Last week we left off after saying that you need to prioritise the actions that will have the greatest probability of revenue growth so that you do these first. Any strategy must be assessed and categorised according to the following order of priority:
Priority #1 Providing existing products/services to existing clients.
This is the first priority because you already know the product/service and the client already knows you. Make sure you are providing all of your products/services to all of your clients
Priority #2 Providing new products/services to existing clients.
You already have a relationship with these clients, so their resistance to purchasing new products from you will be less.
Priority #3 Providing new and existing products/services to new clients.
We all agree that it is easier to sell to an existing client than a new client. New clients usually take time to acquire, time to understand their needs and time build trust with you. The Top 5 Profit Improvement Strategies for legal firms to drive revenue growth are:
1. Revenue Growth Formula
Decide to shift your mindset from “Squeezing the Orange” to proactively driving the key revenue components that result in revenue growth. Start with your existing clients. Build structure around your products/service offerings, educate your clients on what they need you to do for them, meet with them and identify their needs, sign them up, do their work and manage your relationship with them. Instead of just focusing solely on the number of hours your fee earners recover, focus on your existing clients and develop strategies to increase the number of times they do business with you each time.
2. Define Top 3-5 Product/Service Offerings
Define the top 3-5 products/services provided by your firm, or capable of being provided, to your clients. You will find that there are endless opportunities to provide these products to existing clients that have not bought them from your firm. Don’t tell yourself that the clients don’t want them. You don’t know until you ask them. You need to recognise that your clients are clients of your firm, and for certain products may be better provided by others in the firm, not you. Price these products using a value-based approach, so that clients can see the benefit of employing you to provide them, rather than seeing an hourly rate charged for the service.
3. Marketing and Sales
Develop a marketing strategy to drive an increase in transaction frequency so that your clients are aware of all of your top 3-5 products. The marketing strategy must be designed to educate your clients about all of the services you provide and to drive opportunities from clients for these services.
Separate sales activities from marketing and implement a structured sales process so that opportunities generated are converted to revenue. Usually your Partners and Associates would be responsible for sales.
4. Upsell and Cross Sell
Whenever you are working with your clients, identify opportunities for you to do work with them, or for other departments in your firm. Introduce your clients to other Specialists in your firm. Design a client review checklist around all of your products and services and run through it with your clients. You will be amazed by the opportunities that present themselves.
5. Value what you do
Don’t be cheap! Your skills, knowledge, experience and personal intellectual capital demand that you charge and appropriate price for your work and the solutions you provide to your clients. Be proud and charge appropriately, you are worth it.
If you implement these 5 key strategies by focusing on providing your existing products and services to existing clients, and ensuring that your revenue strategy is built using the Revenue Growth Formula, your revenue will grow in a structured and sustainable way.
To review your current profit strategies and determine what is possible in terms of growth from your firm, call Matt Schlyder on 07 3833 3999.