Hint: It’s not a financial metric, but it can have a big impact on improving law firm profitability and growth.
What’s more, it’s really not that big a secret if you’ve been listening closely to the clues your clients have been dropping: Like trying to negotiate lower rates, taking a long time to pay your bills, or simply “forgetting” to pay bills altogether.
Worse yet? The “hints” dropped by clients who leave no hint whatsoever, simply walking out the door, never to return, never to offer even the first clue about why they don’t answer your calls or emails.
The secret metric they all want you to measure and improve on? The value your firm provides to them as clients.
New Complimentary White Paper & Infographic
The Secret Law Firm Metric that can Revolutionize Profitability
Profitability and Growth Through Client-Value Metrics
Traditional law firm metrics tend to measure success through law firm eyes, with the ultimate goal of improving profitability.
According to a March 2014 survey by the Managing Partner Forum (MPF), “fully 96% of managing partners said their firms had ‘excellent, highly informative’ financial metrics or ‘solid, reliable financial measures.’”
No surprise there. Making money is essential to the long-term success of any business.
Contrast that emphasis on tracking financial metrics, though, with those same firms’ efforts measuring “client satisfaction/relationship” metrics. As it turns out, only nine percent of firms surveyed gave themselves the same “excellent” or “solid” rating in measuring themselves from their clients’ perspectives.
Does it matter? According to BTI Consulting Group, the answer is a pretty emphatic yes. The firm’s “BTI World-Class Client Feedback 2014 Webinar” points out that the law firms rated by clients as providing “superior client service” tend to have:
- 35.6% higher overall growth
- 19,5% rate premium across all staff levels
- 33% higher profits
Is your firm providing the kind of “superior client service” it takes to pull those kinds of numbers? You may never know, not unless you join the very short list of firms taking serious measure of the value they provide their clients.
Note: A complete white paper that dives into this topic is freely available for download with registration: The Secret Law Firm Metric that can Revolutionize Profitability.
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