0 Alastair Moyes puts forward the case for seeking recommendations as a way to drum up business


Why pay for referrals when recommendations are free and the source of good work? Recommendations are acknowledged as the basis of a good business and the way clients gain trust in the services they need when unsure how to judge the suppliers. But why would someone recommend a firm?



All forms of service businesses, from plumbers to merchant banks, are subject to similar assessments by the customers that use them. Proactive management that encourages recommendations is less expensive, brings better quality work, and is far more suitable for the future of legal services. It is often more effective than advertising and provides a more flexible promotional route to clients.



Actively seeking recommendations is the process that should underpin the majority of marketing and promotional activity, and provide satisfied clients with good reasons to recommend you.



To achieve a level of recommendation that could replace paid referrals takes management time and effort to achieve. It will not suit some specialist firms, whose business models rely on high volumes of work. For most general practice firms, the effort required will add significant value when the information on a recommendations network is retained within the firm. Actively managing that network demonstrates how a firm will gain business in the future and increases the value of the business.



We must draw a clear distinction between recommendations and referrals. A recommendation is made as a sign of the satisfaction a client feels about a firm and is made freely. Referrals are a business transaction.



Most solicitors already have regular sources of recommendation and this is where to start developing a larger and more widespread network. A firm's IT systems become a central part of recording, managing and using a network of recommenders.



There are two distinct groups to consider: past, satisfied clients, and professionals who could recommend seeking legal advice. Other solicitors' firms are included in the second group when they do not offer the services their clients require. With both groups, the aim of extending the network is to make it easier for them to say: 'talk to Bloggs & Co'. Each group requires a slightly different message highlighting the benefits of a solicitor's services. Former clients need to be reminded of the direct benefits they have received, whereas the professionals need to know how a solicitor will help them retain their own clients.



One of the most important elements of gaining recommendations is to understand what it is clients are buying when they use legal services. Highlighting the benefits clients receive makes it easier for them to make recommendations to others. Solicitors are good at promoting the features and advantages of their services, but often miss the conclusion that states the benefits. 'We have qualified and experienced staff' is a feature, and the benefit to the client is the confidence that a firm can quickly deal with a legal problem which they could not handle themselves.



Making benefits clear is important because legal services are an 'experience good' (as in goods and services) for the client. However, legal services are also a 'credence good', where the purchaser can never fully ascertain if they have achieved the best outcome to their legal problem for the cost, in comparison to other services available. So clients need reassurance that they have bought the right service.



Clear benefit statements provide recommenders with the knowledge they need, on top of the previous experience of dealing with a firm, to be confident in making a recommendation. A firm then needs to use promotional methods to reinforce that knowledge.



Fee-earners are a vital part of the system, as they need to record and maintain the information held by the firm. When a database is correctly maintained it becomes an asset to all. Those who contribute gain far more from a wider network than those who keep their contacts to themselves. The firm gains by having a tangible asset that shows how it can gain business in the future. What makes the network of far greater value is the process of managing regular communications with the recommendation groups.



Many firms produce general newsletters. But consider the alternative of sending personalised letters over a longer period of time, specifically addressing the known requirements of a potential client. That is a far more effective way to present your firm's benefits, it is less wasteful, more easily produced and encourages contacts to think of a firm as their solicitor.



Managing the process of seeking recommendations requires a good database, willing fee-earners, and clear benefit statements for a firm.



Once in place, the scale of a recommendation network is only limited by the time put into it. A typical small firm could achieve hundreds of professionals and several thousand past clients who know the benefits available and are willing to tell other potential clients. Competition for work in the future from strong national brand organisations is only likely to increase. A well-managed network of people ready and able to recommend your firm can be your answer to meeting the challenges ahead.



Alastair Moyes runs Marketlaw with David Monk. Both are co-authors of Marketing Legal Services, published by Law Society Publishing this month