The Voice of the Client: What Loyalty Gets You

Continued Engagement

• “I can't say enough about [Partner]. She can frame issues at 50,000 feet and also roll up her sleeves and deliver on legal specifics.”
• “The firm has handled this case as well as I believe it could be handled. I wouldn't hesitate to use them on additional matters.”
• “I consider them as good as it gets regarding environmental matters.”
• “The firm represents a good financial value for us, based on its rates, efficiency and billing practices.”

Unwillingness to Switch

• “The firm is better at budgeting than other firms. While all firms provide a very detailed estimate, they normally veer from it and then don't update it.”
• “The firm didn't do a good job on the [named] matter. But, it's the only time this has happened, so we're going to assume it won't happen again.”
• “The [competing firm] has been trying to get a foot in the door. But, [the current firm] has done such a good job over the years; it would take a lot for us to make a change.”
• “Our practice is to try to leverage certain types of cases by concentrating the work into one or a few firms, for example, for [a specific type of matter].”

Willingness to Recommend

• “I'd go out of my way to wipe out the competition for [the firm] as they have bailed me out on many occasions.”
• “The firm should get to know the litigation head in each of our business units. And I'd be pleased to make the introductions.”
• “I have told [parent company's GC] that we've been happy with [the firm] and that [the parent company] should use them.”
• “If the firm has targeted a particular company and if any of that company's in-house lawyers turn out to be a good friend of mine, I'd be happy make the introductions.”

Willingness to Spend More

• “We no longer consider geography as a limiting factor, so the firm can get more of the kind of work it's now doing with us, but on a national scope.”
• “Given the firm's advantageous rates and fee arrangements, we would be open to displacing other law firms and transitioning more work to [the firm].”
• “Bring along your team, come in and spend a half day with me, and tell me about the firm's strengths. I'll introduce you to others here with whom things might click.”
• “If the firm acquires or develops any new talent, or becomes competent in new kinds of matters, bring out these 'rising stars' to meet with us. We'd like to get to know them.”

Analysis

What's the goal in this loyalty game? I believe it is to become a Preferred Provider for each of the firm's largest or key clients. Preferred Provider status ' earned by the firm, conferred by the client's in-house lawyers and executives, and measured by continued or increased firm revenues ' is the state of the relationship between a buyer and seller that survives, thrives and grows.

Further, it should be noted that the road to achieving this preferred level of relationship might be different for each key client. That is, part of earning a Preferred Provider status, I suggest, comes through understanding and behaving in a manner that acknowledges each client's uniqueness.

How does a law firm discover what it takes to become a Preferred Provider for a particular key client? Simple, just ask the client. By that, I'm proposing that the firm conduct in-person, one-on-one client interviews with the people at the client with whom it most wants to succeed. Find out: 1) what the client really thinks of the firm, its personnel and the value of the firm's services; 2) what the company's lawyers and executives each want; and 3) what the company's unique business challenges and client service needs are.

The firm's partners will be thrilled with the feedback because it can be translated into a “roadmap” that provides step-by-step actions about how to achieve Preferred Provider status. In addition, by initiating the interviews, the firm will earn many Preferred Provider loyalty bonus points ' just for having taken the time to ask and listen!

Bruce D. Heintz heads Heintz Consulting LLC, specializing in client satisfaction and loyalty assessments. Reach him at 781-891-6850 or via e-mail at [email protected].

Law firms say they are committed to achieving high levels of “satisfaction & loyalty” from their clients. But, what is loyalty and why strive for it? In other words, what does client loyalty get you, in concrete, money-in-the-bank terms?

Let's begin with a definition of loyalty, in the context of a professional services firm in the business of serving any one of its large corporate clients. Loyalty can be viewed as having four components:

1. Continued engagement (purchases) ' especially if problems occur
2. Unwillingness to switch ' especially if presented with competing offers
3. Willingness to recommend ' or, better, to proactively promote
4. Willingness to spend more ' on the same product and/or other products.

Immediately, an observation arises: All types of loyalty lead to more revenue for the firm!

But, how to get loyalty? Marketing the Law Firm has published many articles that discuss the how to's involved in earning a client's loyalty. Accordingly, once this prescribed hard work has been completed, some of the “loyalty dividends” that can result are articulated below. These examples are not hypothetical, each is a quote made by an in-house lawyer or executive during a client service interview:

Continued Engagement

• “I can't say enough about [Partner]. She can frame issues at 50,000 feet and also roll up her sleeves and deliver on legal specifics.”
• “The firm has handled this case as well as I believe it could be handled. I wouldn't hesitate to use them on additional matters.”
• “I consider them as good as it gets regarding environmental matters.”
• “The firm represents a good financial value for us, based on its rates, efficiency and billing practices.”

Unwillingness to Switch

• “The firm is better at budgeting than other firms. While all firms provide a very detailed estimate, they normally veer from it and then don't update it.”
• “The firm didn't do a good job on the [named] matter. But, it's the only time this has happened, so we're going to assume it won't happen again.”
• “The [competing firm] has been trying to get a foot in the door. But, [the current firm] has done such a good job over the years; it would take a lot for us to make a change.”
• “Our practice is to try to leverage certain types of cases by concentrating the work into one or a few firms, for example, for [a specific type of matter].”

Willingness to Recommend

• “I'd go out of my way to wipe out the competition for [the firm] as they have bailed me out on many occasions.”
• “The firm should get to know the litigation head in each of our business units. And I'd be pleased to make the introductions.”
• “I have told [parent company's GC] that we've been happy with [the firm] and that [the parent company] should use them.”
• “If the firm has targeted a particular company and if any of that company's in-house lawyers turn out to be a good friend of mine, I'd be happy make the introductions.”

Willingness to Spend More

• “We no longer consider geography as a limiting factor, so the firm can get more of the kind of work it's now doing with us, but on a national scope.”
• “Given the firm's advantageous rates and fee arrangements, we would be open to displacing other law firms and transitioning more work to [the firm].”
• “Bring along your team, come in and spend a half day with me, and tell me about the firm's strengths. I'll introduce you to others here with whom things might click.”
• “If the firm acquires or develops any new talent, or becomes competent in new kinds of matters, bring out these 'rising stars' to meet with us. We'd like to get to know them.”

Analysis

What's the goal in this loyalty game? I believe it is to become a Preferred Provider for each of the firm's largest or key clients. Preferred Provider status ' earned by the firm, conferred by the client's in-house lawyers and executives, and measured by continued or increased firm revenues ' is the state of the relationship between a buyer and seller that survives, thrives and grows.

Further, it should be noted that the road to achieving this preferred level of relationship might be different for each key client. That is, part of earning a Preferred Provider status, I suggest, comes through understanding and behaving in a manner that acknowledges each client's uniqueness.

How does a law firm discover what it takes to become a Preferred Provider for a particular key client? Simple, just ask the client. By that, I'm proposing that the firm conduct in-person, one-on-one client interviews with the people at the client with whom it most wants to succeed. Find out: 1) what the client really thinks of the firm, its personnel and the value of the firm's services; 2) what the company's lawyers and executives each want; and 3) what the company's unique business challenges and client service needs are.

The firm's partners will be thrilled with the feedback because it can be translated into a “roadmap” that provides step-by-step actions about how to achieve Preferred Provider status. In addition, by initiating the interviews, the firm will earn many Preferred Provider loyalty bonus points ' just for having taken the time to ask and listen!

Bruce D. Heintz heads Heintz Consulting LLC, specializing in client satisfaction and loyalty assessments. Reach him at 781-891-6850 or via e-mail at [email protected].