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More on the importance of cost consciousness in law firms

June 12, 2018

Building on our earlier post on why cost consciousness is valued by clients, in the interview George re-states the 'incontrovertible evidence' that cost consciousness plays a greater role than price in how clients perceive the value they receive from their law firms.

To re-state part of what beaton has to say on the importance of cost consciousness in law firms:

 

"Here's yet more evidence why cost consciousness is valued by clients and profitable for law and all other professional services firms.

 

beatonbenchmark's analysis of what's most important to clients in their assessment of a law firm's Client Service Performance shows nine statistically significant drivers for the 'top-end of town' firms. In no particular order these include no surprises like 'technical expertise', 'reliability', 'understanding the client's business and industry', and 'ease of doing business' with the firm. And for the first time in many years 'innovation' appears in this list, putatively emphasising the importance large clients are starting to place on LPO, LPM, alternative business models, and the like.

 

And then – ranking in third position of importance – is 'cost consciousness'. The origins and nature of cost consciousness and cost conscious behaviour have been described in this post on Research. Reveal. A couple of years ago the then Freehills generously allowed beaton to publish a case study showing the early pay-back on the firm's investment in cost consciousness."

 

The importance of cost consciousness

 

The evidence is so strong – in surveys over more than 10 years and in case studies – yet beaton continues to be puzzled why so few firms take action on the behaviours that lead clients to perceive them as cost consciousness.

 

Earlier this year we suggested cost consciousness was the (or at least a very large) 'missing link' in law firms' approach to their clients' overall experience and their  client care programs.

 

Some firms 'get it' – and are reaping large rewards: Happier clients and sustainable profitability. A truly virtuous cycle.

 

Others don't. I can't help wondering why. Can any one help?

 

 Here is more on this vital topic 

 

 + “We lost on price. We have to discount.” 5 reasons to still be sceptical

 

+ Two hard questions about law firms’ fee strategies

 

We'd like to publish your comments on this other posts on Research.Reveal. – anonymously if that's what you'd prefer. Just let us know; email me at george.beaton@beatonglobal.com.

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