Most of you will know of Vilfredo Pareto without realising it. He was an economist and sociologist who noticed or discovered the 80:20 rule. He found that 20% of the population earned 80% of a country’s income, 20% of a sales force bring in 80% of the business etc.
So how does this affect you? Well, this rule applies pretty much universally across all businesses and all sectors, including the law. Most importantly, it means that roughly 20% of your fee earners will bring in 80% of your practice income and 20% of your clients will also produce 80% of your practice income.
The question is, do you know which of your clients are producing this income, and are you maximising the potential earnings from them? What I will tell you now could increase your profits by more than 100% within a few months (I can already see the cautious lawyers out there just about to click the delete button on the email, but if you want new clients for very little investment please read on). The answer is simple yet most law firms I meet do not employ this tactic. Other businesses I work with on sales and marketing outside of the legal profession understand the importance of this tool and use it to grow their business with amazing results. In fact, it is the first tool they turn to. I use this tool too, that is why you are now reading this email. So what is it that can produce fantastic results for very little investment?
It is of course a Database.
OK so now I know you might be tempted to reach for the back button, but if you are serious about growing your practice please don’t. As solicitors you provide a professional service to your clients. I know that most of you provide an excellent service certainly in terms of the legal knowledge you possess. But if I was your client, after you have finished handling my conveyancing transaction or my personal injury claim, would I ever hear from you again or would you let me go somewhere completely different the next time I need legal assistance? Most of you will visit a supermarket for your shopping at least once a week, yet you still receive letters and offers in the post from that supermarket. They really understand the value of their database. Tesco relies on it so heavily it bought the company that ran the whole of its Client Retention policy.
How many clients have you heard tell you that their address has changed because they have moved house. When you ask them why they did not use your firm for the conveyancing, I bet most of you reading this email have been told “I didn’t know you offered that service!” (Remember I did work in Private Practice for 14 years so I do remember what it is like). So whose fault is it that they didn’t know? Did you send them a monthly or quarterly communication not about your legal services, but about how the law affects them in plain English and with useful advice and tips on protecting themselves and their family or their business?
Do you send all of your conveyancing clients an email newsletter shortly after their move with links to suppliers who can make their home more comfortable, from carpet fitters to kitchen designers, all offering a discount because they are YOUR clients (very easy to set up yet excellent for client goodwill)? These are just a couple of ideas that you could explore to keep in touch with your clients but there are many more. Your chances of retaining a client will be significantly increased if once you have finished acting for them, you keep in touch with them.
With so many competitors now in the legal profession, many of them with aggressive marketing history behind them. what are the chances of one of their clients having completed a transaction not receiving a letter or email about the other legal services they can help them with after the end of the case? Absolutely zero!
You have the chance now to build a client relationship management programme to keep in touch with your clients and keep them loyal to you. You must act now to build that loyalty before other bigger players move into your market. You can purchase a database for as little as £100 (I can even tell you which ones will work best for you). Even if you only kept in touch with new clients, you would soon build that database and receive significant new business from existing clients (ie the Paretos law would work well for you).
Ready To Take Action And See Results Now?
Please call 0117 290 8555 to arrange a mutually convenient time for a telephone discussion, Email me or complete a Free Online Enquiry. There is no cost or obligation. We will have a chat about where you are and where you would like to be and I will suggest some things you can do to get there quickly.