I know what you are thinking, because if I had £100 for every time I’ve heard it, I’d probably be in the Bahamas now, not writing this blog for you to read… ‘We’ve spent thousands on training to cross-market in our practice and it’s been a waste of money. The day after the training, everyone goes back to doing what they always did – looking after their own clients and meeting their own chargeable time targets.’
Well, it can be done, and before I talk to you about ‘how’ of cross-marketing, I’d like to start with the ‘why’ cross-marketing is so very important.
Why cross-marketing is essential
Years ago I did a study for the law firm where I worked. I looked at how much of the profit from a matter went in the cost of acquiring the work (I used an activity-based costing approach in case you are interested). Each matter we did for a client for whom we had acted before cost us 8p per pound of profit. Where the matter was for a brand-new client, the bite into gross profit was 68p.
Now that might not the scale of magnitude in your firm, but I’d bet it isn’t a mile off. It is phenomenally cheaper to acquire work from existing clients (who already know and like and trust you and pay their bills) than new ones (who don’t know you, haven’t learned to like trust you, and may not pay their bills).