He mentioned technology and how keeping a client informed as to your technical capabilities to protect their information, and how client files could be handled over time, as well as document management generally. Again, keeping clients informed about such things is not just good management, but could serve as a good marketing tool, as a result of effective client communications. Correia also suggests it is good practice management (and I would add marketing) to introduce members of your team to clients, so they are aware of whose working for them and are not surprised by a call from an unknown person at the firm.

The two tips that particularly struck me as clearly deal with marketing issues are:

• Lack of communications.  According to the NY (which I wrote about before) and NC State Bars, 80 percent of grievances are due to poor communications and inattention to client matters.  Correia suggests regular contact with clients to “just to check in” is much better than waiting to communicate only when you need something. And the best way is to pick up the phone and call them. IMHO that’s just smart marketing;
• Ask For referrals. In my experience a lot of lawyers are reluctant to ask clients for referrals. Sorry folks, but get with the real world. If you have a happy client it really makes no sense to not ask for referrals, since business people do it all the time. It is not strange to them and is considered a normal business practice.

Correia’s article is a good read and one well worth your time. I particularly liked his “With a twist” addition to each tip.  Communication is so basic to good client relationships.

Patrick Lamb had a post on Legal Rebels this month that talks about a two-day program at which in-house and outside counsel addressed what each interprets their job to be in a legal relationship.  He then provides a number of bullets on what “some of the notes on the ideal future state from the inside counsel group” viewpoint included.

It struck me that the highlights of the two-day program covered by Lamb in his post were really all about project management. My colleague Jim Hassett, founder and president of LegalBizDev, has written the definitive book (3^rd edition will be out next month) on the eight key issues that comprise legal project management.

So, what does the future look like?  Some of the points mentioned by Lamb are in quotes (with Hassett’s relevant key issues in parentheses):

• “Detailed, succinct quality communications” (7. Manage client communication and expectations);
• “Never having to review a bill/agreed fee and terms” (1. Set objectives and define scope, 4. Plan and manage the budget);
• “Managing to a number” (3. Assign tasks and manage the team, 4. Plan and manage the budget));
• “Both sides have skin in the game” (5. Assess risks [to client and firm] to budget and schedule);
• “Outside lawyers understand what risks client is willing to except” (5. Assess risks to budget and schedule);
• “Syncing legal approach with business perspective” (1. Set objectives and define scope).

The inside and outside counsel discussion mentioned by Lamb emphasized the importance of better planning, budgeting, execution and communications in their relationship. Legal project management clearly can do just that to improve the attorney-client relationship.

Food for thought.

I have written a number of posts (three listed below) over the past eight years regarding the dangers (and benefits of a few) surprises when it comes to clients.  And I’m sure you can find a gazillion more on the Internet.

But, particularly around this time of year when law firms raise rates (or try to), that is a bad idea. That’s putting it mildly, according to Susan Hackett’s Corporate Counsel “annual rant” on the topic earlier this month.  I remember many years ago, when I was in-house as a marketer, the CFO informed the “C” level staff that the firm was going to raise rates for the third time that year.  In DECEMBER no less, to ensure the January bills reflected the increase.  Well, it was a different era, and I’m sure no firm would be crazy enough to attempt that today in the New Normal.

It isn’t just surprise rate increases that are a problem though.  Any unwanted surprises relating to a client is BAD.  Whether regarding missing deadlines, failure to keep them informed about their matter, bad news of any kind, and so forth.  It’s a value thing, and surprises are anti-value.

So, do not surprise your clients…except for that very nice holiday gift you are certainly intending to or have already sent. BTW, I like surprises this time of year myself.

————-

Clients Abhor Surprises

Surprise Your Clients!

Work on the Good Surprises, and Avoid the Bad Ones in Your Client Relationships

Some results:

• Close to half the 359 survey participants (41%) couldn’t tell how many RFPs they dealt with on a monthly basis (undoubtedly due in part to the lawyer-Lone Ranger syndrome);
• The rest of the respondents reported  they handled an average of 5 to 16 proposals per month (with larger firms a bit higher) and 68% reporting less than 10 per month;
• 42 percent reported an increase in RFP activity over the previous year;
• The process consumes a LOT of resources over the year in responding to RFPs; and
• Most shocking, only 58% of firms bothered to track wins and losses.

But what was most surprising to me is that RFPs are increasing, rather than decreasing.  Presumably, some of the proposal requests come from clients (which unfortunately was my experience in-house).  Which raises the question – WHY?

In the case of clients, it tells me that the firm needs to do a lot better at client relations work in the area of relationships, providing value and communicating more effectively.  You shouldn’t have to compete in this manner, if you are doing your attorney-client overall job properly.

So, avoid client RFPs by doing a more effective job in your dealings with your clients in the first place.

Thanks to RFPAttorney|The Blog for drawing attention to the survey.

Have you ever sent an email that you wish you hadn’t?  Of course you have.  And I stand guilty as charged myself.  I’m not just talking about an incomplete one, or hitting the Send key before proof reading typos or such.  Everyone has done that!  What I am referring to is the REALLY stupid ones that could come back to bite you big time.  Like ones that are sent:

• In anger,
• Without thinking through the ramifications,
• That could hurt you or your firm’s brand (read: marketing damage), and
• Heaven forbid, any of the above sent to a client (read: marketing disaster).

Other email blunders include “I really shouldn’t put this in writing” or “I could get in trouble for telling you this.” Those are a couple of Bernadette Bulacan’s favorites posted over on Legal Current as takeaways from the recent 2012 Association of Corporate Counsel Annual Meeting in Orlando.  Her favorite though was “DELETE THIS EMAIL IMMEDIATELY.”(Yeah, right!!!)

So, type, read, correct, review again…..and then maybe send it.  But before you do, ask yourself would I be uncomfortable (as in break out in a cold sweat) if a client saw it or it appeared on the front page of The New York Times.

If so, it is a DUMB e-mail.

An article by Aric Press, editor-in-chief of The American Lawyer in an article entitled “Why Clients Fire Firms”  on The AmLaw Daily this week talks about some reasons blue-chip, billion dollar companies fire law firms. (IMHO the size of the company doesn’t matter.)  The list consists of poor service, quality issues, and price (read value).  Also mentioned was failure to transition to a new lawyer when one retires or leaves the firm.  Transition in a solid, meaningful way.

The overall relationship – involving caring about the client’s goals, effective communications, working hard to produce true value for the client, etc. – all are extremely important. As Press points out, a main reason for firings: “severe lack of relationship between what the bills were and what the value was.” Let’s not forget that results also matter, but it is not always THE reason.

So, are you providing value? How do you know? Have you asked lately?  Ever? As Press puts it “[a]wareness, of course, requires a working feedback loop that connects to a firm’s client relations operation.”

If your firm does not have such a client “operating system,” and you haven’t sought feedback as to the overall relationship, you too could get a pink slip.  And, without regular feedback, you may never know the real reason why.

That’s pretty much it in a nutshell.

In Trey Ryder’s recent newsletter there is an article by his colleague Tom Trush that identified these two elements as being “critical” to successful relationship building. Whether you’d agree that they are critical or not, I would argue that they are at least near the foundation for building any relationship. As Trush points out, building client relationships is not unlike a spousal courtship.  Common mistakes include rushing the relationship before a comfort level.    We know the clients hire lawyers they know, like, and trust.  It is vital then that they believe that their lawyer cares about their problems.

Accordingly, your business development efforts cannot come across as a sales pitch, but rather that the relationship is built on your caring and understanding the client’s wants and needs.  And that you show you care about them by giving them information that they can use in their business.  Some people, like Trush and Ryder, call that educational marketing.

So, the way to build relationships, especially with clients and referral sources, is to communicate often, a lot, frequently, repeatedly (okay, okay I know), and ensure that such communications are worthwhile, meaningful, valuable (enough all ready).  But, the ideas are worth repeating, if you hope to build relationships that benefit your law firm in these economic times.

Patrick Lamb tells a great story on his In Search of Perfect Client Service blog about a women on a cell phone loudly telling a friend about her encounter with TSA.  Lamb was trapped in the conversation since they were both boarding a flight at the time.  Her complaint was that “[t}hey were disrespectful and rude.” (Yes, Patrick, the irony gave me a good chuckle), and because of that she was never coming back to Chicago.  One incident and she was blowing off a whole city.  Like Chicago? That wonderful town!  I’m sure they will miss her terribly.

Of course, in light of the name of Lamb’s blog, his post was indeed really about client service.  And he is right in pointing out that presumably one bad incident, by anyone connected to your law firm, involving a client could seriously jeopardize your relationship, not to mention follow-on work.

Bad client service is really bad marketing.

The result: raving fans! Raving fans are willing to pay more because they know, like and trust you ALOT.

True story: I once had a couple of independent auto mechanics who I was willing to pay more for a brake job, because I was convinced that they were honest and would take better care than the local dealer. I became a raving fan. It helped that they charged me nearly $200 less than the price they initially quoted me.  After that I never asked again for a price before they worked on my car.  Additionally, I sent them, by their estimate, approximately 20 customers over the next 8 years.  I was a true raving fan!

What reminded me of that story was a post by Roy Ginsburg on Attorney at Work.  He compares lawyers with barbers/hairdressers who charge more, but their customers are happy to do so because they like them and trust them.

His story is worth a read.  Maybe you can get your clients to pay you more by turning them into raving fans.

Merrilyn Astin Tarlton has a piece on Attorney at Work that gives a few suggestions on how to handle such a downer:

1. First, calm down, and if necessary, vent with a friend. Then "go for a punishing run" or whatever;
2. Ask the client or prospective client why they chose another firm. Don’t be defensive, and ask in a way that doesn’t put the client on the defensive either. Rather seek to find out what you could have done better to retain client or to have won the competition;
3. In the case of the client leaving, ask a friend for their honest opinion on the reason given. Also ask for suggestions or their thoughts on what they would have done;
4. Assess what you could have done differently (seeking client feedback earlier is one thing that comes to mind), and those “[a]ctions that need to be taken ;” and
5. Put any necessary changes in place to ensure that similar mistakes are not repeated.

Additionally, keep channels of communication open with former clients and prospects, because it is entirely possible that the client may not end up being satisfied with their choice. In which case the client may return to the fold at a future date.