A new, more demanding and more value-conscious client is challenging traditional working practices, according to the LexisNexis 2015 Bellwether report: The Age of the Client.
Interviews with 118 independent lawyers and more than 500 private clients reveal how sole practitioners and firms with up to 20 fee earners identify a “big gap” between lawyers’ and clients’ views of the services that firms deliver.
About 80% of lawyers believe their service is “above average” but only 40% of clients agree. For example, providing regular progress reports ranks second on clients’ priorities but lawyers rate it tenth.
The report notes: “The priestly dominance of the professional adviser has now disappeared. Clients know what they need and how it should be delivered…The power in the lawyer-client relationship has swung to the client.”
In response, 70% of firms have developed their online presence, two-thirds have invested in training and are actively measuring client satisfaction, and 35% have increased their marketing spend.
Clients want more control and closer involvement, and are increasingly likely to question advice rather than accept it at face value. They are still prepared to pay a premium price for premium quality but lawyers need to make it clear what their service offers that cut-price alternatives don’t.
Demand for fixed-fees is rising, although many lawyers equate this with “a race to the bottom”. Continuous innovation is required to combat clients’ expectations of 24/7 availability and use of more internet-based DIY solutions.
Some 70% of lawyers report increased cost consciousness or shopping around by clients, while 61% say clients want faster answers and more than half are more informed when they initially seek legal advice. One quarter of firms report a lack of loyalty among clients.
Lawyers and clients have different understandings of cost transparency—for lawyers, it may mean quoting their hourly rates, but clients want to understand what this includes and what’s extra.
The report outlines five ingredients for success:
- smart servicing—lawyers may need to invest in software to give clients greater clarity on pricing and progress;
- smart support—training and development of lawyers, and using an informal network of experts;
- smart thinking—lawyers should look at billing methods, flexible working, marketing, branding, technology and more bespoke services;
- smart processes—firms are underinvesting in technology; and
- smart working—remote working and having access to your files 24/7.
On a positive note, however, lawyers are optimistic—two-thirds anticipate growth over the next five years.
