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• Strategy Planning
• Client Stewardship
• Business Building
• Organisational Development
• Partner Coaching
www.richmontewells.com
What do clients really really want?Sally CalverleyLegalex 15th – 16th May 2014
www.richmontewells.com
What do clients really really want?Meet Gemma….
– Calls for a quote for doing her will
– Two kids, single mum, owns a chain of beauty salons in the south east and has 3 buy to lets
– Has loyalty cards for costa and her gym, a Clubcard and a nectar card, banks online and shops at the farmers market
What do clients really really want? Top 10 customer priorities*
1.quality of the service
2.being treated as a valued customer
3.speed of service
4.friendliness of staff
5.handling of problems and complaints
6.handling of enquiries
7.competence of staff
8.ease of doing business
9.being kept informed
10.helpfulness of staff
*UK Institute of Customer Service
“But it’s different for law firms!”*
1.Failure to advise 18%
2.Failure to follow instructions 16%
3.Delay 9%
4.Deficient costs info 8.4%,
5.Failure to keep informed 8.3%
6.Excessive costs 8.2%
7.Failure to progress 8%
8.Potential misconduct 6%
9.Failure to reply 5.3%
10.Failure to release papers 3%
* Not it’s not…Legal Ombudsman complaints: by type 2012-2013
What else can the UKCSI tell us about trends?
““Today’s customers are savvy, discerning and expect organisations to relate to them as individuals, not as transactions. Customers have greater choice, more ability to switch their business and access to an ever-expanding set of communication channels to express their preferences or displeasure.”Joanna Causon
CEO of UKCSI
Here’s the good news!
“It’s clear from our research that customers are highly conscious of the service experience in their buying decisions. 60% of customers want a balance between price and service and a sizeable segment of customers have a preference for excellent service and are prepared to pay a premium for it.”
Customer Service DOES make a difference
•Requires magic…
…Disney Magic!•75% repeat visits•17m visitors •Most visited theme park
…in the world!
Here’s why you should care:
Customer service:
•Builds trust• +10/100 points UKCSI score results in +13% trust rating
•Increases loyalty and positive buying behaviour• +1/10 client sat score >> +10% loyalty and +11% additional
purchase
•Increases recommendation• +3/10 increase in client sat score to 9, x3 likelihood of referral
•Drives growth• Positive correlation between above average sector scores and
growth in retail food (9%)
UKCSI January 2014
For first time UKCSI measured value
•Consumers want a balance of cost and service
•When faced with the choice, 60% of customers favour a balance of price and service and will not accept low service levels in exchange for a cheap deal.
•A substantial minority of consumers – 25% – seek excellent service and are prepared to pay for it, while 15% are highly motivated to find the cheapest deals.
Why should you care?
•Revenues going down amongst firms below the top 50
•Ability to invest in new services/delivery reduced
•Consumers increasing propensity to shop around
•Number of competitors are going up
•There are only so many costs you can take out
RW Value Approach© is a potent strategy•Consolidate
• Build UP …• …build ON existing Clients
•Expand• Exploit reputation …• …liberate partner time to win new Clients
•Deliver • what your clients want and will pay for – VALUE!
RW Value Approach is a potent strategy
Consolidate: build up existing Clients
•This is where income is now• Short term, defend the base• But how profitable is each ?• What’s the profit standard ?
•Maximise satisfaction• How satisfied is each Client ?• Will they recommend us?• How do we measure it ?• How do we fix it ?
RW Value Approach is a potent strategy
Expand: use reputation to grow
•Attack is best defence• In a market in turmoil, we must be growing• ABS have no track record of excellence • Best growth platform is happy Clients
•Partners are our Big Guns• Partners grow the cake• Need time to win new business• What new business do we want ?
RW Value Approach is a potent strategy
Involvement is key to profitability•Define Client Involvement Profile
• How does the client want to work with us?• What are the best channels for delivery?• How can we guide them through the firm?• Where are they on the timeline?
•We need a measure• Systematic method of tracking Client needs …• … and level of satisfaction
RW Value Approach is a potent strategy
Alignment to Client Involvement profile •How do we match our service to Client needs ?
• Do we do enough ?• Do we overdo it ?• How can we improve the sensitivity?
•And what about Client profitability ?• How does that match Client satisfaction ?
–Unhappy Clients we lose £££ on is VERY bad business
– Low service quality companies average lose 2% market share a year
– High service-quality companies grow 6%
23
Client study
•Reports to firm • Status, outlook of industry, firm and key clients• Segmentation of client base• Interpretations and recommendations
– Competitive rating of current service and value– Potential based on segmentation– Define Client Value Measures per client
– The Richmonte Wells Value Standard©
•Recommendations for Action• Style, services, communications, products
– By client group
24
An example
•Segmentation• 19 clients plotted by level of
involvement & revenue– Substantial range– Involvement score 44 to 22– Revenue 75,000 to 1.2 M
• Only 4 clients very involved – Spend over half a million– 35% total, about 1 m each
• 15 clients less involved with much lower spend
0 0.2 0.4 0.6 0.8 1 1.2 1.4
Revenue M
15
20
25
30
35
40
45
50
Sco
re 5
0-1
Inv
olv
em
en
t
Involvement vs Revenue
More involvement & spend
Less involvement & spend
0 0.2 0.4 0.6 0.8 1 1.2 1.4
Revenue M
15
20
25
30
35
40
45
50
Sco
re 5
0-1
Invo
lvem
ent
Involvement vs Revenue
25
Defining Value by segment•Defining VALUE
• Set group and individual criteria– What ‘success’ looks like– Optimum yield for the firm, satisfaction for client
– Financial, reputation, growth etc• Group criteria is primary focus
– Clients sharing common needs, expectations– Potential for segmentation into clusters
• Individual criteria is key refinement– Particular requirements
– Organisation, personality, communication etc
26
•Three segments• ‘Partners’, ‘Procurers’,
‘No Frills’• Law key to business
or grudge factor
• Very different needs & expectation
•Align service • Boost rating of Value• Lift loyalty• Enhance profitability 0 0.2 0.4 0.6 0.8 1 1.2 1.4
Revenue M
15
20
25
30
35
40
45
50
Sco
re 5
0-1
Invo
lvem
ent
Involvement vs Revenue
"PARTNERS"Highly involved, big spend
Part of Business futureExpect innovative solutions
Very demanding
"PROCURERS"Medium involved, lower spend
Compete for ProjectsProductive Outcomes
Effiency & Professional
"NO FRILLS"Low involement & spend
Minumum costStreamlined processQuick easy Outcome
An example
How do retailers use this information?
•Branding•Shop design•Investment•Logistics•Channels•Service levels•Recruitment•Product design/purchasing
How would you use this to change?
•Current service•Premises•Website and other channels•Choosing new clients•Recruitment•Complaints•Structure
30
The Richmonte Wells Value Process©
BriefingObjectivesPrioritiesTimingBudget
Step 3Implementation
Step 4 Tracking
Step 2Client Study
Step 1Scoping
Value StrategyWhat Clients valueSatisfaction driversClient & Firm StrategyRECOMMENDATIONS
At Client StudyInvolvement, needs, expectations, evaluationsThe RW Client Study©
In House studyClient Data assemblyAnalysis, Comparison, Trends, Outlook,Consultation
Coaching PlanHow to deliver ValuePartners & ManagersStaff & SuppliersBenefits & Rewards
Value PlanThe RW Standard ©
Plan for each Client Business Plan for Firm5 year rolling
Client x Client PlanClient service presSatisfaction standardsEarnings goalsServicing plan
Tracking ProgrammeStewardship Concept Survey DesignImplementation PlanReporting schedule
•Step 1 is Agreeing the Plan• RW needs your Brief
– Your objectives, priorities and sensitivities– What time horizon, how much in the kitty– Confidentiality agreements signed ✔
• RW will then produce a specific design– What exactly will be done– By whom and when and how much– Target Step Report datesPresentation
Detailed DesignTasks, costingsStep report dates
31
The Richmonte Wells Value Process©
PresentationDetailed DesignTasks, costingsStep report dates
BriefingObjectivesPrioritiesTimingBudget
Step 3Implementation
Step 5 Tracking
Step 2Client Study
Step 1Scoping
At Client StudyInvolvement, needs, expectations, evaluationsThe RW Client Study©
In House studyClient Data Assembly &Analysis, Comparison, Trends, Outlook,Consultation
Coaching PlanHow to deliver ValuePartners & ManagersStaff & SuppliersBenefits & Rewards
Value PlanThe RW Standard ©
Plan for each Client Business Plan for Firm5 year rolling
Client x Client PlanClient service presSatisfaction standardsEarnings goalsServicing plan
Tracking ProgrammeStewardship Concept Survey DesignImplementation PlanReporting schedule
•Step 2 is Study & Strategy• First, in house
– Assemble Client data– Trends, outlook, performance– Consultation with teams
• Then at the Client– Survey of needs, satisfactions,
involvement • Report: Value Strategy
– Each Client assessed – Aligning firm’s delivery– Strategic ‘Value’
Recommendations
Value StrategyWhat Clients valueSatisfaction driversClient & Firm StrategyRECOMMENDATIONS
32
The Richmonte Wells Value Process©
PresentationDetailed DesignTasks, costingsStep report dates
BriefingObjectivesPrioritiesTimingBudget
Step 3Implementation
Step 4 Tracking
Step 2Client Study
Step 1Scoping
Value StrategyWhat Clients valueSatisfaction driversClient & Firm StrategyRECOMMENDATIONS
At Client StudyInvolvement, needs, expectations, evaluationsThe RW Client Study©
In House studyClient Data assemblyAnalysis, Comparison, Trends, Outlook,Consultation
Coaching PlanHow to deliver Value
Value PlanThe RW Standard ©
Plan for each Client Business Plan for Firm5 year rolling
•Step 3 is Doing It• Coaching
– Fast track to success– Everyone thinks value & growth
• Introduce Stewardship Concept– Mutual accountability
– Service, earnings and value• Use Value to compete & grow
– Value Plan for each Client– Revenue, Cost, Goals– Firm’s 5 year Business Plan
• Make the changes to delivery!• Streamline and reduce waste
Launch StewardshipClients/FirmAgree value goals
Redesign DeliveryRemove wasteImprove flowRealign with value
33
The Richmonte Wells Value Process©
•Step 4 is Tracking It
• Design Stewardship Survey– Update RW Client Study– Process, timetable etc– RW facilitation, timetable
• Report & recommendations- Are you on track? - Opportunity to refine
Step 3Implementation
Step 4 Tracking
Coaching PlanHow to deliver Value
Value PlanThe RW Standard ©
Plan for each Client Business Plan for Firm5 year rolling
Launch StewardshipClients/FirmAgree value goals
Redesign DeliveryRemove wasteImprove flowRealign with value
Tracking ProgrammeStewardship Survey DesignImplementation PlanReporting schedule
34
Redesign delivery to create value
•Do things differently to achieve a different result!• Client expectations/Firm forecast
•Use value plan to redesign work flow• Analyse, improve, re-engineer• Lean/Six sigma tools and techniques• Remove waste, reduce reworking, improve communication• Streamlined processes increase productivity
•Test against what clients value and will pay for– Input (e.g. leverage) and output (results against target)– Client satisfaction – stewardship survey
•Are you in control? • forecasting, resource planning and performance measurement
The Richmonte Wells Value Process©
PresentationDetailed DesignTasks, costingsStep report dates
BriefingObjectivesPrioritiesTimingBudget
Step 3Implementation
Step 4 Tracking
Step 2Client Study
Step 1Scoping
Value StrategyWhat Clients valueSatisfaction driversClient & Firm StrategyRECOMMENDATIONS
At Client StudyInvolvement, needs, expectations, evaluationsThe RW Client Study©
In House studyClient Data assemblyAnalysis, Comparison, Trends, Outlook,Consultation
Value PlanThe RW Standard ©
Plan for each Client Business Plan for Firm5 year rolling
Tracking ProgrammeStewardship Concept Survey DesignImplementation PlanReporting schedule
BriefingObjectivesPrioritiesTimingBudget
At Client StudyInvolvement, needs, expectations, evaluationsThe RW Client Study©
In House studyClient Data assemblyAnalysis, Comparison, Trends, Outlook,Consultation
Coaching PlanHow to deliver Value
Value PlanThe RW Standard ©
Plan for each Client Business Plan for Firm5 year rolling
Tracking ProgrammeStewardship Concept Survey DesignImplementation PlanReporting schedule
Launch StewardshipClients/FirmAgree value goals
Redesign DeliveryRemove wasteImprove flowRealign with value