by GrowthPlay Library / August 11, 2016
Defining why your clients do business with you is key to client retention and revenue growth. Buyers always have a choice and it’s likely they work with you because of the value you provide. It is up to you to define what that value is to replicate those profitable relationships.
Understanding your buyer and articulating your value will help you differentiate your message. Many law firms have the same pitch. They claim to be service-oriented, client-focused, the best at what they do. Don’t swim in the sea of sameness.
Here are three questions to help you get started:
Many law firms have a surface outline of who they want their buyers to be, but they do not truly dig deep to uncover buyer motivations, priorities, challenges and current trends they’re facing.
If you truly understand who buys your legal services, you’re better able to:
1. Articulate why they do business with you
2. Actually demonstrate the value you provide
Having a firm grasp on the monetary value you bring to your client’s business will justify your billable rate more than anything else.
In order to drive repeatable revenue, you need to approach this question with a buyer-focused mindset, one that’s driven by business goals. Usually, when firms ask this question, they come back with answers like “They’ve been sued,” or “They need help with a transaction or regulatory matter.” These factors may be true but they do not drive a high-dollar business relationship. Clients are motivated by strategic concerns that affect their business. Legal concerns, like litigation threats or contract needs, are only important as to how they affect the business. If you don’t tap into what your clients care about from a business perspective, they feel empowered to push you on fees and billing.
Don’t try to be another firm that tries to be all things to all people. If you’re everything, then you’re nothing. When competition is fierce, you need the ability to differentiate and target your ideal buyer.
To identify your ideal buyer, consider these three categories:
1. Industry Verticals
What industry verticals do your currently target? Which of those verticals present the largest opportunity moving forward?
2. Buyer Types
What role does your buyer have within the organization? Describe who those buyers are, what they’re responsibilities are, and their title (e.g. Chief Human Resources Officer; Chief Financial Officer).
What situation is the buyer in? Are they disposing or acquiring assets? Are they hiring on a regular basis? Firing on a regular basis? What are the situational attributes that would define an ideal client for your firm?
Clearly defining your ideal buyer will help you demonstrate the value you bring to your buyers. You will also be more likely to drive repeatable revenue and preserve market share because the impact you have on your customers is clear.