Developing Client Loyalty Brings Both Firm Growth and Client Value

Today and in the future, a successful law firm's culture must include investment in the business-development sales engine. While classical marketing investments (e.g., client social activities, PR, Web, RFPs) continue to be needed, they are no longer enough. Pressure from clients for competitive rates, costs and efficiency are making firms adopt a more businesslike approach to their assets, revenue, processes and return on investment. This increased focus on a firm's ROI brings greater BD clarity. Together, these forces create an opportunity for a firm to develop its client “value vision” ' enabling marketing and BD professionals to evolve into a new role in the firm's quest to develop client loyalty.

Tailoring BD Efforts

King and Spalding CMO Katherine D'Urso observes that the old saying was: “Fast, good, cheap: pick any two.” Now, clients (internal and external) are saying: “I will take all three, thank you.” Business development efforts must deliver tailored, thoughtful client strategy and content quickly. BD professionals should have discussions with partners about post-win profitability when a matter or client relationship doesn't live up to the pro formas on which the fee arrangement was based. To improve their performances, firms are forced to focus on better people-and-process management.

Process Improvement

Catherine MacDonough, co-founder of the Legal Sales and Service Organization and a developer of Legal Lean Sigma', sees the classical market research and client-interview data-analysis as areas that will now be used for process improvement efforts. BD professionals can make significant contributions to their firms by finding ways to reduce costs and inefficiency, measuring and communicating the projects' effectiveness, and integrating the “voice of the client.”

Client Need

Focusing on what clients find valuable will help firms to select and link revenue to activities (e.g., pursuits, RFPs, seminars). This will drive stronger ROI from limited resources and shine a brighter BD spotlight on results. Having discussions around key criteria ' quality of relationship, profitability, competition, price sensitivity ' will help marketers and partners focus on the strongest opportunities and to pass on lower-value ones. By providing an unbiased evaluation of limitless opportunities versus a firm's limited resources of partners, finance, research and marketing, firms can make better choices.

Quality Relationships

Increasing the quality of a relationship is a critical component of client value. The most successful attorney partners have become what David Maister calls “trusted advisers (TAs).” TA partners understand their clients' industries, companies and key contacts. They proactively offer solutions from their own practices, firm colleagues' practices and third parties such as private equity. When their clients travel, these partners might suggest hotels, entertainment and restaurants.

What We Need for Growth

Mark Thompson, Bryan Cave's CMO, shares his thoughts on what's needed for growth. Our answers to the questions he raises will help our firms better position themselves in the coming year.

• Clients have a lot to say about legal services. Do you have anyone listening that can take action on what they hear?
• Today, responsive service means something different than it did five years ago. Are your back-office processes, Web site and technology fully able to support attorneys being asked budget, billing and staffing questions?
• “Alternative fees” is a new buzz phrase, but its reality requires much higher levels of project and account management than you or the client may have in place. Can you manage alternative fees internally and keep the client happy about their level of service without breaking the bank on time and technology investments?

Staying on Focus

The wise law firm leader will be paying attention to protecting their investments in business development training and coaching by focusing on the drivers that create a sustainable sales culture. Culture is built through legal-service competence and the character values that build client relationships, remarks Deb Knupp, Akina's Managing Partner.

She observes that the law firms most successful in driving their sales initiatives are deeply focusing on a few core areas rather than casting wide but shallow nets hoping to catch something. ROI-focus, excellent and deep marketing initiatives, and relationship building are the winning strategies for building client value and firm growth to achieve client loyalty.

Edward M. (“Ed“) Schechter is a sales and marketing executive dedicated to driving revenue growth in entrepreneurial-to-established global service organizations. He may be reached at 215-284-7299 or [email protected].

Today and in the future, a successful law firm's culture must include investment in the business-development sales engine. While classical marketing investments (e.g., client social activities, PR, Web, RFPs) continue to be needed, they are no longer enough. Pressure from clients for competitive rates, costs and efficiency are making firms adopt a more businesslike approach to their assets, revenue, processes and return on investment. This increased focus on a firm's ROI brings greater BD clarity. Together, these forces create an opportunity for a firm to develop its client “value vision” ' enabling marketing and BD professionals to evolve into a new role in the firm's quest to develop client loyalty.

Tailoring BD Efforts

King and Spalding CMO Katherine D'Urso observes that the old saying was: “Fast, good, cheap: pick any two.” Now, clients (internal and external) are saying: “I will take all three, thank you.” Business development efforts must deliver tailored, thoughtful client strategy and content quickly. BD professionals should have discussions with partners about post-win profitability when a matter or client relationship doesn't live up to the pro formas on which the fee arrangement was based. To improve their performances, firms are forced to focus on better people-and-process management.

Process Improvement

Catherine MacDonough, co-founder of the Legal Sales and Service Organization and a developer of Legal Lean Sigma', sees the classical market research and client-interview data-analysis as areas that will now be used for process improvement efforts. BD professionals can make significant contributions to their firms by finding ways to reduce costs and inefficiency, measuring and communicating the projects' effectiveness, and integrating the “voice of the client.”

Client Need

Focusing on what clients find valuable will help firms to select and link revenue to activities (e.g., pursuits, RFPs, seminars). This will drive stronger ROI from limited resources and shine a brighter BD spotlight on results. Having discussions around key criteria ' quality of relationship, profitability, competition, price sensitivity ' will help marketers and partners focus on the strongest opportunities and to pass on lower-value ones. By providing an unbiased evaluation of limitless opportunities versus a firm's limited resources of partners, finance, research and marketing, firms can make better choices.

Quality Relationships

Increasing the quality of a relationship is a critical component of client value. The most successful attorney partners have become what David Maister calls “trusted advisers (TAs).” TA partners understand their clients' industries, companies and key contacts. They proactively offer solutions from their own practices, firm colleagues' practices and third parties such as private equity. When their clients travel, these partners might suggest hotels, entertainment and restaurants.

What We Need for Growth

Mark Thompson, Bryan Cave's CMO, shares his thoughts on what's needed for growth. Our answers to the questions he raises will help our firms better position themselves in the coming year.

• Clients have a lot to say about legal services. Do you have anyone listening that can take action on what they hear?
• Today, responsive service means something different than it did five years ago. Are your back-office processes, Web site and technology fully able to support attorneys being asked budget, billing and staffing questions?
• “Alternative fees” is a new buzz phrase, but its reality requires much higher levels of project and account management than you or the client may have in place. Can you manage alternative fees internally and keep the client happy about their level of service without breaking the bank on time and technology investments?

Staying on Focus

The wise law firm leader will be paying attention to protecting their investments in business development training and coaching by focusing on the drivers that create a sustainable sales culture. Culture is built through legal-service competence and the character values that build client relationships, remarks Deb Knupp, Akina's Managing Partner.

She observes that the law firms most successful in driving their sales initiatives are deeply focusing on a few core areas rather than casting wide but shallow nets hoping to catch something. ROI-focus, excellent and deep marketing initiatives, and relationship building are the winning strategies for building client value and firm growth to achieve client loyalty.

Edward M. (“Ed“) Schechter is a sales and marketing executive dedicated to driving revenue growth in entrepreneurial-to-established global service organizations. He may be reached at 215-284-7299 or [email protected].