Client Relationship Management: Navigating Client Losses, Proactive Strategies, and the Imperative for Firm Leaders

Elise, a partner at a Midwest-based global litigation firm, faced a crisis as she lost two significant clients, each generating $2 million to $2.5 million annually. The first client, a utility company, went bankrupt and was acquired by another entity, while the second, a technology company, chose a competitor after a poorly executed Request for Proposal (RFP). The General Counsel (GC) highlighted issues with the incumbent firm, including a last-minute and hasty RFP response, a lack of proactive thinking, and a team that failed to communicate effectively.

A San Francisco-based firm faced a similar predicament, losing two major tech clients. The managing partner discovered common grievances: the relationship partner ignored requests for a succession plan, failed to send the CFO for fee discussions, and didn’t expand the team’s interactions with the client.

Both cases underscore the importance of client engagement and proactive relationship management. Clients value firms that understand their business goals and provide thoughtful, timely responses. An article on the LawVision blog emphasizes the need for partners to visit clients regularly, understand their challenges, and build strong relationships beyond merely reacting to legal needs.

To do this, firms should require partners to visit top clients and diversify services across multiple areas. Research indicates that clients are less likely to switch legal counsel when firms provide comprehensive services.

They should also incorporate client visits into their strategy, fostering strong connections to retain clients and stay competitive in a dynamic legal landscape. The collaboration between sales professionals and lawyers is a potent strategy to secure a significant share of client business in a competitive environment.