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YouTube Friday:  Quantifying the Value of Client Retention

Quantifying the Value of Law Firm Client Retention-2

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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InterAction Adds Passive Data Management to Law Firm CRM

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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.