Making the grade: Winning work from new and existing clients

Asking a law firm to analyse its sales proposition may be akin to drawing blood from a stone. To then suggest training lawyers in sales techniques, such as converting leads into clients, may to many just seem like fantasy. For Jonathan Fox, chief executive at Collyer Bristow, however, it’s just part of a sensible proactive approach to maintaining a successful client-focused business.

Competition is on the increase and the market that we now find ourselves operating in is very different from the one that existed even five years ago. In most sectors, clients are becoming sophisticated buyers of our services. They demand more from their professional-service providers, but are not always prepared to pay what they used to.

They are now selecting firms on a ‘horses for courses’ basis, realising that big is not always beautiful and that there are opportunities for various types of providers to service them. Law firms have had to wise up to this brave new world and we have seen some very innovative solutions to servicing clients, including Lovells’s ‘Mexican Wave’ and DLA’s linking with Allen & Overy on the recent NHS outsourcing project.

Clients are more promiscuous than they were and are prepared to shop around. With this in mind, it is essential to keep your existing client base happy, regularly reviewing what it is you are doing for them and finding new and innovative ways to service them. It is also important, of course, to win new work.

The costs of gaining new work, though, are considerable and, in my experience, conversion rates are generally not as high as we would like them to be. From my background in retailing, I have been looking very closely at client loyalty, and the recycling of market information, to win new work and hold on to existing customers. It is very easy to harp on about the importance placed on providing clients with very high levels of service, but now, more than ever, it is critical to the firm’s success that existing clients are looked after. Many firms really focus on just bringing in new work and do not necessarily reward or indeed focus on holding on to what it is they already have. Pound for pound, it is far better to expand your current client base than to go after new work, although it is important that you keep your ‘pipeline’ filled with both good and new opportunities.

The pipeline

I look at all professional services, and, indeed, other businesses, which have the need for a pipeline to feed them. If you imagine a funnel placed on its side that is divided into various sections. The mouth of the funnel is where I see the new opportunities being selected to approach. As these leads are qualified they are placed into the pipeline where they are then serviced by the firm as a whole. Eventually, after a time, or, indeed, a change of decision maker (on the client side), the clients drop out at the end of the pipeline and choose to be serviced by another firm. There is a constant movement within firms of clients and contacts and I believe adopting a disciplined approach, albeit a fairly simple one, can assist firms greatly in their client development/retention strategies.

Success rates

It is useful to ask yourself what your success rate is for qualifying and converting leads from outside the pipeline into clients of the firm. Industry statistics, and indeed research I have conducted myself, suggest that most firms have a success rate somewhere in the region of 12 per cent – quite a worrying figure when you think about the time and trouble that goes into the winning of good quality work and clients.

There are some simple lessons that can be learnt and actions that can improve this generally poor figure. For example, I believe most professionals find it difficult to make the initial contact with a target client. They give up far too easily and do not really like picking up the phone. Yes, there are obviously rules in place regarding cold calling, but there are ways round getting to see people. From my own research, qualifying leads and successfully bringing these into a business depends on how the approach is made. I believe it takes on average five different contacts or ‘opportunities to see’ before you bring a target into the pipeline. Most people give up after three contact points – a letter, telephone call and/or first meeting – but it is what happens after this that is the key.

Neither do most people really take the time to immerse themselves in their target’s environment. Today, information is king and using online and other information resources is a must if you are to be successful. I have often been to a number of target meetings or client-review meetings where buyers of legal have commented that their own existing providers don’t know enough about them or don’t seem to be proactive in their own approaches to them. External lawyers really don’t understand the sector or, indeed, the pressures clients are under. It seems amazing to me that this is still the case, bearing in mind what is available to us all, particularly online. It is probably tied into the fact that everybody is very busy, but we would do well to remember that time taken now to research the qualifying sales opportunities (and yes, I do mean sales opportunities) will provide fee income for years to come. Simply by putting some rather basic processes in place, one can increase the chance of success dramatically.

By actually qualifying the number of targets, for example, and spending a little time thinking about whether the client is realistically going to (a) welcome the approach, (b) want to meet and (c) ultimately provide your organisation with work, can save a tremendous amount of time later down the line. You have to be realistic. Is it actually the case that you are going to get work from these people? Could the client see your approach as an irritation? Or, could you spot something that would genuinely help them? You will know the answers to these questions if you stop and think.

All too often, I have found firms have far too many targets. A number of firms I have spoken to in the past find out that various departments or indeed offices are all targeting the same clients without ever having spoken to one another. I am aware of one firm where two partners independently carried out client reviews with the same head of legal and neither knew what the other was doing – how embarrassing!

To aid in the targeting process, I usually suggest that firms put in place single points of contact (SPOC). It should be someone (and it does not have to be anybody senior) who knows exactly what is going on with all the major client targets on the development programme. Very simple spreadsheets can be used and there is no real need to invest in complex IT. For example, when I was at DLA, we ran that firm’s excellent client-care programme from an Excel spreadsheet, which worked perfectly well.

The key though is to keep it simple and to ensure follow up.

Toolkit

From my own experiences to date, I have found out that people, particularly professionals, find it difficult to make those initial contacts. Quite understandably, if someone finds this crucial stage of bringing in new work difficult, then they need to be trained or provided with the necessary skills, or given what I call a ‘sales tool kit’ to help them. For instance, it is very interesting to analyse your firm’s sales proposition. What exactly makes you different and why should the person that you are going to contact, listen to you? All too often, many firms find that their proposition has not actually been thought through at all, and while they think they understand why they are successful and why people buy them, clients often see no affiliation at all. I think of the proposition as my elevator pitch.

Imagine meeting the target at the ground floor waiting for the lift. By the time you reach floor two you should have been able to indicate and communicate to the target the benefits of using your firm and what makes you different or special. Have a go – it is not an easy thing to get right, but it is a useful exercise when refining your sales pitch.

It could be that you have a number of different elevator pitches by various sectors for new and existing clients. From your research, for example, you might find out that outsourcing is of great interest to potential targets and adapt your elevator pitch accordingly.

However, there should be some areas of commonality so that, at the end of the day, if you try and expand your services beyond the initial pitch, there is something that links them all, or the strands, together. So think about your elevator pitch. You might have one already, but is that the best one for your firm and how does it really differentiate the services that you offer?

A very interesting discussion for a partners’ meeting or away day is the elevator pitch and what it says about you.

Sales process

Whether you are trying to open up an existing client to get more work or, indeed, bring a totally new contact to the firm, you need some sort of process and, again, this is where the SPOC can assist. Based on the premise that ‘you never eat an elephant in one meal’, you need to break up the sales process into a number of stages, probably in some way tied to the number of points of contact that you think you will need to bring the target/client into the business. For example, I believe that it takes five different activities to bring in a cold client. Devise your sales process around that. You might start off with detailed research for a number of targets, which will then lead to some sort of qualification process where you will sweat the data and agree to qualify the leads in order of attractiveness. You can divide these leads into various levels of opportunity and there will definitely be some that sit well with your existing client base/service offering, which you think you can convert more easily than others. However, don’t be frightened to give the completely cold leads a push. Having no more than 15 firm-wide targets, I suggest, is a good idea, no matter what size of firm you are, as the larger the business, the more complex the relationships you will have with existing clients and, generally, the higher level of work you will be going for. Having sorted out which clients/targets you are seeking to expand/develop, then you will need to decide on a tailored approach for each. It could be that an initial letter to a key decision maker or contact you have is the best strategy. The key then is to follow up, and there is nothing better than a phone call to do this.

This is where I think most people feel quite uncomfortable and working out some scripts in advance, particularly responses to potentially difficult questions/objections, can assist greatly. It takes time to get the process right and it should not be left to an individual, or his or her interpretation, to determine what is required. Spend time training your people and coming up with some sensible solutions for clients who do not want to speak to you (because they’ve heard it all before). Success during the sales calls/meetings should then be relatively easy to achieve, upping your 12-per-cent figure.

The meeting

If it is someone you know already, then it is a great deal easier to meet face to face.

Face-to-face meetings – particularly with cold contacts – are difficult, but all should be planned thoroughly. For example, I don’t believe it is correct to turn up at somebody’s premises without firstly having sent them/allowed them to have input into the agenda of what is to be discussed. Check on their availability. Don’t presume that they will automatically want to go out for lunch with you. It could be that they have a strict policy on accepting entertainment, etc., which you will need to adhere to.

Whatever it is, before you attend any face-to-face meeting, make sure you have done your research: let the target/client know exactly what you want to talk about and, where possible, do not go on your own. You don’t necessarily need to take someone senior with you. It could be that taking along a junior member of staff who actually might do some of the work (if you are successful) could be a good thing. It shows that you are an open firm and you trust the junior people that work with you.

At the meeting, stick to the agenda. Do not allow the meeting to drift. I have been aware of a number of situations where very good opportunities to meet with cold contacts have been secured, but these opportunities have not been converted as a result of people spending too much time talking. However, there are obviously those opportunities where meetings do run on, and you will have to decide whether it is right or not.

Remember to listen. You sell with your ears not with your mouth. Make detailed notes and don’t be afraid to ask about the very important money side of things. If they are using other providers, what do those providers do well? Don’t be afraid of probing, particularly on charge-out rates and concerns your target has surrounding their own position and financial constraints. I have been surprised (from a number of client reviews and sales meetings) how often the in-house legal function seems to be a lower priority, as far as management is concerned than, say, marketing or IT. Bearing in mind the current legal framework, particularly concerning risk and risk management, this should be of concern to most businesses. It might be, for example, that the target/client has all of their bases covered with their current legal providers. It might be, however, that there is some value-added service, for example, provision of a secondee or training that might provide you with the chance to demonstrate your commitment to them. I have found that it is the case that provision of services outside the core areas are what clients/targets are looking for initially.

Do get across that you have done your research and that you understand their business. Where possible get a tour of their premises and meet as many of their people as possible. It will soon become evident if you are interested in winning their work.

It reminds me of a comment the former chairman of DLA, Professor Sir Roland Smith, once made to me just before I was going to see a very important target with one of the key partners in the firm. “Sonny?” he said. “Do you know what they do? What their snags are and most importantly what their share price is?” Apparently, when he was seeing new professional advisers, he always asked them whether they knew his share price on the day. I know it is a small thing, but most successful people within clients/targets are passionate about their business and you should be equally enthusiastic about working for them.

Avoiding the dump

There is always a danger that when you get into the client meeting you dump information about your firm, yourself and your expertise on the client, without actually listening to what is being said. Far too often, people talk and don’t listen to the nuggets of information. At my last firm, we used to have something called avoiding the ‘DLA dump’. Yes, the client wants to know a little bit about your firm and its capabilities, but what they really want to know is why you are sitting in front of them and how you can help them. Where you are not necessarily the best at something, don’t be afraid to say so. No firm can cover all the bases. Offer to work with others by providing quality circles and participation in group-training schemes.

Follow up

It is surprising how many people do not follow up, but the key to everything is firstly to say thank you to someone for their time, but also then delivering on what was discussed.

If it is provision of training, then sort it out and send through a range of subjects from which they can cherry pick what they want. If something more complicated is required, then this will obviously take some time, so be careful to manage expectations carefully. Whatever it is, ensure you follow up straight away.

The follow up should also provide you with another ‘opportunity to see’ and you should be thinking about how you are going to facilitate the next contact when you follow up on the initial actions.

I know this all sounds fairly cold and calculating, but it is the only way to be truly successful. On returning from a target/client call, make a detailed note, together with actions for those who will need to deliver. Your SPOC will obviously need to know what has been agreed and they will help you chase up what has been promised.

If bespoke services are required, they will take time to develop, so be careful to manage expectations and don’t over promise.

Existing clients

Much of what I have detailed already applies to existing clients, although it is easier and far less time consuming, as you already know their likes and dislikes.

However, it is easy and, in some cases, far too easy to become complacent and believe that because you are acting for someone, then all is well. I always remember that my top clients are somebody else’s top targets and I do my best to always remember that not everything is secure and that you have to work just as hard on keeping existing clients as you do in bringing in new work to the firm. It is useful on at least a six-monthly basis for key members of your firm to go out into your client base and talk to clients about the firm, what it is doing well and, more importantly, not so well. Who else is servicing the client and is your percentage share of their spend going up or down? You will be surprised how open people will be with you, if you take the time to go and see them. Again, the same principles apply in terms of giving a time, setting an agreed agenda and delivering agreed actions.

From my own experience of carrying out over 400 client reviews, I have to say it is generally not the provision of legal services itself that is the problem, but issues surrounding the management of expectations, particularly in relation to timescales and delivery, costs and silly mistakes that let firms down. It could be, for example, that documentation needs to be sent by courier to a client on a Saturday morning.

I have been in situations where firms have performed brilliantly on transactions, clients have been delighted with the end result and later the service has actually been knocked by the fact that the courier did not deliver documentation as agreed. You might think that this is a small thing, but it is generally what people remember.

Make detailed notes of the feedback and use this information to carry out a firm-wide or sector-specific health check on at least an annual basis. What is it that the firm is doing well? What do your most important clients think about you and say about you to others? The chances are that you really will not know unless you sit down with them and ask the questions. Most people are honest at these interviews, but occasionally you will get clients that find it difficult to give the person candid feedback. This is why I recommend an independent review, which is something that we do at Collyer-Bristow as a matter of course.

What you are really trying to do by carrying out these reviews is to recycle the data to win more work for your firm. For example, if you know you act for nine telecoms businesses and you are providing good quality service to them, you will know what issues are affecting them. Recycle this data. Go and talk to the people you don’t act for and discuss the issues that you know from your research will be of concern/interest to these cold contacts. Yes, there will always be conflicts of interest to overcome, but generally people will favour sector expertise, so give it a go.

By putting in place very simple firm-wide procedures, huge amounts of time and indeed money can be saved at a business-development level. Very simply, if you don’t know what your pitching success rate is, you certainly should do so. It could be that by approaching these very important opportunities in a less than ideal way, you are shutting doors forever, which is something that I am sure none of you want to think is happening.

Ask your heads of department how many targets they have. Do you have a SPOC to measure what is going on in your business and do you sit down with your master clients on at least a six-monthly basis to obtain candid feedback?

If not, then based on my earlier comment that your top-ten clients could be my top-ten targets, I suggest you start talking to them in a structured way.

Jonathan Fox is chief executive at Collyer Bristow. He can be contacted at: jonathan.fox@collyerbristow.com