.

Winning the Business Development Battle Part 9: On Targets

To win the business development battle, you first have to make sure you are aiming at the right targets. Each one you miss wastes valuable, and limited, business development time and resources. As a result, the most effective targeting involves aiming at the targets that you have the best chance of hitting.

Start with your current Clients. Presumably they are already your allies, since they are currently writing you checks. To effectively develop more business with existing Clients, first prepare a plan of attack. Identify areas where they have needs that are not currently being served by your firm. Next, divide and conquer. Have your troops spread out and make new contacts within the Client’s company. Learn about their issues and approach them proactively with valuable ideas and information. 

Next you may want to join forces with referral sources who may already be on your side. This could include other professionals with complementary practices such as accounting firms, consultants or lenders. It’s likely that you both have a number of Clients who could benefit from each other’s services. Putting together joint events such as seminars or roundtables on areas of interest to joint Clients can be a good plan of attack.

Only then should you consider prospects, who may be hostile, or at least less receptive, to your advances. Because you don’t have working relationships, it can take a long time and a lot of ammunition to overcome their defenses, resulting in protracted business development battles. To improve your odds, start with prospects with whom some of your attorneys may have existing relationships. Additionally, Enterprise Relationship Management (ERM) software can help you hone in on these relationships and point your top guns in the right direction. 

Business Development as a Sport – Part 2: The Goal

So if we are thinking of business development as a sport then, of course, we need a goal. So what would the goal of business development be? Actually, there would likely be more than just one.

One of the most important goals would be to keep the ball rolling: reach out, make connections, set up meetings. In short, get out of the office and go see the Clients and prospects. While those balls are rolling, you would also need to be able to keep multiple balls in the air. You will need to juggle the work and other demands of a successful law practice with the responsibilities inherent in business development - writing, speaking, making calls and/or attending meetings, conferences or events, all of which can require a significant time commitment.  

A higher goal, and one that would be worth several points, would be to attempt to level the playing field – to become so good at what you do that none of your competitors can get close to you. One way to do this is to become so entrenched in an industry niche that your experience and knowledge are sought after and people refer you work. Another way is to become so well versed in your Client’s business that they consider you a trusted advisor and business partner and seek your advice, which can lead to multiple opportunities to generate additional work and even cross sell.

A final goal would be to practice, practice, practice. When it comes to business development, the more you do, the better you get - and the easier it becomes. In fact, if you practice enough, you will reach the ultimate goal: to make business development so habitual that you almost reach a point of ‘muscle memory’ where developing business becomes something effortless that you are so good at that you even enjoy it. That’s when you know you have ‘gone pro.’ 

Taking U Out of Your Cross Selling Alphabet

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...

Betting on Your Referral Sources

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. 

Focus on Referrals

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.

Referrals – Across the Street or Across the Hall

Once you have determined to focus on referrals, the next step is to figure out how to make them effective sources for developing new business. Help them help you... literally.

To actually refer you business, your referral sources have to be able to articulate good reasons for people to consult with – and ultimately hire – you. To do this, they actually have to know what you do. While this may sound obvious, I've seen plenty of attorneys who refer work across the street because they have no idea that another attorney, who just happens to be right across the hall, is well-versed in the same area of law that one of their current Clients has a need for. 

Think about it: do you have more than cursory knowledge about the practices of all of the other attorneys in your firm? Do you know the types of Clients they work with, the issues they help to deal with or the types of results they achieve? If you don’t, then don’t assume that other attorneys know your business...

Referrals - The Gift That Keeps on Giving

So what is the key to getting business from referral sources? First, like most everything else in business development: you need to give before you can expect to receive. If you want people to refer business to you, you should start by making referrals yourself.

The great thing about referrals is that they are the gift that keeps on giving: when you do nice things for people – like send them business – they often will be eager to repay you in kind. 

So start looking for opportunities to make referrals. They should be plentiful. As a trusted advisor, and a pretty smart individual (you made it through law school, didn’t you) it only makes sense that Clients and friends may come to you for advice on all sorts of issues. Find ways to help them – while helping the individuals you refer – who later may then help you. Look at it as a win-win… win.