Here’s why law firms need to pay attention to “relationship marketing”
Maximum profitability lies in the relationships you have with your existing clients. Retention and earning a greater workload from them is one of the most financially rewarding strategies for law firm growth.
Here’s what we know:
- It’s more expensive to continually source new clients
- There’s more money to be made from client retention
- You’re more likely to sell to a client who already knows and likes your firm.
Take a look at the numbers that back this up. In a study on the legal industry, Lexis Nexis found that…
- New client acquisition costs 10x more than client retention
- Retaining just 5% of clients can increase profits between 25% and 125%
- The likelihood of selling to your existing customer base is between 60-70%
- The chances of selling to new clients are slimmer, between 5-20%
So, how can you develop client relationships that engage and add value?
THE ANSWER IS… be a key player in your clients’ network. Law firms that establish a dialogue with their existing clients see greater loyalty, and the most effective way to reach out is via the web. It’s where your clients respond, connect and share information with each other and the organisations they care about – as a growing firm, it’s important to be proactive rather than reactive in your communications.
There are five customer network behaviours you can leverage to your advantage:
- Access – quickly respond to your clients’ needs
- Engage – satisfy their demands with follow-ups and relevant, valuable content
- Customise – offer services that adapt to your clients’ changing requirements
- Connect – be an authoritative voice in your network
- Collaborate – invite feedback to help build and improve your services.
To manage your client relationships effectively, you need a specific plan in place to nurture them. Our senior partner James is ready to discuss that with you. Reach out to him here.