By
Kenneth L. Hardison
Senior Partner, Hardison & Associates

         Today's lawyer is so focused on getting the message out that will in turn make the potential consumer client call the firm that he or she fails to look within to see if a change in thought process, management, or delivery of product can create new clients. From someone who spends a great deal on marketing, I have become quite savvy on how to build free clients.

         Traditionally, the client consumer used to have one lawyer who handled everything. Then due to fast paced technology coupled with a much smarter client consumer, lawyers could not depend on repeat business. The advent of lawyers doing marketing touting cheaper rates or other hooks knocked the old time family lawyer right off the top rung. Those lawyers today are still trying to figure out what went wrong and how to change the practice to meet the 21st Century's client consumer.

         Today's firm marketing has to be more than yellow pages and more than television or other media markets. Firms simply must figure out what the client wants and deliver it in such a fashion that they become mini-marketers for your law firm.

         Today's client wants more than just a lawyer. I don't recall one client who has asked me where I went to law school, what my class ranking was, or even if they could see my law license. Clients were looking for me to get on their level and talk to them and be available to them.

         I am a keeper of statistics and it became apparent when we implemented our strategic plan back in 1997 that my most valuable commodity was the high rate of client rapport I had going for me and that a good portion of my business was coming from clients who genuinely liked me and would tell everyone else about me long after their case was settled.

         Over the years, I started noticing that there was a big difference between just satisfying the client with the right results and developing a life-time relationship with the client that lasted far beyond the settlement of the case. Thus I have created and designed a client loyalty program within my firm that now accounts for approximately 38% of my new clients - those being referred to my firm by clients who were represented by me over 15 years ago! And my development of client loyalty versus client satisfaction is non-negotiable in my firm - I don't care how much money you generate you are tasked with creating client loyalty.

CLIENT LOYALTY IS NOT THE SAME THING AS CLIENT SATISFACTION

         As you know, excellent service leads to client satisfaction and client satisfaction is an essential element in creating client loyalty. A client can be satisfied with the results but feel no personal tie to you or your firm.

         Client loyalty is a concept that includes five things:

1. The overall satisfaction of client's experience when doing business with a law firm.
2. The willingness to build a relationship with you individually and your company.
3. The willingness to be a repeat client.
4. The willingness to recommend others to you.
5. The reluctance to switch to another law firm.

CLIENT TURN-OFFS:

         Client turn-offs arise when employees (and I mean lawyers as well as non-lawyers) fail to communicate well, both verbally with words and non-verbally without words. Some examples of client turn-offs are:

1. Failure to greet or even smile at a client.
2. Failure to see the client on time.
3. Inaccurate information given or lack of knowledge conveyed.
4. Failure to give full attention to the client either while on the phone or when meeting them in person.
5. Rude or uncaring attitude.
6. Inappropriate, dirty, or sloppy appearance at the workplace.
7. Any communicative message that causes the client to feel uncomfortable.

         Surveys completed by the U.S. Office of Consumer Affairs revealed these interesting facts (within this article client and customer are inter-changeable):

1. One client in four is dissatisfied with some aspect of a typical transaction.
2. Only 5% of dissatisfied clients complain to the company. The vast silent majority would rather switch that fight. They simply take their business elsewhere.
3. A dissatisfied client will tell 10 to 20 people (12 is the average) about a company that provided poor service. Some people will tell hundreds or even thousands.

         How does this affect our business? If 25% of our clients are unhappy or unhappy with our service but only 5 % of that 25% bother to complain, the impact can be devastating.

         Let's take a typical injury law firm that signs up 1000 clients per year (not impossible with the right marketing). If 250 clients are unhappy but we only hear from 5% of that 250, which is approximately 13, that may sound good to everyone until they realize that the 237 quiet ones are likely to tell 2,844 people (237 x 12 = 2,844). Diversely, if a client is completely satisfied, he might tell 1 to 3 people or an average of 2.

         In 2004, my statistics showed me that there were three major categories of referral services in my firm and it broke down as follows:

421 cases or 41% were TV
140 cases of 14% were from the yellow pages ads
340 cases of 33% were from personal referrals

         Now let me tell you the cost of getting those referrals. TV cost approximately $900 per client in real dollars. Yellow pages cost approximately $1500 per case to get them in the front door. And last but not least, personal referrals cost absolutely nothing. Which type of referral would you think I want?

         What is also important to note is that of the 340 personal referrals that we signed up, we only had 823 referrals, which means that we had a 41% success rate in signing up personal referrals whereas in TV advertising, we had 2,333 calls and signed up 421 new cases. This was a conversion rate of 18%. Yellow pages yielded 1,268 calls and only 140 signups, which is only 11% conversion rate. Thus, you can clearly see that the personal referrals are already sold on our services and are seeking us out, for the most part, and not just shopping around for attorneys or trying to find out information. They come to us wanting our services. This also costs the firm and you less time and money in converting these calls to actual cases. Now I ask you, which do you think is the most cost effective form of advertising we do in the firm and also yields us the greatest conversion rate? It is clear…it is a personal referral from our old clients and people we do business with.

         Now let's go to the actual dollar cost for an unhappy client. As I stated earlier, out of 1000 clients, if we go by the national average, we have approximately 250 clients of which 95% never say a word but just never refer clients to us or never come back. Thus, we have 237 people who could have talked to at least 474 people and referred us, which on the average would have converted 41% or 196 clients. In actual costs, just look at the following:

1. If we had to replace these clients with TV advertisements, the cost would be $176,400. But better yet, let's think of the lost income. If we average $4000 a fee, and we loose 196 potential clients, then we have lost approximately, $800,000 in revenue for the year.

BASED ON THE ABOVE, IF WE FOLLOWED THE NATIONAL AVERAGE, LOST REVENUE WOULD BE OVER $1,000,000.00

         How does this affect your firm? The single biggest mistake lawyers make is not realizing they are in the business of making a profit with a good return on investment! When you make a good profit, you can pay your people well, have the best of the best, and you can achieve the success all lawyer owners want.

HAVE I GOT YOUR ATTENTION NOW!

         In over twenty years of practice, I have learned one thing - how to develop client loyalty and keep client loyalty. By following some very common sense rules - and setting the stake in the ground for all lawyers and employees who work for you, client loyalty is easy to develop. I candidly tell everyone that my practice rises and falls based on client loyalty.

15 SECRETS TO DEVELOPING CLIENT LOYALTY

1. GREET CLIENTS PROMPTLY

         A survey clocked the number of seconds people had to wait to be greeted in several businesses. Researchers then asked clients how long they had been waiting. In every case, the client's estimate of the time elapsed was much longer than the actual time. A client waiting 30 or 40 seconds often feels like it's been 3 or 4 minutes. Time drags when people are waiting. Thus, one of the things we can do to greet clients properly is not to put them on hold and to answer the phone on its first ring when you are being paged by the receptionist.

         This is a good time to tell you that one of your best investments is a good receptionist or Front Desk person. This person can make or break your firm by the not being a people person. Give this person great latitude to get the call answered and if the rest of the firm doesn't fall in line afford this person an open door policy with you. I have found time and time again the person on the Front Desk knows if you are meeting client satisfaction goals.

2. APPLY GOOD CONVERSATION SKILLS

         It is always nice to talk to people like they are in your living room. People in general are intimated by lawyers in law offices. It should be your job to make them feel comfortable as they have already been through a traumatic event or they would not be hiring us to start with. Something to break the ice would be the weather; for example, "Isn't the sunshine just beautiful?" or "Some snowfall, isn't it?" Look for clues about the client's interest. Also, you must understand that interaction means that both parties must have an opportunity to participate. If one party monopolizes the conversation, both sides lose.

         Some preferred topics are what we refer to as small talk. Americans prefer to talk about weather, sports, jobs, mutual acquaintance, and past experiences especially ones they have in common with their conversation partners. Most Americans are taught to avoid discussing politics or religion especially with people they do not know well because these are considered controversial topics. Sex, bodily functions, and emotional problems, considered very personal topics, are likely to be discussed only with close friends or professionals trained to help.

3. AVOID INAPPROPRIATE CONVERSATION

As a general rule, avoid the following:

1. Criticizing or belittling others
2. Griping about the company, the department, or managers
3. Passing on gossip or hurtful comments about others
4. Using excessive profanity
5. Starting up bad feelings among people
6. Making racial, religious, or gender insults
7. Making comments with unwanted sexual overtones

As a general rule, appropriate conversation includes:

1. Making your comments positive and upbeat
2. Be supportive of other people
3. Give others the benefit of the doubt
4. Compliment freely and often
5. Acknowledge people's accomplishments, birthdays, and holidays

4. BUILD A RAPPORT WITH THE CLIENT

1. Be a good listener
2. Relate to what they are going through.
3. Invite feedback.

5. BE SINCERE AND SHOW EMPATHY TO THE OTHER PERSON

         We have preached for years that But for the grace of God, go I. and we should understand that these people are hurting and without jobs.

6. USE GOOD PHONE TECHNIQUES

         A key to successful phone use is simply to remember that your client cannot see you. Your challenge is to make up for all that lost nonverbal communication by using your voice effectively. The best ways to use the phone effectively:

1. Give the caller your name; let the caller know who you are just as you would in a face-to-face situation.
2. Smile into the phone. Somehow people can hear us smile over the phone! Some telephone pros place a mirror in front of them while they are on the phone.
3. Keep your caller informed. If you need to look up information, tell the client what you are doing. Don't leave them holding a dead phone with no clue as to whether you are still with them.
4. Invite the caller to get to the point. Use questions such as "how can I assist you today" or "what can I do for you".
5. Commit to the requests of the caller; tell the caller specifically what you will do and when you will get back to them.
6. Thank the caller. This lets the caller know when the conservation is over.
7. Let your voice fluctuate in tone, rate, and loudness. You hold people's attention by putting a little life into your voice. Express honest reactions in expressive ways. Let your voice tone be natural and friendly.
8. Use hold carefully. People hate being put on hold and it is necessary to explain why and break in periodically to let them know they haven't been forgotten. If what you are doing will take longer than a few minutes, ask the caller if you can call them back. Write down your commitment to call them back and do not miss it.
9. Use friendly, common, tactful words. Never accuse the client of anything; never convey that the request is an imposition.

7. BE POLITE AT ALL COST

         Always use the words please and thank you. I know this doesn't take brain surgery but it is important. Sometimes the simplest things can make a huge difference in clients' perceptions and this is an area where that is the case. Clients want to be appreciated and treating them politely conveys appreciation.

         Please and thank you are powerful words for building client rapport and creating client loyalty. They are easy to say and well worth the effort.

8. ENJOY PEOPLE AND THEIR DIVERSITY

         Every person is different; each has a unique personality. But the kinds of people who tend to bug us the most are the ones who are not like us. Recognize this then accept this diversity and learn to enjoy it. Know that people's needs are basically the same; similarly, when we treat them like guests, with dignity and courtesy, it will create the most goodwill, most of the time.

9. CALL PEOPLE BY THEIR NAMES

         People love to hear their names. Think about the times when someone unexpectedly addressed you by your name…didn't it feel good? Didn't you feel less like a number and more like someone who is valued?

         People appreciate it when you make the effort to find out and use their name and addressing. Here are some ways to make the most of name-calling:

1. When appropriate, introduce yourself to the client and ask his or her name.
2. Avoid being overly familiar too quickly. It's normally safe calling people Mr. Smith or Mrs. Jones but could be seen as rude if you call them Homer or Marge.
3. If you aren't sure how to pronounce the name, ask the client.
4. If a person has an unusual or interesting name, comment on it in a positive way.
5. If a person shares a name with someone in your family or with a friend, comment on that.

         People are usually proud of their names and will feel honored when you acknowledge it. Take time to get and use client's names.

10. LISTEN WITH MORE THAN YOUR EARS

         Most of us are not good listeners. We listen with 25% of our potential, which means we ignore, forget, distort, or misunderstand 75% of what we hear. Hard to believe, perhaps, but true. Such lazy listening habits can be very costly, both to our business and to ourselves. Here are some tips for better listening:

1. Resist distractions. Force yourself to keep your mind on what is said.
2. Be opportunist: What can I get out of what is being said; how can this information help build a relationship with this client?
3. Stay Alert: It is easy to daydream if the speaker is a bit boring or talking very slowly…resist distractions. Make the client the center of your attention.
4. Listen for central themes, relevant and isolated facts: Too often people get hopelessly lost as listeners because they focus on unimportant facts and details and miss the speaker's main point. Judge the content of what people are saying not the way they are saying it. Client's may not have the right words, but know what they need better than anyone else.
5. Listen as though you had to report the content of the message to someone in 8 hours: This forces you to concentrate and remember. It is a good practice technique.
6. Develop note taking skills: The simple process of typing or writing down key points as you hear them helps you retain what you hear, even if you do not read the notes later
7. Hold your fire: Don't jump to make judgments until you client has finished talking.
8. Work at listening: Tune out those thoughts that get you thinking about something else.
9. Seek clarification from your client until you fully understand their needs: One way to do this is to repeat what you think they are trying to say using sincere, open-ended questions.

11. DRESS NEATLY AND APPROPRIATELY

         It is succinct to say that people do judge you by the way you look. When clients come in our office, we must look professional and our workplace clean and neat. People who see sloppy offices think sloppy work gets done. And while I am at it don't think office image doesn't work. I had a client tell me I was hired because my office looked like money had been spent on it and they figured I was successful if I could afford to have a nice looking office.

12. WEAR YOUR SMILE WHEN A CLIENT COMES INTO THE OFFICE

         Always put on your smile when somebody comes into the office. Be complimentary. Complimenting takes only a second and can add enormous good will. If you don't do this very often, get into the habit of saying something complimentary to each of you clients. Safe grounds for sincere compliments are as follows:

1. Some article of clothing they are wearing
2. Their children
3. Their behavior
4. Something they own
5. Their helpfulness; for example, "Thank you for filling out the forms so carefully, that will help."

13. FISH FOR NEGATIVE FEEDBACK

         What?! Fish for negative feedback?? Exactly. Negative feedback is the kind that helps us improve. In client service, there is no neutral gear-we either improve or we slip backwards. The best way to get feedback is to let clients know that you really want their honest opinion…good news or bad…and provide ways for them to tell you.

         A good way to do this is to use open-ended questions when people express their ideas. An open-end question cannot be answered with a simple yes or no or one-word response. Below are common questions you hear everyday in businesses that be easily changed to open-ended:

14. THE GRANDMA SELF-TEST

         Best selling author and speaker, Jeffrey Gitomer, passes along this bit of wisdom and I agree with him that it is a sure-fire way to determine how what to say will sound to the client-client. A way to test your talk is to put Grandma at the end of everything you say. Every time you speak to a client, end it with Grandma-if it sounds like something you would say to you grandmother or your grandmother would want to hear, then say it. If not, don't. For example, how would this sound?

"Sorry, we're closed," Grandma.
"Next!" Grandma.
"What is this in reference to?" Grandma.
"It's our policy." Grandma.

         Get it? If you wouldn't say it to your grandma, why would you say it to your client? There are lots of phrases you use every day that irritate clients, and you have no clue until you insert Grandma at the end. Try it and test yourself -take the five phrases you say all the time and add Grandma at the end.

15. LIVE BY THE GOLDEN RULE

         I have preached this ever since I started practicing law. Simply put, Treat people the way you would want to be treated.

         Because I believe that these rules are so simple, it constantly amazes me that other law firms do not put them into play. I have come to realize that the leadership of the firm has to set the standards, and these rules as the basis of a client loyalty program have to be non-negotiable. You absolutely 100% must be willing to terminate your highest income producer or your best non-lawyer if they don't believe in client loyalty. I have done it and never regretted it.

         You should couple a client loyalty program with some quality assurance standards and hold people accountable. In my firm, for example, every client is talked to once every sixty days and receives an update letter every thirty days. Sound impossible? Absolutely not. I have a program designed that shows me the case name, status of the case, and the last time an attorney talked to the client, and the last time the case manager talked to the client. They are required to have a 95% or better success rate. If they don't, they are given thirty days to pull it into line and if not, they receive a written warning with the consequences spelled out. I make bonuses in my firm tied directly to client service.

         Only you can decide where to spend your marketing dollars. And only you can decide the return on your investment. I have often said that my name is my most valuable asset and my marketing program keeps my name out in front as one who puts his clients first. The return on this investment is immeasurable!

THE FINAL CAVEAT

         The rules and the thought process sound simple but it truly requires the top leadership to define the program for the rest of the firm. You have to make a client loyalty program non-negotiable with respect to continued employment with your firm. If you allow one person or any reason whatsoever to not be accountable, it simply will not work because your other remaining employees know you do not believe in it.

         I have taken my client loyalty philosophy to great lengths in my firm by having a Client Advocate available for dissatisfied or concerned client, creating and living by a Client Bill of Rights. I no longer hire non-lawyers based on legal experience but rather based on ATTITUDE not aptitude. I will not allow ego driven attorneys in my firm. I do pre-hire testing and I do annual yearly profile testing to see how our people can improve.

         This is not much when your realize the gain with free marketing through client loyalty.

         In closing, I would have to tell you one other side benefit - the unexpected one. Because we are a true client first firm, our work culture has changed. We attract the best of the best and we have a waiting list of people wanting to work with us. It is because we are allowing our people and our clients to establish relationships that give mutual satisfaction to each other.

         Client Loyalty has translated to firm loyalty from my employees - work production is high, retention rate is above average, and there is a genuine positive air at work that makes you glad to come to work.

         Only you can decide if you or your firm is willing to change - I can only tell you that it works!

Copyright 2008 Kenneth L. Hardison