CRM systems are foundational to the success of law firms’ Marketing and Business Development teams, serving as the primary platforms to centralize, manage, and leverage client and contact information. Despite their potential to improve communication, support client loyalty, accelerate business development, and enhance efficiency, many firms face significant challenges in achieving CRM success.

This year’s CRM Success Survey revealed key insights into the most common pitfalls and best practices for leveraging CRM systems. To guide firms in improving their CRM outcomes, we’ve reimagined our findings as a Naughty and Nice List for CRM Success.

Naughty List (Pitfalls):

1. Widespread Dissatisfaction: Most firms rate their CRM systems as failing, with an average satisfaction score of just 5 out of 10. This dissatisfaction stems from unrealized potential and unmet expectations.
2. Poor Data Quality: The survey revealed data quality was rated at a dismal 6 out of 10. Without accurate, reliable data, firms cannot unlock the full value of their CRM systems.
3. Attorney Adoption Challenges: Lack of attorney engagement emerged as one of the biggest obstacles. Attorneys often resist using CRM systems, which limits their effectiveness for marketing and business development teams.
4. Outdated Technology: Many firms are relying on CRM systems that are more than six years old. These outdated systems struggle to meet the evolving needs of firms and their clients.
5. Misaligned Success Metrics: Firms often define CRM success by the amount of data input, rather than the value attorneys derive from using the system. This approach misses the true potential of CRM systems.
6. Resistance to Change: Internal pushback from staff and partners creates significant hurdles to implementing and adopting new CRM systems.

Nice List (Best Practices):

1. Outsource Data Stewardship: Firms with limited budgets can benefit from outsourcing data management to external experts. This ensures high-quality data at a fraction of the cost and allows firms to scale their data stewardship efforts.
2. Upgrade CRM Systems: Cloud-based CRM solutions offer modern capabilities that reduce IT headaches and support more sophisticated business development initiatives. Upgrading outdated systems is a critical step to success.
3. Integrate Systems: Consolidating multiple platforms helps reduce redundancies, enhance reporting, and improve overall efficiency. Integration ensures a seamless flow of information across the firm.
4. Focus on ROI: Firms must consistently demonstrate the long-term benefits of their CRM systems to gain buy-in from attorneys and leadership. Emphasizing ROI ensures continued investment and engagement.
5. Rethink Success Metrics: Instead of focusing on data input, shift the definition of success to the value attorneys and the firm derive from the CRM. Metrics should center on actionable insights and business outcomes.
6. Engage Leadership: Strong leadership and clear communication about the benefits and value of CRM systems are essential to overcoming resistance and achieving adoption.

The Path Forward

While the challenges on the Naughty List may feel daunting, firms on the Nice List have demonstrated that success is achievable. By addressing common pitfalls and adopting best practices, firms can unlock the full potential of their CRM systems to drive better communication, client service, and business development outcomes.