Focusing on Client Retention May Mean Restructuring the Firm

If that's too soft for you, consider that research by Fred Reichheld of Bain & Co. (the inventor of the net promoter score) shows increasing customer retention rates by 5 percent increases profits by 25% to 95%. Building client loyalty is good for the bottom line.

Increasing client loyalty comes from a dedication to listening to the voice of the client in order to create a client-centric experience that can be used as a competitive differentiator.

Restructure Your Firm Around Your Clients

Law firms currently focus on measuring inputs like billable hours and origination. Dashboard reports reflect collections, accounts receivable and work in progress, by lawyer, so leadership focuses on individual lawyers as the key performance indicators.

Restructuring your firm around your clients means measuring outputs like client satisfaction, matter outcomes and retention rates. It means, rather than encouraging a single point of contact to ensure origination credit, directing the client to the right lawyer for the matter at hand — the one with the most recent and relevant experience — even if that lawyer is down the street and not across the hall. It means considering your clients in every decision you make.

If you have not yet implemented a client feedback program, add it to your goals for 2018. To track and enhance the client experience, you need client intelligence. And what better way to get it than by asking?

At a recent Legal Marketing Association event, Wells Fargo Deputy General Counsel Tom Trujillo, who has been in-house for 18 years, said only four firms have ever conducted a client feedback interview with him. Even so, he called them “invaluable.” Not only will you learn what clients really want and expect from their most valued relationships, so few firms are doing it that client feedback interviews are still a differentiator and thus a competitive advantage in the legal space.

Map the Client Journey

There is much opportunity for law firms in the field of client experience, as our commercial and retail brethren are once again more advanced in deploying a proven marketing tactic.

The legal industry is behind the curve in discovering the power of putting clients at the center of our business. In the 2017 study “The CEO View of CX,” customer experience consulting company Walker Information found that customer experience was the most effective method for creating a competitive advantage. The same study also found that customers expect the companies they use to deliver an experience that is personalized, proactive and seamless — three words that rarely show up consistently in descriptions about legal services.

Luckily, this is an aspect of the job that perhaps is mystified too much. Customer service is a recognized skill, and dependence on repeat customers is understood.

Legal marketing professionals can be the voice of the client and the stewards of the client experience. In addition to administering client feedback programs, they can help develop client personas and create client journey maps, providing the resources law firm leaders need to make informed decisions with client perspectives in mind.

Client personas are helpful in understanding the person you represent. They are meant to embody the profile of who you want to hire you—to put a name and background to that person so that you can identify and meet their needs better. Client personas should include personal demographics, educational background, career path, professional and personal roles and responsibilities, challenges faced, what they read and what they are involved in.

Another resource in tracking the client experience is developing a client journey map. It tells the story of the client's experience from initial contact, through the process of engagement and into a long-term relationship. This type of exercise may look significantly different for various practice groups and industry teams, so start with a small group.

There are five stages to consider when mapping the client experience: entice, enter, engage, exit and extend. For each stage, the group of lawyers puts themselves in the client's shoes and brainstorms answers to the following questions: What are my needs? What questions do I have? What might I be feeling? What might I be thinking? What might I be saying?

Enhance the Client Experience

Once the whole picture is painted — personas completed and journey maps developed — the group brainstorms action items. Everyone should ask, “What one thing can I do to make the client experience better?” This step is crucial — share observations, prioritize actions and assign responsibilities.

This exercise has brought about actions ranging from revised billing procedures and more frequent and efficient communication to charitable contributions and introductions to junior team members.

Well-developed client personas and detailed client journey maps also help define and drive strategic plans, goals and tactics. Rather than relying on gut instinct or precedent-driven tendencies, client experience tools allow for data-driven planning.

Restructuring your firm around your clients, mapping the client journey, and enhancing the client experience can reduce the risk of client attrition and allow you to have more fulfilling client relationships. For economic security and personal satisfaction, prioritizing the client experience is a win-win.

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Kathryn B. Whitaker is a member of the Legal Marketing Association board of directors, and director of marketing & business development at McNair Law Firm. She can be reached at [email protected].