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“Sales and marketing for lawyers”

Category Archives: Chief Marketing Officer

January 6, 2011 Goals Are Great, Metrics Are Money

As a legal recruiter I always ask law firm attorneys to tell me about their sales and marketing activities. I consistently hear from those without business that they have no written plan in place, and they fit marketing activities in where they can. Like anything worthwhile that we have accomplished in life it takes time, effort, intelligence, planning, priority, and a heartfelt commitment to be successful.

Last week we discussed the importance of written goals, and how their influence in our lives can be significant if we refer to them on a regular basis. The limitation of having a goal such as “collect $2million in 2011” is that it is nothing but a high bar. Some may find this motivating, others de-motivating. This is where metrics come in. Metrics measure the activity levels at key points of the rainmaking process and establish benchmarks required to meet our revenue goals.

Do your public speaking engagements produce inquiries for your legal services?
What percentage of your inquiries do you close for pitches?
What percent of pitches become retainers?

There are two aspects to each parameter in the rainmaking chain of events. Quantitative: are we doing enough to make it mathematically possible to achieve our goal? and Qualitative: are we doing well enough with the opportunities before us? In other words, we track numbers and percentages of each key parameter in the chain between inquiry and the collection of legal fees. Once we know our percentages at each critical juncture of the chain, it becomes a cinch to calculate or reverse engineer what sort of numbers we will need to attain in order to hit our revenue target.

Your firm is undoubtedly already tracking some of these activities such as dollars billed, dollars collected, realization rate, duration of outstanding bills, hours billed to clients, dollars originated, and the like. Where law firms tend not to track data is on the front end of the rainmaking process. It is up to us to do this if we want to achieve a higher level of success.

Professional sport provides a compelling example of the importance of metrics. In the NFL for example they track such metrics as average yards per carry, average yards per passing play, turnovers, sacks, third down efficiency, time of possession, etc. Ira Miller wrote on NFL.com that his survey of 10 coaches looked at these following statistics:

Yards per pass attempt Pro football is a passing game, no question, and the proposition is that if you win the passing game, you win the game
Field position after kickoffs Not the yardage on the returns, but the actual starting position of each drive. Call this “hidden yardage”
Red zone scoring efficiency We all know what that means — completing a drive by scoring, preferably a touchdown. Not just scoring in the red zone, but how many points
Big plays Not all coaches define them the same, but in general, it’s a run of at least 12 yards and a pass play of at least 20. The bigger the chunks of yardage a team can gain, the fewer chances there are to mess up on a long drive

Metrics are measurements of activities that lead to goals. If we want to achieve a goal of increasing collections by 20% implied in these goals are a series of underlying activities that we will need to accomplish. What’s more there is a chain of events that needs to occur in order to finally close that retainer check. It probably goes something like this in your practice:

• Speaking Engagements: With qualified professional audience
• Magazine/Blog articles published
• Business cards collected: from qualified consumer of legal services such as President, CEO, General Counsel, or a person who has made a referral to you; This parameter shows your effectiveness in meeting the right people at professional conferences
• LinkedIn contacts: Like business cards collected only count the qualified additions toward this metric
• Touch calls: to clients, referral sources, and prospects; track this parameter because you need to stay in touch at a regular weekly, monthly, quarterly intervals
• Inquiries (when a potential client asks you any sort of legal question, or asks about retaining your services) We produce inquiries from various sources that may include referrals, Internet, networking, speaking engagements, advertising, telephone touch calls, and the like. It is important to track the origin of every new inquiry and refer to this particularly when a new matter is opened, billed, and collected. What is our percentage of converting an inquiry into the next step in the rainmaking process?
• Hours billed to marketing: since we are used to billing our time, we should track our hours too
• Deal/Case Size: by monitoring the size of the cases or deals this metric will also keep us attentive to keeping our goals in view
• Time to close: tracks the time required from inquiry to receipt of first retainer check.
• Retention Rate: tracks the percentage of clients who rehire us for subsequent cases or deals
• Pipeline: number and size of deals that our clients have on the horizon that we have been promised or for which we will have the opportunity to compete; Carefully watch the ratios such as a large percentage of our prospective deals coming from too few clients
• Relationship Deeping activities: To build or maintain your relationship with a client a certain amount of social activities such as meals, sporting events, golf, ski, and so on

Metrics build off one another because they measure points that happen in a chain of events. It may start with a cold approach at a conference where you made a good impression and walked away with a business card of a general counsel. The next day he accepted your LinkedIn invitation. You met him for a lunch, and persuaded him to let you address the legal department and some key executives on new developments in the law in your area of specialization. Later you took your prospect to a baseball game, and for a round of golf. The GC then gave you a small matter as a test. You were subsequently invited in for a beauty contest for a major piece of business. Metrics track and measure your success in jumping through an increasingly higher set of hoops. The process may be abbreviated or elongated but some version of it will be part of vetting process.

Because this process tends to work in a linier fashion it lends itself to tracking these parameters on a spreadsheet. Start with the basic parameters on the left and move right with each key successive point in the development of the client relationship, ending with Amount Billed and Amount Collected. You will begin to notice that there is a strong mathematical relationship between the various parameters you track. You can increase your practice by closing more deals, increasing the size of the deals, or picking the low hanging fruit from existing clients. By tracking the history of each deal you will begin to notice similarities in the histories where your legal fees were paid. It’s like Fantasy Baseball, only a lot more profitable.

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November 15, 2010 The Power of Affinity

In Physics affinity is the force attracting atoms and binding them together to form a molecule. Likewise in the human world affinity is a powerful force that binds us together based on who we are and what we share in common.

Affinity identification in this way can be based on ethnic, religious, sexual, cultural, lifestyle, regional, lingual, educational, class, societal, or political identity to name a few. The names of these affinity groups could be Armenian, Jewish, pro life, Ivy league, Libertarian, animal rights, Spanish speaker, Harley Davidson enthusiast. It seems that human nature provides us with the ability to readily trust and feel comfort with those persons who most remind us of ourselves. Where comfort and trust exist there is a far greater likelihood that a favor, a referral or a piece of business will be granted.

The 90s saw the birth of affinity charity marketing. Credit card companies and long distance telephone services (among others) got the idea to team up with charitable organizations and gain access to these cohesive groups’ memberships. It worked this way: the charities would market the product or service directly to their donors. The donors who joined the service in turn would receive a discount, and the charity would receive a new funding source in the form of a percentage of the fees. Everyone was a winner.

Brands employ similar tactics of affinity marketing. Absolut vodka since the early 80s has been an advertiser in gay periodicals, and underwriter of major gay events. Early on, Absolut saw the opportunity to create loyalty for their brand among gay vodka drinkers. The tactic of the well-marketed brands, such as Absolut, in affinity programs is for the “brand” to be identified as identical to the “affinity”. The brand affirms the group’s sense of community, and celebrates the common bonds, and in a way that reinforces the customer’s connection to the brand. It uses focused advertising that speaks directly to the community, and isolated the affinity message from non-adherents.

Scammers like Bernie Madoff understand the power of affinity very well. Through the misuse of affinity’s strong power, Bernie succeeded in duping well-educated, sophisticated, wealthy persons to gladly hand over their life savings and forgo normal safeguards such as third party safekeeping. He was so successful that he was able to gain considerable new business by word of mouth through his affinity channels. Almost all of Bernie’s U.S. victims were East Coast Jews with whom he shared a common bond of religion, charities, and clubs. His European victims, on the other hand, were largely Christians from Aristocratic or old money commercial families, but his European facilitators used largely the same tactics. Notice as well the herd impulse: once a nexus of high-level participants joins the club, so does everyone else in the affinity group.

For our purposes here affinity is the force in human relationships that most quickly builds comfort and trust, and this forms the basis for having ready access to referrals, favors, and direct business. Remember too that the sphere of influence of a group extends far beyond its members. Members of our various affinity groups will be more willing than anyone else in making referrals inside and outside the group.

It is possible to benefit from a cohesive group as an outsider as well. In my capacity as a legal recruiter I have often received many referrals and endorsements from members of a group of which I was not a member. Because I gave good service, and showed understanding, sensitivity, and appreciation for their group I was given a ringing endorsement and the red carpet rolled out before me. Affinity can cut both ways.

This is why when we are looking to enhance our marketing efforts we are wise to begin our efforts closer to home. We can look to our ethnicities, religion, fraternities, school, corporate alumni, golf clubs, interests, neighborhood, professional association, even people from our past with whom we are part of their personal histories. LinkedIn and Facebook can be very useful here in tying into these groups, and renewing old friendships with those whom we share these bonds. It can be a first step in reconnecting individuals in these groups from which you have drifted away.

Perhaps we can discover new vistas by pursuing our interests in a more collective way such as getting involved with a cause with which we feel strongly. We can join a club based on one of our interests. We can deepen and strengthen our connections with the groups with which we already have ties by volunteering, joining a board or a committee. The more affinity connections we develop the better.

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November 4, 2010 Some Things to Consider – Working the Room Part 6

Names
• Remember peoples names: you will find it easier to remember names particularly the first name if you use it a few times upon the introduction, it also helps to say the name a few times under your breath; if you are given a business card study the name for a few seconds
• Use the other person’s name when speaking, it shows you have good manners

Speak in a Positive Way
• Always say things in a positive way, especially when speaking about yourself, your firm, your colleagues, and your practice; when we speak about anything negative or unpleasant it’s as if we are filling the space with a bad odor and it is the speaker of unpleasant words who is fouling his own image
• Show appreciation for other’s good qualities and accomplishments
• Give others happy emotions

Body Language
• Smile with your eyes as well as your mouth; remind yourself of someone or something that brings a smile to your entire face; it sends a message to every one that I am happy and open to meeting you
• Show your confidence in subtle ways: calm gesticulations, strong eye contact, speak loudly enough, erect posture
• During the sessions you can warm up fellow attendees and speakers by making eye contact and smiling, making a quick and positive aside to the attendees in your vicinity
• Talk to the highest caliber persons in the room
• Asking a question at a session is a great way to raise your profile at a conference; make sure your questions is, well, a question and not a speech; show your intelligence by asking a concise, insightful question; no one wants to hear your opinion and expressing one in the Q&A lowers your value; double bonus points if you can make the audience laugh in a kind way

Listening
• Genuinely care about other people their problems and concerns
• If you want to be considered interesting, be interested in what others have to say; encourage others to speak about their interests
• Make sure you are listening more than you speak
• If you operate from a position of generosity others will perceive you better and be more likely to help you in return
• Listen in a sympathetic way
• Ask good questions, make sure you have the story straight

Be Unique Never Generic
• Originality trumps generic every time this includes clothing, ideas, topics of conversation, how you sell your practice, you name it
• Try wearing something that will give others an easy way to comment on it and open a conversation it could be a pin, a tie, jewelry, something that invites comment
• Be entertaining, witty, funny when you speak, tell stories, make others laugh, this goes far beyond a sales pitch, or logical conversation
• Show a little vulnerability; it makes you seem more real to the other person

A Few Tips
• Openers need not be too logical, it works great if what you first say is witty, a touch enigmatic, humorous
• Never show desperation, or that your career depends on getting the business
• At a conference you have several windows of opportunity: before the conference starts, between the sessions, at the breaks, lunch, and the cocktail party; standing in line is a great time to open the persons in your vicinity, these opportunities include, the line for registration, the line for lunch, the line at the bar, or filing into a room

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October 22, 2010 Zero-Sum Game or What Law Firms and Polygamous Sects Have in Common or Why Associates Need to Find Time to Build a Unique Practice

A zero-sum game is a concept from game theory describing a situation where the gains of certain participants are exactly offset by the losses of other participants. For example in a polygamous sect the old guys in charge want to marry the young girls, which is why when the boys start to express interest in the girls they are kicked to the curb of the streets in the nearest city. In case you haven’t noticed, this is the same system used by law firms concerning associates: with the partners as the old guys, the clients as the girls, and the associates as the lost boys exiled from the compound.

A friend of mine put it to me this way “Unless we think that an associate can walk off with $5million in business we are not about to promote that associate to partner. “

The problem for the firms, under this scenario, is that they are losing trusted employees in whom they have invested many hours of training. They are also missing an opportunity to organically expand their practices and open new areas of business by pushing out young ambitious talent who could be deployed in new ways.

Jones Day did this in waning days of tobacco litigation. They asked themselves what areas of business can they pursue that would replace their tobacco addiction? Medical Device litigation was chosen as a replacement because it commanded high rates, and like tobacco is a type of products liability work for which these litigators are well suited. It took time, persistence, and a tremendous effort but eventually Jones Day became a major player in pharmaceutical and medical device litigation. Their clients in this area include Wyeth, Abbott, TAP Pharmaceuticals, Zimmer, Mentor, and Acromed.

One of the other key law firms in big tobacco litigation who did not employ a strategic plan for a post tobacco era, and instead had mass firings of associates, counsels and partners. The managing partner of this firm grimly described it as “a trimming of dead wood.”

It is my view that the execution of a strategic plan like the one Jones Day did in the pharmaceutical industry is as rare as baby pandas born in captivity. This does not, however, let associates and partners without business off the hook. If you have made it over the successive academic and professional hurdles to a senior level, you certainly have the smarts and talent to build your own clientele. The question is: Are you willing to use your imagination, and to take a few risks?

Take Jamie Sprayregen for example. Jamie came to Kirkland in 1999 from Rudnick & Wolfe with a plan. Kirkland had little in corporate restructuring, but Jamie saw that the highly leveraged portfolio companies owned by K&E’s private equity clients (btw, a practice built from scratch by Jack Levin!) would require debt restructuring from time to time. He helped to build the practice far beyond that, in fact the American Airlines restructuring alone produced $100million in fees.

I picked these extreme examples to make my point. There are many more stories where a senior associate saw an opportunity to add such things as leasing to a developers’ real estate practice adding a $1million in new business.

I am reminded at this point of the end of Alec Baldwin’s Coffee is for Closers monologue in Glengarry Glen Ross where he tells the men that the money is right there, and asks them “are you man enough to pick it up?”

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October 20, 2010 The Body and the Wrap Up – Working the Room Part 4

In our last blog entry we learned some basic techniques for breaking the ice with a single person or a group at a conference. In this entry we will review the mechanics of how to conduct the rest of the encounter in a way that respects your and your new friends’ time.

Let’s suppose that you’ve caught the eye of someone standing in a group of 5 well-dressed professionals. You approach your quarry and introduce yourself carefully to make a good impression. You may at this point find yourself meeting each person in the group, and please do so also with a smile, a warm handshake, and strong eye contact. Now pay attention and read the mood of everyone, use a little social jujitsu, either take a lead or go with the flow, because you may find yourself holding court with all 5, or some in the group may wish to return to their previous conversations, while others will want to speak to you.

I prefer to speak to no more than two at a time because it becomes too unwieldy in a large group to ask follow up questions while everyone goes down the line making their elevator speeches. It’s like the conversation at the dinner table, sometimes there is only one conversation, and other times there many be several going on at once. Get into your subgroup and move through the material so later you can do the same with the others.

Once you’ve squared off with your subgroup, and the appropriate niceties have been exchanged, I like to call the next section the interview. Here we want to learn about what our new friend does for a living, digging deeper, and getting past the title. Be careful not to be seen as just pumping others for information, use good social skills, be genuinely interested, and make sure you get the whole story on what this person does, why they are attending the conference, and what sort of introductions they are looking to make. If you do this the right way your subject will be pleased with the conversation because your discussing everyone’s favorite subject: themselves!

Now is the wrap up. I don’t like to linger once we’ve exchanged information about our respective careers, and determined how we might be able to help one another. At times the conversation will take a half hour, other times it’s over in a few minutes. A lot of this depends on how much the person’s career blends with our own. When I reach this point and decide that it’s time to bail out, I say “Would you like to trade business cards?” After the exchange I stick out my hand and tell this person that it was nice to meet them, signaling the end of our conversation for now. Before I leave them I do a ‘By the way” and ask them if they are also on LinkedIn, and tell them to expect an invitation from me. This let’s them know that I want a future relationship, but like the line in the film The Godfather moving on “isn’t personal it’s business”.

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October 18, 2010 The Gum Opener

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October 15, 2010 Breaking the Ice – Working the Room Part 3

In this installment we will consider the best way to break the ice and start a conversation with a fellow attendee at a business conference. If you are not a natural icebreaker, it pays to have a strategy that will guide you along the way. This preparation will help to boost your confidence anytime you need to find someone new to speak with.

The Opening
I like the direct approach: Make eye contact, smile, stick out my hand, and say, “Hello, my name is William.” You can keep the ball rolling by asking their opinion (as an open-ended question) about the issue under discussion at the conference, the speaker, the venue, anything you share in this environment. To make a good impression find something to be positive about in your observations, find something you like, and it will reflect much better on you.

Non-Verbal Communications
It is important that your sub-communications (nonverbal, body language, and so forth) suggest that you are confident, positive, happy and a serious professional.
• No crossed arms, fidgeting, or hands in pockets
• Strong eye contact
• Smile with your eyes and your mouth
• Calm, relaxed, quiet gesticulations
• Speak loudly enough to be heard without leaning in toward your listener, yet not a screamer
• Once again do not lean in toward the person; this is particularly true if you are taller and bigger than the other person because it makes them uncomfortable, and makes you seem needy
• Cloths are clean, pressed, in good condition; shoes, belts, and bags are polished and in good condition; it is generally preferable to be dressed on the formal end of the spectrum relative to the room
• Calibrate your energy level with the energy level of the group you are approaching; it is best to come in at a slightly higher level, but not too much higher; if their energy level is super high you may just have to try and keep up; coming in a lower energy level damages the group dynamic and they will work to put you out
• Keep your end of the conversation up, but establish at the beginning of the conversation that you are good listener

The lost lamb
A person who is standing by himself/herself is the easiest to open in conversation. She will probably be relieved that she has someone to speak to. As the social portion of the conference wears on the opportunity to find solos becomes less and less. It’s a good warm up, but be prepared to open multiple person group.

Opening a group of three (3-set)
Next to a solo, a 3-set is easy to break into especially if one of the group is not in the main conversation. The key to breaking into any group is to do a quick study of the social dynamics within the group and engage the person who is not in the center of the conversation. The thing is that you may have to approach the group as a whole, and meet them all, before pairing off with the social outlier. This works equally well with larger groups.

Eye contact opener
If you need to find another person to speak with, scan the room and look to make eye contact with another participant across the room. Once eye contact is made smile and start walking toward the person. Please note that the eye contact opener has a very short window of opportunity, so you need to react quickly, within 3 seconds (1, 2, 3, and go), and move in a confident manner toward your new friend. Any hesitation, weak body language, breaking eye contact, stopping and starting, and the like can weaken your invitation. What’s great about this opener is that the subject may be standing with a group, and you will get to meet the others as well. Remember that just because someone is in a group doesn’t mean that they are not thinking about whom to speak to next, and may wish to end their current conversation. Your welcome intrusion actual solves a small problem.

Sizing up your prospects
It is essential that you notice how your clients tend to dress, or other clues such as a wristwatch, etc. Sam Zell, like a lot of real estate guys, doesn’t generally wear suits. Sometimes the other service providers may be the best dressed in the room. The woman with the heavy computer bag tugging on the shoulder of her boring jacket suggests she may be an accountant. (Hey, on second thought, accountants can be a good source of referrals…) Learn to size up your quarry and then go over and test your theories for validity.

Working with a Wingman
A wingman or wingwoman can be a great way to meet more people particularly when you go into an event with some type of system. The accomplishment intro is particularly effective: your wing gives a short intro about you extolling your accomplishments. This is the best advertising money can buy. You can work in tandem, or split up and then rejoin the other when one of you has locked in a prospect. You can also take turns making a cold approach; in this way it can be a competition and a game. The best wings are in a complementary business and not competing to provide the same services.

Picking the right events
Go where the clients and good referral sources are. If you attend an event where clients are present and not overrun with lawyers you are in the right place. (If the room is overrun with attorneys, call me!) If you find an association that is particularly target rich never miss these events, and by no means ever tell anyone about your secret fishing hole.

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October 12, 2010 Working the Room Part 2 (Does Networking Have Value?)

This blog is written for those among us who question the value of networking in the first place. Perhaps you don’t approach others because you have convinced yourself that you are not the kind or person who is good at meeting new people. This voice in your head is that of your inner loser, and today we are going to shut him up.

When your mother told you “Don’t talk to strangers” this was great advice for a 5-year-old. Now that you are an adult, a professional in a business setting where making new contacts is expected of you, it is advice you should examine and determine to be sorely out of date. More pointedly, if you are attending conferences and not being assertive in making conversation with new persons you are missing valuable opportunities to make new contacts with those professionals who can give and refer business to you. Furthermore this antisocial behavior is unprofessional, and you may be developing a reputation as socially inept.

It is very important that when you are at a conference that you do not spend your time speaking with the work colleagues you already know well. The time to speak to them is at the office. Nothing is more pathetic than a closed circle of colleagues (a circle jerk) talking to each other for the entire break or cocktail party.

You must start with the belief that meeting new people is highly valuable. You have your reasons, but you need to be clear in your own mind why making new contacts is important to your business. This clarity will help drive you to make the next introduction, break into the next group, speak to the person standing next to you in the registration line. Focusing on your mission will help fight off any silly fears about approaching new people.

Consider these points for your next networking opportunity:
• I am full of energy, generous, positive, cheerful, fun, I have a smile on my face
• I am helpful, supportive, and a good listener, I try to do a small favor, or give a piece of information to everyone
• I have found that meeting new people is actually fun, and I enjoy challenging myself about how many business cards I can collect
• I enjoy the satisfaction of furthering my career and goals with each new contact I make
• I know that the risk is very low, the price I pay is small, and that I have everything to gain by meeting the next right person
• I am enjoying promoting myself and my firm, I am not shy about telling others about my practice with confidence

Even if you have a $5million book of business, you will someday need to replace clients who retire, are fired, are merged, don’t prefer your services any longer, and the like. The most successful attorneys prepare for the day when they lose a client by continuing to build their network. Good luck and have fun!

October 7, 2010 Working the Room

Last night I attended a very interesting seminar at Bloomberg for hedge funds on the topic of Operational Due Diligence. There were lots of hedge fund managers in the room, and even the service providers were at a high level. Better yet the event was free. I collected 10-business cards, from which I plan to send 7 LinkedIn invitations. I call that a very successful evening. I should have fun following up with them.
When you go to an event what is your objective? What are you trying to accomplish? How do you measure success? What is your strategy? These are some important questions if networking is part of your repertoire of marketing and sales initiatives.

My goal when I am at an event is to meet as many of the attendees as possible. I simply speak with everyone, and collect as many cards as I can. If I don’t have their card it makes it difficult to follow up (hint, hint job seekers!).

Another key element is to have a clear explanation of what is my business and how it relates to the conference. In the case of the Bloomberg seminar I recruit attorneys for legal and compliance positions at funds. I’m not trying to get an engagement on this first encounter (unless my listener leads the conversation in that direction). My objective is not a one call close, but to start a business networking relationship. It’s all about the follow up after the event.

This system reminds me a great deal of when I was a bachelor and would go out to bars and parties. I used the same strategy: collect numbers, make a good impression, and set up the follow up.

LinkedIn is the next a key component to establishing a future business relationship with the people i met. Instead of just having a bunch of cards in a file that I have little connection to, I like to add my new friends to my LinkedIn connections. It then becomes much easier to connect a name with a face (lots of profiles have photos) and LinkedIn provides regular updates when then make alterations to their profiles, change jobs, make new connections, and the like. In the same way it keeps me in front of my connections. Even better, when I need a connection or a referral I just sweep my list of LinkedIn contacts and start dialing or sending emails. It makes me money.

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