This article discusses
- how to tell the client about other legal services.
- the business development value of cross-selling.
- dealing with the client handoff.
- setting up a client/service grid.
- cross-selling to build referrals.
A sole practitioner in a fairly competitive midsized market primarily served clients' tax law matters. Many of his clients were referred to him by accountants and financial service organizations as a result of his reputation. But the attorney also had acquired a level of expertise in commercial real estate transactions and felt this practice area was underutilized by his clients.
He wondered why his small-business clients did not ask him to help them with their other legal needs and was disappointed when he discovered they were seeking counsel from other attorneys. The attorney felt his service to clients was very good and clients seemed to be very satisfied.
One small-business client, with whom he had a longtime relationship, stopped by one day to drop off some tax and financial papers. The attorney asked the client to stay a few minutes. Over coffee, the attorney asked the client if he minded sharing his reasons for not using the attorney's services in matters related to business law.
The client seemed genuinely surprised! He told the attorney that he did not realize the attorney wanted to practice in anything but tax-related areas. His only reason for using another attorney is that he thought the first attorney did not want the work.
The attorney realized this misconception regarding his practice probably was shared by most of his other clients. That afternoon he drafted a letter, to be sent to all his clients, describing typical small-business legal needs and his unique ability to respond to them. He cited recent seminars and training opportunities to develop his ability in this area.
The attorney mailed the letters and marked on his calendar to mention the subject during each client's next visit. Over the next year, his small-business counsel blossomed as he had hoped it might. He continued vigorous efforts to let clients know all of his capabilities, beyond the matters he was currently handling.
Letting the Client Know
Attorneys often take for granted that their clients understand their practice or firm as well as they do. They do not take the time to make sure the client is aware of the entire range of practice area capabilities. But unless they are told by an attorney or read a firm brochure, clients often do not have a realistic image of what their present attorney or firm's capabilities might be.
Cross-selling is simply letting clients know what else the attorney or firm can do for them. It is making sure that the broad range of legal services offered are fully understood and easily retained by each client.
Many firms have found that cross-selling is the biggest single source of new business. It exceeds referrals and community activities. Some firms have even suggested that as a source, the positive results of cross-selling are more profitable than all other sources of business combined!
Cross-selling is nothing more than the process of making sure all client legal problems are solved by selling others in the practice to the client. Cross-selling works best if the clients' best interests are kept in mind. In other words, instead of spending a lot of effort to make sure all the attorneys are busy, the attorney needs to look out for the clients’ needs. Cross-selling involves one attorney talking about another. It is easier to talk about the benefits another lawyer can deliver and to talk about the problems they can solve than it is to talk about ourselves. Further, as is equally obvious, it is better received by the client than a blatantly self- aggrandizing position.
One reason, if not the biggest, that attorneys have a hard time instituting a cross-selling mode is the fear that clients they introduce to another attorney, completely apart from differing practice areas, will be lost as "their" client to the second attorney. While there is no doubt that this can happen, most of the attorney's fears are unfounded. First, if the attorney's relationship is truly solid, it will not be jeopardized by introducing the client to someone else for specialized help. Second, the attorney will actually solidify the relationship by looking out for the client's best interests.
When the introduction is made, the attorney should make it clear to the client and the other attorney that a strong interest in the clients' affairs will be maintained. The attorney will follow up to make sure the problem at hand is solved to everyone's satisfaction. The attorney should go beyond words by maintaining verbal and written communications with the client and attorney.
These principles apply equally to attorneys within mega firms, small firms, or sole practitioners. The sole practitioner may suffer from the most paranoia, but is probably no more justified than the lawyer in a mega firm worrying about making a billable hour requirement for the year.
How to Cross-Sell Effectively
Certain axioms of effective cross-selling will work in any situation in which an attorney practices-in a group of sole practitioners sharing space, in both formal and informal networks, in affiliations, or in mega firms. Here are four proven methods that have helped the cross-selling efforts:
- Internal advance sheets that list matters, clients, and current legal issues. Advance sheets are frequently read, whereas memos sometimes are not.
- All-attorney memos on new matters. Some firms do this routinely for all new activities, beyond conflict-checking procedures.
- Attorney meetings. In addition to methods 1 and 2, regular attorney meetings can be held to describe new statute or case law and its significance for clients. This raises other attorneys' sensitivities to issues of their area. The meetings are chaired on a rotating basis by different attorneys, departments, or sections. The structure and time slot for these meetings will vary according to situational traditions, but monthly lunches have worked well for some firms.
- The client services grid. The format has of itself raised awareness in many groups of attorneys of cross-selling opportunities.
Nearly all attorneys, regardless of their practice area, either receive or give frequent referrals to other lawyers. Some lawyers have said that nearly 80 percent of their referrals are from other attorneys!
Cross-selling has its roots in the client-focus theory. If the attorney is mindful and truly understands his or her client's needs, the client should be informed of additional attorney or firm services as soon as a need for such a service becomes apparent. The attorney should be that much in touch with his or her clients' needs!
