In today’s competitive marketplace, client retention is a business necessity. Retaining clients reduces acquisition costs, builds long-term relationships, and strengthens a firm’s reputation in the market. However, many law firms overlook the small details that significantly impact client satisfaction, often leading to missed opportunities for growth. By prioritizing client retention, law firms are positioned for sustainable success.
A Case for Prioritizing Client Retention
We understand that marketing your firm and nurturing client relationships take time, and that time can potentially come from working on cases (and billing hours); however, what if we told you that client satisfaction and retention could be linked to profitability? Research from Harvard Business School found that increasing client retention by just 5% can increase profits from anywhere between 25% to 95%. Retention also creates more opportunities through referrals, giving law firms an added revenue stream and improving their standing in competitive legal markets.
Why Do Clients Stick Around?
There are many reasons why a client will stick around for the long haul. However, there are a few constants that serve as the foundation of client retention:
- Quality of client experience. According to a recent study found that 61% of consumers would switch to a competitor after one bad customer service experience.
- Personalization in interactions. It’s no secret that personalization is key to quality client satisfaction, and today’s AI and algorithm-driven world has proven that with curated content and ads. Clients today expect firms to provide them with tailored services.
- The costs associated with switching to a competitor. While switching to a new law firm may be a complex and time-consuming process, this should not be relied on as a retention strategy. Delivering consistent value will make clients less likely to consider alternative counsel.
It should be noted that the services industry, including legal, is unique in terms of loyalty. Unlike retail brands, which can create lifelong customers (regardless of staff), service clients will often follow an individual staff member that they trust—even if that means going to a competing firm. Building firm-wide trust with clients can help to mitigate this risk and ensure greater loyalty to the firm as a whole.
Strategic Practices for Retaining Clients
While retention can be more profitable and cost-effective, law firms will do well to address the reasons why clients stick around in the first place. Effective client retention goes beyond just keeping clients happy—it’s about reinforcing the firm’s value at every stage of the client relationship.
Keeping Clients Informed and Engaged
Clients want to know that their case is being taken seriously. They’re less likely to look for alternative counsel when they feel like a priority, informed and involved in their case dealings. Providing clear and consistent case updates might seem like a no-brainer, but it’s a great way to reassure clients that they’re being cared for. Additionally, offering multiple methods of communication—such as phone, email and secure client portals—ensures that clients can easily reach your firm and reinforces their sense of being heard. Even with all of the available methods of digital communication, face-to-face meetings remain essential. Meeting with clients in person shows a genuine interest in their concerns and can build stronger relationships.
Since legal matters are often complex and hard to understand, providing accessible resources like blogs, infographics and FAQs can help ease any additional stress. Simplify complicated legal jargon by using plain language to enhance clients’ understanding. Doing so will help build trust and client confidence, which in turn strengthens your firm’s reputation.
Established Trust Through Clarity and Honesty
It should go without saying that transparency isn’t a fad—it’s an essential element for any attorney-client relationship. Clients want to work with law firms that they can trust and are upfront about processes, pricing and expectations. Have an upfront conversation about fee structures from the get-go to minimize surprises, skirt any possible tension and build trust. Providing detailed information on billing practices and offering online payment options also helps clients feel more at ease about price.
We said it earlier, but it bears repeating: Clear communication is key for client retention. Avoid using complex legal terminology and use plain language when possible. This will help clients feel more at ease and understand the progress of their case—it can also solidify their trust in your firm. Secure client portals can make it easy for clients to access the information they need. Finally, it’s important to set realistic expectations about case outcomes. Be candid about potential outcomes, even when they might not align with the client’s hopes. Doing so should help ensure trust, even in challenging situations.
Personalized Service: Tailoring the Experience to the Client’s Needs
No two clients are the same. Personalized service goes beyond addressing a client by name—it’s about understanding their unique needs, goals, challenges and responding accordingly. Law firms that take the time to learn about their clients can offer a more tailored approach that aligns to their needs. Also, by collecting this information, follow-up communications and advice will be more relevant to the client’s unique situation. This provides value to the client and can help increase the likelihood of repeat business and referrals.
Recognize significant client milestones such as case outcomes or client anniversaries to show clients they’re valued beyond the transaction. When delivering case outcomes, be sure to tailor your message if the outcome isn’t favorable. This consideration will help clients feel supported, even when things don’t go as planned.
Even after a case closes, stay in touch with clients to maintain a long-term connection and top-of-mind awareness. Provide updates on relevant legal changes or simply check in to pave the way for future business or referrals. We’ll caveat to be mindful not to overwhelm clients with excessive communication, as it could lead to frustration.
Integrating Technology to Elevate Client Retention
In today’s world of curated content and targeted ads for everything from everyday consumer products to legal services, providing that personal touch is more important than ever. Clients are more likely to stick with a firm they believe has a deep understanding of their unique needs, further emphasizing the importance of client retention. Technology, more specifically, a customer relationship management (CRM) software, is an incredible tool in creating that personalized experience clients crave.
CRMs allow firms to store a wealth of critical information—such as interaction histories, personal information and case details—allowing them to best anticipate client concerns and offer services and advice that resonate. Also, most CRMs are cloud-based. Staff members can easily access data seamlessly, ensuring consistent and quality service at all stages of the client’s legal journey.
These tools can also help firms establish what initially attracted clients to them. Firms now have access to better insights into their specialties’ appeal, which can, in turn, help tailor marketing messages better. Finally, we’ll mention that automation features such as reminders and follow-ups can ensure that clients feel valued, ultimately driving long-term loyalty and retention.
Measuring Retention Success
To determine whether your client retention strategies are working, it’s crucial to track and analyze relevant key performance indicators (KPIs). These metrics will help gauge the effectiveness of efforts and identify areas for improvement.
- Repeat Client Rate: Tracks how often clients return for additional services, helping to gauge their overall satisfaction and trust in your firm.
- Referral Rate: The rate of new clients being referred by existing ones, which reflects your firm’s reputation and the quality of service you provide.
- Client Feedback Scores: These metrics provide valuable insights on areas you excel and areas that might need some improvement. Regularly gathering and acting upon client feedback shows clients that their opinions matter and can strengthen their trust and encourage repeat business.
- Churn Rate: The percentage of clients who disengage or end their relationship with a firm in a set timeframe (often monthly or annually). It can act as an indicator of the overall effectiveness of marketing and client experience efforts and can show areas that might need improvement.
Building Retention into Your Firm’s Culture
Committing to client retention should be ingrained in the firm’s culture. This means that employees at all levels should be knowledgeable of and prioritize client satisfaction through clear, consistent communication.
Looking Ahead: Retention as a Competitive Advantage
In today’s ever-changing, hyper-competitive legal market, client retention is more important than ever. Law firms that prioritize transparent communication, personalized service and technological integrations are better equipped to build stronger and longer-lasting client relationships. These practices not only foster trust and loyalty but also enhance profitability and can set the stage for sustainable growth. In making client retention a priority, law firms can thrive and position themselves as industry leaders.
Partner with a Trusted Marketing and PR Agency
Berbay Marketing & Public Relations has nearly three decades of experience providing law, real estate and financial firms with strategic marketing and public relations services that propel your business forward. Berbay’s dedicated team has demonstrated success securing media placements, achieving nominations and rankings, revitalizing websites and social media, obtaining speaking engagements, and more.
Looking to grow your firm with a proven marketing and PR team? Contact Berbay at 310-499-2584 or info@berbay.com
