There is NO easy road to growth! In today’s hyper-competitive and fragmented legal market, the best way for law firms to increase revenue is through organic growth. In this blog, we’ll explore how law firms can acquire, retain, and expand client relationships to boost revenue growth by answering the following questions:
1 – What is organic growth and why is it important?
2 – What are the three key steps for organic growth?
3 – How can Nexl help optimise your revenue growth strategies?
What is organic growth and why is it important?
Organic growth is the process of growing your law firm using internal resources, capabilities, expertise, and relationships. Organic growth is the most cost- effective and sustainable form of growth. The creation of a strong internal business development function is therefore a priority for law firms, especially those that are confronted with increased competitive forces.
This being said, the final responsibility for growth lies with the lawyers themselves. Although many firms have built sophisticated business development and marketing support systems to sustain and enhance their lawyers’ commercial capabilities, the firm’s lawyers have the relationships that matter, and therefore need to play the main role.
Relationship-based businesses such as the legal industry have been deeply impacted by the digital transformation of our work processes and professional networks. Lawyers and their support teams need a new approach to networking, relationship building and revenue growth. Fortunately, Nexl created an easy-to-understand formula for success, called the Client Revenue Flywheel, which explains the three key steps to achieving organic growth for law firms.
What are the three key steps for organic growth?
The three key steps for organic growth are: (1) New client acquisition, (2) Client retention, and (3) Expansion of existing client accounts. These three steps combined form a virtuous cycle called the Client Revenue Flywheel. Throughout these phases, law firms need to ensure that their objectives are aligned and can be transformed into concrete projects and tasks for effective execution.
(1) New Client Acquisition
In the first phase, we facilitate the acquisition of new clients. We aim to bring in new accounts to grow revenue through actively prospecting for clients that are the right fit. If lawyers have access to the right information, clear objectives, and proper follow-up, they will be able to bring in new clients.
(2) Client Retention
In the second phase, we identify those existing clients who are most important for the future success of the law firm,and build a strategy to retain those clients. It’ is crucial to retain clients that offer the best potential growth for the law firm. Essentially, the aim is to increase client lifetime value and enhance client loyalty by offering a superior experience and value to high-priority clients.
(3) Expansion of Existing Clients
Finally, in the third phase, we address how we can increase revenue using an efficient cross-selling growth strategy. Cross-selling, or cross-servicing, offers a clear method to re-think your business development and client management. The aim is to search for ways to increase your share-of-wallet for existing clients and offer more and higher-value services to your client base.
How can Nexl help optimise your revenue growth strategies?
“At Nexl, our core mission is to help lawyers find smarter ways to grow their practice. We empower those that want to move forward.” – Philipp Thurner, CEO, Nexl
With our core mission being, to help lawyers find smarter ways to grow their practice, Nexl combines the power of technology, the connections in our global community and a focus on constant professional development.
Nexl gives lawyers a competitive advantage by leveraging the relationship data flows that already run through their daily operations. By seeing this relationship data as a strategic asset, and investing in an advanced growth revenue platform, law firms can turn their daily interactions into deep client insights and relationship intelligence. With Nexl’s help, these assets can become a strategic advantage and will enable both lawyers and law firms to realize their full growth potential.
Law firms can acquire new relevant clients by implementing Nexl’s growth revenue platform, thereby empowering their lawyers to become more effective at new business development through prospecting tools and market intelligence. Nexl generates client insights and relationship intelligence that will allow lawyers to build deeper, longer-lasting client relationships, thus retaining high-priority clients. Lastly, lawyers will be able to reveal detailed relationship dynamics to identify opportunities faster and broaden their relationships. By creating deeper relationships with clients, lawyers can pitch other relevant services and expand their existing client base.
To understand more about how our Client Revenue Flywheel can help you grow your practice, get in touch for a demo by clicking on the ‘Request Demo’ button below, or click here to read our Revenue Operations Whitepaper.