The latest Marketing & Business Development Report for law firms and legal practices from LexisNexis® InterAction® and the Hinge Research Institute (HRI) showed that, of the functions surveyed, business development and sales were hit hardest during the COVID-19 downturn. So when the next recession comes, what can a firm do to protect ― and even grow — its business development and sales pipelines in a slowing economy? Learn from the firms that have been surviving and growing during the recent pandemic-driven turmoil.
The High Growth Study 2022: Law Firm and Legal Services Edition examines the most important challenges facing law firms today and examines the steps that high-growth firms have taken to address them. The strategies that have made them successful during the economic uncertainty of the last few years can provide a roadmap for any practice to maintain and grow in economic downturns.
In a recession, the key to survival is to continue getting new clients in the front door, while keeping existing clients from slipping out the back door. That’s not significantly different from the everyday challenges of client management, but the stakes get higher as clients and potential clients are under greater pressure to reduce amounts spent on professional services. One of the most important tools to meet this challenge is a client relationship management (CRM) system.
MEETING THE CHALLENGE — CLIENT RELATIONSHIP MANAGEMENT
In fact, the aforementioned study showed that effective use of CRM is a key differentiator between high-growth and low-growth firms: High-growth firms have a 100% greater reliance on CRM systems compared to their no-growth counterparts.
While effective CRM strategy is supported by information technology, it’s not enough just to buy CRM software and roll it out. Rather, CRM is a client-centric business strategy that combines internal processes and external networks to create and deliver value, resulting in more business opportunities with new and existing clients. It relies on high-quality, prioritized data, and it’s enabled by information technology.