Engagement Letters and First Impressions
First impressions can be lasting ones, even for sophisticated clients of law firms.
Especially for many small and midsize law firms, the engagement letter remains little more than a procedural formality — a document drafted quickly to satisfy professional rules or to outline fee arrangements. Yet, when thoughtfully prepared, an engagement letter can be one of the most powerful tools a law firm has to build client trust, reduce misunderstandings, and set the foundation for long-term client loyalty. Most firms overlook this opportunity, treating it as paperwork rather than a key part of the client experience.
By reframing engagement letters as a strategic communication tool, law firms can strengthen relationships from day one. Here are three often-overlooked opportunities that can transform engagement letters into instruments of lasting client engagement and satisfaction.
Clarify scope through client-friendly language.
The number-one cause of disputes between lawyers and clients is not fees but misaligned expectations. Too many engagement letters describe the scope of work in vague or highly technical language. While this may protect the firm, it leaves the client uncertain about what services to expect — and just as importantly, what lies outside the scope.
Instead, firms should focus on clarity and accessibility. Write in client-friendly terms, avoiding jargon while still being precise. For example, rather than merely referring to “representation in litigation,” specify whether the firm will handle discovery, appeals, settlement negotiations, or related regulatory issues. Offering examples of what the engagement does not cover helps prevent misunderstandings while illustrating transparency. Clients rarely forget when their lawyer makes the effort to be clear, candid, and approachable in early communications.
Embed communication expectations from the start.
Another missed opportunity is the failure of most engagement letters to address communication practices. Clients often measure their satisfaction with a lawyer not by courtroom victories or complex draftsmanship, but by how responsive and transparent their lawyer is. Walker Clark Strategic Business Development Surveys, conducted since 2002, demonstrate that responsiveness is always one of the top three factors by which clients assess their satisfaction with a law firm’s service — and usually is the top-ranked factor. Yet, few engagement letters set clear expectations for communication.
By including a section about communication commitments — how often clients can expect updates, the best ways to reach their lawyer, and typical response times for emails or phone calls — firms demonstrate reliability and respect for the client’s time. Even something as simple as promising a status update every two weeks (regardless of activity on the matter) can powerfully reinforce client confidence.
Address pricing transparency beyond the agreed fee.
Many law firms include fee structures and billing terms in engagement letters, but they often miss the chance to make pricing a trust-building conversation rather than a transactional detail. In price-sensitive markets, clients want assurance that “no surprises” billing is a consistent priority.
Engagement letters can become a competitive strength by addressing not just how much the firm charges, but also how the firm helps clients manage costs. This could mean explaining when and how budgets will be updated, how clients will be consulted before exceeding estimates, or what alternative fee arrangements may be available. Such proactive transparency transforms what is often the source of tension — legal fees — into a platform for building loyalty. Clients reward honesty and predictability with repeat business.
More than a contract: a loyalty instrument
Viewed through the client’s eyes, the engagement letter should be much more than a transactional document. It is the first substantive message a firm sends about its values, professionalism, and commitment to the client’s experience. For small and midsize firms in particular, where close client relationships drive sustainable success, better engagement letters can offer a practical, affordable way to stand out in competitive markets.
When firms take time to craft clarity of scope, communication expectations, and pricing transparency into their engagement letters, they do more than protect themselves — they invite clients into a ongoing relationship of trust and mutual respect.
And that is the real foundation of loyalty.
Norman Clark