Archive for the ‘Relationship marketing’ Tag

Tracking Referrals in your CRM

Referrals are one of a law firm’s key sources for new clients and tracking them in your CRM provides a useful tool for creating networking opportunities as well as collecting valuable data for analysis. There are two types of referral data. First there are the people or contacts that are part of the referral network. These are the relationships that you map out in your CRM. Then there are the actual referral transactions. Track these as inbound and outbound referral activities.

 Relationships – The Referral Network
The contacts in your database that are part of a referral transaction or potential referral transaction comprise your attorney’s referral network. Each referral transaction has three relationships. There’s your attorney and his or her referral contact. Then there’s the relationship between the referral contact and the party in need of service. This as the referred contact. Finally, once the referral has been made, there exists a knows relationship between the attorney and the referred contact. If it’s for an outbound referral, chances are your attorney already has a knows relationship as the referred contact is part of their contacts. If it’s an inbound referral, then the attorney will add the referred contact to their PIM and establish a new known by relationship.

Mapping these relationships takes effort but it’s worth the effort. It will improve your Who Knows Whom search capabilities as your CRM now has additional connection points to calculate possible relationship maps. And it provides the base data for creating referral network reports.

Referral Network Relationships

Referral Network Relationships

It’s important to remember that these relationships are connecting people contacts and not companies. This may not be obvious at first but consider this scenario. If an attorney has a referral connection at ABC, Inc. and that person takes on a new position at XYZ, Corp., The attorney no longer have a tie at ABC, Inc.. But as the contact’s employment relationship link gets updated to his or her new employer the attorney now has a referral relationship at XYZ, Corp.

 There are several referral reports that leverage the referral network relationship data, such as a listing all of the referral contacts by attorney by office. But one the most useful reports lists referral contacts and the attorneys that know them by the referral contact’s company. This can be useful to evaluate the strength and depth of your referral network.

 Referral Activities
There are two types of referrals; inbound referrals which an attorney receives from their network, and outbound referrals they give out.  Track each with a separate activity type in your CRM. Set a standard syntax for entering your referral summary. This makes the list view in the CRM and your reporting data meaningful. The summary should at least provide the nature or area of law, and the referred contact’s such as, “Labor negotiations for Whatchamacallit, Inc.” Most of your reports will already include the attorney’s name and the referral contact’s name and company. So having this information in the referral activity summary completes the transaction’s key elements at a quick glance.

It’s also important to add all contacts that are party to the referral to the activity. Each referral activity should have five contacts attached.

  •  Attorney Name
  • Referral Contact
  • Referral Contact Company
  • Referred Contact
  • Referred Contact Company

 Note that attaching the company record to the activity is a change over the process for recording the referral network. The referral activity is a snapshot of the transaction at the time it occurred. So adding the referral contact’s company at the time of the referral records the actual history. Lets take a look again at the ABC, INC. vs. XYZ Corp scenario but from the point of view of the referral activity. . An attorney’s referral contact gives the attorney an inbound referral when he is employed at ABC, Inc. He later changes jobs and takes a position at XYZ, Corp. Having ABC, Inc. attached to the activity accurately records the transaction as it happened.

 The importance of this is evident when you produce your referral reports. For example, one of the most powerful reports lists all referral activities by referral company (referral contact’s associated company record). Since the activity has the referral contact’s original employer record attached, it accurately displays all referrals received or given by it’s employees. This report is very useful when meeting with strategic referral partner companies as you are able to demonstrate what referral business has been given and received . This lets you discuss your relationship with the company in very specific terms.

 Managing the CRM Data
Setting up a system to capture and report referral data is useless unless there’s also a process for entering and managing the data.  The best model we have discovered is to assign a main referral contact within an office to whom the attorneys can route all their referral data. A central contact eliminates the need to rely upon all of the attorneys or their assistants doing their own data entry. And since it sometimes can be challenging to decipher the information they forward, this contact point needs to understand the business well enough in order to translate the information into the appropriate CRM relationships and activities.

 The reports also become an important tool. As the data grows in your CRM the reports will show who has been active with regards to referrals. Attorneys that are active but have not been participating by submitting referral data to the contact point will be excluded from the report. I have seen an office partner meeting where the office managing partner distributed a referral activity reports and attorneys who had not participated to date immediately pointed out that they also had referrals, to which the managing partner instructed them to provide the details to the central contact for data entry. So the managing partner used the report internally to improve data collection and the completeness.

Summary
There are two referral data types to track in your CRM system; the referral network and referral activities. The network describes the relationships between the attorney, his or her referral contact, and the referred contact that’s part of the lead. Each referral transaction is recorded as either an inbound activity or an outbound activity, depending on whether the attorney is receiving or giving the referral. Be sure to record the referral and referred contact’s company records to referral activities to create an accurate history of the transaction. And the most effective approach to managing the data is to have each office managing partner assign a central contact point to receive and enter the office’s referral data.

Starbucks Gets It With Relationship Tweets

I follow Starbuck on Twitter. This afternoon I received the following tweet:

Starbucks CoffeeWhiteStarbucks
Seattle-ites: Check out Hot Java, Cool Jazz tonight: 5 Seattle area HS big bands http://bit.ly/WY0HI … these guys are good!

By using Twitter they enhanced their brand with nearly 110,000 followers for virtually no cost. The bio on Twitter says its “Brad at Starbucks in Seattle, WA.” It could easily be a barista from one of there stores and not even be affiliated with the corporate office. I’m sure it’s not as the person twittering on this account also handles relies to incoming tweets on product info, complaints and favorite barista compliments.

Folks that follow Starbucks get quick, short answers to their problems and praise. This allows them to feel as if they know Starbucks. That even though they are communicating back-and-forth with short text messages, they are still “communicating.” There IS someone at the other end who is listening and responding. You don’t get that with emails that disappear into a bulk inbox somewhere. Or from a voice response phone program.

So how can an attorney leverage this concept for business development?

First, you need to get connected to the right folks that are on Twitter. And if you have contacts that are not but are tech savvy, call them and talk it up. Get them to agree to sign up and follow up with an email with instructions.

Second, you need to send tweets. Don’t send tweets about brushing your teeth or buying coffee (unless you’re sending a reply to Starbuck). Create tweets about the work you are doing. Re-tweet incoming tweets from news sources like AmLawDaily. Follow them and reply to their tweets. Remember that the whole world can see your tweets, so DO NOT tweet anything confidential or too personal.

It’s challenging to be pithy, clever and bright in 140 characters. But you don’t have to be all in one tweet. You are working to establish a relationship.  That means that your goal is to develop a body of work over time. Some of your tweets will be strictly business, while others will have a personal flavor. The Starbuck tweet about a band playing tonight in Seattle has nothing to do with selling coffee. But then again, it had everything to do with selling coffee.