Recruiting more clients isn’t the only way you can increase the revenue flowing into your firm. You can also boost the amount of money you get paid by each individual client. Learn how to boost the lifetime value (LTV) of the clients of your small firm in three simple ways.
Regular Communication
If you’re a regular reader of my blog, you know that last week we discussed the benefits of continually communicating with current and former clients. Those benefits included the fact that you can boost the lifetime value of each client by regularly engaging them after you have rendered your services.
I strongly suggest you make use of email automation software in order to do this. A simple “keep in touch” email every quarter can do wonders for keeping your firm at the forefront of your former client’s mind when it comes time for them to deal with another matter.
Email communication requires some subtlety and tact so you don’t want to bombard your former clients with annoying messages the moment their matter is complete. Instead, try to use occasional emails to deliver further value to the client and point out where you might be of use to them in the future.
Targeted Marketing
Properly targeting your emails and other communications is hugely important when trying to achieve results from your campaigns. Remember that your small corporate client for whom you handled a transactional matter likely does not need or want the same information or services that a personal real estate client does.
Segment your client list and customize communications for each segment. How you go about segmenting these groups is up to you. You may even wish to make use of a marketing professional or growth hacker to assist you in this endeavor.
Bundling Services
Thousands of law firms across the country are making use of alternative fee arrangements that clients like a lot more than the billable hour. Some firms are even implementing bundled services in order to provide more value to their business and individual clients.
Bundled services can be particularly useful for small business clients, who may wish to make use of a variety of services over the course of the business’ lifecycle but value the predictability and certainty of prepaid, bundled service packages.
While you may find the idea of discounted, bundled services to be tacky, the fact of the matter is that these strategies can be an effective way to get clients to buy more services in a shorter amount of time than they otherwise would.
Final Thoughts
Increasing the LTV of your typical client can have dramatic effects on both top-line revenue and bottom-line profit. Rather than spend your money and time tracking down and converting new clients, that same money and time can often be better spent increasing the value you deliver to existing clients and, at the same time, increasing the value they represent to your firm.