Law.com Subscribers SAVE 30%

Call 855-808-4530 or email GroupSales@alm.com to receive your discount on a new subscription.

Client Attrition Analytics

By Kris Satkunas
December 22, 2006

While the managers of professional services firms often view market pressures as the driving force that determines whether clients remain loyal or choose to shop elsewhere for added services, a new study by the Redwood Think Tank indicates that firms have tremendous sway over which clients become long-term business partners.

(The Redwood Think Tank was formed in the spring of 2006 to study significant law firm management issues and formulate solutions that serve as a catalyst for change in the industry, thereby keeping Redwood Analytics attuned to the evolving competitive needs of law firms. The Think Tank's members are a diverse set of senior partners and executives.)

In a study of five large law firms, the Think Tank found that firms are increasingly likely to retain a client when their relationship with the client:

  • Provides the firm a large amount of legal work;
  • Has a mature, established relationship with the firm;
  • Sends the firm work in more than two practice areas; and/or
  • Has more than two firm partners significantly involved in the management of the client's matters.

Most firm managers recognize these four markers as achievements toward broadening and deepening their relationships with clients ' hence the emphasis on cross selling in many firms. However, the results of the Redwood Think Tank's analysis reveal just how dramatically these indicators affect the outcome of client attrition. Indeed, firms that obtain all four of these relationship criteria with a client are highly unlikely to lose that client. This analysis plays out nearly uniformly with every law firm examined.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at customercare@alm.com or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?

Fresh Filings Image

Notable recent court filings in entertainment law.