In 1970 folk rock group Crosby, Stills and Nash had a huge hit with Love the One You’re With. As the song goes: “If you can’t be with the one you love, honey, love the one you’re with”.

They are great lyrics and on a certain level ring very true for law firms all over Australia when it comes to the omnipresent question of acquiring new clients and how to cultivate them.

Securing new clients is an activity that consumes huge resources, in time and marketing budget, in firms large and small. It is a necessary and indeed essential element in the pursuit of new business.

But are we spending enough time, energy and focus on “loving the clients we’re with”?

It is a really important question – because better servicing existing clients might achieve the same or even better results.

Revenue in the Australian legal services market in 2013 was valued at $20.7 billion (IBIS World Report). Those figures say two things:

First, the size of the existing market is enormous.

Second, the potential for new clients is equally large.

The unpredictability of revenue in the legal industry seems to have decreased after years of volatility since the global financial crisis. At times like this it can seem the world’s gone mad for chasing new clients. All this activity can be seductive.

Nielsen Data reported as long ago as 2010 that some firms were spending upwards of $3 million per year advertising nationally.  This figure will only have increased, as the level of advertising by lawyers in many core business fields has increased in traditional media areas and particularly the digital area. With this level of activity in the market, any chance of a big return on your investment is going to be an uphill battle, and needs to be carefully considered by those contemplating raising the media spend.

The question that needs to be considered is this: how does significant expenditure on new client acquisition stack up when compared to some of the basic principles of business?

If the Pareto principle is right and 80 per cent of your work comes from 20 per cent of your existing client base, there is significant value that may be unrealised from your existing client base.

1. Focus on existing clients

Certainly, there is a strong case for spending more time and energy looking at the opportunities that existing clients provide.

The reasons are numerous.

It can be easier, cheaper and far more effective to grow work within your existing client base. Your existing clients know you and are established – this can’t be underestimated. They understand your firm, how you and your team work and what they can expect in terms of quality and value of work.

The “love the ones you’re with” strategy also mitigates against the risk of your existing clients leaving you, because you’re checking in with them and staying in touch with their changing needs.

You can also spend time working out if they are happy with the services being provided. In fact, not doing so exposes your revenue to serious risk if unhappy clients are not identified early and responded to.

Addressing gaps in customer satisfaction through key client interviews can be one of the most successful ways of doing this.

2. Formulate a plan of action

The legal services landscape in Australia is highly competitive and clients know they have a choice.  The risk of not checking in with your existing clients via tailored interviews is that you won’t be aware when they are unhappy or have new projects.

Work out a plan and start small.

Interview clients

Act on feedback

Use a Net-Promoter-Score system to enlist your clients as advocates.

Chase, but don’t sacrifice – find your groove

Decide also what you’re not going to do

3. Let your clients advocate for you

How likely is it your clients would recommend you? Your client interviews should test areas of your practice against key performance indicators then categorise your clients’ responses under the Net Promoter System (NPS).

The Net-Promoter-System is a simple way of sorting your clients into Promoters, Passives and Detractors (www.netpromoter.com). This system gives you a tool to track your performance, and changes in performance over time, from the perspective of your clients.

It’s easy to use and identifies those clients who are passive. If you focus on improving their experience to the point where they could become advocates – job done.

4. You can’t do it all

You’ve got to do the foundations well and give your current clients attention. It’s a myth that clients don’t want to be disturbed to tell you what they think. Don’t be afraid to ask them then take action to improve things where you can. Have a look around those firms who’ve endured over time. They all have one thing in common: they do the basics well.

Sally King is the director, Strategic Communications and Business Development at Carroll & O’Dea Lawyers and a member of the Australasian Legal Practice Management Association.