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- Private Practice Pointers. No. 20
Private Practice Pointers. No. 20
64/4 Rule. 3 Common Myths. Your Achilles Heel
Table of Contents
by Donovan Rittenbach Jr.
Every busy attorney in private practice should be familiar with the 80/20 Rule, but the 64/4 Rule will revolutionize your approach to client management and revenue generation.
The Pareto Principle, discovered by Italian economist Wilfred Pareto, asserts that 80% of your revenue comes from 20% of your clients. This isn't just a theory—it's an observable reality.
When my wife’s recycling company was teetering on the brink and struggling to make payroll, we noticed this very pattern. One exceptional client accounted for a large majority of their revenue. He was a dream client in every way; while they struggled to collect payments from other clients, this client prepaid.
Unfortunately, they failed to act on this insightful pattern, and the company continued to struggle, a fate shared by many businesses that don’t leverage this powerful strategy.
The Pareto Principle applies to various aspects of business for attorneys in private practice, such as:
Client retention and satisfaction
Source of case referrals
Geographical distribution of clients
Types of cases that generate the most revenue
Common pitfalls in case management
Problematic clients
Effectiveness of marketing efforts
Website traffic sources
Advertising efficiency
Reasons clients choose your services
These are just a few examples. Most legal practices fail to harness this hidden lever to gain more ideal clients, increase revenue, and reduce operational hurdles.
Here's where it gets remarkable. Dive deeper, and you’ll uncover an even more astonishing layer—64% of your revenue comes from just 4% of your clients.
These clients represent your Ideal Customer Profile (ICP). They’re your dream clients who will gladly pay premium fees because they value your expertise.
But you can delve even deeper to uncover another level of potential within your practice.
I’m Donovan, a certified bookkeeper and copywriter with over 27 years of business experience. I help attorneys in private practice unlock and harness the hidden power of the 80/20 Rule, transforming their client acquisition and service strategies to focus on the clients who drive the most value.
Here’s how I do it:
Identify the 20% of actions driving 80% of your successes.
Highlight the 4% of clients who are your true revenue rockstars.
Shape your marketing and client communication strategy to capitalize on these key relationships.
Stop spreading yourself thin. Leverage the power of the Pareto Principle to work smarter, not harder, and EARN MORE.
Interested in identifying your best clients and figuring out how to acquire more of them? Elevate your practice's profitability while reducing the time you spend doing it.
Let’s schedule a call to discuss how to achieve more with less.
Yours in better practice management,
Donovan Rittenbach Jr.
Are You Falling for These 3
Customer-Centricity Myths?
by Laura Patterson
Selecting the right customer-centric strategy has many top- and bottom-line benefits.
Published research has compared customer-centricity laggards to their counterparts. The data has found a higher customer-centricity maturity level is proven to deliver:
7 times higher growth
60% increased profitability
Higher brand and customer equity and shareholder value
Yet, some misconceptions have slipped into the conversation.
In this issue and the next, we’ll debunk six common myths that often act as roadblocks, preventing businesses from fully embracing a customer-centric approach to reap its rewards.
Myth 1: Customer-Centric Growth is Exclusively for …
The most common fill-in-the-blanks we hear is that customer-centricity is a) only for large law firms, b) only for certain practices, and c) only for customer-facing teams.
Facts:
This is not just for large firms; embracing and successfully implementing customer-centricity at any scale can help your practice grow into a larger company.
In fact, mid-size and smaller firms often have an advantage when building and nurturing close relationships with customers. They have the flexibility to adapt quickly to changing customer needs and can glean valuable insights from their customers, allowing for a more personalized and effective customer-centric approach.
Not just for certain practices. Some think customer-centricity is only for family law or estate planning. Yet, all practices need to improve their customer-centricity maturity level to compete.
There are more fierce competitors in every market; if they’re not, it’s probably not a viable market. The customer-centricity bar of expectations is continuously on the rise for all businesses.
Customer-centricity must go beyond these functional groups, not just for customer service and support. Everyone, from the board of directors to the intern and externally to business ecosystems, plays a part in creating a customer-centric culture.
The customer must be at the heart of everything you are, do, and create. This includes a) vision, mission, strategy, and planning; b) functional groups including marketing, sales, finance, HR…, etc.) design of products and services; d) solution delivery systems; and e) innovation and process improvements.
Are you customer-centric per this definition and in the eyes of your customers? Take this simple yet powerful assessment to discover and gain insights into where to invest to improve your results.
Myth 2: Customer-centric insights Derived from Data are Complex and Time-Consuming to Glean
The misconception that deriving customer-centric insights from data is overly complex and time-consuming is unfounded.
Fact:
Many businesses are drowning in data and cannot extract relevant information to convert it into insights and action.
There are solutions.
Today, businesses of all sizes have access to various user-friendly and cost-effective tools that streamline data collection, analysis, and interpretation.
By harnessing the power of customer data, businesses can gain profound insights into customer behavior, preferences, and expectations. With this knowledge, businesses can make better-informed decisions to enhance products, services, and overall strategies.
Myth 3: Customer-centric strategies are One-Time Events
Customer-centricity isn’t a one-off endeavor; it’s a continuous process.
Fact:
Customers’ needs, preferences, and expectations are dynamic and ever-changing. Competitors are transforming their businesses to meet the new and higher expectations.
Thus, a commitment to customer-centricity requires ongoing monitoring and improvement of this initiative. Businesses must adapt and evolve their strategies in response to shifting customer landscapes.
Embracing this perpetual journey ensures that the organization remains aligned with its customers and delivers sustained value.
Laura Patterson is the #1 Amazon Best-Selling author of Fast-Track Your Business: A Customer-Centric Approach to Accelerate Market Growth. She founded VisionEdge Marketing in 1999.
Unlocking Your Firm’s Potential: Avoiding the Achilles Heel of Client Communication
by Nancy Zare, Ph.D.
Remember the story of Achilles?
His mother dipped him in the River Styx, holding him by his heel to make him immortal.
Every part of his body became invincible, except for his one vulnerable spot – his heel. A single arrow to his heel brought down the legendary warrior of the Trojan War.
How does this ancient tale relate to enrolling clients in your law practice?
Just like Achilles, every person has a vulnerability. Think of it as your Achilles Heel.
One common pitfall in client communication is assuming what convinces you will also convince prospective clients.
You’re tempted to use the same approach with your prospects that persuaded you to engage your accountant or business coach.
But here lies your Achilles Heel: projecting your communication style onto others. This approach typically clicks only with clients who think and feel as you do.
You might have heard that sales is a numbers game—plenty of “No’s” before getting a “Yes.”
But here's the thing: you can minimize the “No’s” if you address your Achilles Heel.
Instead of leading with your preferred style of buying, take the time to diagnose and understand your prospect’s buying style.
Adapt your approach to align with their preferences.
By doing so, you’ll develop rapport more quickly and enhance your chances of enrolling new clients.
And, you will effectively sidestep the common Achilles Heel of client communication.
Empathy, adaptability, and a deeper understanding of your prospective clients' needs will make all the difference.
Red Beauty
by Hunter Mestman
Ever had someone think art happens overnight? Yeah, me too—but would you really want that?
-It’s a collaboration—would you skip the fun part where we brainstorm together?
-Like slow-cooking, good things take time—would you rush your grandma’s meatball recipe?
-And hey, I’ll keep you in the loop with progress pics—would you want to miss out on those?
Let’s take our time and make something awesome together. Ready to team up?
Red Beauty, Photograph by Hunter Mestman