Smart marketing starts by focusing on your existing assets and resources. What do you already have in place that you can do a better job of leveraging?
For most lawyers, the first item on that list is their network – their relationships. Your network of current clients, past clients, colleagues, supportive family and friends, and others is a valuable asset that holds the potential for significant growth.
But when you talk to most marketing companies – especially internet marketers – you won’t hear a word about leveraging relationships. Instead the focus is on “cold” lead generation – often through SEO or Pay-Per-Click advertising.
And don’t get me wrong, there can be a time and place for that type of advertising. But it doesn’t make sense to spend thousands of dollars on a new, speculative campaign when you have existing resources at your disposal that aren’t being leveraged to the fullest.
Start with the low-hanging fruit. Start by maximizing your existing network to drive referrals and repeat business.
Referred clients are almost always superior to new clients from other sources for several reasons. So it just makes sense to focus your marketing on referrals first. Here are five reasons why this is the case:
1 – Low Cost of Acquisition. Referrals are far less expensive to generate than any other type of client. There’s often no direct cost, and even when you factor in referral-generating tools such as an email newsletter and social media marketing, the cost-per-client for referrals is typically much less than a client generated through other forms of advertising. This is true in my business, at Spotlight Branding, and if you’d like me to share some of our internal marketing data illustrating this, just shoot me an email. Daniel@SpotlightBranding.com.
2 – Instant Trust. One of the hardest tasks for every business is persuading the client or customer to take the leap of faith – pull out their wallet, sign on the dotted line, and move forward. It’s particularly difficult in the legal field because the stakes are higher and the dollar amounts are significant. Building your practice through referrals helps you to circumvent this – because when a trusted friend or colleague makes a referral to you, their trust and credibility is transferred to you. You don’t have to start from scratch because someone has already vouched for you! This shows up in higher conversion rates. I was talking to a lawyer here in Charlotte last month and he told me that his conversion rate for referrals is approximately 70% – compared to about 25% for all other sources of business.
3 – Avoid “Sticker Shock.” There’s nothing more frustrating than having a great conversation with a prospective client, feeling like you’re aligned and that there’s great chemistry, only to have them freak out when they find out how much your services are going to cost. Referred clients generally know what to expect with regard to your rates, and they typically won’t reach out to you if they can’t afford you.
4 – Mutual Respect. We’ve all dealt with nightmare clients. Clients who abuse our time and abuse our staff. Or who simply have unrealistic expectations and become frustrated when the engagement doesn’t play out the way they expected it to. A client who is referred to you is less likely to go in this direction. There’s a preexisting relationship because of the mutual relationship you have with the individual who made the referral. If you look back at it, I bet you’ll find that most of the time, referred clients are easier to work with than clients who came to you through other sources.
5 – More Likely to Refer in the Future. Finally, clients who have been referred to you are statistically more likely to make referrals in the future, creating the possibility for an endless chain of referrals. There have been a variety of studies on this topic, but the best breakdown I’ve seen comes from this book. I highly recommend that you check it out.
I could keep going, but hopefully you see the point. Referrals are the low-hanging fruit when it comes to your law firm marketing. Focus on maximizing your referrals before you spend money on speculative marketing and advertising to the outside world.
If you want some practical ideas, click here for free access to our infographic entitled “Four Ways to Generate More Referrals.“