A new promotional video from the LexisNexis® InterAction® team underscores the significance relationships have on client retention. More importantly, it expresses the significance client retention has on law firm financial health:
“If you don’t know who your clients are then relationships are at risk and strategy is meaningless.”
For most observers, the concept isn’t a stretch and we’d venture the legal community would fundamentally agree. However the video includes compelling statistics that add clarity to the matter and may prompt the question: What specific actions, programs or systems are in place to improve client retention?
Compelling Law Firm Client Retention Statistics
Consider the following statistics conveyed in the video:
- Panel Consolidation. Corporate legal has consolidated law firms on average from 47 to 36 over the course of the last year.
- Client Flight Risk. Large law firms lose approximately 15% of top clients every year.
- Small measures; big difference. Firms that improve client retention by just 5% grow revenue by 25%.
- Return on relationship. When clients know five or more law firm partners, the risk of losing that client drops to less than 10%.
The video, which runs just over 2.5 minutes in length is this week’s Friday Share and is embedded nearby.
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