by Pavla Polcarova

Recently, I had a casual conversation with a woman who had bought a house a few years ago. Somehow, we started talking about the fact that she needed a small change on her title. I told her she should contact the lawyer who handled her purchase file. She gave me a blank stare and then she burst into laughter: “I have no idea who the lawyer was!”

Would your past clients say the same about you? If so, you might not realize how much this could be hurting your practice. One customer retention study found that four out of every 100 non-returning customers stopped buying from a business because they moved or died, 15 found another source, 15 got bad service, and 66 simply felt the business didn’t care much. Even if you have a steady stream of new clients, typically it costs 50 per cent to 300 per cent (or more) to find a new client than to keep an existing one.

If the gas tank in your car leaked, would you notice? Probably – you would notice puddles under your car and you could probably smell the escaping gas. The bigger the leak, the faster you would get it fixed. The problem is that most past customers simply disappear and their loss is not so obvious. Even though a small percentage may cause a “bit of a stink,” the actual puddle of lost clients may be 10 times or even 100 times larger than those who complain.

Here are five ways to plug the leaks in your client retention:

1. Lower fees may not give you more business – more value will. With the current economic reality, your practice may be at a lull. Your knee jerk reaction may be to lower fees to keep clients from running to the competition. If at all possible, focus on creating more value instead.
2. Don’t assume that clients will know how you can help them further – or that they know what you know. Ask lots of questions about your clients’ business and personal situations. You may have received a small fee for helping a client incorporate a tiny company. What if that client’s wife could use some help with licensing contracts for her $2 million business?
3. Create more value for your clients. When a client comes to you for help with going public, you can offer them a “50 Things You Can Do to Transition Your Company from a Private Concern to a Thriving Public Company” guide. In the future, your clients may not refer to the thick prospectus you prepared – but they will refer to materials that have continuing value to them.
4. Create mutually beneficial alliances. For example, a conveyancing practice can partner with businesses that serve homeowners and offer discounts to your clients. Landscapers, interior designers, maid services and other businesses may be happy to do so. They get more business at a reduced marketing cost. You get credit for saving your clients time and money.
5. To increase repeat and referral business, keep in touch with your clients. Depending on your type of practice, you will want to communicate with them two to 12 times per year through a combination of mail, e-mail, phone and face-to-face contact. You can send newsletters, “how to” articles related to your clients’ needs, put on free or paid “how to” events, or simply send personal notes such as birthday greetings.

The bad news is that the days when lawyers did not need to know much about marketing and client retention are gone. The good news is that, as you take time to apply these concepts, you will quickly appreciate the increased profits and sense of control over your practice and your life!

Pavla Michaela Polcarova, LLB, is a business and executive coach-consultant, focused on helping clients improve their lives and bottom-line results. Pavla’s Web site is www.cprcoaching.com. She can be reached at 604.737.6997 or at pavla@cprcoaching.com.

This article was published in the August 2002 issue of BarTalk. © 2002 The Canadian Bar Association. All rights reserved.