Firms resist client feedback change

A reluctance among legal and professional services firms to actively seek client feedback is hindering their growth, new research by Glasgow-based MyCustomerLens has found. The study highlights outdated internal practices and a widespread fear of receiving negative feedback as key obstacles to firms adopting a client-focused approach.

The research found that many partners assume their clients will voice dissatisfaction directly, leading to a resistance to structured feedback processes. Key comments from respondents included ‘clients would tell me if they weren’t happy’, ‘I know my client, I speak to them all the time’, and ‘the client won’t like it’. According to Paul Roberts, founder of MyCustomerLens, these responses indicate a sector struggling to move beyond outdated assumptions about client relationships. He said partners often fear receiving negative feedback, equating it with a diminishment of their perceived value and that this ‘elephant in the room’ is preventing firms from embracing a client-centric approach.

The study, conducted in December last year, surveyed 43 firms across the UK. It found that while 69% of firms collect feedback from at least five sources, 74% rely on a small number of clients for insights. Additionally, 58% store feedback in individual reports rather than centralised systems, and only 32% share feedback across multiple teams. Nearly two-thirds of firms (64%) only review feedback a few times a year or on an ad hoc basis, while just 13% track the impact of client feedback actions in a structured manner.

A major issue identified in the research was the requirement for internal permission to include clients in feedback processes, creating a cumbersome and inconsistent approach. Roberts said this piecemeal approach means that 83% of respondents reported not getting enough data and that this lack of adequate information makes it difficult for firms to identify patterns, predict churn, and ultimately, make informed decisions that are client focused. He added that firms are essentially begging and haggling for each individual client to be included in feedback loops rather than having an ‘always-on’ process and that many firms are making business decisions based on incomplete data, missing opportunities to strengthen client relationships and win more work.

Despite these challenges, the study revealed a growing desire for change, with many firms expressing interest in automating feedback collection and making it a mandatory part of their processes. This suggests a shift away from traditional one-off research projects towards a continuous client feedback approach.

A key emerging trend is the move from treating client feedback as an annual research project to recognising it as a collection of ‘signals’ gathered across various touchpoints, including complaints, reviews, directories, revenue changes, and staff feedback. Roberts said the concept of ‘signals’ really seems to be resonating with firms and that rather than waiting for a formal feedback exercise, firms need to be actively looking for client insights across all these touchpoints. He explained that shifting to an ‘always-on’ approach will give firms a more immediate understanding of the client experience.

By embracing this shift, firms can move beyond reactive responses to isolated feedback and adopt a strategic, data-driven approach to client engagement, ultimately enhancing client relationships and improving business outcomes.