Marketing to Referral Sources
Identify, target, nurture and reward your referral sources ...
Find more legal marketing tips on my website www.terry-graham.com.
Some of the best generators of new business for law firms are referral sources, that is, individuals who recommend you to their business associates and friends. This is true for consumer and business law practices. Referral sources should include current and former clients, and anyone (everyone!) with knowledge and an appreciation of who you are, what you do, and for whom.
Think of referral sources as your outside sales force, spreading your marketing message to prospects without expecting compensation.
HOW DO PROSPECTS MAKE “BUYING” DECISIONS?
Consider for a moment how you decide whom to hire to provide a service: Typically, you seek advice from someone whose judgment you respect, someone you believe has firsthand knowledge of the field, its players and stars. That person’s recommendation can have a tremendous impact upon your purchase; in fact, you might make your buying decision solely based upon it. A referral source can make a “cold” prospect “hot” because s/he is perceived as objective, enjoying greater credibility than other marketing messengers. That is why personal testimonials are such a popular, powerful form of advertising.
IDENTIFY AND TARGET REFERRAL SOURCES
Your promotional activities should identify, nurture, and reward as many prospective referral sources as possible because one good referral source can send you scores of warm leads, yielding a superior ROI per marketing dollar spent.
Start by identifying your non-client referral sources specifically by name, title and affiliation. Look for common denominators such as industry niches, geographic location, and how you know them (e.g., through law school, your gym, professional associations, etc.) among those individuals who have sent you good leads.
Business attorneys often find strong non-client referral sources include attorneys with complementary practices, accountants, bankers/financial planners, insurance and/or real estate agents, healthcare professionals and consultants serving the industries targeted by their law firm. Joining select professional associations, writing for trade publications/blogs, and attending and speaking at events for those niches are tried-and-true marketing tactics.
Friends and family members can be another excellent source of referrals IF THEY KNOW WHAT YOU DO. Over the years, my attorney clients have cultivated excellent referral sources through alumni associations, their children’s extracurricular activities, houses of worship, and various social networks. In addition to making personal contacts, consider sponsoring teams/events and advertising in bulletins/special programs and directories (online and printed), making sure you communicate your practice emphasis. Including your photo helps those who know you, but don’t know what you do, make the connection.
Don’t forget to maintain a list of non-client referral sources so that when appropriate, you can send this key group relevant updates regarding areas of shared interest and your practice.
Satisfied current and past clients often serve as excellent referral sources because they have firsthand experience of your abilities. Truly, one happy client can be worth a thousand brochures or lunches with prospects! Encourage clients to tell their contacts about their good experience with your firm, and then quickly acknowledge each referral they send your way. Make sure they know about all of your practice areas, not just the one they used. After completing their work, maintain contact to avoid being out of sight, out of mind. Some of my attorney clients send former clients a giftcard for each referral, even if they don’t take the case. One holds an annual banquet where clients swap stories about how he helped them achieve good results. New referrals flow from this event for months.
TRACK ALL REFERRAL SOURCES
In my experience, attorneys who think they can name their top referral sources from memory rather than by documenting them are usually wrong. If your billing system doesn’t capture referral-source information, amend it. Take time now to identify your top 10 referral sources for the past three years of business. Calendar specific activities such as phone calls and lunches that nurture future referrals from these valuable contacts.
DO track referral sources for inquiries that DON’T result in new business. Often, these referrals don’t convert to new business for reasons beyond the referral source’s control. Evaluate why a referral didn’t work out. Do you need to better describe your practice to a willing referral source? Are your marketing messages -- including ads, sponsorships, events and personal meetings -- failing to describe your niche? Should you expand your practice to encompass a type of case that often is referred to, but rejected by you? “Bad” referrals often signal where your marketing activities and/or practice scope are missing the mark.
By identifying, cultivating and rewarding current and potential referral sources, your market presence will expand exponentially in today’s highly competitive economy.
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Terry Graham, M.A., is a legal marketing and public relations consultant based in Marin County, California. She can be reached at 415/686-8442 or tg@terry-graham.com. Check out her website at www.terry-graham.com
© 2010 Terry Graham. This article may be copied and distributed as is with no changes, and with proper attribution to the author, including copyright and contact information.
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