How law firms can talk to clients about what really matters

Firms that fail to identify their clients’ needs risk losing their competitive edge to more adaptable competitors. Find out how to bridge this communication gap.

In a rapidly changing legal sector, the conversations that law firms have with their clients have the power to ease business risk and build stronger relationships.

A recent survey of the legal sector by LexisNexis found big gaps in how law firms and their clients view a range of business topics.

The research showed that firms and clients often have different expectations, particularly around technology, pricing and response times, or areas where a firm provides ‘value added’ services.

Sharon Glynn, director at Travelers Europe, explains: “In the legal sector, we have seen more change in the past decade than in the past 100 years. Against that backdrop, it’s important for conversations to keep pace with these changes.

“When firms are confident that they and their clients are on the same page, they can more readily manage surprises, mitigate risks and ensure a business has the protections it needs to succeed.”

Below we look at some of the key gaps in communication between law firms and clients and how you can overcome them.

Using AI with transparency

One of the biggest areas identified in the survey was the use of AI.

The survey found that in-house counsel support use of the technology. 71% feel that law firms should already be using generative AI trained for the legal industry, while only 7% oppose it.

Most clients not only accept AI but expect it to be part of processes to enhance efficiency and reduce costs.

Transparency remains a concern though. While 59% of law firms believe their clients want to be informed when AI is used, 77% of in-house counsel expect full disclosure.

This mismatch in expectations illustrates the importance of clear communication about AI.

Takeaway: although clients support the use of technology, transparency on how it’s used is critical.

Action: have a clear communication strategy for AI so clients know how you’re integrating it into legal work and why you’re using it.

Meeting client needs promptly

The use of AI has led to a growing demand for faster legal services.

About 83% of lawyers surveyed say that clients now expect quicker response times. 20% of in-house counsel express frustration with delays.

As legal matters become more complex and strategic, clients expect law firms to use AI and other tools to streamline work and speed up decision-making.

Firms that don’t meet these expectations may find themselves losing business.

In fact, 33% of firms reported losing clients due to uncompetitive pricing, and 34% of in-house counsel are reducing their panel sizes.

Takeaway: failing to respond to client concerns about billing may cost you clients.

Action: consider how your firm can be more responsive and show value by providing innovative services. This will help client retention and create competitive advantage.

Managing expectations on pricing and billing

If law firms can use technology to work faster and more efficiently, clients may ask how it will impact pricing.

Firms and their clients have different expectations about how pricing is evolving, and it’s still an issue up for debate.

The survey found that 86% of firms plan to increase their rates, while 80% of Fortune 1000 general counsels expect to reduce their legal spend.

Despite this, only 9% of law firm partners report that clients have raised concerns about billing.

Takeaway: the mismatch between firm and client expectations shows that firms may not be having discussions about cost expectations.

Action: asking questions can help. For example, consider alternative fee arrangements and strategies that can help save costs.

Understanding client concerns will help firms offer billing solutions that align with corporate budgets and expectations.

Taking action to strengthen client relationships

The LexisNexis survey paints a clear picture: law firms need to engage more actively with their clients to manage expectations on both sides.

Sharon Glynn summarises: “Having open and transparent conversations will help firms align with client priorities, build trust and ultimately mitigate their risk of losing business. In an increasingly competitive legal market, effective communication is a strategic necessity.”

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This article is provided for general informational purposes only. It does not, and it is not intended to, provide legal, technical or other professional advice, nor does it amend, or otherwise affect, the provisions or coverages of any insurance policy issued by Travelers.