It is often believed in law firm marketing that acquiring new prospective clients may cause a law firm more than 4 times  what it will spend in retaining an old client. It is also believed that an average law firm loses 10% of its clients on yearly basis. These scenario are quite avoidable if a law firm can make use of simple client retention methods. Fostering a successful relationship with a new client should be a law firm’s focus after meeting such new client. Successful law firms are those who have a greater bond between their law firm and their clients and that makes them to survive the competitive market.
The client retention rate of a law firm can be easily calculated by comparing the year-to-year retention rates. New businesses obtained from both old and new clients becomes profitable for a law firms due to lower cost of acquisition of such new prospects. Client retention capacity of a law firm can be calculated comparing the rate of retention from year to year and checking out whether such rates have been decreasing or progressively increasing through the years. If 10% of your clients do not return to do business with you in a year then you have a retention rate of 90% which may not look too bad at the short run, but this will be fatal for your law firm marketing plans as well as your attorney law firm at the long run if such a trend  is not stopped.
You law firm retention capacity is very critical because it has a huge impact on your firm’s profitability. If you can increase your law firm’s retention rate to 95% , it will be very ideal for you at the long run . Low client retention rates cannot be solely blamed on the law firms. There are some factors which may  contribute to low client retention rates and such factors include mergers of law firms, relocation of clients, acquisitions and several other factors. It is believed that even the retention of a single client may bring huge fortunes on your law firm through your law firm marketing strategies.
Client satisfaction is one of the factors that can contribute to your law firm’s high retention capacity. Without satisfying your clients, it will be extremely hard for you to achieve your desired retention abilities, satisfying your clients means solving their legal problems and improving their quality standard of living.