Client Retention Rates for Law Firms

Hi there. Linda Ardesani, Ardesani Accounting and The Proper Trust. Today we're going to dive into client retention rates and how law firms can really keep a client, keep them happy, and happy clients equal referrals. The client retention rate is an essential metric for any legal service business. It measures how well a law firm keeps its clients happy after they hire them. So I can tell you my first tip, and this is one that comes out of— someone will reach out to me needing accounting services, some law firm, and I'll go onto their website and I'll be like, wow, this website looks like it's from 1985. Or maybe 1995. It just hasn't been updated. So if you create an effective website, you're gonna improve your client retention rate. Remember, that's your billboard. That's your first place that a client really experiences being and working with your law firm. So you wanna ensure that your website is, A, easy to navigate and has clear contact information. You wanna provide a link to your social media pages. So make sure that's on that homepage somewhere. And that way potential clients can really do more research about you, kind of check in and see what information you're sharing and if they like you as a human being. Your website should be really visually appealing and it should contain up-to-date and relevant information. So you don't wanna You don't wanna have your— when somebody clicks on the link to see your team, you don't wanna have past team members. You wanna keep that updated regularly. It's really important. I see that sometimes where it hasn't been updated. The website should be designed with the client's needs in mind, and it should contain features that make it easy for them to navigate. So if you're not quite sure, and you know, you know where to go, test it out with other people and see if there's a way that maybe somebody looking at it, it's kind of what Intuit does. They actually do tests on their software with their clients to see how they navigate around the screen. Do the same thing with maybe a client that you've had for a while, or maybe do it with a client, a friend, or a colleague, or somebody just to see how they navigate around and see if that it's— they're able to navigate your site easily. Make sure that your website is updated and maintained. to ensure that it remains an effective tool for client retention. Of course, the number 2 tip is really provide excellent customer service. That, that's really kind of the unsaid thing. But a lot of times we get so busy working in our work that we forget and neglect client customer service. We want to make sure that our clients stay with us as long as for a long time, and that will only occur if you treat them well, treat them with respect, treat them like you'd like to be treated. Answer their emails in a timely fashion. Don't ignore them. The best way to get referrals really and truly is to have excellent client service. A happy client is going to refer you to other friends and family. So you want to make sure that they're happy with the client, with the service they receive, and they're more likely to refer you to other people. And one of the ways we recommend to our clients is to make sure that the client is responsive to the client's needs. This is really hard to do sometimes, and maybe a family law where it's kind of personalized. But if you can implement a plan so they feel supported, they feel like they're being cared for, like they're the only client of the firm. Sometimes it gets missed in the whole transaction. If they have a lot of questions, see if you can answer them properly and help them with anything. Make them— make sure they understand that you're available to them. Keep your clients updated on the cases. Sometimes that ball gets dropped in a workflow. If you communicate with your clients and tell them as they go along, you know, this is the date of the next hearing or court date, maybe a mediation, deposition, just keep them in the loop so they feel like they're part of this whole process, that they're not just being fed the information late in their life. You give them updates as you go through the matter or case. It'll help them feel a little bit more supported. Be respectful always. That goes without saying. Your clients entrust you with very important information, and it's part of their lives, and treating them with respect is very important. Follow through with all your promises. Most attorneys don't make promises that we're gonna win a matter, but if you can promise to provide them good service, that's probably what they want to hear from you most. The next tip is to be transparent about your fees. Nothing is worse than handing a retainer over to an attorney and then having this open door where you don't even know that your retainer is gone until the day before trial or court. Maybe you're going through a divorce, the day before that divorce, and you get hit with this massive bill that you've got to come up with the amount of money for because the retainer has been expired and you weren't realizing that it had gotten to that point. So really be transparent about what you— the expectations are on the client side, what the expectations the law firm And what it's gonna cost. That's always a sensitive area. I think that's a lot of times why a lot of, a lot of firms write down a lot of fees, because they get really large and they feel like they can't collect it. It's too much effort to collect it. But you want to get paid for what you're worth and, and what you're due. And I think if you keep that open policy where the client knows what it's to be expected, and maybe that their retainer is expired and they need more funds as you go along. Instead of hitting them with a big number, nobody likes to be hit with a large amount of money at the end of a case. So if you let them know as you're going through where they're at, you'll have a happier client for sure. A lot of firms were recommending if they can to do a flat fee basis, so a flat fee or a fixed fee instead of doing hourly. That kind of takes all that pressure off of everybody. I think it opens the door for communication, which is sometimes lost. I know even in my firm, I used to do hourly billing, and when I switched over to having just a set amount be billed to my clients, it allowed my clients to feel like they weren't— the clock wasn't ticking over their head and they could communicate better with me. And it just ended up being a better service overall. So increasing customer retention rates by 7% can increase your profits by 30 to 95%, depending on the firm and where you're at. So think about those statistics for a moment and just think if you can just Increase retention rates by that small amount, your referral rates will go up. You'll have happier clients, maybe a great Google review that'll help boost your website. Monitoring and analyzing your client retention rates are just as important as maintaining a good one. Finding a good accounting professional that knows how to do the metrics, analyze this very important KPI, is really critical to having a successful law firm. And that's where we come in. It's one of the tracking points we will do in helping you navigate your way in a beautiful financial strategy to a profitable law firm. So if you need help or assistance with that, we're only a phone call or a contact form away.