The Power of Referrals for Attorneys

SUMMARY

Never underestimate the power of referrals. They are frequently the best source of new business. Existing clients are the best referral sources. There are many others, and attorneys are well advised to carry out regular programs to develop referral sources.


This article discusses the importance of referral sources to a total marketing program, methods to stay in touch with referral sources, and how to demonstrate attorney expertise professionally to referrals.

Many articles and research reports have been published discussing the primary sources of new clients for law practices. Some studies indicate that over half of new clients come from direct referrals.

For example, a survey of 126 high-technology business people with an average of $5 million in sales and 50 employees chose their legal counsel in the following manner: 45 percent used a business acquaintance as a reference, 19 percent chose attorneys from their own study, 11 percent relied on the recommendation of their accountant, and 4 percent relied on their banker. Twenty-nine percent of the businesspeople found a lawyer from "other sources."

Other law practices rely heavily on attorney referrals as the result of conflicts, dockets, or experience and expertise. Yet many attorneys behave as if they had never seen those reports or do not believe the results apply to their practices. They make no organized effort to develop or maintain two- way communications with referral sources.

Who they are

The most important and productive of all referral sources are existing clients (which, in the survey, is included in the category "business acquaintance"). This applies to nearly all types of practices as well as virtually all other professionals. What can be done to assure that clients will be active and productive sources? Obviously, attorneys need to make sure they have satisfied their clients' needs. Following that, there are a few other techniques which can be employed.

The attorney can go beyond the legal matter or business at hand to ensure that clients' personal, business, and professional objectives are met. This can be accomplished in several ways. The attorney can send news clippings and letters which contain information not only valuable to the client but also to remind them of the attorney's expertise.
To the extent that confidence is not being violated, the attorney can provide referral sources with business development leads for their situations. Most will go unacknowledged, but it is important that the attorney is consistent and ongoing with this process.

Attorneys must recognize and appreciate their clients. When a referral is received, the referring client should be recognized and personally thanked with an expression of appreciation. A thank you note, even more than a phone call, is a minimum. The note should be short, on personal note paper, and in no way should resemble a formal letter. Handwritten notes are best, if clearly legible to the clients. Gifts may not be explicitly permissible by the attorney's individual bar jurisdiction. If a gift is within bar guidelines, it should be unique to that particular client while of modest value and a visible reminder of the giver. For example, a desk set or pen could be engraved, "With appreciation from Roger F. Smith" or some other appropriate wording. Another form of recognition is to acknowledge client accomplishments, including those of their families. Again, handwritten congratulatory notes along with article clippings have tremendous impact.

Other sources

Each practice will have its own composition of referral sources. Often ignored are some of the most potentially productive sources imaginable! Examples are financial service organizations such as commercial banks; savings and loan institutions; credit unions; and casualty, life, and health insurance agents.

Frequently overlooked are attorneys in other practice areas and other jurisdictions. Law school classmates and fellow alumni of other law firms are additional valuable sources usually not systematically developed. Service and product suppliers to the attorney's office as well as client offices frequently seem to be neglected when listing referral sources. Suppliers are excellent because they often overhear when a possible client is seeking legal services as well as who is financially solid.

Centers of influence

Many attorneys, particularly those targeting business clients, have had success by actively marketing centers of influence. These may be accountants, bankers, and other attorneys who are influential in the profession and respected in the community. Additionally, individuals and groups influential to the decision process for the attorney's target audience should be included. For example, these can include the leadership of a trade association and the public and private leadership of a community such as the chamber of commerce and local government officials.

It is up to the attorney to go beyond building personal relationships to build recognition aggressively with centers of
influence. To do this, an attorney might offer to participate in or lead a seminar focused on legal developments affecting these centers and their clients. At any rate, they should be included in mailing lists and treated as if they too were members of the attorney's target market.