Referrer management: Diagnosis, Aims, Strategies and Action

November 22, 2024|Accountants, Kim's Blog, Lawyers, Marketing, Relationship Management, Strategy|

There were both lawyers (solicitors and barristers) and accountants at last week’s MBL LearnLive training session on “Developing More Work from Referrers & Intermediaries“. (Future dates: Kim Tasso – MBL Seminars). Their key interests – whether in fee-earning or business development roles – were working with external referrers and the psychology of relationships. The workshop considered planning in the morning and action and skills in the afternoon. Referrer management: Diagnosis, Aims, Strategies and Action Planning.

Diagnosis – Analyse what’s happening with referrals

We spent some time considering the data and analyses to establish an effective referrer and referral management strategy.

Several delegates mentioned they had challenges with poor data entry. This is a common issue which makes analysis of referral sources and trends harder. Some firms were lucky to have modern CRM technology which scraped data from other systems and communications.

Otherwise, the solution involved educating fee-earners and their assistants in what needed to be input and why. Spending time going through the data manually with them usually focused their minds on recording data more accurately in future.

Web site and social media analytics provide insight into which content generates interest, engagement and enquiries from referral sources. Analytics and Measurement for Digital Marketing – Kim Tasso

Data issues are explored further here:

Cross-selling and referrer management – Data, focus (kimtasso.com) March 2024

Proactive marketing and business development executives – CRM December 2023

A key output from these analyses was segmentation. We discussed Muslim, Jewish and Italian communities and segments based on the type, size and strength of relationship with referrers. Related posts: Back to basics – importance of segmentation and personas and Marketing and BD planning – Segmentation, Rock Stars and Engagement

Aims – What you want to achieve with referrals

Usually, the analysis and diagnosis will provide base lines on which you can develop SMART objectives.

Most of the delegates were focused on aims and objectives for a particular team. Although some people need to set targets for the firm overall or for individuals. Referrer Management Strategies – Planning for the firm, teams

Some aims focus on the volume of referrals and others on the type and value of referrals. One delegate indicated that they simply wanted to generate another strong relationship with just one additional key referrer.

Some aims considered the target organisations where a referral relationship needed to be established or enhanced. Some aims considered the share of wallet from major referrers.

Strategy – Choose your focus for referrals

Strategy is about making a choice. You don’t have the time or resources to do everything. So you need to focus. Choose a strategy or a few strategies that will help you achieve your aims. Manage the scope of programmes. And then measure your progress against them.

The diagnosis and aims should suggest potential strategies in different areas. For example:

Brand awareness for referrers
- Thought leadership campaigns Thought leadership manual by Tim Prizeman
- Media relations Law firm media relations and integrated campaigns (Kysen)
- Personal brands How to create and promote your personal brand – Kim Tasso
Digital marketing for referrers
- Using online advertising, email marketing and social media create a digital marketing strategy in a professional services firm
Cross-selling for internal referrals
- Cultural and mindset change Cultivate a cross-selling culture (kimtasso.com)
- Internal communications campaigns
- Education and training programmes
- Internal networking sessions
- Cross-referral incentive schemes
Client recommendations and referrals
- Client relationship management programmes and campaigns
- Client listening programmes to monitor Net Promoter Score (NPS) Client satisfaction benchmarks – How do you measure up?
- Training to encourage fee-earners to request Google and TrustPilot reviews
- Key Account Management to focus on major clients and referrers KAM – Less is more and take a different perspective
Referrals from other third parties (such as professional and financial advisers)
- Directory entries
- Attendance at key conferences and events
- Focused relationship management programmes
- Organising “tiered” programmes of joint activities

We considered different ways to add value to referrers. Whilst reciprocity is important it isn’t always straightforward (see referrer management in professional service firms). In addition to providing introductions and insight, it was noted that some found it valuable just to know where to refer clients who they cannot help.

We all agreed on the importance of face-to-face contact (as opposed to telephone on online contact was noted) for relationship management with referrers.

Action – Plan what you will do to enhance referrals

Webinars and online meetings were popular activities as well as informal coffee meet ups.

Many of the planned actions involved improved internal and external communication. We saw the power of stories to convey differentiating and memorable services (Video – The art of storytelling – Kim Tasso explains and Book review: Unleash the power of storytelling by Rob Biesenbach)

We considered ways to group referrers into tiers for specific programmes of activities (e.g. Structured programmes for Referrer Relationships – workshop). This can make planning and implementing activity easier.

There was a discussion about the need for regular and sustained activity on LinkedIn to remain on the radar of potential and existing referrers. And to supercharge word-of-mouth (WOM) recommendations. LinkedIn was also a valuable research tool to monitor developments at referrer organisations that might provide a reason to reach out and speak. Some delegates had used LinkedIn advertising. Some had paid accounts to support searching, targeting and direct contact.

Other example referrer management activities are summarised here: pragmatic steps to improved referrer management 2019

Key takeaways and actions from the delegates

Diagnosis
- Assess the links between marketing and selling/relationship management
- Talk to MBD team – look at their data and systems and assess how they can help more with programme of activities and managing relationships
- Use some of the data analysis approaches (e.g. Client Lifetime Value)
- Analyse what has worked well in the past
- Use emotional intelligence (EQ) tools to assess relationship skills
Aims
- Be specific about what we hope to achieve and by when
- Measure how and when we add value to referrers
- Develop aims and articulate what returns we expect and by when
Strategies
- Become more organised develop a structure and strategy
- More brand building
- Segment activities (e.g. separate those OMB and private clients)
- Use thought leadership to integrate marketing and selling programmes
- Hold people to account
Action
- Focus on internal cross-selling programmes
- More intentional and regular and less haphazard activities
- Provide training in business development and relationship management skills
- Support younger team members develop conversation skills and integrate into networking programmes