How to Identify Hidden Referral Sources

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Too often, attorneys sign a new client without having a true understanding of how that client came to them.

How can you repeat your successes if you don’t know what you’re doing right?

If you start examining the ways that new clients come to you, you will begin to reveal referral sources you didn’t even know you had.

Here are some tips for discovery:

Whenever someone calls to inquire about your services, have whoever handles the call ask how they found your firm. If they say on the Internet, ask what search terms they used. If they say they saw an ad, ask where. If they say they were referred, ask by whom (and be sure you follow up with that referral source to thank them promptly!).

Create a spreadsheet so you can track how prospects find you. The idea is for you to be able to tell at a glance what law firm marketing method is bringing you the most leads.

Track how many times you “touch” each lead before they become a client, and what methods you used to keep in touch.

Examine the data for which activities you are currently doing that result in the best quality leads, and which ones are bringing in prospects that are not a good fit for you.

Track costs and how much time you are spending for each of your law firm marketing activities so you can determine your ROI for each activity.

Have your clients provide feedback on your services – likes, dislikes and be sure to ask if they feel good about referring you to friends and family.

Once you are able to tell what you’re doing right, you can then put your resources to work in areas that bring you the best quality leads.

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How to Be Found by Prospects That Are Looking for a Lawyer

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Most people take a four-step approach when choosing an attorney, and this has been validated by recent research.

Savvy attorneys know they need to be accessible at each step in the decision process; here’s how:

Step 1: Information Gathering. Most people turn to the Internet to gather information and you need to be there to answer their questions via a blog or your website. You should have content that specifically addresses the type of situation that would lead someone to hire you and/or why they need legal counsel for their particular problem.

Step 2: Search. An active presence on social networking sites as well as your blog and website can help lead prospects to your door. Many may ask their Facebook friends for recommendations or turn to other social media sites for information about specific firms, so you need to be there.

Step 3: Validation. Having good reviews and posting testimonials (if your state bar allows it) on your website and blog will help put you front and center during the validation process. Don’t forget to beef up your profiles on Avvo, Lawyers.com and other directories as well as LinkedIn.

Step 4: Selection. Offer free consultations at every opportunity and when someone calls your office, return the call immediately. One attorney asked if two days was too long to return a call from a prospect – the answer is, definitely! Research shows that a hot lead can turn cold in as little as five minutes, so if you can’t get to them quickly, make sure someone else in your office can or that you have an automated system to follow up immediately.

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3 Ways to Raise Your Revenues In the Next Year

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1. Increase your Conversion Rates

One of the best ways to generate more revenue is by increasing your conversion rates at each stage. Conversion starts the moment an interested prospect contacts your law firm. How many of those people turn into appointments? That’s part of conversion. Start there by finding ways to increase the percentage of leads that turn into appointments. By increasing that number by just 10% you can radically improve your revenues!

The Rainmaker Institute builds customized lead conversion systems for law firms. These systems automate your conversion process and helps to increase your conversion rate at every stage. You can also get a clear picture of which types of leads are the most profitable for your firm.

2. Raise Your Rates

I understand we are still in a difficult economy. However, unless you are already charging near the top 20% of prices in your practice area, I find that most of the small practitioners I consult with can immediately increase their prices by 10-30%. I had a dozen clients who did that last year, including a criminal defense attorney who went from charging $275 per hour to $395 per hour! By the way, he now has more work than he can handle and has had to hire two more attorneys.

In our example above, by moving from an Average Client Worth of $2,000 per client to just $2,500 you would only need 1,015 leads per year, a 20% decrease. This is often the fastest way to get to your goals.

3. Increase Repeat Business

Yes, I know this is a mantra in the legal industry, but most law firms do not have any specific plans for doing so. On average, acquiring a new client will cost your law firm almost 10 times as much as obtaining repeat business from an existing client!

One of the most effective ways to do this is with a monthly e-Newsletter. Recently I asked a room of over 40 attorneys from small firms how many of them received newsletters, either electronic or print, from other professionals. Most of them raised their hands. Then I asked them, how many of you send out a newsletter to your prospects, clients, and referral sources?  Only 3 of them raised their hands!

One of the laws of marketing is “out of sight is out of mind.” If you don’t keep in touch with your prospects, clients and referral sources someone else will. The number one reason why you aren’t receiving more repeat business from your former clients is lack of connection-you haven’t stayed in touch with them. Make a commitment to change that!

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Legal Marketing Q and A

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Our session in San Diego last weekend yielded some good questions that are worth sharing here, with my answers:

When should I ask for testimonials?

  1. Right after the client is retained
  2. Anytime the client says thank you
  3. Anytime there is a “win” for the client
  4. After the case/matter is handled

Why do I need testimonials, can’t I just tell prospects that my clients love me?

You can do so, but it is far more compelling when someone else talks about their positive experience they had with you or the firm than if you simply say your clients are happy. Third party reviews are far more powerful than if you say it.

People are skeptical; they don’t always believe what individuals and companies say about themselves.

Lastly, people are deathly afraid of making mistakes, if they can see or read about others’ experiences with you or the firm they feel better about making the decision because others have had a positive experience with you and they believe they will have a similar experience!

What are a few major systems I should have in my law firm in regards to managing client experience?

1.     Intake system (what docs clients need to bring in, sign, initial, etc.). If the process is easy and systematized, the prospect will pick up on that and feel more comfortable about hiring you.

2.     Follow up system (If a prospect doesn’t hire you how frequently and persistently do you follow up? When you meet someone at a networking event that can refer you clients, how frequently and persistently do you follow up?) Improves the client experience because they see you follow up and care.

3.     Create a policy and procedure manual (so you are not held hostage by staff or find yourself totally crippled if someone leaves, gets sick or is no longer available). Improves client experience because each time they come in or call, the experience, language used etc. is consistent.

Why does it seem like my prospects only care about price?

If prospects only care about price, that means they believe you or your services are a commodity. And commodities are sold on price. You are most likely trying to be the shiniest apple in the barrel of apples…you must become the orange in the sea of apples so people understand why and how you are different and why paying a premium makes sense.

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Professional and Personal Aspects of Law Firm Social Media

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I’ve seen it far too many times: law firms are often concerned that any personal posts on their firm’s Social Media platforms may hinder their credibility as a professional legal practitioner.  That simply isn’t the case. In fact, if every post is of a professional nature, it may deter the average Facebook user from interacting with your content. You need a good balance of the two.

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If you keep your Social Media presence strictly business, you run the risk of scaring away followers – or at the very least losing their attention. We agree with Ken Hardison, Founder and President of the Personal Injury Lawyers Marketing and Management Association (PILMMA), who says that no more than 15 percent of your social content should be self-promotional. “People love to buy, but they don’t love to be sold to,” Hardison says.

More personal posts – such as employee birthdays and anniversaries, new hires, local news, a thoughtful quote, or even pictures that don’t directly relate to law – will show Social Media users a more approachable side of your firm. However, if you never post anything related to your law firm and practice areas, your Social Media platforms wouldn’t be much of a marketing effort.

So, what’s the perfect recipe for Social Media success?

The best way to promote your website, content and firm on Social Media is through your blog. Blogs often provide shareable information or news and thus lend themselves to Social Media sharing. Blogs bridge the gap between useful, shareable information and promoting your law firm. Combine a healthy flow of blog posts with a balanced blend of non-promotional posts and you just may see more users clicking your links and interacting with your Social Media posts.

Why Are Non-Business Posts Beneficial?

Posts that do not directly relate to law and your practice still serve a purpose. They’re not getting people onto your site. They’re not directly getting you cases. However, they are getting attention in the form of Likes, Shares, +1s and retweets – and therefore giving your brand attention. People are getting to know your firm through the content you share, some of which is business-oriented, some of which is more relatable to the average FacebookTwitter or Google+ user. The goal should be to appear knowledgeable, professional and approachable. This blend of posts does just that.

Both types of posts serve a purpose. Professional posts receive a few likes and drive traffic to the firm’s website, while more personal posts spread the brand to far more Social Media users, increasing brand recognition and page visibility.

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2013 Retail Law Conference – October 16-18

The National Law Review is pleased to bring you information about the upcoming 2013 Retail Law Conference:

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The Retail Law Conference is the only law conference designed specifically for general counsel and their teams and is the perfect opportunity to network with fellow retail leaders and earn CLE credits.

Hosted by the Retail Industry Leaders Association (RILA) and the Retail Litigation Center, the 2013 Retail Law Conference will be held October 16-18 at the Ritz-Carlton Phoenix in Phoenix, Arizona. General session, breakout, and retail-only roundtable topics include:

  • Social Media, Mobile Technology & Online Marketing
  • California Litigation Trends
  • Wage & Hour Strategies
  • EEOC & Background Checks
  • Navigating Consumer Product Regulations
  • Data Breach and more!

Register today and join other retail legal executives to discuss the latest and most pressing legal issues and what the retail industry is doing to address them.

Consumer Financial Services Basics 2013 – September 30 – October 01, 2013

The National Law Review is pleased to bring you information about the upcoming  Consumer Financial Services Basics 2013.

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When

September 30 – October 01, 2013

Where

  • University of Maryland
  • Francis King Carey School of Law
  • 500 W Baltimore St
  • Baltimore, MD 21201-1701
  • United States of America

Facing the most comprehensive revision of federal consumer financial services (CFS) law in 75 years, even experienced consumer finance lawyers might feel it is time to get back in the classroom. This live meeting is designed to expose practitioners to key areas of consumer financial services law, whether you need a primer or a refresher.

It is time to take a step back and think through some of these complex issues with a faculty that combines decades of practical experience with law school analysis. The classroom approach is used to review the background, assess the current policy factors, step into the shoes of regulators, and develop an approach that can be used to interpret and evaluate the scores of laws and regulations that affect your clients.

Measuring the ROI of Business Development – Even if it’s Possible, Does Anyone Care?

 

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ROI serves as calculation of the capital, time and other resources invested in a service that yields a profitable outcome, and should be measured systematically and deliberately by law firms. While math isn’t necessarily the forte of attorneys and legal marketers alike, times are changing with the legal market shifting from a demand to a supply economy. No longer does the generation of unending call for legal services exist—rather, the landscape of the legal market today is in a downflow with lay-offs and hiring freezes. This compels law firms to change tactics and rid themselves of self-constraints in order to stand out among the pack. There are many well-trained attorneys with legal expertise so how can law departments distinguish themselves? Clients are looking for more in an attorney than just an understanding of the law and a lower billing rate. Other major considerations are client focus, predictability, communication and management of expectations and efficiency, all qualities that remain measurable and can be raised through the use of statistical analysis tools.

Measures of ROI as Relative and Over Time

In its simplest terms, ROI is measured as the (gain from investment – cost of investment) / cost of investment. ROI is a relative, not absolute, measure of performance and serves as a function of the resources available to law firms. A firm can invest x or y to obtain the same results so x and y remain variable opportunities in competition with each other and one firm’s successful outcome is another firm’s failure. In order to determine which is most fruitful, each variable’s ROI must be measured against alternative investments. Moreover, each alternative must be measured over time as a mere snapshot in time remains insufficient to determine the full impact on revenue down the line. For example, a firm that issues a newsletter every month may as a result eventually gain a new client and this time span and the client’s reads should be tracked.

Measure and Report Metrics that Matter

ROI matters and should be measured for such law management and marketing strategies as attorney memberships and legal events for resource allocation and departmental reporting purposes. By measuring internal and external data through statistical analysis, law firms can narrow their scope of vision to the successes and misses.

Memberships and Associations Value Chain

One way law firms can save on resources and stay within the constraints of business development budgets while still maintaining a proactive presence in the legal community is to conduct an audit of its attorneys’ enrollment in bar associations to determine ROI. At the top of the chain in descending importance are attorneys who lead their associations as leading experts and engage in such activities as serving on board committees. Next are attorneys who take advantage of bar memberships to demonstrate their expertise, such as speaking at conferences. At the bottom of the chain are attorneys who are enrolled in associations for the purposes of networking and education and may attend to earn CLE credits. The lower down the chain attorneys go, the more minimal the ROI and while attorneys who use their memberships for updates on the law are certainly benefiting—these expenses should be drawn from education costs as opposed to business development budgets. Moreover, law firms can set goals for attorneys who use firm expenses to attend association meeting, such as targeting particular people and obtaining a certain number of business cards. Thus, law firms can quantify the benefits of paying for bar memberships and make the most of their budgets.

Legal Events and Sponsorships

For educational law events such as seminars and conferences that draw clients, there remains a window in which law firms can count retaining new clients as a result of holding the event. While sponsoring a legal event may not serve as a direct causation of retaining a new client, law firms can determine if such events increase the rate of landing a new client. By tracking the costs of investment in holding the event as well as the number of days it took to close on a client, the probability rate of an event’s influence in generating clientele can be estimated. In turn, a best practice checklist can be created from such data that can target different factors to create the most lead-generating event and invitees who have the most potential to become future clients. If certain factors are found to lead to a higher probability of generating clientele, then honing in on these factors and measuring them can lead to maximum profit.

Measuring Productivity Takes Time

In solving for the highest number of wins at the lowest costs, it is not necessary to be a statistical analyst but it remains imperative to have a methodology in place. Remember to use the following procedures:

1.       Plot all activities

2.       Plot all practices

3.       Track marketer time against all practices

4.       Compare to strategy plan

5.       Review resource allocation with firm management

The information in this article was derived from a presentation by Timothy B. Corcoran, Principal of Corcoran Consulting Group, LLC.

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Continuing the Conversation Around Working Women

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Anne-Marie Slaughter’s July 2012 Atlantic article, “Why Women Still Cant Have it All” stirred up the coals in the ever-simmering firestorm regarding working women. Further fueled by the March 2013 publication of Sheryl Sandberg’s book Lean In: Women, Work, and the Will to Lead, it seemed everyone had a word of criticism to offer.

The abundant criticism often missed the larger point – the conversation is important, and these two women should be applauded for spurring it.

Lean In contains illustrative stories about what holds women back in career and life, and offers encouragement for overcoming them. Sandberg, a Harvard graduate, mom of two, and wife to David Goldberg, CEO of SurveyMonkey, has had a storied career. The current COO of Facebook, she began her career as a research assistant to Lawrence Summers at the World Bank and later she served as a management consultant at McKinsey. She then became the chief of staff to Summers at the Treasury Department and spent six and a half years at Google, where she rose to the post of vice president of global online sales and operations. She also made it to the top of the notoriously male-dominated world of Silicon Valley, where the paucity of women among engineers, inventors andcomputer scientists is still clearly visible.

There is no doubt that Lean In offers a glimpse into the lives of the rich and famous that Sandberg affords (after all, Forbes lists her as the sixth most powerful woman). But, net worth and fame notwithstanding, there is valuable insight for women in the legal industry, where men still dominate at management and executive levels.

Take a chance

When Sandberg first received a job offer at Google in 2001, she questioned the title: Business Unit General Manager. There were no business units to manage and the company had less than 1000 employees at the time. Google CEO Eric Schmidt said, “If you’re offered a seat on a rocket ship, you don’t ask what seat. You just get on.” Sandberg went on to become Google’s vice president of Global Online Sales and Operations. Today, Google has over 30,000 employees.

Similarly, lawyers, and non-lawyer professionals in the industry, are often advised to decline a job opportunity if it means a step-down in title. These people may miss an opportunity to catapult their career by joining a growth organization simply because of a few words on a business card.

Don’t be afraid to negotiate

In 1970, American women made 59 cents for every dollar men earned. In 2010, women earned just 77 cents for every dollar men made. Sandberg’s solution: negotiate like a man. When she was talking to Mark Zuckerberg about joining Facebook, Sandberg says she was inclined to accept the first offer he made because she really wanted to work for Facebook. Both her husband and brother-in-law encouraged her to make a counter-offer, saying, “Damn it, Sheryl! Why are you going to make less than any man would make to do the same job?” Sandberg counter-offered.

She told Zuckerberg that he was hiring her to run his deal teams and this would be the only time they would ever be on opposite sides of the table. She laid out what she wanted, and got a more lucrative offer the next day.

Stop trying to please everyone

Herein lies an important female personality issue in the workplace. Most of us place significant value on being liked. During her first performance review, Sandberg notes Zuckerberg told her, “Your biggest problem is you worry way too much about everyone liking you all the time.” He said she would never make an impact unless she said something that at least one person disagreed with. “It’s going to hold you back,” he warned her.

Employees who concentrate on results and impact are more valuable than those who focus on fitting in and pleasing everyone.

View child care costs as an investment

Sandberg notes that over the past decade, child care costs have risen twice as fast as the median income of families with children. The cost for two children (an infant and a four-year-old) to go to a day care center is greater than the annual median rent payment in every state in the country. Rigid work schedules, lack of paid family leave, and expensive or undependable child care derail women’s best work efforts. Sandberg encourages women to compare child care costs to their future salary instead of their current one. Initial child care costs are an investment in a working mother’s career.

Include men in the conversation

Sandberg believes that the single most important career decision a woman makes is whether she will have a life partner and who that partner will be. A partner’s lack of participation in child care and domestic tasks are significant factors in some women’s decisions to leave the workforce or reduce their hours.

Because there are still significantly more men at the top of every industry, the proverbial good-old-boy network continues to flourish. And because there are already a reduced number of women in leadership roles, it is not possible for junior women to get enough support unless senior men mentor them.

The simple conclusion Sandberg strove for, clearly communicated and ultimately obtained, is that by turning the focus of the feminist movement toward personal choices, society has failed to encourage women to aspire to leadership. Thus the conversation needs to continue.

 

Kathryn Whitaker is Business Development Specialist at K&L Gates in Charleston, SC.

 

Ioana Good manages communications at Lowndes, Drosdick, Doster, Kantor & Reed, P.A. in Orlando, FL.

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Twitter Best Practices Guide for Attorneys

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With more than 200 million active users, Twitter is a major social media network attorneys should not ignore. Twitter can be a highly useful marketing tool for attorneys to promote their blogs and other thought leadership content.

Here is a best practices guide for attorneys using Twitter:

Tweet 4x/day or less

Use fewer than 100 characters per Tweet

Add links to Tweets to get higher Retweet rates – Tweets containing links get 86% higher Retweet rates

Make sure the links are clickable by including a space before the URL

Tweet on the weekends – engagement rates are 17% higher then

Engage with followers during “busy hours” of 7 a.m. to 8 p.m.

Include hashtags in your Tweets, but no more than 2 per Tweet – Tweets with hashtags get twice the engagement

Add links to images to increase engagement – Tweets with image links enjoy twice the engagement rate than those without.

Use the word “Retweet” as a call-to-action to prompt your followers to share – Tweets that ask followers to Retweet receive 12x higher Retweet rates

Since Twitter is essentially a micro-blogging site, the same rules apply: create unique, original content that adds value, and your audience will respond.

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