A fear among legal and other professional services firms to discover what their clients think about them is holding back their development, new research has revealed.
Outdated internal practices and a head-in-the-sand approach to customer feedback are among the biggest obstacles to growth, according to the study by Glasgow-based MyCustomerLens.
The survey of professional services firms across the UK found that there is a pervasive reluctance among partners to receive negative feedback and a widespread belief that existing communication channels are sufficient for understanding client needs.
The research unearthed several key challenges hindering effective client listening. A major finding was the prevalence of outdated assumptions among relationship partners often resulting in a resistance to formal feedback processes.
Key quotes gathered from the study which highlight these concerns include ‘clients would tell me if they weren’t happy’, ‘I know my client, I speak to them all the time’, and ‘the client won’t like it’.
Such responses indicate a barrier to firms genuinely understanding their clients’ experiences and needs, according to Paul Roberts, founder of MyCustomerLens, who led the study.
“The findings paint a picture of a sector struggling to move beyond outdated assumptions about client relationships,” he said.
“Partners often fear receiving negative feedback, equating it with a diminishment of their perceived value. This ‘elephant in the room’, as we call it, is preventing firms from embracing a client-centric approach.”
Research findings
MyCustomerLens, which provides legal and other professional services firms with an AI-driven, always-on client listening platform, surveyed 43 firms in December last year.
While 69% of firms said they now have five or more sources of client feedback, three quarters (74%) said data came from a small number of clients.
Some 58% store feedback in individual reports and fewer than a third (32%) said they shared feedback across multiple teams. Almost two thirds (64%) of those only share their findings between one and four times a year, or on an ad hoc basis.
Only 13% of firms said they had a centralised process for tracking the impact of actions, while fewer than half (48%) provide reports combining all feedback from a specific client, and only 45% said they made feedback a regular part of key account management.
The research also highlighted a significant cultural problem – many firms require internal permission to include clients in feedback processes.
“This cumbersome, piecemeal approach means that 83% of respondents reported not getting enough data,” said Roberts. “This lack of adequate information makes it difficult for firms to identify patterns, predict churn, and ultimately, make informed decisions that are client focused.
“Firms are essentially begging and haggling for each individual client to be included in feedback loops, rather than having an ‘always-on’ process.
“This means many firms are making business decisions based on incomplete data, missing opportunities to strengthen client relationships and win more work”.
However, the study also revealed a growing desire for change, with many respondents expressing a wish to make client feedback mandatory across their organisation and to automate the process. This indicates a shift away from the traditional, discrete research project mindset, towards a constant client feedback approach.
Shifting from ‘research’ to ‘signals’
One of the most significant shifts identified in the study was the move from a traditional “research” focused mindset towards a “signals” driven approach.
In the past, client listening has largely been treated as a singular annual research project. However, firms are beginning to recognise that client feedback is not just gathered through surveys and interviews; it’s being communicated through feedback forms, complaints, directories, testimonials, reviews, changes in revenue data, and staff feedback. All of this represents “signals” that firms need to capture to have a more complete, and accurate, client picture.
“The concept of ‘signals’ really seems to be resonating with firms,” said Roberts. “Rather than waiting for a formal feedback exercise, firms need to be actively looking for client insights across all these touchpoints. This shift to an ‘always-on’ approach will give firms a more immediate understanding of the client experience.”
MyCustomerLens believes that by recognising the importance of “signals,” firms can move beyond a tactical response to singular feedback events and adopt a more strategic approach to client engagement, leading to enhanced client relationships and improved business outcomes.