3. Client relationships are breaking down
High talent attrition disrupts continuity, with frequent turnover leading to delays as new team members get up to speed. Service breakdown will hit firms hard, with client attrition skyrocketing - 96% of firms have lost clients in the last 12 months, and 29% saw more than 10% client attrition.
Clients, who invest significant time and money in educating lawyers about their business, increasingly prioritize cost-efficiency, with 33% citing cheaper alternatives as a reason for leaving. There is also a demand for greater transparency, including alignment with DEI principles, with 33% of firms losing clients to competitors that better align with their DEI criteria.
If partners can’t demonstrate value, clients will find a firm that can. Tech-first firms are gaining the edge, with 64% reporting efficiency improvements after adopting technology in requests for information (RFIs). By implementing a resource management solution, firms can prove their worth and retain more clients.