Good attorneys will get referrals regardless of how they market themselves. However, they’ll get more of them if they do. Tracking referrals is one of the most important things your firm can do, and I have found that very few people do it. You can leverage simple, cost-effective marketing strategies like newsletters to drive referral rates. You can’t know whether your marketing is working without tracking your referrals. Many people commit to more expensive and less effective strategies like SEO because they fail to measure. Implementing a formal system to track your referrals saves money, builds stronger connections, and optimizes your marketing efforts. Ultimately, it generates more business for your firm.
Law Firms Are Built on Referrals
Referrals are a key source of revenue. When someone refers to their friend, family member, or colleague, it comes with a certain degree of trust. In other words, a referral walks in the door with more trust than a cold lead. That’s why there is a higher likelihood that they will ultimately convert to a paying client. A study showed that 83% of people are willing to refer professional services like law firms to others, but only 29% do. (This is why it is so important to nurture relationships.)
In many cases, referrals are more likely to stay with a firm for longer, especially those needing recurring services (e.g., business law). To make this relationship even more enticing, referrals become referral sources. The value of a referral warrants that you actively track and manage your sources because they’ll tell you where your best clients are coming from. You can invest more time in nurturing these relationships because it equates to sustainable growth for your firm.
How To Track Referrals
Tracking referrals effectively starts with a system for capturing and organizing referral data. Using customer relationship management (CRM) software is one of the best ways. A CRM allows you to log every referral and assign it a source. (Spotlight Branding lives and dies by Zoho’s CRM.) This could be a client, a colleague, or another professional. It also helps track follow-up tasks, communications, and whether the referral led to new business. By centralizing all this data in one place, your firm can more easily see how well your referral network performs.
In addition to CRM software, other tools like lead management systems can help automate certain aspects of tracking referrals. For example, tools like Lead Docket integrate with CRMs and case management software like Filevine, making managing referrals from first contact to client intake and beyond more accessible. This kind of automation ensures no referral is overlooked. It allows you to track key metrics such as conversion rates, which referrals bring in the most business, and which sources provide the most valuable clients.
Once your system is in place, regularly analyzing your referral data is the next step. Reviewing where your referrals are coming from and how many are converting into clients can give you valuable insights into what’s working and what isn’t. Some referral sources may bring in a large number of leads, but if those leads aren’t converting into clients, it’s worth reassessing the value of that source. On the other hand, if a particular referral source consistently brings in high-quality clients, you may want to invest more time into building that relationship.
Maintain strong communication with your referral sources. After receiving a referral, follow up with the source to provide updates on the outcome. This helps keep your referral partners engaged and encourages them to continue referring clients to your firm. A simple thank-you note or an update about the referral’s status can go a long way in maintaining solid relationships. Sometimes, offering referral fees or other incentives (if your jurisdiction allows) can encourage more referrals.
Generate More Referrals for Your Firm
A well-organized system to track referrals is essential to growing your law firm. It helps you identify where your best clients are coming from and allows you to nurture relationships that can lead to more referrals in the future. Meet with our Business Development Manager if you’re ready to generate more referrals and maximize your firm’s growth. Let us help you implement a content marketing strategy that increases your referrals.
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