How to Build Client Relationships That Leverage More Business

This article first appeared in the August/September 2024 edition of Legal Abacus magazine.

Law firms of all sizes are constantly looking at ways of winning new business that will increase turnover and profitability. The larger the law firm, the more resources they will have to devote to winning work, and greater sophistication towards building relationships with existing clients.

Smaller law firms will not have this luxury and quite often partners will have to juggle looking after their clients and nurturing relationships with also being the highest fee earner, managing people, and complying with all the risk management responsibilities that goes with running a law firm.

Whilst the approach to building client relationships will vary significantly depending upon the size of the firm and the resources it has available to it, there are common themes that apply across all law firms that want to leverage more business from their existing clients.  

 

New clients v existing clients 

The reality for most firms is that you need both to keep a healthy pipeline of work, but management research shows the benefit of greater focus on your existing clients.

• It costs up to 7x more to acquire a new customer as opposed to retaining a new one.
• 65% of a company’s business comes from its existing customers
• Existing customers spend 67% more than new customers
• A 5% increase in customer retention increases profits by between 25% – 95%.
 

Create something your clients want

Some firms make the mistake of trying to offer too wide a service range, the “all things to all men” law firm. Instead, focus on what your firm is good at and become famous for it. Identify your firm’s core strength and build deeper capabilities and strength in depth in those areas as opposed to spreading yourself too thinly. Clients will instruct where they perceive you to have real expertise in particular areas of law, as opposed to a scatter gun approach to services.

 

Exceptional service delivery

Deliver your client services with a consistently high level of client care.

This means all staff in the firm without exception, and a zero-tolerance approach should be taken for those that do not follow this principle. Create a culture of service delivery excellence within your firm. Put your client first and exceed expectations.

Build client care and service delivery standards into the values of your business so that it becomes part of the culture of the firm, with the leaders of the firm reinforcing the values at every opportunity. Reward your staff in line with the client care behaviours you want to encourage – It is not just about who is the biggest biller, reward excellent client care as well.

 

Communicate regularly with your clients

The goal for law firm leaders should be to increase the firm’s communication with clients across a wide spectrum of topics to build a more complete and connected relationship. In my experience most people in law firms see the world from the inside out. Instead look at it from the client’s perspective – from the outside in

Stay in touch with your clients, following up on their needs and updating them on your services etc. Listening to your clients is supremely important and something many law firms fail to do.

 

Add value and exceed expectations

Ask yourself – how can I be of value to my client?

Customer -driven firms work on the basis that if they deliver value to their customers, they will see value – in more sales and higher loyalty. Share your expertise and insight that can help your clients achieve their goals.

Leverage your network and connections – facilitate introductions to intermediaries and other clients where there is synergy.The key is to deliver value that is relevant and measurable to your clients and reward clients for their loyalty and incentivize them to provide referrals.

 

Ask for client feedback.

Ask your clients for their opinions, suggestions, and testimonials on your services. 

The key is to seek feedback that is honest, constructive, and actionable for your practice and show that you appreciate their input, respect their views and value their experience.If the feedback is less than positive it is particularly important that you act on it otherwise it will be counterproductive and damage the relationship.

The aim should be to “delight” every client who then tell their family and friends what a great service they have received from your firm.A group of vocal ambassadors for your firm can be the best source of business possible and of enormous value.

 

The Golden Rule

By following the above points your firm will have a better chance of nurturing existing client relationships and leveraging future work. Above all, follow the Golden Rule and always deliver on your promises and commitments to your clients and remember that clients hate nasty surprises, particularly when it comes to costs. 

Do you need my help? Contact me here.