Do law firms really need a CRM solution? And when do they need it?
Customer (or Client) relationship management (CRM) is defined as “Information-technology enabled strategy aimed at identifying, targeting, acquiring, and retaining the best mix of customers. CRM helps in profiling prospects, understanding their needs, and in building relationships with them by providing the most-suitable products and a very high level of customer service. It integrates back and front office systems to create a database of customer contacts, purchases, information requested, technical support, etc. This database helps a firm in presenting a unified-face to its customers, and improve the quality of the relationship.” (www.businessdictionary.com)
In a large law firm, it is easy to make the argument that technology can assist in co-ordinating client information and client relationships and that information can be used to identify cross selling opportunities. There have been occasions where two partners in different offices within the same firm pitched for the same piece of work, which hardly creates the right impression.
In smaller firms, there is often a belief that such systems are not really needed because everyone in the team knows each other. However, in reality individual partners and departments are focused on their existing client commitments and rarely step back and take time to look at the firm’s client base as a whole.
Even very small firms can benefit from a CRM database, especially if led by an active networker and rainmaker. One lawyer we know regularly speaks on the conference circuit and comes back with ten or twenty business cards after each event. Systematically recording these and managing the opportunities from these contacts is essential to ensure the return on investment in participation in each event.
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