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Trends in Legal CRM and ERM

Jennifer SmutsDirector of MarketingConnolly Bove Lodge & Hutz LLP

John VeldkampBusiness Development Systems ManagerLatham & Watkins LLP

Susan BrelusChief Development OfficerSquire, Sanders & Dempsey L.L.P.

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Survey Says …

1. Responses from firms with:

– 49 or fewer lawyers 15% – 50-149 lawyers 50%

– 150-349 lawyers 20% – 350-699 lawyers 10%

– 700+ lawyers 10%

2. 75% respondents have CRM (InterAction, ContactEase)

3. 10% respondents have ERM (InterAction, ContactNet)

4. 35% respondents affected by budget constraints

5. Seasoned CRM users, immature ERM users

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Top Challenges …

1. Buy-in, implementation, management

2. Lack of resources, qualified data stewards

3. Data integration (silos), segmentation (top clients, NAICS/SIC, demographics)

4. Budget restrictions

5. Inability to source ideal system

6. Advancing marketing’s position, best way to use data

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You Say, I Want to Know …

1. Strategies for adoption, implementation, cultural hurdles. Value in hiring consultant?

2. How does ERM complement CRM?

3. Reports/tracking you get from CRM/ERM

4. What advanced users have been doing, integration

5. Utilization of practice management systems

6. Case studies

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CRM, ERM, “XYZ”RM … What Does It All Mean?

image provided by Andrew Kazmierski

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The Right Software Depends on the Firm’s Goals

Consolidate information about client relationships

and interaction

Capture, search and analyze firm

relationship data

CRM ERM

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Business Benefits Compared

Criteria CRM ERM

Value / benefits Client service, activity tracking, relationship management

“Who do we know and how well do we know them?”, and related analytics

Data entry / resource requirements Heavy / Moderate Minimal

Communication / training required Heavy / Moderate Minimal

Methods of ‘hosting’ Primarily onsite at the firm Primarily onsite at the firm

Pricing model Primarily licensed; occasionally subscription Primarily subscription

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CRM - Basic Contact Information

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CRM - Relationships & Touch Points

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CRM – Sample “Taxicab” Report

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CRM – Background Information

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Data sources: Email Logs, Address Books, T&B, PhoneData sources: Email Logs, Address Books, T&B, Phone

ERM

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View a targeted segment of your market ranked by relationship strength – for example, “Relationships to the Fortune 500”

View a targeted segment of your market ranked by relationship strength – for example, “Relationships to the Fortune 500”

Who holds strong relationships in each company? Who holds strong relationships in each company?

Which of the F500 might make a good prospect?

Which of the F500 might make a good prospect?

ERM – Next Generation Analytics

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ERM – Next Generation Analytics

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12,500400,000

1,200,000

Total Direct Relationships Available to a 1,000-Lawyer Firm (as of 10/1/2009)

Relationship Capture: An Example

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ERM CRM In CRM:

• Add 2-4x more relationships

• View relationships by strength vs. alphabetically

CRM ERM In ERM:

• Add contacts and relationships where address book is not completely synced with CRM

• Enhance ERM relationship score based on CRM activities

• Provide a more complete map of relationships for search and analysis

ERM/CRM integrations are on the rise …10x increase 2009 vs. 2008, Now 30% of ERM installations

The Union of CRM and ERM?

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CRM ERM

Contact Manager by Hubbard One BranchIt by BranchIt Corp

ContactEase by Cole Valley ContactNet by Hubbard One

CRM4Legal by Client Profiles / Microsoft Relationship Discovery by Cole Valley

IntelliPad by Versys Corporation InterAction IQ by LexisNexis

InterAction by LexisNexis

Examples of Products in Use

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Evaluating Your Needs

• Requirements / challenges

• Budget / resources / staffing

• Privacy / security

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Questions to Answer

• What is the most important reason to implement CRM? How is that communicated to stakeholders?

• What formula can a law firm use to determine ROI on CRM / ERM? Metrics? Quantifiable, verifiable?

• What’s the biggest selling point of a CRM system?

• How do these systems make our jobs easier?

• How do you sell these systems to management?

• How do these systems complement each other? What are the similarities / differences between CRM / ERM and how do they separately / together enhance an attorney’s business?

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Contact Information

Jenn SmutsDirector of MarketingConnolly Bove Lodge & Hutz LLP302-888-6214jsmuts@cblh.com

Susan BrelusChief Development OfficerSquire, Sanders & Dempsey L.L.P.216-479-8243sbrelus@ssd.com

John VeldkampBusiness Development Systems ManagerLatham & Watkins LLP650-463-3026john.veldkamp@lw.com