A referral from a trusted source can help your law firm quickly generate new business. A referred client has a 25% higher profit margin and a 37% higher retention rate than a non-referred client, according to Clio’s 2019 Legal Trends Report. But how can you effectively leverage the power of client referrals to get your phone ringing?
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A good starting point is to be clear about what kind of referrals you’re looking for. The more specific you can be, the better: “the head of regulatory affairs at a medical device company” is a much clearer request than just “someone who needs FDA expertise.”
Another way to generate referrals is to create and implement an effective referral program. Unlike traditional advertising, which can be expensive and ineffective, lawyer referral programs provide an affordable source of new clients for your law firm. Referral programs are also easier to track and measure, giving you a better understanding of how well your marketing efforts are working.
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When creating a referral program, consider offering incentives to both the referrer and the referred. Small rewards like gift cards and donations made in the client’s name can go a long way.
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Just be sure to approach any gift-giving with care, as some states and bar associations have strict rules about referral gifts.
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