The best use of your time
What is the best use of a law firm partner’s time?
I believe that it is marketing your firm’s services to your current clients.
Consider the following:
- Client surveys by Walker Clark, LLC, confirm that past experience is always (yes, always) one of the top five reasons why a client selects a lawyer or law firm. In a majority of our surveys, it has been the top reason.
- Our surveys also demonstrate a very high level of satisfaction among law firm clients. It is not unusual for 100% of a group of law firm clients (selected by us, not the law firm) to report that they are either “satisfied” or “very satisfied” with the service that they receive.
These two factors create a strong predisposition in your current clients to hire your firm for more work. Some law firm clients have even told us in confidential interviews that they usually prefer a law firm with which they already have a relationship, instead of another firm that might have a better reputation for expertise in a particular area.
Sometimes, as part of a profitability diagnostic, we will measure the return on investment from partner cross-marketing. The results vary widely among law firms, based on factors such as client base, practice specialities, and clarity of the firm’s marketing strategy. But they can be dramatic, ranging from 9:1 to 16:1.
This means, for example, that for every hour a partner spends on cross-marketing to existing clients, he or she will produce an average of 9 to 16 hours of new legal work for the firm. Instead of billing $400 for that hour, the partner could produce between $3,600 and $6,400 in new work.
No wonder most lawyers hate “cold calls.”
These results do not come automatically, however.
- They require partners who work together in marketing the firm, rather than in competition to market themselves.
- They require partners who listen closely to clients to understand each client’s needs and priorities.
- They require a culture in which partners speak of “the firm’s clients” rather than “my clients.”
- They require lawyers who can articulate not only their own expertise, strengths, and competitive advantages for the client, but also those of their partners.
Interestingly, effective cross-marketing does not appear to require direct financial incentives, such as origination credit as part of a partner’s compensation. Many firms with “lockstep” compensation systems cross-market very effectively, motivated by the concept that “a rising tide raises all ships.” This is not to say that financial incentives are not important; but their positive effect is a product of the firm’s culture, and not some “best practice.”
So what is the best use of your time?
It is probably cross-marketing your partners to your firm’s existing and recent clients.
Norm Clark
Tags: clients, marketing, partners, profitability