Collecting Client Feedback and Refining Operations

Competing amidst pricing pressures and disruptive alternative legal service models demands operational excellence and fanatic client centricity. Systematically securing feedback, win/loss bench marking, and evaluating pricing efficiency arm law firms with insights to continuously gain competitive advantage.

Implement Strategic Client Feedback Surveys

While attorneys directly converse with active clients, leadership too must take responsibility for orchestrating systematic client satisfaction surveys. Client Services teams or Business Development committees own survey design, determining:

• Ideal frequency – annually, biannually depending on volatility
• Target respondent criteria – size, industry, relationship longevity
• Mode – online, email, phone surveys customized by segment
• Core metrics – Net Promoter Score (NPS), overall satisfaction, brand attributes

NPS stands for Net Promoter Score. It is a key metric many firms use to gauge customer loyalty and satisfaction.

The NPS survey question asks respondents something along the lines of “On a scale of 0-10, how likely are you to recommend our company to friends, colleagues, or partners?”

Based on the score range, respondents segment into:

• Promoters (9-10 score) – Loyal enthusiasts
• Passives (7-8 score) – Satisfied but not loyal
• Detractors (0-6 score) – Unhappy customers

The NPS score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. So if 50% give you a 9 or 10, and 20% are Detractors as 0-6 scores, your NPS would be 50% – 20% = 30%.

The higher the NPS the better in terms of having an army of brand advocates. Comparing NPS trends year-over-year, or against competitors, gives a snapshot into customer loyalty momentum.

Analysis should link satisfaction to client spending levels or likelihood to refer. Dedicate partner and practice group resources to de-briefing results and constructing retention or growth plans for at-risk accounts. Hold people accountable to improvements.

Case Example – Client Loyalty Assessment

A boutique litigation firm counted several large technology companies among long-time clients. However, quick-turnaround e-discovery shops with lower price points increasingly threatened long-term loyalty. The annual client survey showed declining satisfaction scores around service flexibility and speed.

In response, leadership fast-tracked introduction of self-serve client portals with on-demand visibility into document statuses. Additionally, new flexible pricing bundles for clearly defined service levels allowed a more predictable budget experience. These innovations delivered a 8 point satisfaction and 10 point value lift in under 9 months.

Implement a Win/Loss Analysis Protocol

In competitive bidding situations, investments made in crafting differentiated RFP responses still result in disappointing losses. Performing win/loss analysis interviews not only provides closure with key economic buyers post-decision, but arms your firm with insights to upgrade strategies for future pursuits. BD committee owns debriefing protocols and outlines key learning to practice groups on:

• Perceived strengths vs. competitor offerings
• Weaknesses to improve positioning
• Pricing or delivery model adjustments

Equally study wins to replicate successful approaches. Formalize templates for various competitive scenarios to improve RFP response consistency firm-wide.

The win/loss analysis process should be treated as a valuable opportunity for continuous improvement, not just a post-mortem exercise. By gathering direct feedback from clients and prospects, firms can gain deep insights into their competitive positioning, value proposition, and areas for enhancement. This data-driven approach allows organizations to make informed decisions and strategic adjustments to their go-to-market strategies.

It is crucial to have a structured and consistent methodology for conducting these analyses. Establishing clear guidelines and templates ensures that the right questions are asked, and the feedback is captured in a standardized format. This facilitates cross-functional collaboration and knowledge-sharing, enabling different teams to leverage the insights effectively.

Moreover, win/loss analyses should not be limited to just the pursuit phase. Incorporating feedback from existing clients can provide valuable perspectives on ongoing service delivery, account management, and opportunities for expanding relationships. This holistic approach fosters a culture of continuous learning and improvement throughout the entire client life cycle.

By diligently implementing a robust win/loss analysis protocol, firms can stay ahead of the competition, refine their offerings, and ultimately drive better outcomes for their clients and their own business growth.

Review Pricing Efficiency Regularly

Beyond submitted rates by level in responses, study realized billing realization trends across clients and matters. The finance team calculates:

Total Hours Billed / Total Hours Worked

If realizations dip below 75% with write-offs, align attorneys on pricing guidelines relative to experience levels and matter types. Also verify rate cards keep pace with legal market rate inflation annually.

Summary

Committees tasked with managing client surveys, competitive win/loss analysis, and billing efficiency must proactively brief practice group heads monthly on key insights. Attorneys themselves remain accountable for constructing mitigation plans where deficiencies surface for their accounts. Over time, obsessive listening to client needs coupled with continuous legal delivery model enhancement compounds to distinct competitive separation.