Trust trumps cost when clients choose a law firm
Biggest-ever sector research reveals client motivations and highlights the cultural shift needed by firms to match growing expectation
Price transparency rules require law firms to open their costings and credentials to greater scrutiny, but reputation and trust are the most important factors when it comes to choosing a firm, according to benchmarked consumer-facing research.
The findings are drawn from the biggest-ever client experience research project conducted in the legal sector, with almost 70,000 satisfaction surveys and 5,000 anonymous experience reviews undertaken during the past six years by LawNet, the collaborative non-profit network for independent law firms, as part of its ISO 9001 audited Excellence Mark.
The responses showed that just 4% of new business is won on price, with two-thirds generated through reputation and trust – comprised of 30% from existing clients, 19% by recommendation and 17% because of the people or character of the firm.
When it came to cost, more important to clients than the price quoted was understanding how charging worked. They also wanted to know the benefits of using the firm and to be kept updated as work progressed, highlighting the need for firms to tackle negotiating and sales skills, as well as strong client reporting.
This reflects findings by the Law Society suggesting buyers cannot differentiate between firms, yet only 28% of firms in national benchmarked surveying[1] explain why a client should choose them. Similarly, SRA research shows 95% percent of lawyers think they explain the charging system clearly at the outset, but only 70% of clients agree[2].
“Many lawyers see negotiating as part of their core skill set, yet our research suggests there is often a skills gap when it comes to talking about costs with clients,” said Helen Hamilton-Shaw, LawNet member engagement & strategy director. “But it is an issue that responds well to targeted action, once firms know they need to develop skills. Across the network, the way that walk-in enquiries are handled has improved by 24% in the past four years, and the way that staff handle a potential sales lead, by asking for permission to follow up on the enquiry, has shown a massive 41% improvement.”
The Excellence Mark is an integral part of the LawNet ISO 9001 standard and the measure by which client service is audited across all member firms. Delivered and measured through independent providers, the resulting knowledge is used to guide improvements, training and future development.
Added Hamilton-Shaw: “We have clear evidence that this process of measurement and support can drive significant performance improvements in firms. LawNet firms are almost 20% ahead of the sector in delivering the sales experience needed to drive new business and 13% ahead in terms of overall client satisfaction, and this follows through into their business outputs.”
Those figures are drawn from the anonymously-conducted experience reviews, where overall performance by LawNet firms increased by 15% from 2013 to 2019. This now stands at 67%, compared with 58% across the rest of the sector[3]. At headline level, overall satisfaction recorded in the benchmarked surveying across all firms stood at 89% in 2012-13. Following targeted action, this now stands at 97%, which is 13% higher than the sector as a whole, according to the LCSP Tracker Survey 2018.
With the rise of online reviews and peer-to-peer recommendations, the survey process is now integrated with ReviewSolicitors to encourage customers to leave comments. Firms are supported in developing the techniques necessary to manage these publicly-posted reviews and currently LawNet members dominate the rankings on the review website[4].
Also measured is the all-important indicator of whether a client would recommend the firm they have used to others and 95% of clients across the network say they would recommend the LawNet firm they used.
Said LawNet chief executive Chris Marston: “We developed our audited Excellence Mark because we saw client-focused service as the most important way our law firm members could add value and differentiate themselves, whilst retaining their independence, individual identity and brand. Six years on, the evidence speaks for itself.”
LawNet’s publication TARGETING EXCEPTIONAL EXPERIENCES: clients | employees | service covering the research and learning is available as a White Paper : http://bit.ly/LawNetClientExperience
HOW IT WORKS:
Regular client experience reviews are a requirement for all members, with independent researchers acting as potential clients to interact with firms. Researchers use the telephone, unscheduled walk-in, web contact, live chat, bots and out-of-hours routes to make their enquiries, with samples being taken across different departments throughout the year, equating to a monthly check-in, but avoiding any regular pattern that firms could identify and respond to. Firms receive one-to-one feedback and in-practice training to support findings.
Client feedback is captured through online satisfaction questionnaires, delivered independently through an online portal, measuring strengths and weaknesses, fee earner performance and overall satisfaction levels. While performance is benchmarked against fellow LawNet members and other firms taking part nationally, firms are offered increasing personalisation to enable tracking of specific issues and initiatives, including an option to share client feedback on the ReviewSolicitors website.
Click here to download PDF of White Paper and images
ENDS
For further information, please contact:
Press information:
Maggie Taylor, Prima PR & Marketing
Direct line: 0207 846 0096 Mobile: 0797 3767 602 Email: maggie@primapr.co.uk
Helen Hamilton-Shaw, Member Engagement & Strategy Director, LawNet
Direct line: 01926 834622 Email: hhamilton-shaw@lawnet.co.uk
Notes to Editor:
About LawNet
LawNet was established in 1989 to enable a collaborative, mutually-owned national network where independent law firms could access big firm resources and benefit from collective purchasing, shared knowledge, best practice and expertise.
All members share a commitment to excellence and must achieve and maintain LawNet’s own ISO.9001 standard and the associated Mark of Excellence in client service.
The combined aggregate turnover of the 70 firms comprising LawNet is currently in excess of £300m – equivalent to a UK Top 15 law firm – with members ranging from £2m to £25m turnover.
Independent research shows LawNet is most highly valued by members for delivering in six key areas – learning, networking, PII, practice development, marketing, compliance. It currently places over £1bn worth of PII cover alone for members each year, which helps stabilise premiums for firms.
[1] insight6 : legal sector client experience benchmarking, 2019
[2] LawNet 2019
[3] insight6 : Client Journey Programme, 2019
[4] ReviewSolicitors rankings September 2019: LawNet firms hold two of the top three rankings, six of the top 10 and 11 of the top 20.
LawNet launch results of the Client Experience
PRESS RELEASE
Embargoed until 13th May 2015
LawNet chief executive Chris Marston will be launching “The Client Experience” with a presentation at LEGALEX AT ExCeL London, Royal Victoria Dock, E16 1XL on Wednesday 13th May at 12noon and Thursday 14th May at 4pm.
THE BIG REVEAL : COMMUNITY OPENS UP RESEARCH BASE TO SHARE SECTOR SECRETS ON HOW TO KEEP THE CUSTOMER SATISFIED
Results of the sector’s biggest-ever consumer-facing research show communication skills and follow-up are key to meet the challenge of changing consumer demand
Customer service and communication are the most important drivers to future law firm growth.
That’s the message to come out of the biggest-ever customer research project conducted in the legal sector, with commentators saying the results highlight the need to learn more from the retail sector.
The findings have been published by LawNet, the collaborative non-profit network for independent law firms, following two years of research involving nearly 25,000 client experience questionnaires and 1,100 mystery shops across its member community.
And whilst firms got the thumbs up from customers for great technical expertise and delivering positive outcomes, the research flagged up key areas for improvement.
The most important areas flagged by customers as having the potential to increase their satisfaction, were the speed of response, upfront clarity on timescales and fees, combined with regular progress reporting and fees updates.
The results show that the price quoted for a job is one of the least important factors in the decision to appoint a firm, with recommendation or previous contact being the most persuasive reasons, making customer satisfaction key to future growth.
The feedback also showed that advertising alone was not enough to convert customers, with only 3% saying this was an influencing factor, pointing to a need for greater emphasis on sales follow up by firms. Qualitative feedback from mystery shopping showed that where follow up processes were not adhered to, clients interpreted it as a lack of interest and firms were unlikely to convert the business.
Commenting on the results, Andrew McMillan, former head of customer service for John Lewis, said: “This research is invaluable in providing the big picture to the sector and it underlines the bare truth of what customers are looking for when they buy legal services. It shows that the basics are the same as in any other sector for today’s sophisticated purchaser.”
“Without those basics - or so-called ‘hygiene factors’ - in place, it’s impossible to make the leap into developing a real customer-focussed personality,” added McMillan, who oversaw John Lewis securing the UK Best Retailer top slot for keeping its customers happy.
The research is being undertaken by LawNet as part of the delivery and audit of the network’s Mark of Excellence, part of the network’s bespoke ISO standard, which requires network members to take part in mystery shopping and online customer surveying. The research is an ongoing project, with resulting feedback being used to guide future training and development for members.
“Retailers have always seen customer experience as the key to success and profitability, whereas professionals still tend to focus on the technical,” said LawNet chief executive Chris Marston. “But in a world where clients can place an order online, choose a delivery slot and receive an almost instant email despatch confirmation, those expectations are being brought into the legal sector and firms must do all they can to improve the customer journey. It’s about being easy to do business with.”
He added: “Some firms within the sector may be unwilling to acknowledge the similarities between themselves and retail operators, but after two years of research we’ve got a huge, robust set of data to learn from. We’ve seen members of the LawNet community implementing changes to respond to the findings, often turning to other sectors for good ideas to improve the client experience in their own businesses, and they are already seeing the benefits. It’s about being brave enough to face the facts.”
“Having a great service proposition is all very well, but if enquiries aren't captured and followed up, that's a terrible waste. Follow up isn’t being pushy, it’s about responding to an identified need. Satisfied clients will bring repeat business and recommend you to others, and our research has proved that service is much more important than price - a mere 4% of respondents quoted cost as the reason for instructing the firm.”
LawNet’s publication The Customer Experience : Lessons for law firms, covering the research and learning is available as a White Paper for download or in print.
About the research:
The mystery shopping was carried out by independent specialist Shopper Anonymous, and involved a mix of walk-ins, telephone calls, web enquiries and out-of-hours calls, repeated at regular intervals.
The online bespoke customer satisfaction surveying is delivered by Law League to identify and measure strengths and weaknesses, fee earner performance and overall satisfaction levels. Performance is benchmarked against fellow LawNet members and other firms taking part nationally.
In practice:
Examples of responding to the findings:
FBC Manby Bowdler, West Midlands : research showed a need for improved communication skills amongst reception staff, as a result of which they carried out a training programme for these front-line staff.
“This real, on-the-ground information is allowing us to assess what’s working and helping us to make the necessary changes to truly focus on how we service clients,” Kim Carr, managing partner.
Andrew & Co, Lincolnshire : research showed a need to keep customers well informed of the progress of jobs and resulting charges.
“Costs information was high up the list, but clients were talking not so much about the amount of the fee, but rather about the extent of communication. By encouraging each team to take ownership of the way they work both in the context of the client feedback provided, and in designing benchmarks for service delivery we’ve seen much improved scores in our own customer feedback,“ Phillip Hoskins, partner.
ENDS
For further information, please contact:
Press information:
Maggie Taylor, Prima PR & Marketing
Direct line: 01400 251557 Mobile: 0797 3767602 Email: maggie@primapr.co.uk
Helen Hamilton-Shaw, Director of Services, LawNet
Direct line: 01926 834622 Email: hhamilton-shaw@lawnet.co.uk
Notes to Editor:
About LawNet
LawNet was established in 1989 to enable a collaborative, non-competing national network where independent law firms could access big firm resources and benefit from collective purchasing, shared knowledge, best practice and expertise.
All members share a commitment to excellence and must achieve and maintain LawNet’s own ISO.9001 standard and the associated Mark of Excellence in client service. The combined income of the 65 firms comprising LawNet is currently in excess of £250m – equivalent to a UK Top 15 law firm – with members ranging from £2m to £20m turnover.
Independent research shows LawNet is most highly valued by members for delivering in six key areas – training, networking, PII, practice development, marketing and compliance. It currently places some £1.2bn worth of PI cover alone for members each year, which helps stabilise premiums for firms.
www.lawnet.co.uk Twitter: @LawNetUK
Tough tactics secure awards for LawNet firms
Download images by clicking here
The hard-hitters were out in force at this year’s LawNet awards, with the winning firms all showcasing strategies that are putting them out in front.
Leading the winners by scooping the Law Firm of the Year Awards were London and South East firm Matthew Arnold & Baldwin LLP in the 16+ partner category and Bath based Mogers Solicitors LLP taking the award for Law Firm of the Year with up to 15 partners.
Announcing the awards, John Thomas, chief executive of LawNet, the long-standing law firm network for mid-size independent firms, said: “Entrants this year were exceptional, across the country and from very different sized firms. It seems none of our members are waiting for the changes in the sector to hit them – they’re all out there, driving forward new customer-facing initiatives and strengthening their internal processes.”
Matthew Arnold & Baldwin has tripled turnover during the past three years and is just shy of a Top 100 listing on turnover. They’ve already achieved a profit per equity partner ratio that puts them in the Top 20 with a strategy that has seen them develop a national reputation for expertise in investment and retail banking litigation.
Said Clare Stothard, chair of the Matthew Arnold & Baldwin management board: “Winning awards such as this is testament to the stellar efforts of colleagues across the firm. Having put in place an ambitious strategy, with client service and commitment to outstanding legal advice at its heart, we are thrilled to have had our success recognised by LawNet.”
In Bath, Mogers has achieved its best ever annual turnover and net profit, with residential matters up 50%, litigation by nearly 90% and departmental cross referrals up nearly 50%.
The LawNet Mark of Excellence Award went to Midlands-based FBC Manby Bowdler LLP for incorporating the new LawNet Mark of Excellence customer service standard at the heart of a cultural shift within the firm, that has seen them secure a coveted ranking in the national Sunday Times 100 Best Companies to Work For.
Best Use of Technology went to Fidler & Pepper Solicitors for an innovative online solution to tenancy management for landlords, with a simple system for staying legally compliant whilst speeding up action on rent arrears.
Young Lawyer of the Year winner was Judith Rountree of Gardner Leader LLP who is making a name for herself with high level contentious probate work and a strong focus on business development activities for her firm.
Best Use of Social Media went to Ashton KCJ, with a winning strategy that has included Twitter and LinkedIn; Facebook advertising campaigns and YouTube information-style videos, backed up with training for lawyers to help them take part and all delivering tangible results for the firm.
The award for Excellence in Risk Management and Compliance went to Vanderpump & Sykes Solicitors for the second year running, recognising their continuing outstanding performance and approach to quality processes.
Added LawNet’s John Thomas: “Awards recognise the achievements of the firms, whose innovation provides a valuable contribution to the standing of the LawNet network, as well as recognising the staff who are behind these outstanding outcomes.”
ENDS
Best Use of Technology : Fidler & Pepper Solicitors : sponsored by Tikit
Best Use of Social Media : Ashton KCJ : sponsored by Conscious Solutions
Excellence in Risk Management & Compliance : Vanderpump & Sykes Solicitors LLP : sponsored by QBE
Young Lawyer of the Year : Judith Rountree, Gardner Leader LLP : sponsored by Sweet & Maxwell
LawNet Mark of Excellence Award : FBC Manby Bowdler LLP : sponsored by Shopper Anonymous and Law League
Law Firm of the Year (up to 15 partners) : Mogers Solicitors LLP : sponsored by Wilkinson Read
Law Firm of the Year (16 plus partners) : Matthew Arnold & Baldwin LLP : sponsored by Wilkinson Read
For further information, please contact:
Press information:
Maggie Taylor, Prima PR & Marketing
Direct line: 01400 251557 Mobile: 0797 3767602 Email: maggie@primapr.co.uk
Helen Hamilton-Shaw, Director of Services, LawNet
Direct line: 01926 834622 Email: hhamilton-shaw@lawnet.co.uk
Notes to Editor:
About LawNet:
LawNet was established in 1989 to enable a collaborative, non-competing national network where independent law firms could access big firm resources and benefit from collective purchasing, shared knowledge, best practice and expertise.
All members share a commitment to excellence and must achieve and maintain LawNet’s own ISO.9001 standard and the associated Mark of Excellence in client service.
The combined income of the 66 firms comprising LawNet is currently in excess of £250m – equivalent to a UK Top 15 law firm – with members ranging from £2m to £15m turnover.
Independent research shows LawNet is most highly valued by members for delivering in six key areas – training, networking, PII, practice development, marketing and compliance. It currently places some £1.2bn worth of PI cover alone for members each year, which helps stabilise premiums for firms.
Twitter: @LawNetUK
LawNet leading the way in service delivery
Customer focus puts a smile on the face of the lawyers with a 92% satisfaction rating
LawNet members are reporting real results from a £300,000 initiative launched by the network to tackle the image of lawyers as aloof, arrogant and unapproachable.
The first of its kind for law firms, the initiative is focussed on helping the mid-size independent law firms that make up the LawNet network to stand out from the competition.
The package for member firms includes mystery shopping, online customer satisfaction questionnaires and customer service training, all designed to give lawyers lessons that are drawn from the retail sector.
LawNet’s Excellence Mark is wrapped up in a bespoke ISO standard and auditing system, so it’s robust and measurable, but designed to be more than a compliance straightjacket, according to LawNet, so as to add value for clients.
And the results to date run in the face of the latest survey from the Legal Services Board1 which suggested that consumers are likely to view legal professionals as intimidating and typically described them as ‘arrogant, disinterested or unapproachable’.
“Initial results certainly show that our firms are keeping clients happy,” said Helen Hamilton Shaw, director of services for LawNet. “We’re investing back into member firms with this initiative, which will see £300,000 being spent during the first three years.”
She added: “Research always hits the headlines about how bad solicitors are at communicating with their clients, that they’re arrogant, unapproachable and aloof, and we have set out to counter that by helping our members to embed a customer-centric approach and achieve a recognisable standard that clients can look out for.
“We can see that it’s working. The first results have shown a 92% satisfaction rate for friendliness and approachability, from customers of LawNet firms who have completed the online survey. Customers have asked for better communication and transparency on costs, so that’s what we’re measuring.”
All LawNet firms are independently audited as part of their ISO accreditation and the new Mark of Excellence will form part of all future auditing, to check that firms are keeping up with the terms of the LawNet customer charter, including completing customer satisfaction surveys, mystery shopping, response times, transparent costing, backed up by regular staff training and a focus on boosting internal morale.
ENDS
http://www.lawgazette.co.uk/news/public-still-sees-lawyers-arrogant
1 https://research.legalservicesboard.org.uk/news/latest-research-3/
For further information, please contact:
Press information:
Maggie Taylor, Prima PR & Marketing
Direct line: 01400 251557 Mobile: 0797 3767602 Email: maggie@primapr.co.uk
Helen Hamilton-Shaw, Director of Services, LawNet
Direct line: 01926 834622 Email: hhamilton-shaw@lawnet.co.uk
Notes to Editor:
About LawNet:
LawNet was established in 1989 to enable a collaborative, non-competing national network where independent law firms could access big firm resources and benefit from collective purchasing, shared knowledge, best practice and expertise.
All members share a commitment to excellence and must achieve and maintain LawNet’s own ISO.9001 standard and the associated Mark of Excellence in client service.
The combined income of the 66 firms comprising LawNet is currently in excess of £250m – equivalent to a UK Top 15 law firm – with members ranging from £2m to £15m turnover.
Independent research shows LawNet is most highly valued by members for delivering in six key areas – training, networking, PII, practice development, marketing and compliance. It currently places some £1.2bn worth of PI cover alone for members each year, which helps stabilise premiums for firms.
Twitter: @LawNetUK