Look at any business in history and there is always more upside for companies that are more innovative. The downside is reserved for those that cling to the old ways of doing business, doing the same things they have always done and, somehow, expecting a different result –which is the very definition of insanity.
So when is the last time you really looked at your law firm business practices and questioned if they could be improved to increase your profit potential? When is the last time you truly, objectively analyzed what you’re doing to grow your business and whether it’s working or not? If it’s been awhile, then consider these three ways you can increase your profit potential and benefit your clients:
#1: Improve Client Communication
The number one complaint clients make to bar associations about their attorney is lack of communication. Communication is fundamental to building a strong, lasting relationship with clients. You must stay on top of your email and phone messages.
If you’re a solo practitioner or a litigation attorney who spends a lot of time in court, then you need to (1) better set and manage client expectations as to when they can expect a response to their email or phone call or (2) assign someone on your staff who is trustworthy and reliable to return those calls for you and set up an appointment to speak with you when you are available. Be sure you have a staffer scouring your email for client requests that can be handled without your intervention, like inquiring about when their court date is or how to dress for an upcoming appearance or to remind them of the address for their deposition.
Beyond the everyday communication, there are three other areas most lawyers can work on to improve their client communication.
Keep clients informed about the progress of their cases. I strongly recommend you have someone (not an attorney) call and email every single client to update them on their case every month – even if there is no update, We are still waiting to hear back from the insurance company. We are still waiting on the judge to issue a ruling on our motion. We haven’t heard back yet from opposing counsel and we are emailing them every week asking for a response. In most cases, there can be weeks and even months that go by with no movement. During this time, clients can think you have forgotten about them. To retain client loyalty and satisfaction, you need to gently remind them that you are still “on the case” and you haven’t forgotten about them. This person can be your legal assistant or even a paralegal, but we don’t recommend it be you or an associate unless absolutely necessary.
Proactively educate clients on events or changes in the law that could affect them. Sending out regular client communiques or newsletters is a very cost-effective way to educate former clients and referral partners of changes in the law that could affect them or simply remind them of their legal rights and responsibilities.
Inform them of other ways you can help them and other areas of practice in your law firm. It’s your responsibility to educate and inform clients of other ways you can add value. If there are other services you provide that they could benefit from but are not currently using, let them know what benefits they could get from using those other services. In addition to telling them over lunch and sending out monthly newsletters, you can also hold seminars or webinars on relevant topics of interest. Find every opportunity to demonstrate your expertise and your usefulness. As the saying goes, “Out of sight is out of mind.”
Remind your clients regularly of the results they are getting from working with you. Clients are likely as busy as you are and your great work is not always on their radar. Law is a thankless profession. Far too often clients expect you to move heaven and earth and never even offer a simple thank you in return. If you’re getting good results for your clients, remind them on a regular basis. Don’t wait until the end of the case and the final bill. Casually mention it along the way. As Muhammed Ali said, “It’s not bragging if you can back it up.”
Tomorrow I’ll post the second way to fire up your law firm’s profit potential.
Many attorneys don’t know the questions to ask or who to trust when it comes to law firm financing. And many traditional lenders will not even consider you if your firm is a personal injury, workers compensation, SSD or another contingency-based practice area.
Join me for a free training webinar on Law Firm Finance for Contingency-Based Firms on Thursday, Feb. 18, 2016 at 10 a.m. PT/1 p.m. ET. During this webinar, you will learn:
- The most important financial concepts and terms you need to know
- The most common challenges contingent-fee law firms face in the marketplace when seeking capital
- 5 steps you can take to improve your financial health right now!
- Insider recommendations for how to maximize your chances of landing funding for your law firm
- The advantages, disadvantages, costs and risk abatement criteria for the 10 most common forms of capital accessed by contingent-fee law firms
Your webinar host is Michael Swanson, CEO of Advocate Capital, a Nashville-based commercial finance company that has developed proprietary financial products and services aimed at the upper echelon of trial law firms in the U.S.
Michael is the author of How David Beats Goliath: Access to Capital for Contingent-Fee Law Firms, a definitive, common-sense book that explains how contingent-fee law firm funding works, who provides it, what it costs, and how law firms can acquire and use it efficiently.
If you are looking to significantly grow your law firm this year, getting the right financing can play a big role. Learn how by joining this free webinar.
You can register online now; registrants will receive a recording of the webinar to watch at their convenience so even if you cannot attend in person, please register to get the free recording.