by Jennifer Smuts, Practice Growth Lead, K&L Gates LLP
If someone asks about a memorable buying experience, you’ll likely hear comments like,
This is not only the sign of a job well done, but also an indicator of business success. Satisfaction, loyalty and advocacy are drivers of profitability.
A recent legal industry benchmark study shows that law firm clients are 9x more likely to be committed to their lawyer versus the firm at which their lawyer works.[i] There is no better time than the present to stress the importance of CX.
Meet Them Where They Are
Wicker Park Group founder, Laura Meherg is in the business of “creating dramatic client loyalty.” A national consulting firm that works with law firms of all sizes, Wicker Park Group works with firms to solve business challenges that CX can resolve. Meherg states, “I think the biggest misconception is that CX is fluff and it's not. It’s understanding what hoops to jump through politically and internally to make something happen in the (client’s) organization. It’s walking through the client's experience to see what it feels like to be a new client to your firm.”
When the law firm business model is based on the billable hour and compensation is earned (or reduced) based on factors including utilization and realization, it’s easy for management to focus on expenses, revenue and profitability. In doing so, leadership can’t see the forest for the trees. According to PwC research, nine in 10 clients say that their top criterion for hiring professional services firms is their CX. And 86% of those buyers say they will spend more for a great CX.
Walking the Walk
According to research conducted by Gartner Inc., a research and advisory company that provides insights for businesses, less than 20% of U.S. professional service firms have adopted a formal CX strategy compared to 88% of the Fortune 2000.[ii]
However, there are recognized legal CX stars among us including Troutman Pepper Locke LLP. Their CX function has been in existence for the past five years and has been shortlisted three consecutive years for the Best Business Team award by the American Lawyer. Director of Client Experience, Linda Sanders emphasizes that CX is about providing tailored offerings that add value for clients and recognizing that clients define value differently. CX encompasses many facets: innovation, staffing, billing, operations, IT and more. “At Troutman Pepper, the CX team focuses on four primary categories including Client Feedback, the Troutman Plus Value Program, Client Teams and signature client events.”
Managing and executing on these offerings is a significant undertaking, but for Troutman, “engaging with clients about their priorities and pain points and doing something actionable with that information is what differentiates us.” From partnering with clients on pro bono and DEI initiatives to the formation of the Legal Operations Summit, a biannual gathering of in-house Operation professionals, the firm is uncovering important opportunities not only to better support their client’s business but to influence and potentially play a role in shaping its future.
At The End of The Day
“If you've got leaders in your firm who don't see the value or haven't drunk the Kool-Aid, then it's useless because CX is not something one person can do,” reminds Meherg. Gartner illustrates this perspective below; a company can only realize the true benefits of CX program when you have buy-in from everyone.
For Angela Quinn, Chief Operating Officer at Husch Blackwell LLP, that’s not a problem. She explains that her law firm sees “clients as humans who purchase a lot of things and they're comparing us to every other (service) provider, not only law firms.” It was important for the lawyers to understand, “client service is what we do but client experience is how they feel about us.” As for the why, “CX is a pillar of the firm, and this is how we make the experience for our clients the best it can be at every touch point,” Quinn explained.
When examining the top business challenges of law firms, you may discover that establishing a CX program is an effective solution to many. From conducting internal training programs and measuring client satisfaction to hosting client-specific CX programs, embracing CX could be the difference between sustaining long-term profitable client relationships versus the costly churn of smaller engagements.
[i] Thomson Reuter Legal Solutions, 2024
[ii] Gartner Insights, 2022