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Who you know may well be just as important as what you know.
For law firms, knowing “who knows whom” can be a defining difference in both client loyalty and revving up the referral engine.
“Research shows there’s a correlation between the number of partner relationships a client has with a law firm and that client’s loyalty. Client-flight risk drops to less than 10 percent when clients have relationships with five or more of a firm’s partners,” according to Toni Minick.
Ms. Minick, along with the LexisNexis® InterAction® team, released a pretty useful update to the IQ module of law firm CRM software today: passive data management. Passive data management is a new enhancement to the InterAction CRM software that will help law firms keep client contact information up-to-date automatically.
The new enhancement has been added to the “IQ” module in InterAction, which enables law firms to understand who in a law firm knows who in a client organization and provides a relationship score, or what LexisNexis call an “IQ” score.
The score is useful for gaining visibility into a firm’s clients who are at risk of leaving for example, or that present an additional revenue opportunity as the ABA Journal articulated in this example:
…the firm brought in about $84,200 in unanticipated business with LexisNexis InterAction because one of its attorneys left a note every day in the CRM software, according to Snehit Cherian, InterAction’s director of product development.
While the lawyer’s observation that one of Osborne’s venture capital clients was considering investing in a company was unrelated to Osborne’s business with the client, “another lawyer at Osborne happened to have deep knowledge of the company the venture capital firm was evaluating and saw the notes in InterAction,” Cherian says.
The result: Osborne netted an out-of-the-blue consulting fee of 50,000 pounds from its venture capital client, simply by putting its in-the-know attorney together with the client and providing the background it needed, Cherian says.
The addition of passive data management to the IQ module means the software will automate a bit of the process by “automatically capture email signature blocks for contact information.” In addition, the module is integrated with the CRM system and “updates to contact information in the system are also automated.”
Resources for Additional Information:
- InterAction CRM overview
- InterAction IQ introduction
- Detailed information on this product enhancement (PDF)
- InterAction CRM group on LinkedIn
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