Bar News - November 18, 2005
Law Practice Management Why Lawyers Lose Clients
By: Joseph Hayden
“I’ve talked to many of your clients and you’re in imminent jeopardy of losing some of the big ones; and their departures will be a total surprise to you,” said Peter Johnson, addressing the October monthly meeting of the Granite State Association of Legal Administrators. Johnson is founder and principal of Law Practice Consultants LLC, based in Boston. His firm consults and trains in law firm business development matters, and client relationships are a key strategy for his organization.
Johnson says he’s conducted over 500 client interviews on behalf of law firms. Twenty-two percent of clients say they’re considering—or are already—going elsewhere because of issues with their current law firms. Less than 30 percent say they’re “completely satisfied” with their firms. Johnson is no longer surprised when the conversations reveal a significant disconnect from what the client’s own lawyer believes about the professional relationship under scrutiny. Often the two parties talk right past each other, and if the client isn’t convinced that a firm isn’t doing business his way, he will ultimately defect, says Johnson. Never assume a client’s loyalty; treat them like prospects, and you can’t go wrong.
Using videos of actors in the roles of client and lawyer, Johnson demonstrated in his talk how seemingly successful working relationships subtly grow apart. His remedy? Meet, listen, learn and respond. And pay attention; lawyers talk too much, and when they do listen, too often it’s only for a pause into which they can leap.
The 90-minute presentation to the legal administrators and their marketing -manager guests from law firms was animated, fast-paced, and interactive. His parables and graphics, in spite of their serious intent, were often humorous. Johnson, a former practicing attorney and managing partner, has a graduate degree in counseling, as well as pre-law-school experience in sales and marketing.
His advice on building relationships with law firm clients includes such “mundane” counsel as early introductions to the staff members with whom clients will be dealing most frequently. That drew affirming nods from the firm administrators in attendance, who hear regularly from their legal assistants and secretaries that staff are left out of such introductions; they view this oversight as both demeaning and inefficient.
Relationship and service account for 80 percent of a client’s satisfaction with an attorney, Johnson said, quoting a recent poll. Expertise and fees account for 10 percent each, a surprise to those who fear a rising commoditization of law practice.
Purposeful relationship-focused meetings with clients reveal not only what the lawyer can do better, but also expose client-industry trends, future legal needs, and emerging opportunities, said Johnson. They take preparation and planning: in particular, knowing what you’re going to say, and having a goal for what you expect to learn. Hold meetings at the client’s place of business, he advised; it not only shows you care about the client’s success (even when the billing clock isn’t ticking), it also educates you to other aspects of the client’s business that aren’t part of your current representation.
With apologies for re-stating a truism, Johnson reminded his audience in closing that “super-satisfied” clients deliver new work and valuable referrals, while taken-for-granted clients complain not to their lawyers, but to others – 10 others, as the saying goes.
Joseph Hayden is a member of the Granite State Legal Administrators Association (GSALA) and a member of the Bar News Editorial Advisory Board. He was the first executive director of the NH Bar Association and started its predecessor, the NH Law Weekly.
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