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Law firms can often find themselves walking down the primrose path of disaster thanks to some common mistakes when it comes to client management.
Despite being a service industry job, the legal client is not "always right" (and neither is the law firm for that matter). But if you aren't skilled at managing your clients, you could find yourself facing angry clients, bad online reviews, or worse.
Below are five common mistakes law firms make when managing clients.
Letting Clients Litigate Bad Value
If a case doesn't have value to it, impressing on a client that throwing good money after bad is not a financially smart decision is critical. You may have to go so far as to refuse the representation if you think that the client will eventually come to their senses, then blame you for letting them move forward.
Letting Defiant Clients Ruin Cases
Clients are not always going to listen to your advice. But if you have a client that is tanking their own case, you need to have a serious chat with that client. Be sure to monitor the client closely and be ready to increase the seriousness of your chat if the client continues to make matters worse.
Not Warning Clients About Being Smart With Settlement Money
After a big win, attorneys should provide some financial counseling to clients. It doesn't have to include specific advice like stock picks or about investing for the long term, but attorneys should warn clients about potential tax implications, as well as personal safety.
Asking Clients to Recruit New Clients
While nothing beats a word of mouth referral, putting current and former clients in the awkward position of feeling obligated to recruit new clients just isn't good client management. Reminding current and former clients that your firm loves referrals is different than paying for a former client's flight to Vegas then demanding they recruit new clients.
Forgetting to Measure Client Satisfaction
The best way to get word-of-mouth client referrals is by doing good work for your clients. And while you might think that you always do good work, unless you poll your clients, you may never know what clients really think of you.
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