Six reasons lawyers should choose data rooms
31. July 2017 | Drooms Global
Relationships between clients and lawyers are important and involve a lot of communication and sharing of documents. The relationship is built on trust as sensitive information passes hands. This means lawyers must implement and employ a proper communication channel for managing documents. For this, electronic document management systems are popular. They allow sharing more freely and remove the need to physically send and alter the documents. Cloud software, such as Dropbox, is a popular option, but special data rooms would actually be more beneficial in many instances. Here’s a look at the six reasons data rooms like Drooms NXG are a better alternative for lawyers than generic cloud software.
Make security your top priority
Security is a big issue for lawyer documentation. When you must document everything from phone calls to sensitive discussions with clients, the risk of the information getting into the wrong hands can be real. E-mail or the use of USB sticks and other physical documentation can pose a real threat as criminals might be accessing the documents.
The solution is to upload documents to secure data rooms. For example, at Drooms, the information is fully encrypted and the two-factor authentication feature means accessing the information is much more secure.
Improve collaboration between specialists
The legal profession is teamwork. For instance, transactional lawyers often work within a team and require the input of other members regularly. However, you don’t necessarily work in the same office environment – M&A lawyers must deal with tax experts or advisors working elsewhere, for example. Collaboration with others poses a challenge data rooms can solve thanks to advanced permissions management and workflow tools such as Note and Highlights.
The data rooms allow the team to read, print, save and edit documents. Permission to do so isn’t just for all documents, but liability for specific folders and documents can be individually assigned to the right people. Therefore, you can ensure that only the data room administrators are able to do document editing, even if everyone in the team is able to read the documents. Also, working together on documents might signify highlighting certain parts of the documents, commenting on them and rating them according to their importance (the so-called red flag report).
Access information anytime, anywhere
Overall, reacting to client enquiries is not constrained to your office hours. However, accessing information anytime and anywhere has not been possible at the time where physical data rooms were still widely used. You had to physically be in the location; otherwise you might have risked the security of the information.
With Drooms’ NXG application, you can access documents from anywhere. The application works on mobile devices as well as in the desktop environment. You can even opt to use the browser version.
Data rooms boost client retention
A good and strong lawyer-client relationship is based on trust. Building an effective and trust-based relationship is difficult if the communication channels don’t support it.
The above abilities of our data room will help build trust. You can further improve it with the ease of organising and managing documents in a structured format. Drooms NXG has a powerful indexing tool which makes it easier to access and share information – clients will feel more empowered and involved. Also, the detailed notifications enable the parties involved to stay up to date concerning any document upload or download taking place in the data room.
Efficient and informative communication will help ensure the relationship is built on mutual understanding.
Look after your corporate identity: Branding of a data room
Focusing on the corporate brand is important when dealing with clients. Every time a client opens the data room, the logo of the law firm will appear in the header.
With generic cloud software, branding is not considered a priority. With a data room, you can incorporate branding as part of the data room experience. Each room can have company logos and images to enhance corporate identity.
Of course, when it comes to documentation and communication, compliance is at the heart of lawyer-client relationships. For compliance to be maintained, communication must be transparent, and should follow the applicable regulatory guidelines.
Due to its granular reporting feature, Drooms NXG will track everything happening in the data room. Therefore, everyone can see all the actions and edits that have taken place.
Lawyer-client relationships are largely based on trust. The way you manage data and communicate can have a big impact on the outcome. The more efficient and organised your communication as a lawyer is, the better for this relationship overall.
When it comes to building a strong lawyer-client relationship, the above six reasons show the strength of choosing data rooms instead of the regular crowd. So, give Drooms NXG a go today and improve your data management and client relations.