Why clients aren't giving your firm new business

Winning new business from a cold start is tough and costly. It is usually easier to provide new services to existing satisfied clients if the conditions are right. There needs to be: a genuine client need for those services; proof of performance by the firm in that service area; and an established trusted adviser relationship.

The argument for focusing on expanding the pipeline of work from existing clients is compelling. Yet few firms achieve this in practice. Why is this? My view is that this is because of a combination of a number of factors, namely:

1.      organisational barriers within the firm, including:

• fear of loss of control coupled with a lack of trust or understanding of the abilities of fellow professionals;
• financial penalties and/or a lack of incentives;
• poor internal communication – often with a focus on new wins;
• patchy knowledge of the variety of services that can be offered; and
• lack of management leadership;

2.      current client perceptions of the firm and what it can offer;

3.      lack of knowledge of the client’s additional needs; and

4.      lack of knowledge as to how to create the motivation in clients to try new services.

What can be done to deal with these challenges?

Improving cross-selling

Market surveys have repeatedly highlighted that clients want their advisers to really get to grips with their business. It is hardly surprising that few cross-selling initiatives get off the ground if this basic need is not met.

Nurturing relationships takes time and commitment, plus an authentic interest in the client’s world. It is hard work, time consuming and takes effort. But it has to be done and is a solid gold investment. It will be repaid with vital knowledge, enabling your lawyers to shape compelling propositions as well as deepen their longer-term relationship with the client.

None of this happens by accident. Management must set the tone and ensure the structure, processes, culture and communication support successful cross selling. It makes good business sense to build on a commitment to client relationships and communicate the ‘win win’ of providing additional quality services that will meet the genuine needs of clients.

Communication, knowledge sharing, appropriate reward and incentives plus leadership from the top set the tone and are essential to removing internal organisational barriers.

Client perceptions about what a firm is good at will be drawn from market reputation and personal experience. Introducing new services and asking a client contact to make an internal referral puts their reputation on the line. This will not happen without solid proof of performance. It follows that marketing to clients must be evidence based.

Glossy brochures that are thin on substance and pitches full of puff that are short on relevant detail will not cut it. It’s much better to construct short case studies, write thoughtful articles and provide information that sets out the specific benefits to clients in terms that they can relate to and easily digest.

In summary, creating the motivation in clients to try new services requires purposeful leadership, strong internal communication, thinking like a client and solid proof of performance.