A new study of leading Canadian business-to-business law practices has found that while firms understand the value of asking clients for their views, a significant minority remain lukewarm about the value to be obtained from feedback programs.

The survey of 58 senior personnel at law firms across Canada found that 65 percent of firms surveyed ran a client feedback program, a considerably higher percentage than in other countries. A previous global study, conducted in the first quarter of 2011, found that just 48 percent of firms surveyed routinely asked for client feedback. Both studies were commissioned by LexisNexis Martindale-Hubbell, and researched by the Wicker Park Group, a consulting group specializing in client feedback initiatives for professional services firms.

Positively, 87 percent of respondents to the Canadian survey felt that obtaining client feedback was either "important" or "extremely important" to their firm. Further, 92 percent believed clients valued a firm's willingness to seek feedback.

Of the firms surveyed that didn't routinely collect feedback from their clients, 6 percent justified their stance by claiming that clients were unwilling to provide feedback, but a large majority said their lack of a formal client feedback program was because it wasn't a priority for the firm's leadership. About one-quarter of the responding firms further attributed operational reasons—the lack of staff or resources—to their inaction.

Overall, the survey found that Canadian survey respondents were broadly satisfied with their firm's client feedback efforts, with a positive response rate of 69 percent.

Worryingly, however, the survey also uncovered several significant complaints about specific client feedback outcomes. For example, just over half (56 percent) "agreed" or "strongly agreed" that their firm had adjusted its behavior toward clients in response to feedback. Furthermore, only a small majority (54 percent) "agreed" or "strongly agreed" with the proposition that their firm's feedback program had produced a return on investment. In response to both questions, a significant minority declared themselves neutral (28 percent and 33 percent, respectively) or actively hostile (16 percent and 12 percent, respectively).

"The most surprising aspect of this survey was the contrast between the participants' belief that asking for client feedback was, in theory, a good idea and their view of the tangible benefits that their own programs had delivered," says Derek Benton, director of international operations at LexisNexis Martindale-Hubbell.

In reality, this disconnect is reflected in the intangible objectives that firms set for their feedback programs, for example to improve individual client relationships, or to help define service standards. While this intelligence no doubt is vital from a client retention perspective, it's difficult to quantify the return on investment.

Benton adds, "It's worth remembering that many law firms run their feedback schemes on a fairly low cost base—46 percent of firms surveyed invest less than 5 percent of their marketing budget on such programs. But the fact that a small majority of respondents positively view their own schemes suggests that they are managing to obtain useful information for a modest investment."

In relation to how client feedback is received and shared, the Canadian study uncovered a decidedly mixed response among participants. On a positive note, most respondents (73 percent) said their firm was open to receiving feedback from its clients. However, it's evident that there is a lack of subsequent business development initiatives or structured internal communications to act upon feedback received: 42 percent of respondents had "neutral" views on whether feedback obtained was shared openly and broadly within their practice, while 25 percent felt there was no sharing at all.

This perception that Canadian law firms have a tendency to hold back from sharing client feedback was reinforced in a separate question, which asked survey respondents to describe to what extent client feedback was shared among the firm's personnel. While one-third of all respondents in the earlier global study shared feedback with all lawyers and staff serving a client, less than one-fifth took this approach in Canada.

Despite this inaction, Canadian law firms were more likely (42 percent) to document feedback obtained formally than their counterparts in the global survey (21 percent).

It's clear that Canada's law firms see the value of obtaining insights from clients, with 68 percent of respondents who don't currently ask for feedback intending to do so in the future, researchers say. Among those firms who already had client feedback schemes in place, an overwhelming majority (78 percent) said they intended to increase their feedback efforts "somewhat" or "substantially" over the next 12 months.

"Overall, our research suggests that, in the future, the vast majority of Canadian law firms will have feedback programs in place," Benton says. "Given that clients are increasingly more demanding and the legal sector ever more competitive, we expect to see law firms beginning to structure business development and marketing programs to act upon feedback received to aid client retention and ultimately boost their financial performance."

LexisNexis Legal & Professional is a global provider of content and technology products that are intended to enable professionals in legal, corporate, tax, government, academic, and nonprofit organizations to make informed decisions and achieve better business outcomes.

Martindale-Hubbell helps international law firms to enhance their online presence and drive more prospect inquiries through professional profiles on martindale.com and coordination of Martindale-Hubbell lawyer ratings. Martindale.com claims to be a leading online law directory, with more than 9 million unique visitors every year.