Why Legal and Accounting Firms Must Invest in a CRM System
I've attended countless accounting and legal marketing conferences over the past 15 years as a member of two national organizations. And I’m always amazed by the number of firms in the exhibit halls selling CRM systems.
Now that my focus is training, coaching and mentoring business developers working in legal and accounting practices, what surprises me today is how many firms still haven’t purchased their first CRM system.
When I ask why these firms have been so slow to embrace CRM, I hear several reasons:
They’re risk-averse when it comes to adopting new technology.
They believe the CRM will interfere with people’s autonomy in managing their clients.
They’re leery of the high upfront costs for software and training and are unsure how to measure ROI.
They’re content with their existing systems (simple databases, spreadsheets or paper-based methods).
CRM Adoption Often Requires Culture Change
A CRM system requires a significant investment for the initial purchase, implementation and ongoing subscription or support fees.
It’s more than a big purchase; it requires significant cultural change. The CRM won’t work if it’s perceived simply as a marketing or business development tool. Firm leadership must use it daily to make important decisions and evaluate firm performance. A CRM must be woven into a firm’s DNA. And while usage shouldn’t be optional, the buy-in will vary tremendously by individual.
Why Big Goals Require a Technology Investment
If your firm is seriously committed to aggressive business development goals, I can’t see how you can achieve that without a sophisticated CRM system.
Your CRM is like a turbocharger for your car — it speeds up performance.
A CRM helps you manage leads and streamline your intake process, ensuring no opportunities are lost. A more efficient method for handling leads can improve conversion rates, translating into more clients and revenue.
Your CRM should offer analytical tools to evaluate the success of your business development efforts (e.g., client acquisition costs, revenue per client, billable hours and case outcomes). This information helps identify areas for growth or improvement, making your firm more competitive and efficient.
Improved Pipeline Management
Pipeline reports can help grow business development revenue by tracking and managing potential client relationships, identifying growth opportunities and ensuring a systematic approach to nurturing leads.
You start by evaluating the sales stage of each lead. For example, if you’ve only scheduled an introductory meeting, there might be just a 10% chance of closing a sale. But when you reach the negotiation stage, you’ve increased your closing probability to 80%. You multiply the closing probability by the potential dollar value of the engagement to forecast revenue.
If you’re a business developer working in a legal or accounting firm, your pipeline analytics helps you understand if you have enough irons in the fire to achieve your business development goal. The information highlights which industry leads have a higher likelihood of closing, how long it takes to close business and where cross-selling opportunities exist.
A CRM allows you to forecast revenue, set realistic goals and determine which industries to target in future marketing campaigns. The CRM data provides a road map for management to coach the business developer on how to advance the sale or when to cut bait and move on to other prospects.
How to Justify the CRM Purchase
Just as a turbocharger boosts your car's speed, pipeline reports fuel your firm's business development engine, accelerating growth and maximizing ROI.
Since your firm’s management might believe a CRM purchase or upgrade will be too pricey, share these compelling reasons with them to justify the investment:
With enhanced lead management, you streamline the intake process, preventing lost opportunities and driving improved conversion rates.
Your business development team will learn from the CRM’s data-driven insights for evaluating business development success through metrics such as client acquisition costs and revenue per client.
The pipeline reports offer a systematic approach to nurturing leads, tracking potential client relationships and identifying growth opportunities.
With improved forecasting, it’s easier to evaluate sales stages, set realistic goals and target lucrative industries, ensuring a targeted marketing effort.
Partner with a Coach for CRM Adoption and Adherence
Are you ready to elevate your business development efforts? Investing in a CRM system is just the first step. As your firm buys or upgrades to an essential CRM tool, don’t go it alone. With my coaching and mentoring expertise, business developers in legal and accounting firms can seamlessly integrate CRMs into their workflows, pipelines and accountabilities.
Interested in how I can help you? Let’s connect and explore how you can transform your business development system into the engine that drives your firm's future success.
