Do no harm: The easiest way to increase law firm profits

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[I’m taking it easy this week and re-publishing this post from 2012.]

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.

The best way to maintain law firm profits: marketing

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Marketing online by profiling your clients

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Dollar Shave Club has a unique approach to marketing. On their website, they feature the businesses of their customers and the stories behind them. They recently featured a coffee roaster, for example. According the folks at Small Business Trends:

“Each article comes complete with an interview that gives a glimpse into the personality of that person’s brand. Rather than sum it up, they go to the source, which gives a more truthful glimpse into the companies they are featuring. The people that run and care about the business are those who get to speak about it and that’s not so common anymore.”

Customers can fill out a form on the site describing themselves and their business. “If the submission catches the editor’s eyes, a rep may reach out with some more questions.”

If you represent businesses of any kind, you could do the same thing. Profiling and promoting your clients’ businesses will benefit you in several ways:

First, it makes you look good. Instead of saying nice things about yourself, you’re saying nice things about your clients.

Second, your client gets more exposure and more business, thanks to you. They might reciprocate and tell their customers all about you and your practice. Also, as their business grows, they will probably have more legal work for you. More referrals, too.

Third, no doubt your featured clients will tell everyone they know about their profile on your site. You’ll get more traffic, more subscribers and followers, and more clients.

Fourth, this is an easy way to create interesting content for your blog.

Finally, you might get other websites talking about your innovative approach to marketing. Like mine.

If you have a consumer practice, undoubtedly some of your clients own or run a business. Or they are connected to a charity or cause-oriented group. Find the ones who have an interesting story to tell and help them tell it.

You can also interview your professional contacts and feature their business or practice. You may not be able to send a lot of referrals to an accountant you know; promoting his practice this way might bring him lots of new clients.

Marketing online for attorneys made simple

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Cats don’t like change and neither do your clients

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When there’s a stranger in our house you’ll usually find my cat hiding under the bed. If we were to re-arrange the furniture, I’m sure it would have the same effect.

Change makes cats uncomfortable. It’s different and scary. They prefer things the way they are.

To some extent your clients are the same way.

You know this is true. Imagine going to Amazon.com to shop your usual categories and one day all of the pages and links are different. You’d be confused and uncomfortable and wonder what’s going on. You might feel a little betrayed.

Why did they do that? Where’s the link? I don’t have time to figure this out! What else did they change that I don’t know about? What’s next?

I know you understand this. Lawyers tend to dislike change even more than their clients. But change is inevitable and more often than not leads to good things.

So don’t avoid change, just be judicious about implementing it. And think about it from your client’s point of view.

Consider what your client’s might be thinking and feeling when you:

  • Assign a different lawyer or staff member to their case,
  • Increase your fees,
  • Change billing methods,
  • Change the schedule/due dates,
  • Re-do your website,
  • Introduce new reports or forms you send them, or
  • Move your office.

Make changes as smooth as possible for your clients, and also for your staff who will be implementing these changes and explaining things to nervous or confused clients. Do your best to

  • Keep change to a minimum. Not too much, not too often.
  • Keep your promises. Grandfather in existing clients, if need be.
  • Give plenty of warning. Don’t spring things on them at the last minute. Let them process and prepare.
  • Explain why you made the change, and how the client will be better off.
  • Offer extra help: people they can talk to, pages they can read, longer hours during a transition.

Follow these guidelines, use common sense, and see things the way your clients see them. Your clients may not universally applaud these changes, but in time, they will accept them. Even my cat eventually comes out from under the bed.

Marketing is everything we do to get and keep good clients. This will help

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Running a law practice like a restaurant

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The restaurant business is an especially challenging business model. There is so much money at stake, and so many things that can go wrong, it’s no wonder that so many restaurants fail. And yet, when you get it right, a restaurant can be remarkably profitable.

Customers come back again and again, word-of-mouth brings more business, and before you know it, you’re hobnobbing with the culinary elite. Or something like that.

In a way, a law practice is like a restaurant. You’re in the service business. You have to get a lot of little details right. Your menu is similar if not identical to the menu offered by the lawyer next door. If you want your customers to come back, you have to please them. If there’s a problem, you have to fix it.

When a restaurant insists on being right, they often win the battle and lose the war. Charging an extra $1.50 for a slice of cheese on a burger, or being overly aggressive in pushing customers to order appetizers or dessert, may earn a higher profit on that customer’s visit but it may also be decidedly shortsighted.

When a customer comes into your establishment, as the owner of that restaurant your primary goal shouldn’t be to earn as much as possible from each transaction. Your primary goal is to make the customer want to return.

Running a law practice is no different.

Even if you predominately have one-time clients who never need your services again, you should bend over backwards to please them because each one-time client can send you referrals. And they will, if you treat them right.

Opening a law office requires only a fraction of the capital investment required by a restaurant. Your investment comes later. Each time you give your clients more value, you are investing in their return and referrals.

I hear tales of lawyers arguing with their clients over a $100 billing issue. That’s silly. Let them win, even if they are wrong, even if they are taking advantage of you. In most cases, your investment will pay off.

No, don’t be a sucker. If a client fights you over everything and is making you and your staff miserable, you have to draw the line.

Tell them to try the restaurant down the street.

How to handle billing issues like a pro

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When is it okay to ask your client to wait?

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I hate waiting. It’s an issue with me. When I have an appointment with a doctor at 1pm, I expect to be seen at 1pm.

That’s the time of my appointment. Don’t make me wait.

Show me some respect. I’m paying your rent and putting braces on your kid’s teeth. I have my own clients to see. I blocked out time to see you.

If my appointment is at 1:00, don’t see me at 1:30 or even 1:05.

Don’t make me wait.

When a doctor or other professional doesn’t see me on time, I’m up at the desk asking why. I let them know I’m busy and can’t wait. I’ve been known to threaten to send the doctor a bill for my waiting time. I’ve been know to leave and get another doctor.

As I said, I hate to wait.

I’ve been doing some conference calls this week. As usual, some of the participants get on the call after the scheduled time. I don’t wait for them. If we’re scheduled to start at 5pm, that’s when I start.

Why should I make the people who show up on time wait for the ones who don’t?

When you start on time, you show people that you are organized and disciplined and professional. It shows that you keep your promises and tells people that they can count on you.

Don’t be late. Don’t make people wait.

Some say being late makes you appear more important. Nah, it just makes you rude.

Something else. When a client is in the office with you and your get a call, I know you know better than to take that call. I know you instruct your staff that unless it is an emergency, when you have a client in the office you are not to be disturbed.

Please say you do that. Please say you know it’s rude to take calls when a client is in the office.

Okay, good.

But how about when you’re on the phone with a client? Have you ever said to a client, “Can you hold on for a minute?” so you can take another call? Even if it is to tell the new caller that you’ll call them back?

Maybe that doesn’t rise to the level of rudeness but if you think about it from the client’s perspective, it tells them that other people are more important than they are.

Even though it’s just for a minute. Even though they said it was okay.

Marketing legal services like a pro

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You need to talk to your clients

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You frequently hear me tell you to “think clients, not cases,” meaning you must consider the lifetime value of your clients and not just the fee from a single case or engagement. That $1500 fee for a first-time client could lead to $15,000 or $50,000 in fees over the lifetime of the client.

Even if a client never hires you again, cultivating a relationship with them can bring referrals, traffic to your website, sign-ups for your list, attendees at your seminars, and followers on social media, all of which will lead to new business.

Get it? Got it. Good.

So. . . stay in touch with your clients and former clients (an oxymoron).

How? Letters are great, but can get expensive. Email is great but may be overlooked. Send letters and emails but don’t ignore your number one tool for building and sustaining relationships: the phone.

You need to talk to your clients, bro. They need to hear your voice.

Yes, people still answer their phone. If they are away, leave a message. They’ll hear your voice and get an injection of your essence. Virtual you is almost as good as the real you.

Here’s my challenge to you: invest six minutes a day calling people. In six minutes, you could talk to one or two clients, or leave five or six messages.

Why 6 minutes? One hourly billing unit. If you bill $300/hr., you’re investing $50/day or $1100 per month (22 work days) to grow your practice. If that brings you one new client per month, will it be worth it? What if it brings two?

What do you say when you call? Did yo mama teach you nothing? Say hello. Ask them how they’re doing. Tell them you were going through your contact list, saw their name, and thought you’d give them a quick call.

Another? Okay, tell them you just posted a new article or blog post or video on your website and thought they might like to see it. Tell them where to find it and tell them to have a nice day.

Easy stuff. Even for a lawyer.

You want it even easier? You’re lazy? Okay, have someone who works for you make the call. Tell the client, “Mr. Jones [that’s you] asked me to give you a quick call to say hello and see how you’re doing.” It’s not your voice the client hears, but you by proxy will do.

Anyway, I can hear what you’re thinking. Yep. You’re thinking this won’t work. It’s ridiculous. Nobody will hire you again or send you referrals just because you called and said hello.

Fair enough. Try it for a week or two. It may not work for you. On the other hand, what if it does?

Marketing online for attorneys is a real thing

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The one thing you need to do to build a successful law practice

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Do you remember the Billy Crystal movie, “City Slickers”? There is a scene where Jack Palance’s character, Curly, is about to tell Mitch (Crystal) the secret to life? “There’s just ONE thing,” Curly says, holding up one finger. All eyes are fixed on Palance. What will he say? What is the “one thing”?

Curly never does answer. When I saw the scene, I thought he would say, “That’s what you have to figure out”. That’s your quest. Figure out the one thing and everything else will take care of itself.

I don’t know if that’s what he meant, but it makes me wonder, is there “one thing” for building a successful law practice? One thing that can take a lawyer from where they are to where they want to be?

Yes there is. For most lawyers in private practice, the one thing that would make all the difference is getting more clients.

Getting better clients is important, of course, and should be on every lawyer’s to-do list. But for both short term and long term success, getting more clients is the one thing that changes everything.

More clients means more money. More money allows you to improve your lifestyle. More money means you are able to help more people and leave the world a better place.

Yes or yes?

Okay, so more clients is the main ingredient. With a side dish of better clients. The next question, of course, is what’s the one thing about getting more clients?

You know the answer to that, amigo. It’s marketing. That’s how we get clients, after all.

But marketing is big and scary. There are too many variables. I don’t know what to do. Tell me, is there “one thing” about marketing?

Hold on, now, you want me to sort through everything there is to know about marketing professional services and tell you the “one thing”?

Okay, I will.

It’s referrals. Get referrals right and you may not have to do much of anything else.

Referrals have always been the number one way clients find attorneys and it still is today. The Internet is important, vital even for many types of practice, but it’s number two on the list.

Okay, now we’re getting somewhere. To build a successful law practice, referrals are king. But. . . but. . . what’s the “one thing” about getting referrals?

You ask a lot of questions, Chachi. No worries. That’s what I’m here for.

Anyway, whether it’s referrals from clients, other professionals, or anyone else, the one thing, the Holy Grail about getting referrals is. . . delivering value.

Not just doing good work and treating people with respect. That’s expected. That’s the standard of care. Every lawyer should do that, and most lawyers do. No, if you want to get more referrals and stand out from the crowd, you have to do what most lawyers don’t do.

You have to do more than do your job.

The lawyers who get the most referrals are the lawyers who do things for their clients and contacts that transcend their work and their professional relationships. They help them, unselfishly, without being asked and without expecting anything in return.

Yes, the golden rule.

There, I said it. Call me a sentimental fool, but there you go. Help others, give to others, treat others the way you would like to be treated.

What’s the “one thing” when it comes to the golden rule?

That’s what you have to figure out.

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“Please let me do my job”

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Don’t you love clients who want to micro-manage their case? Don’t you love it when they want you to check with them about every little thing?

You don’t? Maybe you should post a sign in your office like this humorous price list posted by a graphic designer:

Design Services Price List

I design everything… $100

I design, you watch… $200

I design, you advise… $300

I design, you help… $500

You design, I help… $800

You design, I advise… $1,300

You design, I watch… $2,100

You design everything… $3,400

Yes, it is their case. Yes, they are entitled to make the big decisions. But you are the attorney and if a client wants to “help you,” they should pay for the privilege.

 

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You’re the one that I want — Ooh ooh ooh

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Would your clients fly 2000 miles to come to your office when they need your services? Would they refuse to hire any other lawyer because you are the one that they want?

My grandfather regularly flew from Los Angeles to Chicago to see his dentist long after he’d moved to the West Coast. He’d been with his dentist for decades and wouldn’t think of hiring anyone else.

Would your clients say the same about you?

Yes, it’s a tall order. But it’s the standard you should aim for. To make your clients see you as their one and only.

Complete trust in you. Smitten with the way you take care of them. Convinced that no one could do it better.

Because you know them better than anyone else, and take care of them better than anyone would.

You may not be the best lawyer in a literal sense. You’re just the best lawyer for them.

Ooh Ooh Ooh.

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Will you REALLY fight for me?

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A personal injury lawyer used to (still does?) run TV ads which ended with him pointing at the viewer and saying, “I’ll fight for you!”

But will he?

It depends.

Is it a good case? Are there enough damages? Does the other party have insurance?

If he were being honest, when asked if he would fight for the client, he would say, “We’ll see”.

“We’ll see” is a lawyer-like answer. But it won’t get the client to call.

Clients want more commitment. They do want you to fight for them. They don’t necessarily expect that you will win every time, or bring in a massive settlement, but they expect you to try.

“We’ll see” doesn’t cut it, so although you might be thinking it, don’t say that to a client.

Most lawyers recognize that their clients expect (and their oath demands) that they provide “best efforts” and they will tell the client something along the lines of, “I’ll do my best”.

That’s much better, but what if their best isn’t good enough? What if they don’t have enough experience? What if the case needs resources they don’t have? What if. . .

Your clients don’t want to hear that you’ll do your best, they want to hear that you’ll do “whatever it takes”. And that’s the message you should convey in your marketing.

This is also true for non-litigation matters. Clients want to know that you’ll do whatever it takes to help them achieve a good outcome. If you’re negotiating a contact, or drafting documents for them, they want to hear that you’ll do whatever it takes to protect them, deliver value, and make them happy.

“I’ll do my best” isn’t good enough. Tell them you’ll do “whatever it takes”.

If you want to earn more, make sure you have The Attorney Marketing Formula

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