CRMCRM Panel PanelCole Valley Cole Valley

Users GroupUsers Group

Steve Barrett Steve Barrett CMO, Drinker Biddle & Reath CMO, Drinker Biddle & Reath

LLPLLPPhiladelphia, PAPhiladelphia, PAMarch 20, 2007March 20, 2007

Lexicon: CRMLexicon: CRM = “Client = “Client Relationship Manager”Relationship Manager”

• If your system cannot tell you who’s a firm “Client,” you don’t have a “C”

• If you don’t have a “C,” you cannot have an “R”

• If you have neither a “C” or an “R,” you only have an “M,” which is just a 400-horsepower “Mailing” list!

What What isis a Good CRM a Good CRM System?System?• Includes:Includes:

– Client Yes/No indication Client Yes/No indication (w. client (w. client ##s)##s)

– Summary client quantitative dataSummary client quantitative data– Big client v. little client indicationBig client v. little client indication– Other contacts at client/prospect Other contacts at client/prospect

organizationorganization– Subjective client + contact dataSubjective client + contact data

What What isis a Good CRM a Good CRM System?System?• Includes Includes (cont’d):(cont’d):

– Easy integration with firm Easy integration with firm applicationsapplications

– Alumni + Referral sources trackingAlumni + Referral sources tracking– Event trackingEvent tracking

What Good is a CRM What Good is a CRM System?System?•Multi-Dimensional (integrated CRM):Multi-Dimensional (integrated CRM):

– Targeting clients for service Targeting clients for service improvement initiatives improvement initiatives

– Supporting Client Service Teams’ Supporting Client Service Teams’ proliferation effortsproliferation efforts

– More accurate client source infoMore accurate client source info– Supports individual attorney + firm-Supports individual attorney + firm-

wide sales/direct business developmentwide sales/direct business development

Parent Org.

Sub. 2Sub. 1

Div. 2Div. 1

Client ProspectClient Prospect Prospect Prospect

What is a Client “Family”What is a Client “Family”

What is a Client “Family”What is a Client “Family”

• The Gillette Co.The Gillette Co.– Safety Razor Safety Razor

DivisionDivision– BraunBraun– DuracellDuracell– Right Guard/Soft & Right Guard/Soft &

Dri/Dry IdeaDri/Dry Idea– Edge Shaving CreamEdge Shaving Cream– AftaAfta

– Oral-BOral-B– Satin CareSatin Care– ThermoscanThermoscan– *Toni + Prell*Toni + Prell– *PaperMate*PaperMate– *Waterman*Waterman

What Should Precede CRM?What Should Precede CRM?

• Lost business/shrinkage analysisLost business/shrinkage analysis(Can any be restored/recovered?)(Can any be restored/recovered?)

• Need to aggregate client info into Need to aggregate client info into comprehensive “views”comprehensive “views”(esp. w. corporate (esp. w. corporate “families”)“families”)

• Thorough understanding of firm’s Thorough understanding of firm’s clients clients (conduct “business autopsy”)(conduct “business autopsy”)

• Stratification analysis Stratification analysis (“What’s your (“What’s your 80/20”?) 80/20”?) You’ll find it’s more like You’ll find it’s more like 90/1090/10, in , in most “full-service” firms of any size.most “full-service” firms of any size.

Stratification (Sample) –

Stratum %Clients Band Sub-Total Cum. $$ Total %$$ Avg.Cl.SizeTop 10 0.3% $33,853,582 $33,853,582 21.4% $3,385,358Top 20 0.7% $14,717,103 $48,570,685 30.7% $1,471,710Top 40 1.4% $18,015,682 $66,586,367 42.1% $1,801,568Top 60 2.1% $12,433,893 $79,020,260 49.9% $1,243,389Top 80 2.8% $9,663,541 $88,683,801 56.0% $966,354Top 100 3.5% $7,597,289 $96,281,090 60.8% $759,729Top 120 4.2% $6,328,995 $102,610,085 64.8% $632,900Top 140 4.9% $5,276,741 $107,886,826 68.2% $527,674Top 160 5.6% $4,323,739 $112,210,565 70.9% $432,374Top 180 6.3% $3,679,630 $115,890,195 73.2% $367,963Top 200 7.0% $3,205,950 $119,096,145 75.3% $320,595Top 220 7.7% $2,910,017 $122,006,162 77.1% $291,002Top 240 8.4% $2,618,336 $124,624,498 78.8% $261,834Top 260 9.1% $2,327,572 $126,952,070 80.2% $232,757261-2860 90.9% $31,286,538 $158,238,608 19.8% $12,038

2,860 100.0% $158,238,608 100% $55,328(3,171 clients billed; 2,860 collected)FYE 1/31/1995

““What’s your 80/20”?What’s your 80/20”?

• So...should you spendSo...should you spend 80+% staff 80+% staff time on the data accuracy of time on the data accuracy of unimportantunimportant clients? clients?

• Or...80+% of time ensuring accuracy Or...80+% of time ensuring accuracy of of majormajor client data & enhance that client data & enhance that info to propel relationship growth?info to propel relationship growth?

• Should you relate to fans in bleachers Should you relate to fans in bleachers or sky boxes?or sky boxes?

What Undermines CRMs?What Undermines CRMs?

• Lack of management supportLack of management support

• Convoluted roll-out, infrastructure & Convoluted roll-out, infrastructure & training needstraining needs

• Focus on achieving 100% data Focus on achieving 100% data integrityintegrity

• Incompatibility issues, siloed dataIncompatibility issues, siloed data

• Attorney contact release/complianceAttorney contact release/compliance

What Undermines CRMs?What Undermines CRMs?

•Firm business Firm business development/sharing culturedevelopment/sharing culture

•Low teamwork/“client-centricity” Low teamwork/“client-centricity” readinessreadiness

•Needless complexity – training Needless complexity – training overheads deter usage + low overheads deter usage + low usage undermines successusage undermines success

The ChallengesThe Challenges

•Mastering AdministriviaMastering Administrivia– Links to client info, web sitesLinks to client info, web sites– Maps/directionsMaps/directions– Client Service Team support Client Service Team support (“(“M”M”s s

cannot provide)cannot provide)– Integration w. hand-heldsIntegration w. hand-helds– Color-coding Color-coding (S/(S/M//LL//XLXL))– Integration Integration (w. phone dialing, mail-(w. phone dialing, mail-

merge, e-mail, fax covers, shipping merge, e-mail, fax covers, shipping labels, etc.)labels, etc.)

The ChallengesThe Challenges

•Mastering Administrivia Mastering Administrivia (cont’d)(cont’d)– Familiar user interface?Familiar user interface?– Data enrichment Data enrichment (from Martindale, (from Martindale,

SHRM, ACCA, other sources) SHRM, ACCA, other sources) ??

– % with e-mail addresses?% with e-mail addresses?