There
are three fundamental sources of new business: retention, referral, and
prospecting. Retention refers to the techniques you use, including cross
selling, to build stronger loyalty so that clients give you more business.
Referral helps to motivate current and former clients and other professionals
to refer others to your firm. Prospecting is communicating directly with
potential clients to make them aware of your firm and to induce them to
retain your services. A. Retention: Seven Techniques for Keeping Clients
Your clients are your firm's most important assets. They can be the source of both increased income and new clients; they can lead you to new markets and sources of business. The goal of a retention strategy is to create loyalty and to motivate your clients to give you new business. Loyalty is fostered first and foremost by providing quality services. In addition, it is built on overall satisfaction and on the perceived strength of the relationship between you and the client. The stronger the relationship, the greater the loyalty.
1. Speed of Response
The single biggest contributing factor to client dissatisfaction is not returning phone calls quickly. Clients know how busy you are. They don't care. We live in a world where, for better or worse, speed matters. Clients don't have to have answers immediately. But they do need to feel you're "on the case". The faster your response, the stronger the relationship.
2. Client Research
The guiding principle of client-centered marketing is: "Ask not what your client can do for you, ask what you can do for your client." The best way to find out what makes clients happy is to ask-they'll tell you what you want and what they don't. Research can bring to light how someone feels about your firm, what you're doing well and needs to be improved. Whether you obtain information through informal conversations or written surveys, the data should be recorded in standardized format for comparison and analysis. This information can help you manage relationships with current clients and restore relationships with past clients.
3. Communications That Count
Preparing a newsletter involves a lot more time than money, and it is the single most effective use of your non-billable time. Newsletters can help position your firm, give you credibility and play an integral part role in your referral efforts. Most important, newsletters can help your clients. If you can communicate valuable information in printed form, you have increased the perceived value of being a client of your firm.
4. Send Them Something Else
Articles from WSJ, NY Times, or legal journals on relevant issues sent to the client with a cover note go a long way toward communicating your concern. If you prepare announcements or press releases, send clients a copy. It makes them feel like "insiders".
5. Keep the Paper Coming
Services are intangible. Thus, it's critical at every opportunity to make your benefits more tangible. Nothing works better than paper. Status reports and copies of letters give clients evidence that you're "on the case".
6. Active Listening and Qualification
Research has shown that the average client usually has about three other matters you could be working on. How do you find out about them? Informally, by talking regularly with your clients about their work and listening carefully to what they say. Let them talk. You listen. In many cases, a more formalized audit, which you fill out together, can help identify a broad range of areas in which they or others in their organization or family may need legal advice.
7. Client Education
When clients come into your office, make it a point to introduce them to at least one other member of the firm and to talk about that person's specialties. Make connections. Develop the relationship. Loyalty is built on both chemistry and knowledge. The more they know about you and your firm, the more likely they'll be to use you.
B. Referral: Seven Techniques of Generating Referrals
The Fundamental Principles of Referral (These two principles form the foundation for effective referral)
Principle #1
Everyone is a referral source. Every past and current client, every staff member, every friend relative and social contact, every professional and supplier is a potential referral source. Not only are you serving them, like it or not, they are serving you. They are representing you. The question is how well they represent you.
Principle #2
Every referral source needs preparation and education. You want everyone to know what you do and how to recognize a need for your services. Possible referral sources need to be informed and they need to know that they can often help others by recommending you. If you believe you're performing and important service, then educating your clients and others to identify needs is fundamental.
1. Say, "Thank You" for referrals.
It sounds simple, but we often forget. Call or write whichever seems appropriate at the time. Acknowledging referrals builds relationships, gives you an opportunity to update people about changes in the firm and reminds them that you think you can really help the person they've referred. "Thank you" says you care and reminds them they're representing you.
2. Distribute Your Own Referrals
If you know three accountants, try to refer business to all three. The more you refer to others, the more they'll refer to you.
3. Response Cards
With every survey, every bulletin, every announcement of an event, enclose a response card that offers other information and services and that asks, "Who else should receive this information?" Even if the recipients don't return the card, it communicates the other areas you handle and reminds them to refer you to a friend or associate that needs you.
4. Asking
One of the most underutilized methods of marketing is active referral because it seems hard to do without appearing unprofessional. This is where newsletters can help. One of their major advantages is their ability, in a low-key manner, to ask for referrals. The question to ask is, "Is there anyone you know who might like a copy of our newsletter?" Offering information is a legitimate and helpful way to remind clients and referral sources that referral is one of the things that they can do to help people they know.
5. Don't Forget Your Staff
Your receptionist has friends, too. Does she read the newsletter? Does the entire staff know what you do and how to talk about it? Are they proud of the firm? Do they offer a newsletter, brochure or firm profile to everyone who walks in the door? Do they know your firm's mission and you're positioning strategy? They should.
6. Don't Forget Friends and Acquaintances
We sometimes don't tell others what we do because we assume they know. They don't. In talking with friends and acquaintances, if they ask what you do answer briefly-then send them a brochure or firm profile with a personal note. If you have an informative newsletter or find an article you feel is relevant to a friend, send it with a handwritten note on your firm letterhead. It lets them know you're thinking about them, and tells the more about your firm.
7. Be Proud of What You Do
We can sometimes be our own worst enemies. In subtle ways, we convey that we aren't trying to help people. It's easy to become cynical by our everyday experiences and we sometimes communicate that cynicism to others. You don't have to be a missionary to be proud of your profession and your role within it.
C. Prospecting: Seven Prospecting Techniques
The Principle Prospecting tools include networking, advertising, public relations and seminars. Although prospecting can be more expensive then retention and referral strategies, there are a number of situations for which prospecting is necessary.
1. Target Carefully
Targeting means making a marketing investment in as few qualified prospects as possible. Nothing conserves prospecting dollars better than targeting. Nothing uses dollars faster than a lack of it. If you're going to join an organization for networking potential, be sure that the network has a large number of potential clients before you make the investment in time or money. If you advertise, have a professional choose the media.
2. Ask for Their Cards
The business card has become the Rodney Dangerfield of marketing methods: It "don't" get no respect. Business cards are a substantially under utilized prospecting technique. Everyone has them, but hardly anyone knows how to use them effectively. The principle technique for giving cards is to first ask for the other person's. You will probably be asked for one in return. Use your card to give other people names of restaurants or other spur of the moment information.
3. Public Relations
When you've done something worth touting, tout it. Make sure you have a good portrait photo of yourself available all the time, and make a list of both consumer and professional press contacts you would like to contact. Short paragraphs about a case or community activity in which you're involved can give you potential exposure to a target audience. PR can enormous benefit beyond the publication date. In fact, reprints of favorable articles make great mailings to clients and can be bound in a notebook in your reception area, so they can continue to work on your behalf.
4. Focus on Closed Marketing Systems
Closed marketing systems are affinity groups whose members talk regularly to each other and where news travels quickly. Country clubs, social groups like bridge clubs, and religious and cultural organizations can be excellent prospecting opportunities-if you do a good job for one or more of the group members.
5. Get the Membership List
In any group you join, obtain and carefully review the membership list. See whom you know and try to understand the characteristics of the organization. Cross-reference with other membership lists from other organizations.
6. Don't Forget the Before and After
When you speak, only a small percentage of an organization will come. It's important that you precede any presentation with an announcement and a reminder. Follow up is especially important: Send information not distributed at the presentation to both attendees and non-attendees.
7. Offer Something
Advertising works best when it's promoting something specific: seminar, a report a newsletter. Even a positioning ad with a line at the bottom that says "Please send for our free brochure on buying and selling a business" will support your positioning and encourage response.
21 Strategies for Getting Legal Clients | 10 1/2 Do's and Don'ts for Organizational Change | 10 Principles of Time Leveraged Management | 10 Principles of Marketing and Product Development | 10 Steps for a New Business | Evaluate Your Marketing Smarts | Back to Strategies and Self Assessments
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