The tremendous cost pressures in the changing legal landscape have made retaining and growing business more challenging than ever. With client loyalty and retention under siege, relationships with clients matter. If you don’t see value in relationships, clients will find another firm that does. The fact is, firms with relationship management plans are more profitable than those without. We’ll explore why law firms with relationship management plans have an advantage, and why firms without plans in place risk leaving clients – and revenue – behind.
The Client Focus Deficit
BTI Consulting Group’s most recent report on law firm growth strategies highlighted declining client loyalty as the number-one trend. More than 60 percent of legal decision makers replaced one of their primary law firms in the previous 18 months alone.
This finding underscores the significance of client loyalty and retention. Firms and attorneys need to recognize that a lack of client engagement has an impact on the loyalty clients feel towards their firms and, in turn, on where their business goes.
Michael Rynowecer, principal of BTI, agrees with this assertion. “Why aren’t client partners engaging in an ongoing dialog with their clients who are often spending millions of dollars with them?” Rynowecer asks. “It seems to me that many firms are both unaware that they have client relationships at risk and are failing to grow their business by a passive approach to managing their relationships.”
It shouldn’t take the imminent threat of clients leaving for firms to put a client management strategy into action. A proactive approach of operating under a strategy that continually provides value to clients will ensure that they don’t become loyalty risks.
You can read the full Your Relationship with Clients Matters white paper here.
This white paper was written by Robert Pay.