23. How to Lose the Case and Keep the Client
Have you ever lost a case, or seen a transaction crash, and kept the client? If so, why? This is a critically important question for law firms, because client retention is the key to consistent profitability and sustained growth. Given the importance of the question, it's remarkable how many law firms get the wrong answer.
May 06, 2022 at 08:02 AM
3 minute read
The original version of this story was published on Lean Adviser
The previous lesson started the mini-series on the attorney client experience by asking if clients care about the "attorney journey." We saw that clients care deeply about how law firms enable their lawyers to deliver the service, and how clients see the benefits of this type of "working wellness." Now we swap standpoints, and ask if attorneys care about their clients' experience?
A law firm might assume that if the bill got paid then everything was OK, and if the client gave them another job, then the service must have been great. But that's caring about themselves, not the client. To get a better handle on this, let's look at when things go wrong. If you're a trial lawyer, have you ever lost a case? Sure you have. What if you're a transactional lawyer, have you ever had a project abort? Again, of course. OK so now, let's put the client into the equation. Have you ever lost a case, or seen a transaction crash, and kept the client? If so, why? This is a critically important question for law firms, because client retention is the key to consistent profitability and sustained growth.
Given the importance of the question, it is remarkable how many law firms get the wrong answer. The most common responses we get are "sometimes but not always," "it depends on the client," or "some clients are more understanding than others." This analysis reflects one of the most common misconceptions among law firms. The key to keeping the client, even when things go wrong, is almost nothing to do with the client, and almost everything to do with the client's experience. The easiest way to prove this is to reverse the proposition. Have you ever won a case or successfully completed a transaction and still lost the client? The cruelest compliment a client can pay to a law firm is "they were OK but we won't use them again." This "one and done" phenomenon only exists because law firms don't pay enough attention to how clients experience the service.
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