legalex 2014 what do clients really really want? a m sally calverley explains why law firm clients...

Legalex 2014 What do clients really really want?

A

www.richmontewells.com

Sally Calverley explains why law firm clients want

and expect more


What do clients really really want?

Meet Gemma….

– Calls for a quote for doing her will

– Two kids, single mum, owns a chain of beauty salons in the south east and has 3 buy to lets

– Has loyalty cards for costa and her gym, a Clubcard and a nectar card, banks online and shops at the farmers market


What do clients really really want?

Top 10 customer priorities*

1.quality of the service

2.being treated as a valued customer

3.speed of service

4.friendliness of staff

5.handling of problems and complaints

6.handling of enquiries

7.competence of staff

8.ease of doing business

9.being kept informed

10.helpfulness of staff

*UK Institute of Customer Service


“But it’s different for law firms!”*

1.Failure to advise 18%

2.Failure to follow instructions 16%

3.Delay 9%

4.Deficient costs info 8.4%,

5.Failure to keep informed 8.3%

6.Excessive costs 8.2%

7.Failure to progress 8%

8.Potential misconduct 6%

9.Failure to reply 5.3%

10.Failure to release papers 3%

* Not it’s not…Legal Ombudsman complaints: by type 2012-2013


The UKCSI says…

““Today’s customers are savvy, discerning and expect organisations to relate to them as individuals, not as transactions. Customers have greater choice, more ability to switch their business and access to an ever-expanding set of communication channels to express their preferences or displeasure.”Joanna

Causon CEO of UKCSI


Some good news!

“It’s clear from our research that customers are highly conscious of the service experience in their buying decisions. 60% of customers want a balance between price and service and a sizeable segment of customers have a preference for excellent service and are prepared to pay a premium for it.”


Customer Service

• Requires magic…

…Disney Magic!• 75% repeat visits• 17m visitors • Most visited theme park

…in the world!


Here’s why you should care:

Customer service:

• Builds trust• +10/100 points UKCSI score results in +13% trust rating

• Increases loyalty and positive buying behaviour• +1/10 client sat score >> +10% loyalty and +11% additional purchase

• Increases recommendation• +3/10 increase in client sat score to 9, x3 likelihood of referral

• Drives growth• Positive correlation between above average sector scores and

growth in retail food (9%) UKCSI January 2014


UKCSI measured value

• Consumers want a balance of cost and service

• When faced with the choice, 60% of customers favour a balance of price and service and will not accept low service levels in exchange for a cheap deal.

• A substantial minority of consumers – 25% – seek excellent service and are prepared to pay for it, while 15% are highly motivated to find the cheapest deals.


Who is the best?


And….


Why you should care

• Revenues going down amongst firms below the top 50

• Ability to invest in new services/delivery reduced

• Consumers increasing propensity to shop around

• Number of competitors are going up

• There are only so many costs you can take out


One potent strategy

•Consolidate• Build UP …• …build ON existing Clients

•Expand• Exploit reputation …• …liberate partner time to win new Clients

•Deliver • what your clients want and will pay for – VALUE!


Three Actions

•Measure involvement

•Align service with client needs

•Provide leadership


Consolidate: build up existing Clients

•This is where income is now• Short term, defend the base• But how profitable is each ?• What’s the profit standard ?

•Maximise satisfaction• How satisfied is each Client ?• Will they recommend us?• How do we measure it ?• How do we fix it ?


Expand: use reputation to grow

•Attack is best defence• In a market in turmoil, we must be growing• ABS have no track record of excellence • Best growth platform is happy Clients

•Partners are our Big Guns• Partners grow the cake• Need time to win new business• What new business do we want ?


Involvement = profitability

•Define Client Involvement Profile• How does the client want to work with us?• What are the best channels for delivery?• How can we guide them through the firm?• Where are they on the timeline?

•We need a measure• Systematic method of tracking Client needs …• … and level of satisfaction


Alignment

•How do we match our service to Client needs ?• Do we do enough ?• Do we overdo it ?• How can we improve the sensitivity?

•And what about Client profitability ?• How does that match Client satisfaction ?

–Unhappy Clients we lose £££ on is VERY bad business

– Low service quality companies average lose 2% market share a year

– High service-quality companies grow 6%

www.richmontewells.com 21

Client study

•Reports to firm • Status, outlook of industry, firm and key clients• Segmentation of client base• Interpretations and recommendations

– Competitive rating of current service and value– Potential based on segmentation– Define Client Value Measures per client

– The Richmonte Wells Value Standard©

•Recommendations for Action• Style, services, communications, products

– By client group

Sally Calverley

Des thought all this was really great - and very impressive!


An example

•Segmentation• 19 clients plotted by level of

involvement & revenue– Substantial range– Involvement score 44 to 22– Revenue 75,000 to 1.2 M

• Only 4 clients very involved – Spend over half a million– 35% total, about 1 m each

• 15 clients less involved with much lower spend

0 0.2 0.4 0.6 0.8 1 1.2 1.4

Revenue M

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Involvement vs Revenue

More involvement & spend

Less involvement & spend

0 0.2 0.4 0.6 0.8 1 1.2 1.4

Revenue M

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Defining Value by segment

•Defining VALUE• Set group and individual criteria

– What ‘success’ looks like– Optimum yield for the firm, satisfaction for client

– Financial, reputation, growth etc• Group criteria is primary focus

– Clients sharing common needs, expectations– Potential for segmentation into clusters

• Individual criteria is key refinement– Particular requirements

– Organisation, personality, communication etc


•Three segments• ‘Partners’, ‘Procurers’,

‘No Frills’• Law key to business

or grudge factor

• Very different needs & expectation

•Align service • Boost rating of Value• Lift loyalty• Enhance profitability 0 0.2 0.4 0.6 0.8 1 1.2 1.4

Revenue M

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"PARTNERS"Highly involved, big spend

Part of Business futureExpect innovative solutions

Very demanding

"PROCURERS"Medium involved, lower spend

Compete for ProjectsProductive Outcomes

Effiency & Professional

"NO FRILLS"Low involement & spend

Minumum costStreamlined processQuick easy Outcome

An example


How do retailers do it?

•Branding•Shop design•Investment•Logistics•Channels•Service levels•Recruitment•Product design/purchasing


How would you change?

• Current service• Premises• Website and other channels• Choosing new clients• Recruitment• Complaints• Structure


Redesign delivery to create value

•Do things differently to achieve a different result!• Client expectations/Firm forecast

•Use value plan to redesign work flow• Analyse, improve, re-engineer• Lean/Six sigma tools and techniques• Remove waste, reduce reworking, improve communication• Streamlined processes increase productivity

•Test against what clients value and will pay for– Input (e.g. leverage) and output (results against target)– Client satisfaction – stewardship survey

•Are you in control? • forecasting, resource planning and performance measurement

legalex 2014 what do clients really really want? a m sally calverley explains why law firm clients...

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