Family tree

The legal world is becoming more competitive and growth for any firm is increasingly becoming a matter of retaining current clients as much as winning new ones. More importantly, if it is harder (and more expensive) to win new clients, then your retention strategy needs to be about keeping your existing clients and making sure they spend more with you each year.

Generation game

For commercial departments it’s relatively straightforward, but for private client practices it’s a different story. There’s always some attempt to encourage repeat purchase (like inviting clients to update their wills) and rudimentary cross-selling should also be in place in firms – most notably after divorce where will revision, changes to estate and alternative tax planning is requisite rather than advisable.

But the real target of any ‘up-selling’ (because that’s what it is) on the private client side has to be achieved through generational retention, developing relationships on a family rather than an individual basis. When you act for a commercial client, the aim is to maximise your share of that client’s legal wallet, acting for a family should be no different.

Once someone buys your services, your primary aim should be to become ‘their lawyer’. Whether the client wants help with a will or buying a house, the quality of service and the quality of work has to be of a level that guarantees that, when they need additional legal advice, the work will come to you.

The problem is the common misconception within the legal industry that, because this work is transactional, it’s treated as a one-off. If your firm is to take full advantage of the potential returns generation retention offers, this mindset needs to be replaced by a new objective: the first piece of work is only the first part of the selling process. Stop thinking about matters, start thinking about relationships.

The cliché ‘you don’t get a second chance at a first impression’ is right – if you get that first interaction wrong, the chance of you building a relationship strong enough to facilitate an introduction to their children, siblings or significant other is going to be anorexic.

Working on a personal matter gives you access to all the information you need. You don’t need to learn how a company’s overall structure fits together – if you’re working on a will or a matter involving trust, tax or family, you have ?all the leads you need to develop that client. You know how many children they have, their matrimonial status and their plans. Now you need to use that information commercially.

Building blocks

If the children are old enough, ask them in for an informal chat – if they’ve been named in the work your invitation will seem perfectly normal. Phrased as an opportunity to give them a little bit of an explanation on the part they’ll play in their parents’ affairs, it’ll be perceived as nice added value as well as that first all-important building block to establishing a relationship.

It’s important to take into account the age of the family members you ?want to meet. While trust has been established between you and your ?client, is it immediately transferable ?to a younger family member? Some won’t be comfortable interacting with their parents’ advisers so it may be advisable to bring in someone closer ?to their own age.

It’s about ‘appropriate approach’. The easiest way to be appropriate is through the existing relationship. Let your client know your firm has a good team of young lawyers to serve the firm’s next generation of clients... then move the conversation on to that next generation.

A word of warning though. One managing partner told me he’d seen instances where children wouldn’t meet a lawyer out of principle because they were their parents’ lawyer. On the other hand, yours is probably the only firm they know and, if you’ve managed the relationship well, their perception will always be positive. That means they’ve bought your brand. The road from there to fees could be as simple as introducing them to someone closer to their own age or who shares similar interests.

However, even with the best planning and the right colleague standing by, if your firm is perceived as old fashioned, you’ll put younger clients off. With so much competition you have to make sure your website is up to scratch, your offices are welcoming and you portray a modern image.

Take into account the way people want to work. Few will want to come into the office the way their parents did. Embrace technology – not just emails, but SMS and easily downloadable/easily digestible online information. Look at SEO. Studies prove that even if they hear you’re the greatest thing since sliced bread, your targets will still go online for confirmation. If you’re ranked 35th on the third page of Google you will miss your chance.
If there is a need for face-to-face meetings, think about your targets’ schedules. Younger people work longer hours, travel further to work and are less likely to take time off for anything other than holidays or emergencies. Do you need to look at your opening hours or weekend opening? Can you deliver papers to work or use Skype so matters can be concluded at their desk?

These alternatives will mark you out from your competitors and back up their parents’ recommendation.

There is no finer way to get people onside than showering them with hospitality. It works for commercial, but for some reason private clients don’t traditionally enjoy the same level of entertainment. Hospitality-based events with an open invite to the whole family offer a great way to get you in front of the various branches of a family tree, but be creative. No one wants to come into the boardroom for sandwiches. One of our clients has a series of three events designed for next year that will include chamber music, wine tasting and, hopefully, a bit of ballroom dancing. All of the entertainment is free, thanks to a bit of lateral thinking, and the initial interest promises not only a decent crowd but also a wealth of (free) press coverage that can be used for future promotional purposes.

Social network

Meanwhile, seminars – preferably with wine and canapés – on more complicated areas of law offer a good opportunity for parents to explain to their children what they’re planning while you demonstrate your expertise before meeting them socially afterwards.

At first reading, loyalty cards may sound tacky, but studies consistently show they work. You can offer a number of services through a family loyalty scheme and offer either a common discount or a structured discount scheme depending on the volume of services bought. For example, if a ten per cent discount was offered on all new wills ?for family members, would your client be more likely to refer their children? ?“I don’t know,” is the usual response, but I can assure you studies prove it works.

‘Discount’ of course is not a popular word within the legal fraternity, but cross-reference it with ‘no cost of sale’ and ‘work you wouldn’t have got otherwise’ and you may look on it a little more favourably.

Reciprocity is a big thing when it comes to marketing any type of legal activity, but when should it start? It may be that it could start years before someone even needs legal advice. You should be having conversations about the members of a client’s family. If those conversations were to bring to light that a child was looking for work experience in a certain sector, I would be hugely surprised if your network didn’t contain someone who would be able to find them temporary employment – chances are they wouldn’t even need to pay them... If you could help, who would they come to when they needed to buy a house? Who would they recommend to their friends?

Generational retention is about generating opportunities through relationships. Good relationships always create opportunities and making yourself attractive to the next generation will allow things to develop. And, if you can develop multiple relationships throughout every family you work for, how much less reliance (and budget) would you have to place on new ?client acquisition?

 

Douglas McPherson is director ?of marketing consultants ?Size 10 1/2 Boots

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