Retaining Clients Improves Profitability

Studies show that attracting a new client can cost up to 25 times more than keeping an existing one. This is reflected in law firm budgets that allocate significant funds to client acquisition activities like speaking events, seminars, and sponsorships. Let’s not forget the number of otherwise- billable hours spent chasing down new work.

Retaining clients is more cost-effective, but it isn’t always easy. Clients have so much information at their finger tips and even “institutional” clients are not afraid to walk away.

Here are 7 things your law firm can do to increase client loyalty and improve profitability.

1. Put People First

A client-centric approach leads to greater client satisfaction and increases loyalty by up to 60%, according to Salesforce. That’s just one reason for law firms to embrace human-centered design.

2. Communicate Consistently

Regular communication fosters trust, yet failure to keep clients informed is a top complaint about lawyers. Regularly checking in with clients – even when there are no active matters – shows clients that you value them, making them more likely to stay.

3. Focus on the Relationship

As lawyers, we are paid to focus on the matter at hand. But this transactional viewpoint misses the bigger opportunity. Clients appreciate us more when we take the time to know them and understand their needs, challenges, and goals. Appreciative clients are loyal clients.

4. Collaborate

By collaborating internally, law firms can leverage the diverse expertise of their attorneys. This allows for more effective handling of complex cases that require knowledge in multiple areas of law, thereby providing clients with comprehensive solutions.

5. Solicit Feedback Early and Often

Don’t wait for the client to post a review. Consistently check for gaps between client expectations and results. Preferably, it should be done by someone who is not active on the matter such as a member of your business development team or an account manager.  Most importantly, take action on the feedback you receive.

6. Leverage Technology

With the rapidly increasing options for legal technology, this topic could be a series of blog posts on its own. The short version – adopt and use platforms that allow clients and attorneys to communicate and share documents easily.

7. Offer Complementary and Complimentary Services

Cross-serving clients not only boosts revenue, it means clients don’t have to go elsewhere for their other legal needs. Firms can also offer free trainings or education to clients – particularly on compliance issues. For example, the employment group can offer training on preventing workplace harassment.

Improving client retention is a multifaceted endeavor that requires commitment, transparency, and ongoing relationship building. Given the correlation between retention and profits, it is an endeavor worth pursuing.

Learn more about the power of human-centered design to attract and retain clients.