Client Communication Systems: The Key to Selling Your Practice
In growing your firm you need to bear in mind that you’re doing more than just increasing your income; you’re building a business. This business is an asset you own, and you should be proud of it! But what happens when you retire? Will you just shut everything down and walk away, or will you realize the value of that asset, by selling it?
If you plan to sell it someday, you need to realize that your practice is only a valuable asset worth purchasing if that value doesn’t depend on you being there. If all of your clients will leave the practice to go on to someone else once you retire, what exactly is the buyer purchasing? Because of this, you need to realize that the relationships you build with your current and future clients will be the determining factor in whether anyone will be interested in buying your practice down the road.
It’s About Client Relationships
Let’s face it: Law firms live and die by client relationships. It’s all part of that know-like-trust path that they took that led to their retaining you. But if those relationships are between the client and you personally (they took that path to you, not your firm) your practice will be nearly impossible to sell. If every important client communication comes from you the lawyer, what happens when you’re gone? No buyer wants to purchase a practice where client loyalty walks out the door with the selling lawyer.
So what do you do to make sure that this doesn’t happen, and your law practice has valued to potential buyers? You can build a client communication system that creates loyalty to the firm as a whole rather than you as its lawyer-owner.
Create Client Communication Systems
As I’ve mentioned in another post, the secret to value is in building systems. In particular, you need to have systems in place for client communication that take you out of the equation. But how do you get started?
Map Out the System
First, you need to map out every touchpoint between your firm and your clients, from initial contact through the closing letter, and post-closing communications. You should include both routine communications (e.g., matter updates, invoicing) as well as personal interactions (e.g., print newsletters, birthday cards, and referral thank-you notes). You should involve your team with the process, as they may well know about certain client communication points that you do not.
Once you have done that, you need to identify which of these communications actually require your personal attention. You’ll likely find that many (or even most) don’t require your direct involvement at all! Most client communication should be between the client and your team of employees anyway, so that the firm is building the client relationship, not just you.
Develop the Parts of the System
Once you have mapped out all of the points of communication with your clients, you will need to develop clear templates, scripts, and response time standards for each type of communication that will be used by your team, including:
- ‘What to Expect’ for initial consultations
- Initial consultation follow-up
- Sending a representation agreement
- New client onboarding
- Matter status updates
- Document receipt confirmations
- Invoice transmittals
- Matter closing letters, and
- Holiday and birthday greetings.
Don’t try to do every one of them at once. Pick one, get it completed, then move on to the next. This is also something that you can delegate. Have your team create the written processes and submit them to you for your review and approval.
Train Your Team to Be Your Voice and Document
Another benefit of involving your team in this process is that will be easier to onboard them and train them in its use if they were a part of creating the process. Implementing a system like this will take an investment of hands-on time by you describing your communications and explaining what you’re doing and why you’re doing it.
Start Now, Even if Sale Isn’t Imminent
The time to build these systems is long before you’re ready to sell. This will give you more than sufficient time to do a thorough job of creating the system, as well as training your team in using it efficiently and effectively. It will also allow your efforts to go beyond creating measurable value for your firm. They’ll also immediately enhance your practice’s efficiency, reduce your stress to make your work more enjoyable, and enhance client relationships.
Plus, when clients interact with the entire team rather than one individual, such as a lawyer, their loyalty to the firm becomes less dependent on specific personnel, reducing the risk of losing clients if a team member leaves.
So get started!
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Need More?
Do you want assistance in building out a killer client communication system that will not only build value for your firm but also increase the quality and consistency of the legal services you deliver? I can help! Just click on this link to schedule an initial, no obligation call with me to discuss your situation and how we can work together.
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