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Infographic: Client Value as a Path to Law Firm Profitability

Client Value as a Path to Law Firm Profitability

“There is only one boss-the customer,” according to Sam Walton who founded Walmart in 1962. “And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”

It’s a timeless quote that underscores a key difference between financial metrics and client value metrics.  The former provides a measure of results, the latter charts a path to getting there.

The infographic presented below suggests there is an intersection between law firm rate increases, realization rates and client value. The metrics these relationships reflect, as an accompanying and well researched white paper indicates, can go either up or down.

On one hand, as average hourly rates have risen since 2008, realization rates have declined. On the other hand, law firms that provide “superior client service” enjoy higher overall growth rates, greater client loyalty – and approach a nearly 20% premium on rates.

Client Value CLE Webinars

As part of this white paper and infographic, the LexisNexis team is presenting a CLE-eligible webinar series.  While the first in a three-part client value webinar series was presented earlier this week (we’re working on getting a recording), there’s still time to register for parts two and three:

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Client Value as a Path to Law Firm Profitability-small

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Photo credit:  Flickr, quietlyurban.com (CC BY-ND 2.0)

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About Frank Strong

Frank Strong
Frank Strong is the communications director for the LexisNexis software division located on NC State’s Centennial Campus in Raleigh. In this capacity, he leads communications efforts in support of software products for law practice and law department management and also litigation tools – across large law, small law and corporate counsel segments. With more than 15 years of experience in the high-tech sector, Strong previously served as director of public relations for Vocus, which developed marketing, PR and media monitoring software. He has held multiple roles both in-house with corporations, ranging from startups to global organizations, and has also endured the rigors of billable hours, having completed gigs at PR firms including the top 10 global firm Hill & Knowlton. A veteran of two year-long deployments, Strong has concurrently served in uniform in reserve components of the military for more than 20 years, initially as an enlisted Marine and later as an infantry officer in the Army National Guard. Strong holds a BA in Film and TV production from Worcester State University, an M.A. in Public Communication from American University, and an M.B.A. from Marymount University. He is a PADI-certified Master Scuba Diver and holds a USPA "B" skydiving license.