Report suggests law firms are failing on customer service 

A new report suggests that there is a ‘disturbing level of tunnel vision’ among law firms when it comes to adopting modern customer service standards, which could ultimately make the difference between success and failure.

The report by Peppermint Technology shows that law firms are falling behind other sectors when it comes to client satisfaction and customer support. Worryingly, the gap between legal and comparative sectors is getting wider, with many firms failing to cover basics such as following up enquiries and keeping in contact with former clients.

The research reveals that firms lack the willingness to change, remain sceptical about the benefits of automation and are reluctant to take a long-term view and invest sufficiently in their business. Law firms invest only 4.1 per cent of turnover in IT, compared to 4.9 per cent in consultancy, 5.1 per cent in accountancy and 7 per cent in financial services.

As well as taking a broad look at the professional services market, the report conducted empirical research to compare lawyers to accountants and consultants. Major findings include:

• A third of law firms have not been involved in any business innovations in the last two years, a much higher figure than the other two sectors. Consultants have been the most innovative, in particular in sales and marketing, and pricing – two areas largely ignored by many law firms to date;
• A third of law firms do not maintain a regular relationship with their clients once a particular matter has been completed, compared to 26 per cent of accountants and 13 per cent of consultants;
• Law firms are behind in offering clients online access to enable case tracking, or to check and download documents – 8.7 per cent of law firms have this, half that of  accountants;
• Thirty-nine per cent of law firms carry out regular client feedback surveys, behind consultants (52 per cent) but ahead of accountants (28 per cent). A smaller percentage in each sector incorporates the results into their client records and an even smaller percentage use the information to benchmark their performance over time; and
• Almost half of law firms (46 per cent) expect to invest in IT over the next 18 months, while 32 per cent anticipate investing in sales and marketing, and 22 per cent will look again at their pricing and customer delivery.

Arlene Adams, the founder and CEO of Peppermint, says: ‘Other sectors consistently perform better than lawyers in client satisfaction surveys.

‘It is time for law firms to look outside the legal market for inspiration and to benchmark their performance against other sectors. Technology will increasingly blur the lines between legal and other professional service sectors and law firms need to have the tools to compete. If they are not looking after their clients, others will.

Source: Global Legal Post

---