It not likely a surprise to anyone who works in or with law firms, that the “real” success that is lauded and promoted is gauged by a lawyer’s ability to chase and land brand new clients. Bigger names. Competitive wins. The elusive rainmaker. However, in today’s market, that narrative of what makes a successful rainmaker is not only outdated; it’s potentially damaging.
The legal marketplace is in a client loyalty danger zone. What has historically been comfortable and predictable with long-term, institutional clients is giving way to an increasing trend to loyalty erosion. The “myth of the rainmaker” with overweighted interest on brand new clients is being replaced by the “truths of the revenue strategist,” recognizing that existing client relationships have never been more important than they are now.
One of the most telling signs of trouble in client loyalty comes from a data point highlighted in BTI Consulting’s recently released “BTI Most Recommended Law Firms 2025” report, a finding that should sound an alarm. Their research revealed that only 25.6 of surveyed clients would recommend their primary law firm to a peer. A short five years ago, that number was 79.1%. Think about it. These stats suggest roughly that only one in four corporate counsel would recommend their primary law firm in 2025. Willingness to refer has universally been the juggernaut stat for client loyalty in Gallup’s landmark Net Promoter Score survey. It seems the referral engine that has long fueled law-firm growth is breaking down, and the firms that cling to “new business at all costs” are missing the bigger opportunity.
The Numbers Tell an Exciting Story: Retention Is the New Growth
There is a very positive aspect of this transition. When it comes to driving real, sustainable growth in your law firm, the numbers speak loud and clear: client retention isn’t just important. It is your biggest opportunity.
While chasing new business will always have its appeal, the path to stronger, more profitable growth lies in deepening the relationships that you already have. Consider this: acquiring a new client or Cost of Acquisition (CAC) can cost upwards of $25,000 (or more!) and often takes 12- 24 months of work with conversion rates to winning new business that hover between 2–10%.
Compare the CAC when you are nurturing your existing, loyal clients. For often less than $500 a year, you can maintain and grow those relationships with conversion rates of 50–80%. This is more than good economics. We have a legitimate, compelling growth strategy backed by data.
When measured through client lifetime value (CLTV), the payoff is even clearer. While a new institutional client may ultimately be worth a $1 million+ over time, an existing client often delivers 2x – 3x higher lifetime value through recurring matters and cross-practice expansion. Simply put: client loyalty multiples value.
The Loyalty Landscape
Referral generation is still the path through which 71% of new law-firm engagements begin. The higher a client’s satisfaction and advocacy for a preferred firm, the higher probability that referrals will continue to be strong source of new business. The good news? There’s a clear path forward, and some firms are already leading the charge. BTI’s “Client Service 30” aren’t just retaining clients; they’re outperforming across the board by investing in service, loyalty, and meaningful relationships. We too often treat client retention, loyalty, and internal business expansion as “soft” and something we assume will happen if we do everything else right. The long-held belief that satisfied clients will simply continue to hand over work out of loyalty and convenience is not as reliable in today’s market. Waning loyalty and the inability to retain or grow existing clients isn’t inevitable, and it comes at a great cost to your business.
Guard, Grow, Get – In That Order
To make a difference, high performing firms are thinking about revenue growth in a brand-new way. Successful revenue generation is an outgrowth of three important strategies, and closing the gap between client acquisition, and client retention is best place to focus first.
- First priority: The Guard revenue strategy is to develop methods and tactics to re-originate the relationships and revenue that you already have. This is accomplished through intentional client experience standards to protect from competitive threat and to prioritize relationship building and referral generation that comes from loyal Super Fans.
- Second priority: The Grow revenue strategy is focused on identifying and solving new problems for clients that already know you, trust you, and like you. It’s an other-centered focus first on what your clients are trying to achieve and what they value before you engage in pitching and trying to win new business. It is also important to prioritize the authentic reasons that clients will want to engage and not solely focus on the areas that promote firm self-interest.
- Third priority: The Get revenue strategy for brand new client business is to prioritize target prospects that have an identifiable problem you can solve and/or a warm decision-maker relationship that can be more easily accessed. Former clients and confident, proven referral sources will often produce leads the fastest.
Big picture – focus and adopt a data-driven approach. Track retention rates, recommendation rates, and cross-sell penetration. Use these as core KPIs for growth. Lead your efforts with the economic reality that creating and maintaining advocacy, loyalty, and deep client relationships will cost significantly less over time and pay richer returns for a longer period of time. Guard, Grow, and the Get (in this order) to optimize your business development efforts. Retention is the new growth.