Trust trumps cost when clients choose a law firm
I have read my monthly update from the Institute of Legal Finance and Management this morning which contained an interesting article about costs v trust.
As you will know from previous articles Argo has to confirm with transparency rules which were introduced last year but according to client research costs are not the most important factor when picking a lawyer.
A research company called LawNet has undertaken research over six years and has received almost 70,000 satisfaction surveys and undertaken almost 5,000 anonymous experience reviews. Their survey has resulted in some surprising results:-
Just 4% of new business is won on price
Two thirds of new business is generated through reputation and trust
Thirty percent of new work came from existing clients
Nineteen percent of new work arose from recommendation
Seventeen percent of the new work came from the people and character of the firm
These statistics reflect what Argo is finding with our clients. This is the reason why we place such an importance on making sure our clients have a good customer experience when they work with Argo. Whilst we know we are not perfect yet with this we are making big strides into ensuring that we are proactive rather than reactionary and that we are there when our clients need us the most.
In looking at costs, more important to clients than the price of the work they wish to complete, was having an understanding of how the charging structure of the law firm worked. Also on the tick list was understanding the benefits of using the firm and being kept up to date with work progression. LawNet says that this reflects findings by the Law Society which suggests that customers cannot differentiate between firms.
It is not surprising to note that whilst 95% of lawyers think they explain charges to clients clearly at the outset whilst only 70% of clients believe they do!! There is a fear within the legal profession of discussing costs. Clients fees they are not able to negotiate. Lawyers worry about having open discussions with clients about fee boundaries and increases in costs.
Here at Argo we know we are not the cheapest and we know we are not the most expensive. We do however pride ourselves on making sure that you leave our meetings fully understanding what you are doing, with the power to come back as often as you need to have questions answered safe in the knowledge that we are not scary people to deal with.