The easiest way to increase law firm profits

July 12, 2012 by
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In medicine, The Hippocratic Oath includes the Latin phrase, Primum non nocere, meaning, “First, do no harm.” Attorneys need a similar pledge, not just to protect our clients, but to protect our bottom line.

According to a study from The George Washington University (ppt–not worth downloading, IMHO), the cost of a dissatisfied customer is staggering:

  • The average business does not hear from 96% of unhappy customers
  • For every complaint received, there are 24 people with unvoiced problems; six are serious
  • 90% who are dissatisfied with the service won’t return
  • The average customer with a complaint will tell 9-10 people; 13% will tell more than 20 people

Other studies confirm numbers like these. The bottom line: losing one client could cost you a lot more than you earn from one new client.

Therefore, the easiest (and smartest) way to increase your profits is to stop losing clients.

There is some good news from the study:

  • Of those who complain, 50-70% will do business with you again if the complaint is resolved. 95% will return if it is resolved quickly

Therefore, you must encourage your clients to let you know when they aren’t happy so you can fix the problem quickly and can take steps to make sure the problem won’t occur with other clients.

Remember, most unhappy clients don’t complain. They just leave–and tell others that you are a Bozo.

Here’s how you can solicit this extremely valuable feedback from your clients:

  • Include feedback forms in your “New Client Kit”
  • Post surveys on your web site
  • Tell clients (repeatedly) that if they ever have an issue of any kind, you want them to call you personally (and give them your cell phone number or direct line)
  • Put a “Suggestion Box” link on your web site. Allow people to contribute (or complain) anonymously. Promote this box via your newsletter and blog
  • Put stories in your newsletter about suggestions you received and implemented.
  • Interview clients at the end of the case. Ask them, (1) What did we do well? and (2) What could we do better?
  • Thank everyone for their ideas and feedback, publicly if possible

In other words, if you want feedback, create an environment where feedback is encouraged, appreciated, and most of all, acted upon.

Often, perhaps most of the time, unhappy clients aren’t unhappy because the attorney did something wrong, they are unhappy because of poor communication:

  • Something wasn’t explained properly.
  • The attorney didn’t keep the client informed.
  • The client’s phone calls weren’t returned.

If you ever drop the ball in any of these areas, don’t worry, these are easy to fix. If any of your clients were unhappy with their previous attorney for any of these reasons, celebrate. This is a tremendous opportunity for you to convert them into raving fans.

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Filed Under: Client loyalty, Client relations, Communication, Increase your income, Law office management Tagged With: , , , , , , , , , , ,

Take inventory of your marketing to save time, save money, and improve results

July 11, 2012 by
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Taking inventory of your marketing can help you gain clarity about where you are and make it easier to get to where you want to go.

Here’s how to do it:

Pick a period of time in the past. Six or 12 months will do. Write down how many new clients you took in during that period, who they are, and the amount of income those clients have or will generate for you.

So far, so good.

Next, look at the names of each of those new clients and write down where they came from. You need to know whether they were referrals (including self-referrals, aka repeat clients), or they came from some other source.

You can break this down any way that makes sense for your practice, but I suggest something like the following:

  1. Referrals from clients (including self-referrals)
  2. Referrals from professionals, others; networking
  3. Online (Blogging, SEO, social media, webinars, articles, etc.)
  4. Paid advertising (PPC, direct mail, display, radio, directory, ezine, banners, self-hosted seminars, etc.; if you do a lot of adverting, you should break this up into different categories)
  5. Other (Public speaking, publicity, writing (i.e., trade pubs), etc.)

Okay, now you know where the business is coming from. What now?

Here are my thoughts on how you can use this information:

  • Most of your clients should come from referrals. If they don’t, ask yourself why and what you can do about it
  • If you’re not getting business from some of your marketing activities, or they are too expensive relative to the business they bring you, consider eliminating those activities.  For example, if blogging and social media take up a lot of your time but you’re not getting the clients from it, why do it? Use that time for something that is producing.
  • There will be some cross-over or ambiguities. For example, blogging may not be producing a lot of traffic, inquiries, and new clients for you but it still has value as authoritative content you can show to prospects who come to you via referrals, or to add value for your clients.
  • If something is working for you, do more of it. You can find more time for networking, for example, by reducing or eliminating some or all of the time you spend on (whatever is not working). If advertising in trade publications regularly brings in new clients, increase your media buys in trade publications.
  • Before you cut anything, consider the “back end”. For example, you may be breaking even on advertising (or even losing money) but if you are able to get referrals from the new clients that are produced by that advertising, you’re still earning a profit.
  • If you aren’t in the habit of recording where your clients come from, you need to start. Instruct whoever answers the phone to ask everyone, “Where did you hear about us?” and add a line to your new client intake form.
  • Track these numbers going forward so that you can periodically take inventory and see where you are.

A friend of mine says, “You have to inspect what you expect”. He also says, “You have to slow down to speed up.” Take his advice. Once or twice a year, shut off the phones and email and take inventory. It will help you save time, save money, and improve your results.

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Filed Under: Advertising, Blogging, Increase your income, Law office management, Leverage, Marketing legal services, Networking, Productivity, Public Speaking, Referrals, Social media marketing, Time Management Tagged With: , , ,

Put your contact list on a diet

July 10, 2012 by
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I’ve written before about the value of creating a “Focus 30” list–a list of your most important clients, best referral sources, and other people to whom you want to give your time and attention.

Keeping that list in front of you will remind you to call, write, and engage with the people who contribute most to your success.

I didn’t say so then, but I should mention that you can include on your Focus 30 list people who are important to you outside of your professional life. Friends, spiritual leaders, and others you influence you in positive ways also deserve your attention.

If your Focus 30 list is the cream of the crop, the tip of the top, there are undoubtedly people in your life who are just the opposite.

You know the ones I mean.

  • People you don’t like
  • People who waste your time
  • People who are abusive to you and others
  • Takers/users

You get the idea.

Your relationship with these people does not serve you. You should take steps to either reduce the amount of time you spend with them or completely eliminate them from your life.

Of course some people (i.e., clients, close relatives) you may have to put up with to some extent. But this should be a conscious choice you make, not something you do merely out of habit or a sense of duty.

The easiest way to put your contact list on a diet is to go through the list, one name at a time, and rate each person. If you don’t recognize a name, or you don’t communicate with that person often enough to matter, you can skip them. For everyone else, assign a number based on how you feel about them:

1 = Positive
2 = Neutral
3 = Negative

That’s a lot quicker and eaiser than trying to figure out why you don’t like someone. Trust your gut.

If you’re not sure about someone, give them a 2.

Anyway, don’t agonize over anyone and don’t spend a lot of time on this.

When you’re done, go back through the list. 1’s and 2’s are okay. (You may see some 1’s you want to add to your Focus 30 list).

You need to do something about the 3’s.

Some you’ll stop seeing and taking their calls. Cross them off your list. Eliminate them completely from your life.

Others, you’ll reduce the amount of time you give them. If they are a client worth keeping, give the task of dealing with them to someone who works for you. Get away from them as much as possible. If that won’t work, you’ll need to decide if the negative feelings you get from being around these people are worth the money they pay you.

Or, look at it this way: How much more would you earn by getting rid of your negative, anxiety-causing, slow-paying, trouble-making, pain-in-the-ass clients?

Now, as for your relatives. . .

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Filed Under: Career satisfaction, Client loyalty, Client relations, Dealing with stress, Personal development, success Tagged With: ,

What do you do when the case is over?

July 9, 2012 by
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Think of a file you closed in the last thirty days. The work was done, the client was paid or got their final papers, there’s no more work left to do.

What now? What’s your plan?

If you think in terms of “cases” or “files” or “work,” probably not much. You finished what you were hired to do and you were paid. Gotta go find someone else who needs you.

If you think in terms of “clients” and “repeat business” and “referrals,” you’re just getting started.

Your clients are worth far more to you than what they paid you to handle their case or file. Over time, they may be worth 50 times that amount. But if you leave it up to them to come back when they need you again, or refer someone who needs you, you’re making a big mistake.

It’s up to you to stay in touch with your clients, now, at the end of their case, and forever–until you retire or one of you dies.

It’s called “lifetime value,” and many attorneys never see it because once the work is done, so are they.

Call your client: “Do you have any questions?”

Mail to your client: “Thank you for the opportunity to serve you. Please fill out this survey and tell us how we did.”

Mail something every month: “Here’s something I thought you would like.”

Most of tomorrow’s business should come from the clients you have right now. Even if those clients never hire you again and never refer a single client, they can help you by sending traffic to your web site, promoting your seminar, or distributing your report or video.

So, when the case file is closed, open another file for the client. You have more work to do.

You need to stay in touch with your clients and let them know you appreciate them. Remind them about the (other) services you offer. Ask them what you can do to help them with anything of a legal nature, or anything else. And once in awhile, ask them to help you by liking your page or forwarding your email to someone they care about.

The work is not difficult and it pays extremely well.

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Filed Under: Client loyalty, Client relations, Marketing legal services, Referrals, Relationship marketing, Thank you letters, Web traffic Tagged With: , ,

How to be more productive by killing time

July 6, 2012 by
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Being more productive helps us earn more and work less (or waste less time). That’s why I use and write about the systems (e.g., GTD) and tools (e.g., Evernote) that improve productivity.

But I will be the first to admit that being productive is not the number one objective. It’s being happy.

We want to be more productive because doing so makes us feel good. Not just the results of being more productive but the feeling we get in the process of doing so. It feels good knowing that we are being effective (getting the right things done) and efficient (getting things done right).

But sometimes, “too much of a good thing is not a good thing”.

Most productivity experts advise us to make the best use of our time, all the time. If we’re at the doctor’s office and we have 15 minutes before our appointment, we should use that time to review a file or write notes for something we’re working on. On our way to and from court or an appointment we should make calls or dictate a letter or memo.

Don’t waste this time, they tell us. 15 minutes here, ten minutes there, and we could gain an additional hour or two of work time every day.

I don’t disagree with this. I do these things myself. But, as Leo Babauta’s thoughtful post, “Why Killing Time Isn’t a Sin,” reminds us, “life is for living, not productivity”.

If you would enjoy reading the biking or travel magazine for 15 minutes in the doctor’s office, go ahead and do it. If doing some work would be even more enjoyable, you can do that instead.

The point is, you have a choice. You don’t have to work all the time. Do it because you want to, not because you believe you must. Do it because of the pleasure it gives you, not because it’s on your list.

Do you ever “call in sick” and spend the day at the beach or the movies? Just because you want to? You should. Yes, the work will be there when you get back and yes, you will be a day behind. But you’ll be a day ahead on life.

We aspire to be productive because it makes us feel good. Why not start with feeling good. You’ll wind up being more productive.

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Filed Under: Career satisfaction, Productivity, Time Management Tagged With: , , , , , , ,

Attorney Marketing: Do you have the right attitude to be successful?

July 3, 2012 by
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Do you do marketing because it’s something you have to do? Or do you do it because you love helping people and marketing is how you find them?

Do you send notes and thank you cards to your clients because it’s a smart thing to do or do you truly appreciate your clients and want them to know?

Do you love it when your clients call you when they need a referral to an insurance broker, car dealer, or building contractor? Or do you say to yourself, “Why are they asking me?”

Marketing has been defined as, “everything you do to get and keep clients”. More than what you do, however, marketing is what you are.

Marketing should be an extension of who you are and what you do. It should not be a department or a project. If you love what you do, if you truly appreciate your clients and the lifestyle they make possible for you, marketing shouldn’t feel like work.

That doesn’t mean you don’t have to make the calls or send the emails. It means that when you do, the words will flow easily and people will know you mean what you say.

If you love what you do and you do what you love, you’ll never work a day in your life.

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Filed Under: Career satisfaction, Communication, Marketing legal services, Personal development Tagged With: , , , , , , , ,

New law practice: How do I get the word out?

July 2, 2012 by
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I got an email last week: “Do you have suggestions for getting the word out on new (solo) law firms”

Q: Press releases to big city newspapers?

Unless your announcement qualifies as news, these are unlikely to get printed. If you are semi-famous or you’re planning to do something very unusual in your law practice, a press release might get picked up. Otherwise, probably not.

If you want to go this route, your best bet is to send them to niche publications: small town newspapers (where you grew up or your dad was well known), blogs or magazines in a market where you have a connection, that sort of thing.

Q: Mailing announcements to the Bar list (of business attorneys) and/or business owners?

Announcements mailed to other lawyers or business owners are a waste of time. They don’t know you and they don’t care that you’re opening your own office.

You could mail something they would care about: a free report that helps them protect themselves or their clients or earn more in their business or practice. A postcard that offers a report like that, and sends them to your web site to get it, would cost a lot less than actually mailing the report. It could bring lots of traffic, opt-ins, and eventually, some business. However, even post cards are expensive and you need to know what you’re doing.

This can be a viable way get clients, but for a new practice with limited funds, it’s not the best place to start.

Q: Hiring a service to send email announcements to the Bar list and to our own contact list?

Emailing to people you don’t know (i.e., Bar list) could get you into trouble for spamming. There are legitimate “opt in” lists available where people have given permission to receive email, and there are services that will provide these lists and do the emailing for you, but you would be wasting your time and your money.

Again, they don’t know you and they don’t care about your announcement.

However, emailing or sending announcements via regular mail to your own contact list is a great idea.

You should definitely send an announcement to the people you know. Friends, family, people you know from college and law school, and former employers. If you have a connection of any kind, put them on your list.

They do care about you and what you are doing. They will read your announcement. They may respond and wish you the best of luck. At some point, they may also send some business.

Here are my three “rules” for announcing a new law practice:

  1. Send your announcement to everyone you know; don’t bother with strangers, unless you have a very good reason to do so and the budget to pay for it.
  2. An announcement is okay; a letter is much better. Write a semi-personal letter that gives the who, what, where, when, and why of your announcement. Why are opening your own office? What do you want to accomplish? Who are you looking to help? What will you do for them? People will look at an engraved announcement for three seconds and then throw it out. Those same people will take their time reading a heart-felt letter on plain paper or in an email. They will remember your story and may even share it with others.
  3. Don’t rely on a one-time mailing. Follow up your announcement with additional communication–a newsletter, calls, invitations to your grand opening, personal visits. Stay in touch with them, remind them again and again about what you do and for whom you do it, and ask for their help.

Even if there are only 100 people on your initial list, these are the people to whom you should announce your new practice. They do know you and they are willing to help.

They may not be able to send you any business (right now), but they can help promote your web site, like your page, or distribute your new report. They can help you get the word out.

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Filed Under: Communication, Law office management, List building, Marketing legal services, Marketing Plan, Press release, Publicity, Relationship marketing Tagged With: , , , , , , , , , , , , , , , , , , ,

Engage your clients and prospects by explaining the news

June 29, 2012 by
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So we have some health care news. Now what?

Your clients and prospects are wondering what it all means. What do they have to know? What do they have to do? What will it cost them? What’s next?

This is a great opportunity to provide some answers. Leverage news events like these to add value to the lives of the people who follow you. They will appreciate you for sorting it out for them and the next time you write, tweet, post, or otherwise open your mouth, they will be more likely to pay attention.

If you don’t know what to make of everything yourself, there’s plenty of help available. Here’s an article that explains, “How Will the New Health Care Law Affect Me?” Here’s one about, “How Your Business Will Be Affected.” You can use articles like these as a starting point to write your own summary.

You don’t need to write a comprehensive legal analysis (unless your clients are in the health care field or are affected more than most). Give them the who, what, where, when, and why.

But be careful with the why. If you get political, you may alienate a lot of people who put food on your table.

Show people they can trust you. Give them the facts. Help them understand.

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Filed Under: Blogging, Client loyalty, Client relations, Communication, Image, News, Newsletters Tagged With: ,

Three Tips For Your Next Speaking Gig

June 28, 2012 by
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At breakfast this morning I reminded myself that I did not yet have a topic for today’s blog post. When that happens, I usually dig through my backlog of ideas (saved in Evernote) and unread articles and blog posts (saved in Instapaper). Instead, this morning I began with a title.

Actually, not the whole title. I wrote down, “Three Tips for. . .” and went back to my eggs.

My subconscious mind came to the rescue. It reminded me that earlier this week, I had given a luncheon presentation. There must be three things I could share about public speaking.

The first one was easy. It was something I didn’t do but will do the next time. The other two I nailed.

So here are my three tips:

Tip number one: Meet the audience before you begin.

Had I done this, I would have learned that one of the guests was an attorney. I could have tailored my remarks to him. I might have engaged him with a question or two. Another guest was a real estate agent. I could have incorporated her background in one of the examples I used in my talk.

It’s usually not possible to meet everyone but meet as many as you can. I knew I was addressing business owners and professionals, but had I met some of them in advance, I would have been able to provide more relevant context (examples, stories) and generally deliver a better talk.

Tip number two: Don’t depend on A/V.

There was no projector available at this location, so I could not use slides. No problem. I knew my talk and could deliver it without any visual aids. In my opinion, this makes for a better presentation because the audience focuses on you instead of the screen.

Use slides if you have to. Avoid them if you can. No matter what, you need to know your subject well enough so that you can deliver it when there is no projector, no electricity, or the bulb burns out.

Tip number three: Have some friendly faces in the audience.

A speaker is only as good as his audience. We draw our energy from the people in the room. If you are addressing a group of dullards, people who don’t smile, don’t laugh at your jokes, and don’t respond when you ask for a show of hands, I don’t care how good you are, your talk will suffer.

My wife was with me. I can always count on her. One of my business partners was in the front row and he has good energy. When I looked at him leaning forward in his seat and smiling at me, it not only helped me, it helped the others in the room who took their cues from him. I had him “keep score” every time one of my “jokes” got a laugh and this added to the fun.

So those are three tips gleaned from this week’s presentation. Okay, I just thought of one more. If you’re doing a lunch presentation, start off by asking for a show of hands: “Did anyone order a salad?” Apologize and tell them you asked the restaurant to leave out the tomatoes. “They’re way too easy to throw at the speaker.”

Make people laugh and they will like you and your presentation. Even if you don’t have any slides.

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Filed Under: Blogging, Communication, Public Speaking Tagged With: , , , , ,
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