Client Retention Services
High quality work is the best marketing tool available to build long term client retention. But it is not just work on a specific engagement. Rather outside law firms are measured on how successful they are at understanding what drives clients crazy and what in house counsel believe are the best methods of building great client relationships.
Honestly assessing what you do best, and what retention efforts need work, may assist you in overcoming a critical dichotomy between how outside counsel grade law firm performance and how the law firms see themselves. Consider the 2007 Inside Counsel survey of 500 senior in house counsels who gave 19% of their outside law firms an “A” for overall performance. Not surprisingly, 62% of the outside firms gave themselves an “A.”
Let’s start with the negatives first, “What Drives Clients Crazy” according to a recent BTI Consulting Group study:
- - Decisions without authorization
- - Non-responsive to requests for changes in billing
- - Failure to respond to requests for help with additional practice areas
- - Capacity bound partners
- - Apparent disregard for client’s budget
- - Boring pitches that talk about firms, not clients
- - Not replacing a relationship partner with bad chemistry
- - “Groundhog Day Syndrome.
Train your attorneys to avoid these. Conduct a special “engagement operational review” on a regularly scheduled basis. If you identify one of these problem areas as occurring in the engagement, fix it and fix it fast. Frequent client communication which includes updates on the assignment as well as a check on your team’s performance, will instill confidence, provide an early warning on developing problems and enhance client retention.
Let’s now examine those positive tactics identified by in house counsel as contributing the most to client retention. In the same BTI Consulting Group survey, there is an identification of “Activities to Develop Superior Client Relationships.” On a scale which ranks each tactic in its importance and rarity in the marketplace, the scarcest and most desired tool is “understanding the client’s business.”
- - “They want you to know about them.
- - “They don’t care how many offices you have.
- - “They don’t care where you went to law school.”
Other factors identified by the 1,200 in house counsel surveyed by BTI are important client retention factors including:
- - Client focus
- - Providing value for the dollar
- - Commitment to help
Surprisingly, they see components such as quality, legal service skills, keeping clients informed, handling problems as very important but also abundant in the market. Nothing illustrates better the 19% - 62% dichotomy since most law firms tend to compete on the basis of their firm’s numbers, locations, available skills, etc. But to be retained, and retained long term, concentration must be placed on the big 4: understanding the client’s business; providing true client focus; clearly demonstrating value for each dollar invested by the corporation; and an ongoing commitment to help.
Winning a client’s work, may not be as large a challenge as delivering the highest quality work and keeping up with the client’s business. This combination spells client retention.
Client Retention Tips for Law Firms
Okay, you’ve glided through the Red Zone after your firm successfully executed a business development game plan and optimized your team’s sales training and closing skills. Touchdown—you won the business. Game over? Not a chance. You’re just getting started.
Client retention is like a dance with no end. Keep a keen ear for your client’s needs and expectations. You will not only solidify the relationship with your client, you’ll expand network development as clients sing your praises to their peers. Grassroots publicity is one of the most effective forms of law firm marketing.
- • A promise is a debt unpaid. Never promise what you can’t deliver. I have heard clients complain too many times that the law firm they hired wasn’t the one that showed up. Keep track of what you’ve said and keep your word. Attorneys need to be accountable because the client must also answer to higher-ups. This is critical for law firms seeking optimum client retention.
- • Pay attention. Understanding you client’s business is one of the highest ranked components inside counsel expects from outside counsel. Take an interest in the developments of the company (e.g. awards, stock price, new products and services) and acknowledge and discuss those events with a quick call or email.
- • Keep an open relationship. Periodically sit down with the client to gauge their satisfaction with your work by way of a lunch or phone call. When the opportunity presents, remind the client subtly that your firm will conduct these satisfaction check-ups regularly, off the clock. These invisible marketing tools are invaluable to long-term success in legal marketing and client retention.
- • Be your client’s co-star. Invite your client to participate in a seminar or workshop with you. Even more valuable, ask to do a joint presentation at a few of your client’s industry events. Such co-marketing techniques provide the firm with third-party credibility with your client’s peers and provide an opportunity for network development.
For more information about our client retention consulting services or to speak with a client retention consultant, contact us today using the form on the right side of this page.
