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When lawyers think about growth, most think about acquiring new clients.
But sustainable growth comes from compounding existing relationships, fueled by serving good clients well over long periods of time. Each interaction builds on the last. What starts as a single engagement becomes a durable relationship.
Warren Buffett built his fortune on this principle. He didn’t follow the fads. He didn’t chase every investment opportunity. He was patient and chose a few great ones, invested in them with more than his money, and then let time do its work. He understood that the most powerful force in finance is patience and persistence, not intelligence.
The same is true in business development. The longer and better you serve a client, the more valuable that relationship becomes.
The Benefits of Retention
Let’s examine the numbers, which tell a compelling story.
A Harvard Business School study found that increasing client retention by just 5% can boost profits by 25% or more.
BTI Consulting reports that firms delivering exceptional client service enjoy 30% higher profitability and 35% higher client retention than their peers.
And when you look at the economics, the case for compounding is overwhelming. Also from BTI:
The cost of acquiring a new client is 8 to 12 times higher than earning new business from an existing one.
The probability of selling to a current client is 60–70%. For a new prospect? 5–20%.
A growing firm with weak retention is like an investor earning strong returns but constantly withdrawing their gains. The momentum never builds.
What Drives Compounding
In the years ahead—especially as AI reshapes the legal landscape—the differentiator won’t be competence. It will be client service. Even today, I’d argue it’s the main way to differentiate in a positive way.
Technology will continue to narrow the technical gap between firms. Clients will assume skill, and they’ll judge their lawyers and firms even more by what they experience during the engagement.
How you respond when a problem arises.
How clearly you communicate.
Whether you understand their business well enough to anticipate what’s next.
Whether you respect their time, their budgets, and their trust.
Those things that used to be considered “soft skills” are competitive advantages.
They create what Buffett might call a moat—a protective shield around your most valuable relationships. When service is consistent, thoughtful, and human, it becomes very hard for a competitor to displace you.
The Flywheel Effect
When you serve a client well, you start a flywheel in motion:
Great service > stronger trust > more work > deeper understanding > even better service.
Each turn of the flywheel builds momentum. And it’s not just financial compounding—it’s emotional compounding. Trust and loyalty grow. The relationship becomes more resilient when things don’t go perfectly.
That’s the long game of building something durable.
Plant the Tree
Warren Buffett once said, “Someone is sitting in the shade today because someone planted a tree a long time ago.”
The same is true for lawyers.
The “shade” of a thriving practice doesn’t come from chasing every opportunity. It comes from tending to the trees you already planted—your existing clients.
Serve clients well.
Reinvest in relationships.
Let time and trust do what they do best.
That’s how compounding works—in investing, and in client service.
Jay Harrington is president of our agency, a published author, and nationally-recognized expert in thought-leadership marketing.
From strategic planning to writing, podcasting, video marketing, and design, Jay and his team help lawyers and law firms turn expertise into thought leadership, and thought leadership into new business. Get in touch to learn more about the consulting and coaching services we provide. You can reach Jay at jay@hcommunications.biz.