Client Segmentation in Legal Marketing

If 80% of your law firm revenue comes from only 20% of your clients, the Pareto Principle is at work. Think of this like a pyramid, where a small number of accounts represent your “Priority A” clients, while you are likely to have many low priority accounts.

Segmentation is the process of dividing all your accounts into 3 or 5 prioritized categories (like High, Medium, and Low). Revenue levels usually determine the priority of an account, but other factors can include client-generated referrals or client prestige.

Five Reasons to Segment your Clients

1. Segmentation helps you to create appropriate law firm marketing strategies
2. You will be able to allocate your legal marketing time and resources more effectively
3. Client segmentation provides guidance on account prioritization to fellow attorneys and other staff members (although you don’t want to openly publish your prioritization strategies) 
4. Common characteristics of your best accounts can help you target similar clients for new business development
5. Not every account is a good one. It's OK to fire your low level accounts (within ethical guidelines, of course).

Learn More about "Courting Your Clients"

Client segmentation, cross-sell, and up-sell techniques are just a few of the many topics covered in the 2nd edition of the legal marketing book "Courting Your Clients: The Essential Guide to Legal Marketing." Click on the title to order your copy today.