THE hallmark of loyal relationships, whether personal or professional, is the ability to communicate and to benefit from that communication.

However, this very basic fact is often ignored by the vast majority of law firms. The American Bar Association estimates that only 29 percent of firms in the United States conduct interviews with their major clients.

The business world has a long history of using client feedback in many ways: to shape product development, to test price sensitivity and to uncover glitches that make clients unhappy. Smart companies use client feedback to shape profitability by investing in marketing tactics that strengthen the relationship and promote client purchases.

Three approaches to open up the avenue of communication with clients are interviews, surveys and focus groups. These tools can help firms understand what clients want, what they like or dislike about the relationship and on what areas the firm needs to focus.

This article, which is the first in a three-part series, will focus on client surveys and how they can be used to improve communication, which in turn, willimprove profits. In the coming weeks, the articles will focus on client interviews and focus groups.

The Client as Source

Law firm consolidations may be changing the structure of the profession, but client preferences are also changing, and a firm needs to deliver three layers of service:

* The legal work.

* Additional information, such as automatically delivered newsletters via e-mail or through seminars.

* Personal concern for the overall welfare of the client.

This last element is often shown by directly asking the client what they desire or want from the relationship and how happy or unhappy they are with the services.

Also, in meeting these three requirements a firm cannot rely on secondary evidence; expensive mistakes can be made here, which may be mere missteps at a large firm, but can be devastating to a small or mid-sized firm. Now, is the time to go to the source -- the client.

Written Surveys

Written surveys, which are the most popular vehicle for eliciting responses, can be used as an evaluative post-engagement tool, or as a way to query a broad client base.

John Callagy, chairman of Kelley Drye & Warren LLP, said that two years ago his firm sent out a wide-ranging survey to their diverse base of institutional clients, and, in turn, received an enthusiastic, larger-than-expected response. Callagy added that while doing a survey is trendy and fun, the hard part is establishing changes in accordance with the feedback.

Merrill Stone, managing partner at Kelley Drye, said that the survey also sent a message to clients that the firm was interested in their opinion, and gave the firm valuable feedback on how it pleased and displeased the clients. Stone also said that conducting on-site visits with a client can be very helpful.

If your firm is considering conducting a survey, get expert advice. First, you must articulate your goals. What, exactly do you want to find out? While longer, broad-based surveys are useful, you may want to consider narrowing the focus. Potential themes might include asking for feedback on relationship issues, or on the value of the marketing program or parts of it.

Response Tools

The language and construction of a survey are critical to get reliable responses. A variety of response tools are available, such as rating scales, fill-in-the-blank surveys or open-ended questionnaires.

Also, remember to make the survey easy for the client. Keep the surveys short, provide for the return of the survey by fax or by e-mail, or enclose a self-addressed, stamped envelope.

Average response rates for written surveys range anywhere from 10 to 20 percent, but the rate can be improved by calling those who have not yet responded and reminding them to send surveys in.

As lawyers, we clearly understand the difference in value between hearsay and reliable evidence, but the vast majority of firms rely on the former regarding issues most critical to their growth and profitability. By soliciting direct responses from a client, a firm can gather more reliable information to target and improve issues which have a direct relationship on revenue and profits.

© Copyright 2002, The Success Group

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