Headnote, the company powering the legal industry with faster payments and automated Accounts Receivable (AR) management, today announced the first-ever Net Promoter Score (NPS) tool that surveys legal clients at the point of payment for the most reliable measurement of satisfaction.
The NPS is based on how likely clients are to recommend a firm’s services, and is a metric that can be benchmarked and tracked over time.
The business of law is ultimately transactional, and Headnote has found that client sentiment is at its most authentic directly after the purchase experience. At this stage of the customer journey, the client has reached an important milestone or has had enough engagement with the firm to offer an insightful opinion.
While the quality of client service is paramount in the legal industry, firms often lack a formal process for measuring client satisfaction. In a recent study, only 4 percent of lawyers surveyed said they regularly collect formal client feedback, even as other studies have shown that referrals are still the most common way people find an attorney. In fact, 62 percent of legal services consumers get a referral from a friend, family member or another lawyer.
“Headnote’s mission is to help law firms run more like other businesses by offering a range of performance metrics that can be carefully monitored to improve operational efficiency,” said Sarah Schaaf, Esq., CEO and Co-Founder, Headnote. “Given that referrals are so critical to the success of a law firm, lawyers should consider the NPS a crucial metric. It stands to reason that the happier clients are, the more business they drive – not only from their portfolio, but also from their network.”
The Net Promoter Score is calculated based on responses to a single question: How likely are you to recommend this law firm to a friend or colleague? Answers are based on a 0 to 10 scale, and responses are classified into three categories: promoters (responses of 9 and 10); passives (responses of 7 and 8); or detractors (responses of 0 to 6). The percentage of clients who are detractors is then subtracted from the percentage of clients who are promoters, resulting in a firm-wide NPS score ranging from -100 to +100. A high NPS indicates that clients are pleased with your services and are more likely to recommend you, while a low NPS is an early warning for potential satisfaction and loyalty issues.
Beyond NPS, the Headnote activity dashboard tracks for: Lifetime Value (LTV) of a client, used to compare against the Customer Acquisition Cost (CAC) for assessing financial value; and the Client Payment Efficiency Score, used to better understand client payment funnels for improving profitability.
Headnote will be showcasing its new NPS feature at ILTACON in Orlando August 18–22, 2019. Please visit us at booth #910 located in the main exhibit hall.
Copyright © 2019 Legal IT Professionals. All Rights Reserved.