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Technology in Marketing

By Nancy Manzo
January 31, 2007

First came business card exchanges, then networking events, then law firms became more organized and developed marketing databases to keep track of all clients, potential clients, referral sources and mailing lists. Then along came Client Relationship Management systems otherwise known as CRM. Now we have ERM (enterprise relationship management), RCM (relationship capital management) and more acronyms than you can shake a stick at. No matter what the new technology, the bottom line persists: Lawyers need to maintain and grow their world of relationships in order to be successful and generate revenue.

New Tool

A new tool from small Boston-based startup Contact Networks has arrived on the market and the principles believe they have the answer to the age-old dilemma of making relationship management easy on attorneys. 'Lawyers have the same problem they've always had: as they master the practice of law, they have to get into the selling of law, which is a challenge for most of them,' says CEO Geoffrey Hyatt. 'I believe we have an answer to that problem.'

At its core, Client Relationship Management in law firms has traditionally focused on collecting and managing contacts and other relationships lawyers have. Most firms have used these tools to manage lists and send out various communications to clients and others to keep the firm top of mind among its target audience. But the challenge has been getting lawyers to use these systems and provide the necessary information about their relationships. 'Based on our analysis among our install base, we know that 85% of people lawyers are communicating with don't get into the firm's address book,' says Hyatt. 'Our application analyzes e-mail traffic and address books, among other things, without any effort on the part of the lawyer.'

Contact Networks' server-based software is set up to have read-only access to other firm systems, such as time and billing, e-mail, CRM, and other tools that contain important information about who knows whom. But it takes it a step further by using 37 algorithms that determine the strength of the relationship so that you, as the searcher, can uncover the true gem who can make or break your business development dilemma. For example, say you practice law at a large multi-hundred-lawyer firm with dozens of offices around the globe.

You need to know who in the firm has a connection to Texaco Refining and Marketing, a subsidiary of Chevron-Texaco. You could call marketing or someone in finance to see what they can dig up which make take hours or days. But using Contact Networks, you can do a speedy Google-like search that gives you a list of lawyers who have very strong relationships with certain individuals at Texaco Refining and Marketing. You can choose to call those lawyers or send them an e-mail requesting an introduction. Security settings allow you to restrict showing the individuals contact information but you will know which lawyers have the strongest ties. Contact Networks differs markedly from CRM or other hosted applications that require configuration, implementation and training, all of which can take lots of planning, time, and money. Its software can be installed on a Friday and be up and running by Monday morning. If a user knows how to use Google for search, they can use Contact Networks.

Attorney Hesitance

Although it sounds simple, lawyers have not necessarily welcomed it with eager arms. Says Vickie Cummings, Chief Marketing Officer of Sheppard Mullin, 'We introduced it about a month ago but haven't heard a peep from our lawyers.' Given that the software can analyze e-mail traffic, the firm expected some backlash from the lawyers given this 'Big Brother' approach to intelligence gathering. But because the software does not reveal the content of an e-mail but rather analyzes frequency and response rates, among other things, lawyers will hopefully relax. Cummings used a detailed Q&A format in her e-mail introduction to explain how the tools works, hoping to allay any privacy concerns the lawyers had. She still sees e-mails flying around, asking, for example, 'Does anyone know Bob Smith, General Counsel at Smith & Wesson?' etc., but she and her staff quickly search Contact Networks and send the information to the inquiring attorney. When asked how Contact Networks differs from the firm's own CRM system, Cummings replies, 'We still need lawyers to put anecdotal information about contacts, such as they liked to be called Robert instead of Bob, or we took them to lunch in November.' The firm also uses CRM to manage various mailing lists. But Cummings recognizes the reality that not all lawyers will use CRM no matter how much hand-holding goes on. 'I get monthly reports that tell us how many contacts are in CRM. We proselytize to those who have low numbers, but generally there are and will always be lawyers who don't use CRM.'

Many lawyers grudgingly sign holiday cards and send boxes of chocolates every December and it's done incredibly inefficiently, year after year. But most partners and practice group leaders are up late thinking, 'How do we leverage our talent to grow in China? How do we cross-sell our IP clients? Whom do we know in the legal department of AstraZeneca because we have an opportunity to do a major pitch?' 'We are solving very senior business problems that very senior partners care about,' says Rich Hermann, VP of Sales at Contact Networks. With a seven-year background with a legal CRM company, Hermann believes Contact Networks solves a very important and very sophisticated problem. With Hyatt's background in selling management consulting services to large global technology companies, and the sales staff experience in the legal industry, the company believes it will be successful selling into the AmLaw 100 firms. 'Whether in management consulting or law firm selling, the best way to lead is with your best relationship,' says Hyatt. 'If we don't win that engagement, then the others guys must have had a better, stronger relationship.'

Competition

Competing with much-bigger Venture Capital-backed Visible Path, it remains to be seen if Contact Network's RCM tool will be relegated to use by the marketing department, as is the case with many law firm CRM systems. Hyatt says more announcements of new clients and new features will be made early this year. 'We don't claim to solve all of a law firm's business development problems,' says Hyatt. When challenged he confirmed that firm's still need to manage the 'what we know' not just 'whom we know.' Firm's still need to advertise, manage deals and cases, generate proposals and send communications to clients.

With Contact Networks, 'you can run but you can't hide,' Cummings adds. Contact Networks will reveal relationships and hopefully those revelations will lead to new business. Or at least an introduction. The selling and communication skills of the lawyer will stay play a large role.


Nancy Manzo is a Senior Consultant with Hubbard One, a Thomson company. She can be reached at [email protected] or 206-633-3624.

First came business card exchanges, then networking events, then law firms became more organized and developed marketing databases to keep track of all clients, potential clients, referral sources and mailing lists. Then along came Client Relationship Management systems otherwise known as CRM. Now we have ERM (enterprise relationship management), RCM (relationship capital management) and more acronyms than you can shake a stick at. No matter what the new technology, the bottom line persists: Lawyers need to maintain and grow their world of relationships in order to be successful and generate revenue.

New Tool

A new tool from small Boston-based startup Contact Networks has arrived on the market and the principles believe they have the answer to the age-old dilemma of making relationship management easy on attorneys. 'Lawyers have the same problem they've always had: as they master the practice of law, they have to get into the selling of law, which is a challenge for most of them,' says CEO Geoffrey Hyatt. 'I believe we have an answer to that problem.'

At its core, Client Relationship Management in law firms has traditionally focused on collecting and managing contacts and other relationships lawyers have. Most firms have used these tools to manage lists and send out various communications to clients and others to keep the firm top of mind among its target audience. But the challenge has been getting lawyers to use these systems and provide the necessary information about their relationships. 'Based on our analysis among our install base, we know that 85% of people lawyers are communicating with don't get into the firm's address book,' says Hyatt. 'Our application analyzes e-mail traffic and address books, among other things, without any effort on the part of the lawyer.'

Contact Networks' server-based software is set up to have read-only access to other firm systems, such as time and billing, e-mail, CRM, and other tools that contain important information about who knows whom. But it takes it a step further by using 37 algorithms that determine the strength of the relationship so that you, as the searcher, can uncover the true gem who can make or break your business development dilemma. For example, say you practice law at a large multi-hundred-lawyer firm with dozens of offices around the globe.

You need to know who in the firm has a connection to Texaco Refining and Marketing, a subsidiary of Chevron-Texaco. You could call marketing or someone in finance to see what they can dig up which make take hours or days. But using Contact Networks, you can do a speedy Google-like search that gives you a list of lawyers who have very strong relationships with certain individuals at Texaco Refining and Marketing. You can choose to call those lawyers or send them an e-mail requesting an introduction. Security settings allow you to restrict showing the individuals contact information but you will know which lawyers have the strongest ties. Contact Networks differs markedly from CRM or other hosted applications that require configuration, implementation and training, all of which can take lots of planning, time, and money. Its software can be installed on a Friday and be up and running by Monday morning. If a user knows how to use Google for search, they can use Contact Networks.

Attorney Hesitance

Although it sounds simple, lawyers have not necessarily welcomed it with eager arms. Says Vickie Cummings, Chief Marketing Officer of Sheppard Mullin, 'We introduced it about a month ago but haven't heard a peep from our lawyers.' Given that the software can analyze e-mail traffic, the firm expected some backlash from the lawyers given this 'Big Brother' approach to intelligence gathering. But because the software does not reveal the content of an e-mail but rather analyzes frequency and response rates, among other things, lawyers will hopefully relax. Cummings used a detailed Q&A format in her e-mail introduction to explain how the tools works, hoping to allay any privacy concerns the lawyers had. She still sees e-mails flying around, asking, for example, 'Does anyone know Bob Smith, General Counsel at Smith & Wesson?' etc., but she and her staff quickly search Contact Networks and send the information to the inquiring attorney. When asked how Contact Networks differs from the firm's own CRM system, Cummings replies, 'We still need lawyers to put anecdotal information about contacts, such as they liked to be called Robert instead of Bob, or we took them to lunch in November.' The firm also uses CRM to manage various mailing lists. But Cummings recognizes the reality that not all lawyers will use CRM no matter how much hand-holding goes on. 'I get monthly reports that tell us how many contacts are in CRM. We proselytize to those who have low numbers, but generally there are and will always be lawyers who don't use CRM.'

Many lawyers grudgingly sign holiday cards and send boxes of chocolates every December and it's done incredibly inefficiently, year after year. But most partners and practice group leaders are up late thinking, 'How do we leverage our talent to grow in China? How do we cross-sell our IP clients? Whom do we know in the legal department of AstraZeneca because we have an opportunity to do a major pitch?' 'We are solving very senior business problems that very senior partners care about,' says Rich Hermann, VP of Sales at Contact Networks. With a seven-year background with a legal CRM company, Hermann believes Contact Networks solves a very important and very sophisticated problem. With Hyatt's background in selling management consulting services to large global technology companies, and the sales staff experience in the legal industry, the company believes it will be successful selling into the AmLaw 100 firms. 'Whether in management consulting or law firm selling, the best way to lead is with your best relationship,' says Hyatt. 'If we don't win that engagement, then the others guys must have had a better, stronger relationship.'

Competition

Competing with much-bigger Venture Capital-backed Visible Path, it remains to be seen if Contact Network's RCM tool will be relegated to use by the marketing department, as is the case with many law firm CRM systems. Hyatt says more announcements of new clients and new features will be made early this year. 'We don't claim to solve all of a law firm's business development problems,' says Hyatt. When challenged he confirmed that firm's still need to manage the 'what we know' not just 'whom we know.' Firm's still need to advertise, manage deals and cases, generate proposals and send communications to clients.

With Contact Networks, 'you can run but you can't hide,' Cummings adds. Contact Networks will reveal relationships and hopefully those revelations will lead to new business. Or at least an introduction. The selling and communication skills of the lawyer will stay play a large role.


Nancy Manzo is a Senior Consultant with Hubbard One, a Thomson company. She can be reached at [email protected] or 206-633-3624.

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