Why you need a referral system

February 2, 2016 by
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When you have a new client in the office, what do you say to him about referrals? Anything?

Do you give him anything to pass out to people he knows, to make referrals easier for him?

Perhaps you give every new client three extra business cards. That’s good. But when you do that, what exactly do you say? (It makes a difference.)

Most lawyers don’t have a well thought out referral system in place. They haven’t planned what they will give clients, what they will say, or when.

For most lawyers, referrals happen, when they happen. Or they don’t.

Spend some time today thinking about, and writing down, your system. What do you say (orally or by email or letter) to new clients? Current clients? And former clients?

What do you give them or send them?

Right now, if your system consists of giving new clients three business cards and saying, “Here are some of my cards, in case someone you know needs my help,” fine. Write that down. That’s your system. And any system is better than no system.

But you can do more.

Start thinking about what else you might do the next time they are in the office. Or what you might mail to them or include in your “New Client Welcome Kit”.

Write down all of the times during the case or engagement that you could do something or say something that might bring in more referrals.

Start with new clients, on their first appointment. Then consider what you can do at the end of the case or engagement.

After that, write down ideas for communicating with “old” clients.

Having a system for new clients, end of the case, and old clients, will probably put you way ahead of where you are right now, because you will have a better system than you do now.

Systems save time and make things easier. They produce better results, too, if for no other reason than they prompt you to do something on a consistent basis.

No doubt you get referrals now, but do you get as many as you want? As many as you think you could get?

If not, it’s time to create or update your referral system.

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Filed Under: Law office management, Marketing legal services, Referrals

Bad clients are the result of bad marketing

January 12, 2016 by
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Bad clients are the result of bad marketing.

What do I mean by bad clients? Hmm, let’s see. . . how about. . .

Malcontents who blame you for things that aren’t your fault and then post bad reviews and ratings about you.

Price shopping clients, penny pinching clients, slow paying clients, and no paying clients.

Clients who don’t follow your advice, don’t show up for appointments, and don’t remember anything you told them.

You get my drift?

Every lawyer gets the occasional lemon, but if you get more than your share, bad marketing is usually the culprit.

So what do I mean by bad marketing?

I mean targeting the wrong market, or, more commonly, no market, so you wind up with whatever shows up at the door.

I mean relying too much on Internet and advertising, which attract price shoppers and harder to please clients, instead of focusing on repeat business and referrals.

I mean failing to educate prospective clients about the law and procedure, their risks and their options, or much of anything without the meter running. Low information clients are like low information voters. They don’t understand, they don’t appreciate, and they don’t always make good decisions.

Bad marketing means talking only about features (what you do–practice areas, services, office hours, etc.) instead of benefits (what the client gets–solutions, outcomes, peace of mind, security).

Bad marketing means failing to differentiate yourself from other lawyers in a meaningful and memorable way.

It means failing to surprise and delight your clients with amazing “customer service,” and failing to stay in touch before, during, and after engagements.

Bad marketing also means taking on clients you know you probably shouldn’t, and failing to “fire” clients who prove themselves to be more trouble than they are worth.

Oh yeah, bad marketing also means doing all the right things but simply not doing them enough.

So yeah, bad clients are the result of bad marketing, but this is good news because bad marketing can be fixed and bad clients can be replaced with good ones.

Good marketing starts here

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Filed Under: Communication, Law office management, Marketing legal services, Online Marketing, Writing

Cheap legal services are too expensive

January 5, 2016 by
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I don’t buy a lot of clothing but when I do I favor quality over quantity. One reasonably expensive suit not only looks better than its cheap counterpart, it lasts longer, too. The same goes for dress shirts and shoes.

An article I read this morning agrees with me. It says that cheap clothes ultimately cost more and recommends buying quality instead.

The same can be said for cheap legal services.

You don’t want people to hire you because you’re cheaper than the other guys. You want them to say, “He costs a bit more but he’s worth every penny.” And you want them to know why.

You want people to understand the risks of hiring an attorney solely because they charge less and the benefits of hiring a high quality albeit more expensive alternative.

Like you.

Most people have a difficult time discerning this difference so it is important that you educate them. Help them to understand that cheap legal services are usually too expensive.

On the other hand, the smart play in marketing your services isn’t to target the masses and educate them about this difference. It is to target that segment of the market who already know this and are willing to pay more to get more.

Target the top 20% of your market and show them a lawyer who costs more and is “worth every penny”. Most attorneys don’t do that. They target the bottom 80% of the market and while they might not overtly compete on “price,” it’s obvious that being competitive on fees is baked into their essence.

You don’t need to be the most expensive lawyer in town, but you should at least be in the top one-third. And make sure you’re worth it.

How to write an invoice clients want to pay: click here

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Filed Under: Attorneys fees, Fees and Billing, Law office management, Marketing legal services

Your clients think you’re getting rich at their expense

December 30, 2015 by
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Your clients have no idea how expensive it is to run a law practice. Is it any wonder that some clients shake their heads at $400 an hour? Can you understand why a $10,000 retainer might be incomprehensible to someone who earns $40,000 a year?

How do we get clients to understand that we’re not getting rich at their expense?

Should you tell your clients how much you actually earn? No. It’s none of their business.

Besides, you want your clients to think that you earn a very good living.  Nobody wants to hire a lawyer who is struggling to pay their rent.

But perhaps you could help your clients to understand that running a law practice is expensive, and that what you bill out in no way approximates what you take home.

One way to do that would be to take new clients on a tour of your office. Show them how many desks and chairs there are. Show them your conference room and library. Point out the computers and copy machines and other equipment. Introduce the people who work for you and describe their function.

You might also want to explain, perhaps in a letter in their “new client welcome kit,” what you and your staff will be doing for them. You might point out that at any one time, there are at least three people working on their case. You could also provide a soup-to-nuts description of the major steps you take to do what you do.

Let them know how you investigate a case, conduct research, prepare pleadings and motions and discovery, and get ready for trial. Mention something about the costs you incur on a typical case. If your work is handled on contingency, remind them that while you are good at what you do and selective about the cases you accept, there is no guarantee that you will win every case and if you don’t, you will get paid nothing.

In your newsletter, talk about the things you do to hold down costs. Talk about how the forms and templates you have developed over the years allow you to save your clients money, for example. Let them see that while you don’t cut corners, you don’t spend money unnecessarily.

At the same time, unless your clients are wealthy, don’t talk about your new Mercedes, your lavish vacation, or expensive new toys. Don’t “dress down” — you’re expected to do well — but don’t give clients cause to believe that you are indeed getting rich at their expense.

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Filed Under: Career satisfaction, Client loyalty, Client relations, Law office management, Legal industry

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

December 22, 2015 by
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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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Filed Under: Client loyalty, Client relations, Law office management, Marketing legal services

Cats don’t like change and neither do your clients

December 17, 2015 by
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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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Filed Under: Client relations, Law office management, Marketing legal services

Running a law practice like a restaurant

December 7, 2015 by
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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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Filed Under: Client relations, Fees and Billing, Law office management, Marketing legal services, success

You are advertising, whether you know it or not

November 20, 2015 by
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I was looking at an email from an attorney. At the bottom, after his signature, it said, “Attorney at Law”. He provided contact information but said nothing about his services.

He’s advertising, but doing it badly.

Why badly? Because an attorney is what he is, not what he does.

Telling people you’re an attorney tells them almost nothing. Do you handle car accidents and help people get compensation for their injuries? Do you help people get amicably divorced? Do you represent big businesses on environmental matters, or small start-ups take their first steps?

His email, and everything else he puts out into the world, should tell people what he does.

How about you? When someone asks, “What do you do?” what do you say? Do you tell them what you are or what you do? Do you tell them the services you offer? Do you at least tell them what kind of law you practice?

Because you’re advertising, whether you know it or not.

On your business cards, your stationery, your website, and the sign outside your office, don’t just say you are an attorney or that you offer legal services, tell people what you do.

What services do you offer? What benefits do they get when they hire you? What kinds of clients do you represent?

Don’t make people ask you what you do or how you can help them. Don’t make them visit your website to find out.

Tell them, right up front, “This is what I do and this is how I can help you”. You’ll get more people clicking, calling, visiting, and saying, “Tell me more”.

Want a website that gets clients? Here’s how

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Filed Under: Advertising, Business cards, Law office management, Marketing legal services, Online Marketing

When is it okay to ask your client to wait?

November 19, 2015 by
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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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Filed Under: Client loyalty, Client relations, Image, Law office management, Marketing legal services

Playing ‘hot potato’ with your client files

November 6, 2015 by
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There’s a productivity maxim that says we should only touch a piece of paper or file one time. If you pick it up, you do something with it. Get it off of your plate and onto someone else’s.

It’s like the kids’ game, ‘hot potato’. You have to hand it off quickly, lest you get stuck with it when the buzzer sounds. (No extra charge, there, for using “lest” in a sentence.)

Fortunately, most of what you have to do on most of your files can be done quickly. Take a look, make a decision, scribble a note, done. Give it to your secretary or assistant to carry out your instructions.

When I was practicing, I would come into the office in the morning to a big pile of files and papers on my desk. My mission was to get through that pile as quickly as possible and put those files on my secretary’s desk.

I’d write a note, review an incoming letter, dictate something, sign a letter, and so on, and in a minute or two, each file was done and off my desk.

It was a game and I played it well. I delegated like a boss, because, well, I was the boss.

Of course there were plenty of files that required more than a few minutes of attention. No problem. As I chopped the wood pile down to size and got rid of the kindling (the easy files), I started a new pile of bigger logs. This didn’t violate the “touch once” rule because I did something with the bigger files–I looked at them, decided they needed more time, and put them in another pile.

An overwhelming pile of twenty-five files would thus (no charge there, either) be reduced to a much more manageable five or six. While my staff was working on the pile I had given them, I would dig into the bigger projects.

Yes it’s all a mental game. But if you’re like me, it’s a game you enjoy playing. You keep your staff busy, you keep your desk clear, and you get more balls into the opposition’s court so they can do what they have to do and get back to you with offers.

That’s how you keep the cash flowing and go home early.

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Filed Under: Law office management, Productivity, Time Management Tagged With:
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