Integrity Marketing

Client Relations

What is the most-valuable resource in your trusts and estates practice? It's neither time nor money. It is also the most likely wasted resource. And failure to understand this will cost you more money, and more liability, than any single other mistake you could make.

The most-valuable resource, the one most likely to be wasted, the one that costs you the most money and poses the most risk -- is your client.

Multiplied over the life of your practice, your success or failure at building fruitful client relationships determines your ultimate profitability -- including how hard you must work to maintain your practice, how much you must continually invest in marketing to new clients, and how much liability risk hangs over your head ... and how likely it is to rob you of your retirement!

Too many attorneys invest more in storing client files than in building client relationships. We have read the research, and conducted our own analysis of more than 200 estate firms across the country over the past 10 years.

Here are the most striking characteristics of highly successful firms -- the ones that have low expense ratios, high profitability, and a steady stream of quality new referrals

• At least 40 PERCENT of their new business is referred-in by CLIENTS.
• In firms with more than 10 years in the field, the number jumps to nearly 80 PERCENT.
• In all cases, CLIENTS are the most likely source of the firm's biggest, and most profitable new matters.

It's not hard to understand why profitability is so closely linked to CLIENT REFERRALS.  Even a cursory review of the financial habits of the affluent reveals that

1. Their friends, family and colleagues turn to them for advice and REFERRALS to trustworthy advisors.
2. They ENJOY making these referrals.  And
3. They find their own trusted advisors -- not by searching the web, phone directories or attending workshops but THROUGH REFERRALS FROM THEIR PEERS.

If client referrals are so important, why do so many attorneys waste this valuable resource?

Here is my list of the Top Three Client Relations Mistakes

• Transactional Treatment. Despite pledging allegiance to the concept of Relationship-Building, many attorneys give their clients mere Transactional Treatment -- booking appointments, drafting documents, collecting fees, and bidding farewell with as little personal interaction or long-term commitment as possible. Typically, these attorneys view their client files as storage and liability challenges.
• Poor Contact Management Systems. You cannot begin to communicate effectively with your clients on any kind of long-term basis if you do not capture their key information in a contact management system. Many attorneys have only a vague idea of the NUMBER of clients they would have in such a database, should such a database exist. Furthermore, it's not enough just to HAVE the key information -- such as referral source, net worth, business or industry code, birth date, client anniversary date, etc. -- but you must have a system to ACCESS and FILTER this information for appropriate communication.
• Sporadic Client Contact. If there is one thing worse than ignoring your clients completely, it is the sporadic client contact that so many attorneys implement in blatant efforts to generate revenue. Imagine being on the receiving end of a solicitation letter from an attorney who took your money several years ago, never bothered to contact you again, and is now imploring you to allow him to review his work -- for yet another fee.

To remedy all of these mistakes, and build long-term, fruitful client relationships newsletters use SELECT Newsletters with INTELLIGENT DESIGN, to send a fully-customized, personal message to your clients -- EVERY MONTH -- for less than $20 per year -- INCLUDING postage!

Printed newsletters have a high perceived-value among clients, and when delivered with frequency and consistency, they are a solid foundation for ongoing relationships.

Your SELECT Newsletter will never look like a "canned" message. We provide the resources, but this is YOUR newsletter. Choose your colors, your articles, even your photographs. Or submit your own articles -- photos, too, if you like.  Select one of our professionally-designed mast heads, or have one made from your firm's name or logo. Use a full half-page every month for brief news, announcements or client messages.

Don't have time to do all that customization? No problem. Your newsletters will still go out on time, every time because we do all of the work for you.

Less than $20 per year to build long-term client relationships. To stay in touch. Keep clients informed of changes that may affect their plans. Encourage them to come back to review and update their planning. Reduce your liability. Develop referrals.

Before you close another client file, buy another file cabinet or scan another document for long-term storage -- invest $20 in the future of that relationship. Add that new client to your newsletter mailing list. (And by the way, if you think that new client is not worth $20 a year, then call me. We need to talk about your practice positioning.)

For more information about SELECT Newsletters, visit our website: http://www.estateplanningpartners.com/select.htm

or call us toll-free: 1-877-352-2021, ext. 1.

Notes from Heckerling

Kyle and I  just returned from our tenth year as exhibitors as the Heckerling Institute on Estate Planning in Miami Beach. Hard to believe that ten years have flown by since we first introduced the Pocket Watch newsletter at the 1996 Heckerling. During that time period, we have made many wonderful, dear friends -- both clients and fellow service providers. It's always fun to catch-up with good friends like Jane Schuck of Brentmark Software, Jonathan Blattmachr, Mike Graham, Trish McLelland and Nicole Splitter from InteraActive Legal Systems (Wealth Transfer Planning) -- and so many others.

It's also curious to note how many people change companies, how many companies "morph" into something new ... and how many disappear altogether. We certainly have a sense of pride, knowing that we have been serving clients (many of the same clients!) for more than ten years -- with affordable, effective marketing services and products. We are blessed and pleased with the number of clients who take time to stop by our booth to visit -- and thank us for the good service they have received through the years.  Our clients are certainly our best sales people "on the floor."  And that is fun!

Every year, though, we are amused by the latest "huckster" who comes to our booth touting some sure-fire marketing "scheme" guaranteed to generate phenomenal profits ... which he just happens to also be selling at a phenomenal price. This year was no different.

One gentleman came to our booth, reviewed our sales materials and declared that we were woefully under-priced. Our Five Days to Profitable Referrals program, which we sell for $695, he said should be priced no less than $3,000. Our online courses should be at least $1,500 each. He rather quickly went through each of our product and service offerings, smirking at our hapless bargain pricing. [Now, if you know me at all you know that he was starting to get my dander up just a bit as he suggested that perhaps we did not know what we were doing in terms of pricing. ]

He leaned over on our counter and said, "Don't you value yourselves enough to charge more?" And, of course, I laughed. How many times have you -- as an estate planning attorney -- heard that same line from a seminar speaker? You know the ones who tell you to adopt their system and raise your prices tenfold (primarily so you can afford to pay them for their so-called service)? They look you right in the eye with fake-pity and say, "Don't you value yourself enough to charge more?"

When someone says that to you, my first suggestion is to keep close track of your wallet. In fact, that might be a really good moment to drop your own hand into your pocket -- thus blocking theirs!

There are two important marketing lessons this gentleman seems never to have learned.

The first is a little thing called Lifetime Value.  If I'd had a chance, I'd have explained to this gentleman that most clients stay with us for many many years, even without contractual obligations; and that a very high percentage of our clients purchase across product class, e.g., they will purchase newsletters AND websites AND workshops, marketing campaigns, consulting, and online education. We believe in long-term relationships, and in growing those relationships over time by striving to exceed our clients' expectations.  Most importantly, as I provide value and help my clients build profitable practices, I am actually growing my own client base.  I consider myself to be in partnership with my clients. And that has been a good consideration, as many of our clients have been onboard with us for nearly a decade -- with no signs of leaving. I could not estimate the Lifetime Value of a client, because frankly I don't know yet how long the average Lifetime is for our clients. So far, most of them just come and stay. I like that. We did lose one client last year. He died. And it felt like losing a favorite uncle. But while he was with us, not only did he purchase a wide variety of products and services -- but he also referred many new clients to us and made numerous key introductions for us.  All of this is part of the Lifetime Value of a client -- not just the initial purchase, but the ongoing relationship that results in a prosperous, happy, satisfied client who comes back for more products as his practice grows ... refers his colleagues ... and enjoys making key introductions that could help make MY business more profitable as well.

If you are concerned about the long-term profitability of your practice, don't focus exclusively on your fee structure. While it is part of the mix, it is only one part. Focus on meeting client needs, exceeding their expectations, and capturing their Lifetime Value. This is a fair -- and sustainable -- way to boost the VALUE of a new client without excessively raising fees (and potentially pricing yourself out of an otherwise lucrative market).

The second marketing lesson this gentleman never learned?

It's really very simple. The best way to "sell" is to not to sell at all -- but to meet needs. You can't meet needs you know nothing about. And you can't learn about your clients' needs without LISTENING. And you can't LISTEN if you don't SHUT UP!

The truth is that I do have marketing needs (yes, even the marketing person has marketing needs!) -- but this fellow has no idea what they are. He had a product to sell, and somehow thought the best way to do that was to convince me that I was stupid, e.g., did not know how to price my own products and services. 

Be careful in those initial consultations. Your clients have needs. LISTEN to them. They may not know the exact legal terms, but they have a pretty good "feel" for their own needs. And if they don't, asking the right questions can help them discover their needs. But if, in that process, you make them feel stupid -- you will NEVER have the opportunity to help them. Nobody wants to be around someone -- let alone PAY someone -- who makes them feel stupid.

Client Relationships Rule #3

Communicate

There are three fundamental rules of Client Relationships. The first one is KNOW YOUR BUSINESS, the second is STOP SELLING.

Rule #3 is COMMUNICATE.

Every time you send a letter confirming a meeting or conversation, make a phone call, or send a newsletter, you are helping your client (or referral source) achieve Peace of Mind. You also are sending an implied message: "I appreciate you. I am thinking of you. I am concerned about your needs and dreams."

[Never forget that referral sources seek Peace of Mind, and that they have needs and dreams, too.]

When it comes to COMMUNICATING with clients, even the best of intentions frequently fall victim to the realities of business -- anything from a secretary's vacation to a court date, a missed filing, or a computer breakdown can derail your resolve to write a personal note, make a follow-up phone call, or schedule a friendly luncheon. The best way to avoid these pitfalls is to implement a COMMUNICATION PLAN. Don't rely on your personal communication skills (however wonderful your mom says they are!). A well-designed plan will continue to touch your clients with important messages -- building the trust and confidence necessary to fruitful relationships. If, one morning, you arrive at the office inspired and have the time -- go ahead and write that personal note.  But let it be the icing on your Client Communications Cake.

Here are a few tips to consider as part of your Client Communications Plan:

• Begin at the Beginning. Educate your clients about your "processes." If you are undertaking litigation, let your client know up-front how the process usually unfolds. Tell them the time frames, what to expect, and how frequently they will be billed. Also let them know how frequently they should expect to hear from you. If you have a client newsletter, website, or handbook, be sure to introduce it at the first meeting. Also, let your client know the best way to communicate with you. Should they fire off an email if they have a question? Or would it be better to make a phone call? Also -- will they be billed for emails and phone calls? Letting your clients know upfront will avoid misunderstandings -- and potential conflicts -- later.
• Manage Your Contact Manager. Customize your contact manager to capture the information you will need to organize relevant client communications. For instance, f you working with an estate planning client, set up a date field in your contact manager to capture the date the plan was signed. Now, you can easily select and sort those clients who should receive a reminder to review and update their planning documents. Other important fields might include: Business or industry code -- for future client workshops focusing on a specific industry; Gender -- you may want to target a mailing to women-only; Birth Date -- segmenting your client base by age is a great marketing tool; Marital Status -- there are many issues that affect singles or couples differently and could be the topic of a future workshop; Type of Client -- set up a coding system to quickly segment your estate planning clients from your real estate, personal injury, or family law clients. If you practice in a specific niche such as  estate planning, it may be helpful to establish codes for will-based clients, revocable living trust clients, tax-planning, non-tax, probate, trust administration, elder law, etc.
• Host Client Workshops. Client workshops are excellent ways to establish and nurture client relationships, and to build client referrals.  You don't have to spend weeks or months developing your workshops. Tap into professional resources for assistance. For instance, the Defense Research Institute (DRI) has a number of educational programs available for purchase at reasonable prices for those practicing in the area of insurance defense. We offer a complete workshop on CD, Estate Planning 101, that would be a great choice for a "family orientation" workshop. You can probably find quality presentation materials for less than the cost of one-billable-hour of your time.
• Devise a Protocol. Outline your Client Communication Plan, and train staff to follow it. Remember consistency and efficiency go hand-in-hand. If every client should receive a follow-up letter after a consultation, or an appointment confirmation phone call, be sure these processes are clearly outlined in your plan. Also -- set up a system for accountability. A simple checklist may work -- or hire a consultant to help you build accountability systems into your case management software. Remember, consistency is the key -- even the best PLAN will fail with poor execution.

Every firm, every lawyer, and every practice is unique. If you need help creating a CLIENT COMMUNICATIONS PLAN, please let us know. We have been h helping lawyers communicate better with their clients for more than ten years. We can help you, too! Toll-free: 1-877-850-7472.

Client Relationships Rule #2

Stop Selling

There are three fundamental rules of Client Relationships. The first one is Know Your Business (see post above). Rule #2 is STOP SELLING.

Now, I know you may think it odd that a marketing consultant advises you to stop selling. But, the truth is, you can't sell Peace of Mind. Your client develops Peace of Mind when dealing with you. There are three steps in that development process:

• Establish Trust -- Studies consistently show that clients want, above all else, an advisor whom they can trust. Establish trust with your clients by listening to and focusing on their needs, desires and concerns.
• Form Client-Centered Relationships -- Stop talking about yourself and the history of your firm and your prestigious legal education. Let the client talk about their needs, desires and concerns. Many attorneys handle the initial consultation something like this: "Hello, my name is Dave. I'm the managing partner of this firm and I have 22 years of legal experience. I'm a graduate of Prestigious University Law School and have published numerous articles in Prestigious Trade Journal magazine. In addition to my prestigious law degree, I also have several other prestigious designations. But, enough about me. Let's talk about you. What do you like best about me?" This is not a client-centered relationship!
• Meet Needs & Fulfill Dreams -- Stop explaining the usefulness of your service in terms of dollars and statistics. Listen to your clients' needs and dreams, and go about trying to fulfill them. If you are discussing complex litigation with a business owner, ask them how quickly they would like to get back to the business of their business. Let them share with you the pain this matter has caused -- the worry, the lost revenue, the lost sleep. If you are meeting with someone to discuss their estate planning needs, let the client explain how they wish to ensure all of their childrern are treated fairly, if not equally. Ask them about their wishes for end-of-life care. Ask about how they would like to remembered -- how their financial legacy could reflect the value of a lifetime's efforts. Let your clients share they needs -- and their dreams -- then make it your job to help meet needs and fulfill dreams.

Client Relationships Rule #1

Know Your Business

Knowing your business means more than having a thorough legal knowledge. When you know your business, you don't just know what you're selling you know what your clients are buying.

One of the main motivations for seeking legal counsel is fear, or perhaps a more accurate term for some clients would be Concern: whether for their business, themselves, their communities, and/or their families.  Realize, then, that while you may be selling legal services, it's Peace of Mind that your client is buying. When you understand that you are in the Peace of Mind Business, you've taken the first step toward building a lifetime relationship with your client.

One client whose practice focuses on insurance defense explained this very well. He said it's enough to convince case managers that his firm is skilled, or that they provide good value. "That case manager's job is on the line when he turns a case over to me. If we handle it well, he can be a hero. If we don't -- he could lose his job. I have to let him know I understand that. I have to convince him that I care about HIM. I have to let him know that I'm going to do my best to make sure he looks like a hero."

This same theory applies to other professional referral sources as well. They want the Peace of Mind of knowing they have referred their clients to the most appropriate attorney for their needs, that their clients will be well-served, and that their clients will APPRECIATE the referral. Each time advisors refer clients to you, they take risks -- they risk tarnishing a client relationship they have worked hard to establish and nurture. They risk losing business, losing the client, and losing referrals. Give them Peace of Mind and you will win their referrals.

Building LIfetime Relationships

Building a successful practice hinges on your ability to develop and nurture Lifetime Relationships -- with both clients and other referral sources within your Centers of Influence.

Too often attorneys allow their practices to become purely transactional. I once spoke to the managing partner of an estate planning firm who told me, "I have no need to communicate with my clients. Their plans are already done. I need to reach new clients."  This attorney was shortchanging both his clients and his practice. Estate planning is a lifetime process, not a one-time event. Accordingly, building your practice is a lifetime process as well.

The long-term success of your practice certainly is not hinged on any single event, referral source, client or marketing strategy. While reaching new clients (and referral sources) is a vital component of any marketing strategy, a sound plan also includes longer-term strategies that pay off over time. Your client base is one often-overlooked natural resource for the long-term growth of your practice.

Lifetime Relationships with your clients result in additional opportunities as events impact their lives and the lives of their loved ones; as they refer you as a trusted advisor to their friends and relatives; and as you work with the next generation for whom you helped preserve and protect an inheritance.

There are three basic rules for developing Lifetime Client Relationships:

1. Know Your Business
2. Stop Selling
3. Communicate

We'll look more closely at each of these over the rest of the week.  Stay tuned!

In the meantime, please call us if you need help dealing with any of these in your practice. You can reach us toll-free at 1-877-850-7472.

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