Imagine yourself craving a delicious orange. The fastest, easiest way to get fresh, ripe oranges isn’t by planting new seeds and hoping they grow. It’s by tending to the existing, fruit-bearing trees. Similarly, in legal practice, your existing clients are your most abundant source of potential revenue. This article explores the importance of client retention, strategies to nurture client relationships, and how to leverage those relationships for business development.
Why Client Retention Is Your Most Effective Business Growth Strategy
Various sources say that it can cost 10 to 30 times more time and effort to acquire new clients than to retain existing clients. On the other hand, spending that time instead on making sure that you keep your existing clients happy—tending your existing orange trees—can reap substantial benefits and generate significantly more revenue. In fact, research done by Frederick Reichheld of Bain & Company (the inventor of the net promoter score) demonstrated that increasing client retention rates by just 5% can yield profit increases of 25% to 95%.
The Real Cost of Client Attrition: More Than Lost Business
Your existing clients are the low-hanging fruit of business development. They are right in front of you, ripe and ready. But even low-hanging fruit needs to be picked. If you become complacent or, worse, fail to provide the same high-quality service and attentiveness that attracted these clients in the first place, that relationship can rot pretty quickly.
And when that happens, and you lose an existing client, you lose a lot more than just their business:
- You are forfeiting all of the potential business they could have sent your way.
- You are saying goodbye to someone who could have wholeheartedly endorse your skills and qualities to others needing your services.
- You are giving away leads, introductions, insights, and referrals.
- You are leaving a gaping hole in your book of business that will take hours upon hours upon hours to refill!
Relationship Building as Insurance
Building strong relationships with your clients not only creates opportunities to grow the relationships, get more work, and generate more referrals, but it also serves as an insurance policy if and when times get tough or you make a mistake. You don’t abandon an existing friend or loved one if they make a rare mistake or drop the ball—you’ve invested too much, and you know the person’s true character. You know their mistake was the exception rather than the rule.
If you’ve developed a good enough relationship and own up to your error, a loyal client who knows you in addition to knowing your work will be equally forgiving when something goes wrong (though don’t make a habit of it; even the best insurance policy will be canceled after one too many accidents).
What Makes Client Relationships Great
Reflect on the relationships you value most. Whether with family, friends, or significant others, the core elements are often the same: mutual respect, genuine interest, empathy, shared laughter, and meaningful conversations. These principles translate seamlessly to the attorney-client relationship.
By prioritizing this relational aspect, you can transform your client relationships into something much deeper:
- Become a Trusted Advisor: Go beyond simply providing legal advice. Offer insightful guidance that aligns with your client’s overall goals and interests. Proactively anticipate potential issues and provide solutions before they become problems and demonstrate your expertise and commitment to their success.
- Be Their “Go-To” Resource: Cultivate a reputation for reliability, responsiveness, and exceptional service. Make it easy for clients to reach out and communicate with you regularly.
- Understand Their Deeper Challenges: Take the time to learn about your clients’ businesses, industries, and personal aspirations. Engage in meaningful conversations that go beyond the immediate legal matter at hand. Identify opportunities where your expertise can add value and address their broader concerns.
- Foster Open Communication: Create a safe and supportive environment where clients feel comfortable sharing sensitive information. Actively listen to their concerns and provide empathetic support. Communicate clearly and transparently, ensuring they understand complex legal concepts.
- Demonstrate Genuine Care: Show a genuine interest in your clients’ well-being and the success of their businesses. Celebrate their achievements and offer support during challenging times. Go above and beyond to exceed their expectations and provide exceptional service. A great example of demonstrating genuine care is when Elizabeth, a family law attorney, creates a personalized “Client Welcome Packet” for each new client. It includes not only legal documents but also resources for emotional support during a divorce, contact information for local therapists, and a handwritten, personalized note offering encouragement. This personal touch fosters a stronger bond with the client from the outset.
Creating a System for Client Retention
It can take a lot of effort to create a solid relationship with a client. You need a plan and a system. Without that, your relationship building with clients either won’t happen at all or it can become haphazard leaving the relationship vulnerable and weak. This could involve:
- Regular, Intentional Outreach:
- Don’t wait for clients to contact you – initiate contact regularly, even when they don’t have an immediate need for your services.
- Schedule periodic check-ins, whether through phone calls, emails, or even a quick text or LinkedIn message.
- Use these interactions to inquire about their well-being, business updates, or personal interests. This will help know what value to provide.
- Provide Value (Insights, Ideas, Information or Solutions):
- Forward relevant articles, blog posts, or industry news that you believe your client would find interesting or beneficial.
- Offer insights or advice related to their specific challenges or goals.
- Demonstrate your ongoing commitment to their success, even outside of billable hours.
- Utilize Technology:
- Use a CRM (Customer Relationship Management) system to track client interactions, preferences, important names (their spouse and kids, for example), and important dates. If your firm doesn’t provide one, use a simple Excel spreadsheet. The tech doesn’t need to be complicated.
- Set reminders for follow-ups, birthdays, anniversaries, or other relevant milestones.
- Automate personalized email campaigns or newsletters to keep clients informed and engaged.
- Create a Client Appreciation Program:
- Offer exclusive benefits or discounts to loyal clients.
- Host client appreciation events or webinars to foster community and connection.
- Recognize and celebrate client achievements or milestones.
- For example, a real estate attorney we worked with hosts an annual “Client Appreciation BBQ” at their home, inviting past and current clients for an informal gathering. This event creates a relaxed atmosphere for clients to connect with each other and the attorney on a personal level, fostering a sense of community and loyalty.
- Gather Feedback:
- Regularly solicit feedback from clients to understand their needs and expectations.
- Use surveys, questionnaires, or informal conversations to gauge their satisfaction with your services.
- Act on their feedback to continuously improve and enhance your client relationships.
Final Thoughts
Client retention is an ongoing process that requires consistent effort and a well-thought-out strategy. By implementing a proactive system, you can build deeper relationships, increase client satisfaction, and ensure a steady stream of repeat business and referrals.
Onwards and Upwards!
