Is the "LendingTree" Mentality Stronger Than Building Relationships?

Admin — Fri, 07 Mar 2008 08:00:38 GMT

You may have seen the commercial: The banker bumps into his client who tells him that he is taking his business to LendingTree.com. The banker, surprised, says, "But we've been your bank for 20 years." To which the client replies, "Oh, since your bank is in the network, you get a chance to compete too. And, so you know, I am pulling for you." With a condescending slap on the arm, he finishes: "Good luck, buddy."

The idea, of course, is that the competing banks will give the client the lowest price and thus the best deal. Relationship means nothing. Is that truly representative of the way business works?

I don't think so. Any marketing professional will tell you that client development is nurturing and maintaining relationships. Without relationships, you can't hold on to business. However, there is no denying the rise in competition in gaining legal services based on price. The key, I believe, is to prove that the value of your firm is better than the value of another firm. How you do that will prove to be the difference between increasing your client base and losing opportunities.

Here are some ways that your firm can show value:

Showcase your talent. You have superior talent - make sure others know. Have attorneys write articles, speak at seminars, write blogs - market their talents to the widest audience.
Never Eat Alone. Attorneys should be entertaining clients and prospects whenever they are not doing billable work. Industry conventions, meetings, etc, should always have representatives of your firm in attendance.
Highlight your commitment to quality service. Take a page from value-billing firms: highlight in your bills the fact that calls were returned promptly, how much you saved the client, and how much you appreciate their business. Don't take their faith in you for granted.
Don't wait for your client to fire you. You don't want to be that banker. Don't wait for your client to tell you they are shopping. Conduct surveys and follow up - if a client has an issue, correct it and make sure the client knows you corrected it.
Justify your high fee. Don't devalue your services: JUSTIFY IT. Case studies, testimonials, high value cases, have them all available for clients to read. Don't be afraid to talk about your rates. Explain what goes into them. Many clients lament fees because they don't know what the dollar figure represents. Explain, with confidence, the investment you have in technology that gives your firm a competitive advantage to better represent them and helps contain costs so that you can be more efficient. Show how the investments you make have a direct effect on the quality of services you provide. Make sure they know what the fees represent: the culmination of dedication to the highest quality legal services by someone who cares about them personally and professionally.

What other ways can attorneys build and maintain relationships with clients so that they don't shop around for the lowest price?

Make More Rain : marketing, margin

Is the "LendingTree" Mentality Stronger Than Building Relationships?