Introduction

Legal professionals of today must be masters of their domain and also have a broad set of skills. In the scope of advanced data analytics, artificial intelligence, and other technologies, legal professionals are required to stay relevant and informed. [1] The legal industry is vastly different from just a few years ago as a direct result of the intake of new technologies which have opened up avenues of communication and transparency that were previously not possible. Now, potential clients can find information about law firms and the attorneys associated with those firms in a matter of minutes. As a result, there has been an increase in searches for “reputation management” and other similar terms. Thus, what was once a profession where the personal brand of individual lawyers was not as important is now one where it can potentially make or break a career.

Nowadays, legal customers demand more transparency, better communication and faster service than ever before. In order to meet their needs, the adoption of legal crm software by law firms for dealing with legal cases  has increased in recent years. [2]

What is CRM Software?

CRM stands for Customer Relationship Management and is a type of software designed to help companies manage their clients. CRM software for legal firms is a set of tools and services to manage client relationships from first contact through exit and beyond. [3] The earliest legal crm systems were designed for salespeople to track their leads and sales, forecast customer demand, and perform other sales-related duties. Legal software tools have advanced since then, and legal business software now come in many different forms. Most modern CRM systems are designed for sales teams, marketing departments, and customer service staff. They are designed to help teams collaborate, maintain data, and create actionable insights. CRM software is used by a wide range of industries, including law firms.[4]

Types of Software for Law Firms

There are two main types of legal practice crm for lawyers: – Relationship management software: Relationship management (RFM) software is designed to help stay connected and engaged with clients. If a client has a certain issue or concern, it can be logged with this type of software. If they have a particular need, you can also log that with RFM software. – Sales force automation software: Sales force automation, or SFA software specialises in sales tracking and performance. It can be used  to track leads and sales. It also helps forecast customer demand.

Benefits of Using CRM for Law Firms

CRM makes it easier for lawyers to communicate with their clients by allowing them to enter relevant data into the system and access contact information as needed. [5] CRM also acts as a database to obtain all of the relevant information needed in one place, making it easier to respond to any questions or issues that arise. Some other benefits include:

– Improved business analytics: By using data to understand what is happening in a business, it is possible to make more informed decisions. CRM makes it easy to track important data, like leads and customer engagement.

– Better collaboration: CRM software is designed to make it easy for teams to work together. This helps optimise workflow, achieve more, and make better decisions. [6]

– Enhance customer experience: With CRM, it is easier to stay on top of a client’s preferences, issues, and needs. This can help improve the way clients are served and deliver better experience overall. – Better forecasting: The data collected through CRM can help forecast future sales. This can help with managing the business in a more focused manner and make better overall decisions as a result.

Why is CRM Important for Law Firms?

Beyond the benefits listed above, CRM and business management software for law firms are important because they help  to scale a law firm. [7] When you have a robust CRM system, it becomes easier to onboard new clients. It also helps with retaining clients more effectively. With an effective CRM, team members can easily share data. They can also use it to make better decisions and serve clients more effectively. – A robust system can help close more deals and upsell existing clients. It can also help identify and resolve issues before they become major problems. 

There are a number of different types of CRM software available, but all of them have the same basic goal—to help firms manage their relationships with customers. Some systems allow firms to view customer contact information in one place so that employees can easily reach them with a request or a recommendation. Others may let companies send automated messages based on the customers’ behavior or preferences. And some systems may even allow companies to automate certain tasks, such as sending invoices. [8]

Best Practices for Running a Successful CRM Within a Law Firm

The benefits of CRM are clear: By better understanding their customers, law firms can improve their interactions with them and make smarter business decisions. [9] Put simply, CRM is essential for building long-term client relationships. There are a few best practices to keep in mind to make the most out of the CRM software:

Everyone in the firm should use the same software:  team members should all be acquainted with and use the same legal practice crm . This will help avoid having multiple systems that do not correspond to each other. [10]

Create a culture of data tracking and review: Everyone on the team should track the data they are responsible for. Once a week, reviewing the numbers to ensure everyone is on track is beneficial.

Conclusion

Legal professionals know that running a law firm is challenging. This involves managing a range of clients, projects, and team members, while keeping on track with goals. A robust CRM can help make smarter decisions, and grow the business. Furthermore, having good CRM software can help attract and retain clients. It also helps your team members work more efficiently and effectively, which can make a world of difference in the long run.

References

[1] CRM For Law Firms: The What, Why & How Of Client Relationship Management For Law Firms, Dec 2021 https://boss-digital.co.uk/blog/crm-law-firms/ 

[2] What Is The Best Legal CRM For A Small Law Firm? https://matterly.io/what-is-the-best-legal-crm-for-a-small-law-firm/ 

[3] Do Law Firms Need a CRM? Calvin Krusick, https://getciville.com/do-law-firms-need-a-crm/ 

[4] Competition Within the Legal Industry, Fatima Freifer https://goodlawsoftware.co.uk/competition-within-the-legal-industry   

[5] The Main Challenges UK Law Firms Can Expect In 2022, Fatima Freifer https://goodlawsoftware.co.uk/the-main-challenges-uk-law-firms-can-expect-in-2022 

[6] Managing Clients in Different Time Zones, Fatima Freifer https://goodlawsoftware.co.uk/managing-clients-in-different-time-zones 

[7]  Law Firm Client Relationship Management (Part Two) Kerrie Spencer, https://www.biggerlawfirm.com/law-firm-client-relationship-management-part-two/ 

[8] The Model for Law Firms Looking to Improve Client Relations https://www.legalmosaic.com/the-model-for-law-firms-looking-to-improve-client-relations/ 

[9] 4 Signs Your Law Firm Needs a CRM System https://www.pragmatiq.co.uk/4-signs-your-law-firm-needs-a-crm-system/ 

[10] How can a CRM help law firms to develop your business? https://www.efficy.com/how-can-a-crm-help-law-firms-to-develop-your-business/