Friday Five Trending
What’s the biggest predictor of a law firm’s success? Hint: It’s not the firm’s bottom line. The No. 1 thing impacting a firm’s long-term viability is client satisfaction. Several articles over the past month highlighted the need for firms to get and stay focused on client service — with issues ranging from core values and new ways of working, to proactive communications and providing a high level of customization. Let’s take a look.
1. Clients are canaries. Research into seven failed professional services firms, four of which were law firms, indicates declining client satisfaction is an early predictor of a firm’s demise. Likening clients to “canaries that were used in coal mines to detect lethal gas,” an Australasian Lawyer article reporting on the research (conducted by Beaton Research+Consulting) relates that firms were too “internally focused” to notice clients were defecting or reducing workload. By the time firm leaders saw the problem, it was too late to save the firm. Maintaining good client service when market conditions turn bad is not easy, but author Henry Dahut says a strong brand identity and core values can help a firm stay the course — and stave off the kind of “voracious greed” episodes seen in recent firm failures.
2. Think like a client. Clients, of course, are very focused on their own bottom lines. Trevor Faure at Legal Week says firms should “embrace new ways of working to survive in a client-driven world” — one where sophisticated clients now separate their legal needs and price expectations into a “work hierarchy” of “cream,” bet-the-farm issues where cost is secondary; “core” less important, yet frequent issues that require predictable fees; and “commodity” high-volume, low-risk work that’s priced according to its efficiency and manageability.
3. Mind the money. Client satisfaction is also a predictor of how long it’ll take for you to get paid. As Faure says, “Firms with low satisfaction scores record significant dereliction at their 30- and 90-day payment points and double the fee-discounting when compared to firms with high client satisfaction scores.” But you should also be aware of a client’s creditworthiness, maintain proactive and transparent billing practices and be prepared to not get paid if it’s good for business.
4. Build long-term relationships. When it comes to delivering the excellent service that keeps clients coming back — and sending their friends — it’s all in the details, according to Peter Kellett over at The Business of Serving Clients blog. Kellett emphasizes the importance of proactive communication that provides a valuable service, which is echoed by Carolyn Elefant in an Above the Law piece about “schooling clients … so that they’ll have a grasp of the basics.” According to Keith Lee at Associate’s Mind, providing services with a “high degree of customization and quality” can build long-term relationships with clients, so that when a client buys your services, you have a customer for life.
5. Dump bad clients. Some clients, however, just aren’t worth the money and are best avoided altogether, according to Randall Ryder at the Lawyerist. “Great clients will enhance your legal skills, your reputation and your bottom line,” Ryder writes. “Bad clients can make you question your skills, destroy your reputation, and result in the worst money you have ever made.” But what if you’ve already taken on (or inherited) a problem client? Law360’s Erin Coe offers five tips in “How to Handle the Client From Hell”: Know what you’re getting into, set clear expectations and boundaries, stay calm, document everything, and do a debriefing. But with 58 percent of people finding lawyers on Yelp, according to a survey by a legal software research firm, what do you do if clients leave a bad review online? Well, you could sue them or learn how to respond to mitigate any damage.
Kandy Hopkins is a Contributing Editor at Attorney at Work. A Chicago-based freelance writer and copy editor, she specializes in legal and healthcare topics, formerly blogging for the Thomson Reuters-affiliated Hildebrandt Blog. Whenever she’s asked, “So, what do you do?” she always replies, “Whatever I think I can get away with.” Most people think she’s joking.
- Clients Are the Canaries That Can Predict Failing Firms (Australasian Lawyer)
- Law Firms Must Embrace New Ways of Working to Survive in a Client-driven World (Legal Week)
- ‘Voracious Greed’ of Some Dewey Partners Contributed to Firm Collapse, Former Leaders Say
- Attention to Detail — The Key to Exceptional Client Service (The Business of Serving Clients)
- The Bad Clients You Don’t Take Will Be the Best Money You Never Made (Lawyerist)
- The First Step to Heading Off Unpaid Receivables (Divorce Discourse)
- When Letting a Bill Go Unpaid Can Be Good for Business (ABA Journal)
- What Do You Do When a Client Doesn’t Pay the Bill? (ABA Journal)
- 5 Tips For Taming a Problem Client (Law360)
- Less Than Glowing Online Reviews of Your Law Firm – And How to Respond (National Review)
- Firm Sues Ex-Client over Yelp Review (ABA Journal)
- People Look to Yelp to Find Lawyers Online, Survey Says (ABA Journal)
- Call It Schooling Clients (Above the Law)
- How to Build a 20-Year Relationship With Your Clients (Associate’s Mind)
- 4 Simple Steps for Converting Prospects into Clients Online (National Review)
- What Is Business Development? (My Shingle)
- Less Than Glowing Online Reviews of Your Law Firm–And How to Respond (National Law Review)
- Reinventing the Law Business: Creating Customers (Above the Law)
- Law Firm Branding – The Danger Of Illusory Brands (Digital Journal)