Client retention is essential to consistent law firm growth. It represents a firm’s ability to keep clients satisfied with its delivery of legal services and loyal to its brand. That satisfaction keeps clients coming back to the firm for their legal needs and moves them to refer the firm to others.
Client Relationship Management (CRM) software offers law firms an effective tool for providing clients with a high-quality experience – one of the key factors for promoting client retention. Simply put, satisfied clients are loyal clients, and loyal clients often become repeat clients. A law firm CRM helps make that happen and this post will explain how.
Why Law Firms Need Client Retention
The conversation around legal marketing typically focuses on tools and strategies to draw in new leads and convert them into paying clients. While there is no overstating the importance of this approach, it should not be the only marketing goal. Repeat clients are also extremely valuable for building longevity. Consider these potential benefits:
- Repeat clients tend to spend more than new clients with less push back on fees and costs. This is because they already recognize the value of a firm’s services. In addition, they have established trust in the firm and its attorneys.
- Repeat clients are excellent resources for the referral of new clients. When clients are happy, they often share their experiences with colleagues, family, and friends. They are also more accommodating to requests from the firm for referrals and positive reviews.
- Repeat clients can help law firms increase revenue through enhanced brand image, higher conversions, and decreased marketing costs.
- It requires substantially less time and resources to retain an existing client than to attract and nurture a new client. This is because the key to retaining clients is excellent service, which is something that a law office should strive to provide anyway. If this is being done efficiently and effectively, there is no need for extra efforts – and that is where CRM comes into the client retention equation.
The Connection Between Legal CRM and Client Retention
Legal CRM software helps law firms implement a client retention strategy that works through a variety of innovative features.
1- A Personalized Experience
Clients appreciate personalized experiences, and that involves more than just the use of specific names. They want to know that they are valued by their legal service provider, and not just a number on a long list of clients.
CRM systems help law firms gather and maintain personalized data about current clients. This information allows firms to send targeted communications that specifically address client needs and preferences. For instance, a client going through a complicated divorce can be sent related information about necessary estate planning changes. This level of personalization promotes meaningful engagement and helps clients feel understood.
Law firms can also use CRM technology to better meet clients through their preferred methods of communication. This is the age of messaging, and many clients prefer these types of communications over telephone calls and emails. With the right CRM platform, law firms can easily automate personalized text messages.
2- Consistent Engagement
The sales funnel is not the only journey that clients take when working with a law firm. There is also the journey of receiving legal services and completing a matter. With a CRM system, firms can consider the complete client journey for consistent engagement throughout. This includes understanding the client’s desired outcome, their related challenges, and the most viable path to success.
With consideration of these aspects, law firms can better communicate with clients to manage expectations and address concerns. Legal CRM assists with these communications through features like click-to-call softphones and automated follow-ups to client inquiries. This level of consistent engagement promotes client retention by building stronger relationships and enhancing client satisfaction.
3- Recognize Loyal Clients
With CRM software, law firms may be able to categorize clients based on the revenue they bring into the firm. This could include not only the value of matters, but also repeat business and referrals of new clients. Using this data, firms can recognize this loyalty with discounts or other special offers. For instance, a firm may thank a client for a referral with a fee discount or complimentary service. Firms can utilize the data gained with CRM to promote client appreciation, which drives satisfaction and crafts lasting relationships.
4- Extend Client Relationships
Law firm CRM offers a variety of customizable reporting options related to client management, including marketing ROI, lead conversion, and case status for current clients. Law firms can use this data to identify client matters nearing completion quickly and easily.
With these alerts, firms can proactively send content that potentially extends the client relationship, or at least keeps the firm top of mind for future legal matters. These clients can be moved from a current status into a former status that involves automated communications targeting repeat business. This strategy extends client relationships and promotes longevity.
The Right CRM Software Streamlines Client Retention
Legal CRM effectively transforms how law practices manage client relationships to improve satisfaction, craft growth opportunities, and cultivate a valuable referral network. The features offered through Law Ruler CRM help law firms manage client management tasks more efficiently. To learn more, click here for a free demo.