The answer to this question is deceptively simple, yet amazingly complex to resolve. Referrals are near the top of the list when it comes to the best ways of finding new clients, but there are three pervasive myths I would like to dispel about referrals first:
MYTH #1: Clients are the best source for referrals.
This surprises a lot of legal professionals when I tell them this is a myth. Clients are generally not the best source of referrals to your law firm, they are merely the most obvious source of referrals. There are simply too many variables you cannot control when trying to get more referrals from clients:
- Was their entire experience with your law firm positive or were there some “issues”?
- Do they know all the different services you offer?
- Did they hire you to resolve a legal issue that could be potentially embarrassing to them?
- Will they remember you when they meet someone who needs your legal services?
- Can they accurately tell other people what makes you different from your competitors?
- Have you kept in touch with them over the months and years?
The truth of the matter is that many clients are not very dependable when it comes to referring business to their attorneys. That being said, you shouldn’t intentionally ignore potential client referrals; you just need to be careful you don’t rely entirely on them. Every law firm should have a long-term client education plan that positions your law firm, explains your current services, and keeps your current clients informed as to what’s going on in your firm.
MYTH #2: Other attorneys provide the most referrals.
A good tip is to set up an easy tracking system as part of your client intake file and then review it on a quarterly basis where your leads are coming from. There are three keys to increasing referrals from other attorneys:
2. Actively build relationships with at least 10-15 new referral sources each year. I know it’s easier said than done, but the best way to have your practice “crash and burn” is to totally rely on a handful of referral sources. As the saying goes, “it’s not a matter of if, but when” one or more of those referral sources will dry up. Use LinkedIn to identify potential referral sources in your area then connect with them then ask to meet them face to face for lunch.
3. Keep in touch with them on a consistent basis, at least 5 to 10 times per year. This can be a combination of emails, LinkedIn or Facebook comments, sending them a newsletter, phone calls, small thank you gifts, and in person quarterly visits. If you want to build a thriving network of attorney referral sources you must be prepared to go out of your way to generate referrals for them as well. Other legal professionals are not the only people who make great referral sources. Non-legal professionals who target a similar clientele are often a better source of referrals. Use a similar process: make the connection on LinkedIn and then send them an email or call them for an invitation to lunch or coffee.
MYTH #3: Networking provides great referrals.
Over the last 12 years of helping lawyers grow their referral base, we have found that formal networking events (like trade shows and chambers of commerce, etc) work exceptionally well for a very small group of attorneys—and not at all for the majority of attorneys. Here are a few reasons why:
1. They attend the wrong kind of networking events—one filled with their peers, not their prospects. I recommend joining your local bar association, but not for the purpose of gaining new business. You are much better off targeting an industry trade group filled with your perfect clients or best referral sources, not your competitors.
2. Most attorneys don’t know how to network properly and so it becomes a game to see how many business cards they can pass out in 2 hours. Networking is more about quality than quantity. The purpose of attending a networking event is to connect with someone whom you can later invite to meet with you one-on-one.
3. Many attorneys do not create a plan for following up in a timely manner. You only have a day or two after an event to follow up with a “hot lead” or they will likely forget about you. Get in touch with them right away and ask if they want to meet for lunch. Prove that you listened to what they were talking about by telling them you would like to continue your conversation about their practice and mention something specific from your discussion with them. Actively listening to what their goals are and then introduce them to people who may need their help or may be a good contact for them will help you create a solid base of referral partners.
Building a referral-based law firm does not happen by accident. If you want to take your legal marketing to the next level, you need a systematic approach to developing more and better relationships with a wide variety of referral sources. A key component of your referral plan is to create systems for staying connected with prospects, clients and referral partners on a regular, consistent basis. Part of this system should include:
- Monthly newsletters – keep people apprised of what your firm is doing, new employees, new practice areas, and content that is beneficial to them.
- Annual Client Satisfaction Survey – find out what your clients think about the services they received from your firm and ways you can improve.
- Keep In Touch letters – once a quarter send a letter to referrals, prospects and clients just to touch base with them. This top of mind awareness is crucial for creating a referral pipeline.
- Referral Education System – your referral sources need to know what kind of prospects you are looking for. It does no good for them to refer prospects to you who don’t need the services your firm offers. Keep your referral sources updated on your practice areas and any changes in your firm if you want to receive high-quality referrals.
Most people enjoy making referrals to their friends and associates as a way of building social capital. If you truly want to build a referral based law firm then you need to develop a habit of referring your clients and contacts to other professionals. It must be reciprocal to work long-term.
All referrals involve some risk – if someone sends you a referral and it turns out poorly, chances are you won’t receive too many other referrals. Attorneys who count on referrals for business generation need to take necessary steps to mitigate this risk with clear communication, setting expectations from the start, ongoing client education and stellar follow-up.
People who have had great experiences with a product or service tend to refer it to their friends and colleagues. Which is why cultivating a culture of great client service is a must for gaining more referrals. How can you create a “VIP” experience for each client and referral that walks in your door?
Even if someone raves to a friend about you, that referral is likely to conduct a credibility search for you on the Internet. If the referral can’t find good content, reviews or social network participation, they will be less likely to proceed with contacting you.
Attorneys need to create a referral strategy that includes a systematic approach to educating referral sources what a good referral looks like and how to make it.
Learn even more! Get your FREE On-Demand Webinar: “7 Keys to Building a Referral-based Law Firm” by legal marketing expert, Stephen Fairley.
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