Nexl's referral-tracking module offers law firms a great tool to better manage their referral. Lawyers, marketers, and business development executives alike can leverage the Referrals module to keep better track of both inbound and outbound referrals, and to better manage the firm's referrals ecosystem.
Why is referral management important?
A streamlined strategy for referral management is crucial for law firms for several reasons:
Increased Revenue: Many law firms heavily rely on referrals for their business. It's not uncommon for referrals to account for 60-70% of a law firm's revenue. Effective referral management ensures a steady flow of new clients and projects, significantly impacting the firm's financial health.
Global and Local Networks: In the context of increasingly globalized business transactions, law firms need to build and maintain relationships with other firms both locally and internationally. This network allows them to refer clients confidently when an issue arises outside their jurisdiction or expertise, ensuring client needs are met and fostering reciprocal relationships.
Strategic Growth: Through referral management, law firms can strategically grow their practice by focusing on developing relationships with firms in jurisdictions and practice areas that align with their growth objectives. It helps them identify and nurture relationships with 'best friend' firms and other institutions that can provide a steady stream of referrals.
Client Retention and Satisfaction: Effective referral management can lead to improved client satisfaction as clients are provided with a trusted network for their legal needs beyond the firm’s direct expertise. This holistic service approach enhances the client's experience and increases their likelihood of staying with the firm for future legal matters.
Enhanced Reputation and Brand Strength: Being a part of a robust referral network can enhance a law firm’s reputation in the legal community and its market presence. Active participation in referral networks like Lex Mundi or Terralex and at international legal conferences can elevate a firm's status and lead to more inbound referrals.
Optimizing Business Development Efforts: Referral management allows firms to strategically align their business development efforts, ensuring they target firms and jurisdictions with the highest referral potential. This alignment makes business development activities more efficient and effective.
Internal Collaboration and Knowledge Sharing: Referral management encourages collaboration among different practices within a firm. This internal alignment helps in cross-practice collaboration, ensuring the client receives comprehensive legal services and fostering a culture of teamwork and knowledge sharing.
In summary, referral management is a strategic approach not only to expand the firm’s clientele but also to enhance its market position and internal cohesion.
Where can I track referrals in Nexl?
You can find Nexl's Referral tracker at the bottom of the Firm-Wide section on the left-hand menu. If you do not see the Referral section on your screen, you may not have this module available in your account. If you would like to enable the Referrals module, please contact the Nexl Client Services team.
How do I track a Sent Referral?
When you first click into the Referrals section in Nexl, by default you will arrive on the Sent Referrals tab. To track a Sent Referral (i.e. an outbound referral), click the 'Track Referral' button in the top right.
Once you click the 'Track Referral' button, you will be prompted to enter information about the referral you have sent, including:
The date the referral was sent
Who the referral was sent to and from
The potential client that was referred, and the main contact at that client
The type of legal matter referred
Whether the referral resulted in an actual matter for the firm
How do I track a Received Referral?
You can toggle between the 'Sent Referrals' tab and the 'Received Referrals' tab in the top left. Once you're in the 'Received Referrals' tab, you can track a received referral by clicking the 'Track Received Referral' button.
Once you click the 'Track Received Referral' button, you will be prompted to enter information about the received referral.
You will notice that the information you're prompted to enter is the same information required to create an Opportunity. This is by design - inbound referrals are just one source of opportunities for your pipeline. You can learn more about Opportunity Tracking in Nexl by visiting the Opportunities section of our Help Center.