by
Marshall Fletcher

Your firm is doing good work and your clients are happy…at least everyone thinks so. Then a partner receives a call from a major client. They share with her/him the two most dreaded words in business – YOU’RE FIRED! Everyone is in a state of shock; attorneys are meeting behind closed doors; the partners look worried and in a very bad mood…what possibly could have happened? What could you have done differently?

Do you know how your clients view your law firm and your services? 

Have you ever noticed that you look different in photographs than you do in the mirror? That’s because, when we look in the mirror, we see what we want to see – pictures don’t lie! So, with that in mind, let’s take a look at your firm through an imaginary one-way mirror…from the client’s perspective. Why do clients change law firms and how can we do a better job of keeping them happy?

You may think this scenario can’t happen to your firm. But according to the most recent annual survey by the Association of Corporate Counsel, over 50% of general counsels surveyed said they planned to terminate their relationship with at least one of their outside law firms during the coming year. (By the way, this statistic has not changed significantly for at least the past five years.)

There were a number of reasons cited for relationships being severed. The most significant were the unacceptable quality of legal work, attorneys overworking projects, poor cost management and the biggest reason – lack of responsiveness! 

Do you find it alarming that good communication is so critical to clients? Probably not, when you think about the situations you encounter in your every day life. 

An appliance in your home needs repair. You call a company, get voice mail, leave a message with your phone number…and nobody returns your call. 

A service appointment is scheduled and you wait at home…but the serviceman never shows up! 

You have a question about a charge on your credit card bill so you call the company. They explain the matter will be researched. Next month the charge remains…and nobody has provided you with an update. 

Unfortunately, these situations are part of our every day lives…and they make us furious! How do we respond? We take our business elsewhere! If your clients perceive that your firm focuses more attention inward (on your own existence and success) than outward (on clients and their needs), they just might decide to take their business elsewhere as well.

We all know client retention is critical to your firm’s success. It is much more expensive to find and develop new business than to retain and provide additional services to existing clients. More importantly, losing a major client can impact the firm’s very existence. The legal business environment is becoming much more competitive. Law firms are increasing their emphasis on marketing and some firms even have specialists who “sell” the firm’s services. At the same time, clients are more demanding.

It is essential that your firm have a sound client retention strategy! If you follow a few simple guidelines in developing and implementing that strategy, client retention can become a strength rather than a concern. 

Here are some things your firm can do to keep your clients happy. Look at them through your one-way mirror and think about what you really see…

Increase your focus on clients and their needs

Sounds simple doesn’t it? How many of the following practices does your firm employ?

Focus brochures and printed material on clients instead of attorneys and the firm.

Publicly recognize attorneys who bring in new clients.

Share information about key clients (especially new ones) with everyone in your firm who might come in contact with them (receptionist, legal assistants, paralegals and other attorneys)

Make regular (nonbilled) visits to clients (at their offices) for the purpose of learning more about their business plans and challenges. 

Measure client satisfaction on a regular basis and implement their suggestions. Remember, if you don’t pay attention to your clients, someone else will.

Have a firm policy that nobody ever speaks disparagingly about a client. Word travels fast and you never know who is listening.

Shower front line staff personnel with attention – they are your first contact with clients.

Thank clients for their business!

Improve your client communication

Remember the #1 reason general counsels said they might fire their law firms – lack of responsiveness! In today’s world of advanced technology, there is no excuse for being unresponsive to clients. Check your client communication strategy for the following:

Make sure good telephone etiquette is practiced firm-wide. This is essential for everyone from the receptionist to the managing partner. Remind employees that they are not at home and answering an outside call by saying “Hello” is not acceptable. You wouldn’t believe how often this happens in some law firms.

Establish a policy that all calls are returned and e-mails are responded to within 24 hours. If you have corporate clients, they probably already have that policy in place…shouldn’t you? Does your administrative staff follow that practice when dealing with outside callers? Remember that every caller is a potential client or knows someone who they might recommend to your firm.

Make sure every attorney has a cell phone and a Blackberry (major clients should have access to all contact information). Clients won’t flood the attorneys with requests but they will be thankful that attorneys are accessible when needed.

Train support staff to handle client inquiries quickly and efficiently when attorneys are not available.

Ask your clients about their preferred method of communication – telephone, e-mail or letter.

Utilize tools such as electronic newsletters, legal alerts and seminars to keep your clients informed about changes in the law, in their industries, as well as important events in your firm. Aren’t you really in the information business?

Ensure timely and effective delivery of your legal services

Review how you deliver your legal services, especially with respect to the following:

Plan in advance and keep clients informed of the status of events. Always operating in a crisis mode can be perceived as costly and prone to errors.

Make sure deadlines are met, without exception!

Use the proper level of expertise on matters. Corporate clients don’t expect to pay for an associate to perform work that could have been done by an experienced paralegal.

Develop a firm philosophy of spending each client’s money as if it were your own!

Understand your client’s accounting system and make sure they understand yours. Do you invoice your clients promptly? What is your client’s payment cycle? How can you get your invoices paid quickly? Who does your client contact about billing concerns?

Consider electronic invoicing for your major clients. This practice is rapidly increasing in popularity.

You’ve looked at the firm through your one-way mirror. You have a good idea of how clients want you to appear. Did you see some areas for improvement? 

Target the ideas you think will make your clients happy. Discuss those ideas at firm meetings and develop a plan to implement them as part of your client retention strategy. Share the changes you make with your clients! 

To ensure the on-going success of your retention strategy, continue looking in your one-way mirror to make sure your image of the firm is not distorted!

(You may now quit staring at yourself in the mirror and return to work…you look marvelous!)