October 7, 2005

CRM for Law Firms

10:12 am

CRM, customer relationship management, is a concept and a discipline; don’t confuse the need for CRM with the need for software.

 

CRM software can increase the of a law firm’s customer relationship management programbut it can’t create one.  CRM and CRM software are not one in the same.

 

It is clear that the most important and largest potential source of future revenue for a law firm is its existing clients.  Capitalizing on that potential requires the law firm to actively engage in revenue-increasing relationship building with the existing clients of the law firm.  It is that activity that constitutes a firm's CRM or customer relationship management program.  CRM software arrived on the scene to increase a firm’s in carrying out that vital function.  It promised to help us track our activity with the client.  It promised data mining capabilities that would facilitate cross selling.  It was a big step up from 3 by 5 cards and Rolodex systems.  Some law firms are good at customer relationships, some are “so-so” at it, and others are just plain bad at it.

 

Unfortunately, the “so-so” and bad firms outnumber the good ones.  CRM software has gotten a bad rap because most of the buyers have been law firms who were not good at customer relations to start with. The problem with most CRM system implementations is that they have violated Einstein’s law of simplicity.  Einstein said, “Everything should be as simple as possible but no simpler”—or something close to that.

 

Consider the comments of Ellis Mirsky with The Network of Trial Law Firms, Inc. of New York as reported by in their September 2005 issue.  Ellis reportably said, “CRM should more appropriately be called CRAP.  It’s just another example of a simple idea gone haywire because techno geeks can’t resist creating a nuclear power plant when a simple campfire will do.”

 

CRM systems are wonderful tools in the hands of people who are good at client relationship management.  CRM systems are blank sheets of paper.  They are what you make them.  If your reach is too far beyond your grasp, you will destroy its value.

 

So the lesson is become good at customer relationship building.  When you are, you will also be a candidate for a CRM system.

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