This article first appeared in the November edition of Professional Marketing Magazine. View the original article here~ Client Engagement_PM Magazine. For further details please go to www.pmforum.co.uk

Is client engagement at the heart of your firm’s strategy? Perhaps it should be. Helen Hamilton-Shaw, director of services at LawNet, the national network of mid market law firms, explores why LawNet firms are bringing engagement higher up the agenda.

Everyone is talking about client engagement - it’s one of the current buzzwords of the profession.  But other sectors have been taking engagement seriously for a long time. Client or customer engagement first entered the rhetoric in the early 00’s and many successful global businesses now focus much of their efforts on developing and monitoring engagement levels. LawNet member firms are increasingly pushing the topic up their agendas; and as a members-owned network, engagement of our members is one of my key focuses as well. It seems we are all chasing the holy grail of actively engaged clients!

 
WHAT IS IT?

Definitions for the term ‘engagement’ are still evolving and range from simple marketing, loyalty and satisfaction schemes to more strategic approaches, which put the client at the heart of the company or firm, enabling the development of deeper relationships and experiences. In a law firm context, it is about firms looking holistically at the interactions they have with their clients and shifting the focus away from the historical, transactional nature of individual matters, towards building long term beneficial client relationships. It’s about looking at the lifetime value of that client to your firm.

WHY SHOULD I CARE?

Analysts at Forrester published a report recently declaring that we had now entered ‘The Age of the Customer’ which is fundamentally shifting the competitive framework of every industry. Primacy in the traditional competitive arenas of manufacturing capabilities, distribution strength and knowledge superiority are no longer enough to secure success.  Instead in this new age, “the only sustainable competitive advantage is knowledge and engagement with customers”.  The legal profession will not be immune to this shift. Your clients are somebody else’s customers and they will come to expect the same level of service and relationship from their professional advisor as they do from other providers. 

In addition to this global shift, the legal profession itself is in a period of dramatic change with increased pressure and challenges ahead. Whilst the official introduction of ABS’s might still be around the corner, other changes are happening already and firms cannot afford to be complacent. The market for mid-tier law firms is being squeezed at both ends and is more competitive than ever. In these conditions staying close to your clients can be an effective defensive strategy.  As Lindsey Farrelly, solicitor and business development manager at LawNet firm, George Davies in Manchester says, “There is more competition than ever in the mid tier. We need to keep close to our clients and turn them into lifetime customers. Client engagement is a way to differentiate ourselves from our competitors”.

The business case for investing in a client engagement strategy is pretty compelling. According to international research company Gallup, organisations which excel at engagement outperform their competitors by 26% in gross margin and 85% in sales growth.  In a market where the competition for clients and fees is ever increasing it’s hard to ignore statistics like that.

WHERE IS THE VALUE?

So  how do engaged clients differ from unengaged clients? The theoretical difference is clear, as outlined in Figure 1 describing the four categories of client engagement as defined by Gallup. What does this mean in practice?

Feedback from LawNet member firms suggests that they see a clear benefit in engaging clients through higher retention rates and ultimately increased fees.

As Farrelly explains:  “If you employ a transactional focus with a client, then that’s the kind of relationship you get back from them and you’re unlikely to hear from them again.  Over 60% of the files we open are for existing clients. We focus our energies on building relationships with these clients so they come to see us as a “collaborative partner” as opposed to just another supplier. These clients then also recommend us to others.”

By truly engaging with clients you develop more meaningful relationships which can be beneficial for everyone. “Engaged clients,” according to Brendan O’Brien, partner at Hertfordshire based LawNet member Breeze & Wyles, “are happy clients who wants to receive your advice and assistance.  They are also more likely to appreciate the true value of your advice.”

The strategic goal of many firms embracing engagement is to reach the sought after status of ‘trusted advisor’.  As Farrelly says: “Once you engage with clients, you are able to learn more about their business and anticipate their needs.”

HOW TO DO IT

A survey conducted in 2010 by agency Claydon Heeley asked individuals exactly how brands could build better relationships with them. The overwhelming answer was that they should “Listen to what customers have to say – and act on it.”

This is exactly the approach being taken by LawNet members IBB Solicitors, a 30 partner firm in West London. “Engaging clients is something a lot of firms talk about, but the phrase ‘client-focused’ has become almost banal. It’s easy to say, but not easy to convince clients that you deliver,” says Abby Winkworth, Partner, Marketing & Business Development.

“IBB has introduced a range of activities to put the client at the centre of everything we do. This includes dedicated client partners, a focused client relationship review programme for our top clients, client engagement surveys and six monthly client questionnaires. Overarching all this activity is a drive to focus on really listening to our clients. But more than just listening, it has to be active listening. There’s no point gathering all that information if you do nothing with it. So as actions come out of those conversations, we act on them and most importantly once we’ve made changes we then tell the client that we’ve done what they asked.

“One of the most controversial moves was to make one person truly responsible for the client internally. This is more than just an administration role collating information from satisfaction surveys. This person has authority to raise issues at team meetings and push for changes and improvements. They are the voice of the client, and they get listened to.”

This all represents a shift in the focus of the firm into the realms of engagement and is about having real dialogues with clients, putting their needs at the top of the firm’s agenda.

And the result of this commitment?  “It’s early days for some of these activities,” says Winkworth, “but the indications are that clients really value the feeling of greater depth in our relationship as a direct result of our engagement strategies, which is helping us to achieve our goal of reaching ‘trusted advisor’ status.

“We’re constantly tracking performance  across the firm and use that data to drive improvements in the way we run our business. We’re also gathering plenty of anecdotal evidence to support the return on our investment, including work generation across departments and clients.”

Listening and service are key. As IBB say, it’s not enough to just ask “is everything all right?” They are continually asking “is there anything more I can do for you?” Whilst it might seem a subtle change, it’s a fundamental shift in approaching client relationships.

East Anglian LawNet firm, Kester Cunningham John has introduced a firm wide project “Exceptional Client Experience” to prioritise client engagement. For Hannah Rutterford, partner, treating clients as individuals is a fundamental and never assuming you know what the client wants ensures you communicate and listen throughout: “Involving your client at every step is crucial to ensuring you are constantly meeting their needs and providing a ‘custom-made’ service, therefore keeping you ahead of your competitors.

 “An engaged client is one who is confident they have been listened to, is involved and informed throughout the process, is at the heart of the process and whose aims and achievements have been met no matter how many times they may have changed on the way. “

The client experience is central to improving client engagement. Think about all the touch points you have with clients. What is their experience like at each point? How can it be improved?  The client experience needs to pervade the firm. An internal client champion can be a great way of ensuring that the client can be “heard” internally.

To achieve client engagement you need client understanding at the core. You can’t possibly hope to build a meaningful relationship with your clients if you don’t know them.  The recent research by Managing Partner Forum found that having an in-depth knowledge of their business, was the most highly rated factor underpinning deep relationships for clients.

Firms could learn much from other sectors. For David Gilroy, sales & marketing director at Conscious Solutions, who work extensively with customers in professional services, client engagement means staying close to your clients and developing a two-way conversation with them.  “Key Account Management programmes, client surveys, client research, asking them what they want are all important to building deep relationships.  For example, in our world we ask our clients how often they want account reviews; some want monthly, some quarterly, but the key is that we actually ask.”

CONTINUAL IMPROVEMENT

 If you can’t measure something then you can’t improve performance, so it’s important to track engagement activities across the firm. Online that might include clicks, open rates, interactions, impressions, retweets etc.  Offline; measure referrals, attendances at events, cross-selling and files opened as well as qualitative feedback received through meetings, and individual conversations.  

DELIVERING VALUE

In order to deliver value to your firm you need to take a strategic approach to your engagement activities ensuring you really focus on the people you want to engage with. Many firms have had to overcome the usual internal challenges related to introducing change and new ways of working. But the traditional view that work will just arrive through the door is simply not true in the increasingly competitive landscape. And with even greater change and competition on the horizon, engagement and developing valued relationships with your clients is something that cannot be ignored.

This article first appeared in the November edition of Professional Marketing Magazine. View the original article here~ Client Engagement_PM Magazine. For further details please go to www.pmforum.co.uk

Is client engagement at the heart of your firm’s strategy? Perhaps it should be. Helen Hamilton-Shaw, director of services at LawNet, the national network of mid market law firms, explores why LawNet firms are bringing engagement higher up the agenda.

Everyone is talking about client engagement - it’s one of the current buzzwords of the profession.  But other sectors have been taking engagement seriously for a long time. Client or customer engagement first entered the rhetoric in the early 00’s and many successful global businesses now focus much of their efforts on developing and monitoring engagement levels. LawNet member firms are increasingly pushing the topic up their agendas; and as a members-owned network, engagement of our members is one of my key focuses as well. It seems we are all chasing the holy grail of actively engaged clients!

 
WHAT IS IT?

Definitions for the term ‘engagement’ are still evolving and range from simple marketing, loyalty and satisfaction schemes to more strategic approaches, which put the client at the heart of the company or firm, enabling the development of deeper relationships and experiences. In a law firm context, it is about firms looking holistically at the interactions they have with their clients and shifting the focus away from the historical, transactional nature of individual matters, towards building long term beneficial client relationships. It’s about looking at the lifetime value of that client to your firm.

WHY SHOULD I CARE?

Analysts at Forrester published a report recently declaring that we had now entered ‘The Age of the Customer’ which is fundamentally shifting the competitive framework of every industry. Primacy in the traditional competitive arenas of manufacturing capabilities, distribution strength and knowledge superiority are no longer enough to secure success.  Instead in this new age, “the only sustainable competitive advantage is knowledge and engagement with customers”.  The legal profession will not be immune to this shift. Your clients are somebody else’s customers and they will come to expect the same level of service and relationship from their professional advisor as they do from other providers. 

In addition to this global shift, the legal profession itself is in a period of dramatic change with increased pressure and challenges ahead. Whilst the official introduction of ABS’s might still be around the corner, other changes are happening already and firms cannot afford to be complacent. The market for mid-tier law firms is being squeezed at both ends and is more competitive than ever. In these conditions staying close to your clients can be an effective defensive strategy.  As Lindsey Farrelly, solicitor and business development manager at LawNet firm, George Davies in Manchester says, “There is more competition than ever in the mid tier. We need to keep close to our clients and turn them into lifetime customers. Client engagement is a way to differentiate ourselves from our competitors”.

The business case for investing in a client engagement strategy is pretty compelling. According to international research company Gallup, organisations which excel at engagement outperform their competitors by 26% in gross margin and 85% in sales growth.  In a market where the competition for clients and fees is ever increasing it’s hard to ignore statistics like that.

WHERE IS THE VALUE?

So  how do engaged clients differ from unengaged clients? The theoretical difference is clear, as outlined in Figure 1 describing the four categories of client engagement as defined by Gallup. What does this mean in practice?

Feedback from LawNet member firms suggests that they see a clear benefit in engaging clients through higher retention rates and ultimately increased fees.

As Farrelly explains:  “If you employ a transactional focus with a client, then that’s the kind of relationship you get back from them and you’re unlikely to hear from them again.  Over 60% of the files we open are for existing clients. We focus our energies on building relationships with these clients so they come to see us as a “collaborative partner” as opposed to just another supplier. These clients then also recommend us to others.”

By truly engaging with clients you develop more meaningful relationships which can be beneficial for everyone. “Engaged clients,” according to Brendan O’Brien, partner at Hertfordshire based LawNet member Breeze & Wyles, “are happy clients who wants to receive your advice and assistance.  They are also more likely to appreciate the true value of your advice.”

The strategic goal of many firms embracing engagement is to reach the sought after status of ‘trusted advisor’.  As Farrelly says: “Once you engage with clients, you are able to learn more about their business and anticipate their needs.”

HOW TO DO IT

A survey conducted in 2010 by agency Claydon Heeley asked individuals exactly how brands could build better relationships with them. The overwhelming answer was that they should “Listen to what customers have to say – and act on it.”

This is exactly the approach being taken by LawNet members IBB Solicitors, a 30 partner firm in West London. “Engaging clients is something a lot of firms talk about, but the phrase ‘client-focused’ has become almost banal. It’s easy to say, but not easy to convince clients that you deliver,” says Abby Winkworth, Partner, Marketing & Business Development.

“IBB has introduced a range of activities to put the client at the centre of everything we do. This includes dedicated client partners, a focused client relationship review programme for our top clients, client engagement surveys and six monthly client questionnaires. Overarching all this activity is a drive to focus on really listening to our clients. But more than just listening, it has to be active listening. There’s no point gathering all that information if you do nothing with it. So as actions come out of those conversations, we act on them and most importantly once we’ve made changes we then tell the client that we’ve done what they asked.

“One of the most controversial moves was to make one person truly responsible for the client internally. This is more than just an administration role collating information from satisfaction surveys. This person has authority to raise issues at team meetings and push for changes and improvements. They are the voice of the client, and they get listened to.”

This all represents a shift in the focus of the firm into the realms of engagement and is about having real dialogues with clients, putting their needs at the top of the firm’s agenda.

And the result of this commitment?  “It’s early days for some of these activities,” says Winkworth, “but the indications are that clients really value the feeling of greater depth in our relationship as a direct result of our engagement strategies, which is helping us to achieve our goal of reaching ‘trusted advisor’ status.

“We’re constantly tracking performance  across the firm and use that data to drive improvements in the way we run our business. We’re also gathering plenty of anecdotal evidence to support the return on our investment, including work generation across departments and clients.”

Listening and service are key. As IBB say, it’s not enough to just ask “is everything all right?” They are continually asking “is there anything more I can do for you?” Whilst it might seem a subtle change, it’s a fundamental shift in approaching client relationships.

East Anglian LawNet firm, Kester Cunningham John has introduced a firm wide project “Exceptional Client Experience” to prioritise client engagement. For Hannah Rutterford, partner, treating clients as individuals is a fundamental and never assuming you know what the client wants ensures you communicate and listen throughout: “Involving your client at every step is crucial to ensuring you are constantly meeting their needs and providing a ‘custom-made’ service, therefore keeping you ahead of your competitors.

 “An engaged client is one who is confident they have been listened to, is involved and informed throughout the process, is at the heart of the process and whose aims and achievements have been met no matter how many times they may have changed on the way. “

The client experience is central to improving client engagement. Think about all the touch points you have with clients. What is their experience like at each point? How can it be improved?  The client experience needs to pervade the firm. An internal client champion can be a great way of ensuring that the client can be “heard” internally.

To achieve client engagement you need client understanding at the core. You can’t possibly hope to build a meaningful relationship with your clients if you don’t know them.  The recent research by Managing Partner Forum found that having an in-depth knowledge of their business, was the most highly rated factor underpinning deep relationships for clients.

Firms could learn much from other sectors. For David Gilroy, sales & marketing director at Conscious Solutions, who work extensively with customers in professional services, client engagement means staying close to your clients and developing a two-way conversation with them.  “Key Account Management programmes, client surveys, client research, asking them what they want are all important to building deep relationships.  For example, in our world we ask our clients how often they want account reviews; some want monthly, some quarterly, but the key is that we actually ask.”

CONTINUAL IMPROVEMENT

 If you can’t measure something then you can’t improve performance, so it’s important to track engagement activities across the firm. Online that might include clicks, open rates, interactions, impressions, retweets etc.  Offline; measure referrals, attendances at events, cross-selling and files opened as well as qualitative feedback received through meetings, and individual conversations.  

DELIVERING VALUE

In order to deliver value to your firm you need to take a strategic approach to your engagement activities ensuring you really focus on the people you want to engage with. Many firms have had to overcome the usual internal challenges related to introducing change and new ways of working. But the traditional view that work will just arrive through the door is simply not true in the increasingly competitive landscape. And with even greater change and competition on the horizon, engagement and developing valued relationships with your clients is something that cannot be ignored.