Here’s the latest evidence that gathering and using client feedback regularly is a very g$$d idea in professional services.
Last month US-based Hinge, a professional services researcher, published compelling empirical evidence of the relationship between gathering and use of client feedback, growth of a firm and its profitability.
Hinge investigated relationship amongst client feedback, growth and profitability in professional services firms. Feedback was defined as systematic, structured research on the firms’ target groups, i.e. clients, prospects, potential prospects.
Hinge founder, Dr Lee Frederiksen, wrote “Frankly, I wasn’t expecting to see much of a relationship between research and bottom line results. Boy was I wrong!”
Hinge broke firms into three groups:
1) those that did no such research,
2) those that did so occasionally, and
3) those that did so at least quarterly.
The chart tells the story of what Hinge found: Knowing your clients is a very g$$d idea!
Firms that conducted structured research, even occasionally, were more profitable and grew faster than those that did not. And, those firms that did frequent research were even more profitable and grew even faster.
Lee Frederiksen’s article Is Researching Your Clients and Prospects a Good Idea? may be found here.
Like beaton in Australia and New Zealand, Hinge finds client and prospect data is a powerful driver of change, often more so that C-suite exhortations, training and other interventions.
The collection and use of objective evidence is the most effective way to drive positive changes in behaviour of all those who serve clients and those who support those serving clients.
Entering the Client Choice Awards is the most cost-effective way for professional services firms in Australian and New Zealand to access high quality, authoritative and actionable client feedback. Firms of all sizes in Accountancy, Built & Natural Environment Consulting, IP and Law are eligible to enter. To find out more visit the Client Choice Awards website.