39. There Goes Another Client, Slipping Silently Away
Retention Part 1: Clients In any business, the first goal is always keeping what you have. This is the foundation onto which ambitions can be built. In law, the three key retention challenges at which we'll look are clients, talent and finally market position.
February 23, 2024 at 11:24 AM
3 minute read
The original version of this story was published on Lean Adviser
In any business, the first goal is always keeping what you have. This is the foundation onto which ambitions can be built. In law, the three key retention challenges at which we'll look are clients, talent and finally market position.
When it comes to client retention, which is our focus in this lesson, law firm leaders have something in common. They all know why it matters, but they're less sure how to do it. But there's an extra piece to this. If clients habitually told law firms they were leaving, at least the firms would know. It would provoke a reaction, a conversation and maybe some reflection. But clients just slip away silently, and it can be months before the firm realizes that the phone has stopped ringing.
Clients will generally move their work for one of two reasons, quality or value. Often, they won't tell the firm that it has happened, far less why. If something significant has gone wrong and the file gets reassigned before completion, the firm will know they've lost the work. But the more common scenario is that the firm was adequate but not great. They see the job out, get paid and don't hear another word.
As discussed in a previous Lean Adviser lesson, the cost of just being adequate can be silent disdain, and no repeat business. A lawyer with talent can always do a better job with the benefit of a process to apply it effectively, efficiently, and with transparency.
"The bottom line is that general counsel have choices, we're constantly wined and dined by outside firms. You really don't have that many chances as outside counsel to do a good job. If I have a relationship with an outside counsel and see a one-off mistake, I'll go and discuss it with them, but if it's the first or second time I'm using them, I don't generally go back" — Debbie Hoffman, Chief Legal Officer Digital Risk LLC
Adequate quality and adequate value won't get you rehired. The root of the disconnect is in the relationship itself. It lacks durable foundations. This is why we talk about specializing in your clients, building deep relationships, understanding expectations and exceeding them. This starts with the job at hand. To the lean lawyer, the present assignment is always a priceless opportunity to get to know the client better, and then demonstrate elevated service levels in ways they appreciate.
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