Law firms - like other professional service providers - rely heavily on client satisfaction and service quality to retain key accounts and differentiate from the competition. As such, NPS can be a leading indicator of revenue retention, growth, and brand differentiation in a crowded marketplace.
What is NPS?
Net Promoter® Score (NPS) is a client satisfaction and service quality metric based on a single survey question that asks legal clients how likely they are to recommend your firm to a friend or colleague. Clients respond using a numeric scale of 0-10, ten being extremely likely and zero being not likely at all.NPS is calculated by subtracting the % of detractors (those who respond with a 6 or lower) from the % of promoters (those who respond with 9 or 10). Click here for a more detailed look at the NPS methodology.NPS is unique because it offers standardized measurement and reporting on client satisfaction and service quality that can be applied across the legal industry as a whole, at the firm-level, within specific practice areas, even by partner or associate.
Legal Industry NPS in 2022
Law firm NPS is a target topic for ClearlyRated’s annual industry benchmark study, and in 2022 legal clients report an NPS rating of 32% based on overall satisfaction with their firm (our sample focused on legal clients in the U.S.).
Year-Over-Year Legal Industry NPS
It's important to weigh the industry's service scores against standards of excellence. For reference, global NPS standards classify 50% NPS as excellent and 70% NPS as world-class. And recognizable service leaders like Nordstrom have an NPS of 75% compared to Comcast, a notorious service laggard, whose clients give them a -1% NPS. Click here to learn more about the NPS methodology.
How does your firm stack up?
If you're not already leveraging NPS at your firm, we hope you consider this article a call-to-action. Not only do client satisfaction and service quality represent opportunities to differentiate in an increasingly commodified service industry, they are fuel for firm growth.And if "you can't manage what you don't measure" - then you certainly won't be able to improve it either.
Next steps
Ready to get started with NPS?Contact the ClearlyRated team for insights, best practices, and a tour of our survey platform (designed specifically to support professional services firms).
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Discover the latest NPS® benchmarks for the legal industry in ClearlyRated’s annual Industry Benchmark Study, which delves into emerging NPS trends within the legal field.
Law firms, much like other B2B service firms, place significant reliance on client satisfaction and service quality to both retain their clientele and stand out in a competitive landscape. Particularly during economic downturns and industry challenges, the significance of service quality and client satisfaction becomes even more pronounced in determining business success. This partially explains the widespread prioritization of customer experience (CX) by business leaders across various sectors in 2024.To gain a comprehensive understanding of your service's performance year after year, it is imperative to employ a feedback tool that not only collects valuable insights but also simplifies tracking. Moreover, you need a metric that facilitates straightforward comparison with your competitors' performance. This is where the Net Promoter Score® (NPS®) comes into play—a metric that gauges service quality and customer satisfaction. It stands as a leading indicator of revenue retention, growth prospects, and brand distinctiveness.
What is NPS?
Your NPS starts with a single survey question that asks clients how likely they are to recommend your firm to a friend or colleague. The most forward-thinking firms are also asking their employees, hoping to boost their employee experience (EX) too. Responses land on a scale of 0–10, ten being extremely likely and zero being not at all likely. From there, people have the option to offer more specific feedback.To calculate NPS, we subtract the % of detractors (those who respond with a 6 or lower) from the % of promoters (those who respond with 9 or 10).
Why is NPS Uniquely Useful?
NPS offers a standardized measurement to track and report on client satisfaction and service quality—one that can be applied across every level, from the industry as a whole to the brand-level. Each company can also drill down within their organization, including by lines of business, department or account manager. This means that you can compare your firm to others while also pinpointing the shining stars and any areas to improve within your organization. Learn more about how NPS can help drive business growth.
Legal Services NPS in 2024
ClearlyRated’s Annual Survey Benchmark Study includes an industry focus on legal services NPS. The legal industry NPS is down five points from a high of 42 in 2021, and remains even from 2023 at 37.
Legal Services - Satisfaction Drivers in 2024
The legal industry NPS of 37 underperformed relative to the general B2B NPS benchmark of 45 in 2024 (-8 point difference). The legal industry underperformed specifically in the areas of service Quality (-11 points from B2B), delivering services within expected Timeframes (-11 points from B2B), and providing timely Responsiveness (-7 points from B2B) to their clients.
Legal Services Industry Satisfaction – measured as NPS
Year-Over-Year Legal Industry NPS
Insights on 2024 Ratings
The legal industry's NPS remains down 5 percentage points from 2022, however it has historically had a higher NPS with the exception of 2016-2018 where the NPS was less than 25. For reference those wider NPS standards only classify organizations as excellent once they’ve earned a 50 NPS. A 70 NPS would classify them as world-class. What does it look like to have a 70+ NPS? Consider Starbucks and USAA, recognizable service leaders with an NPS of 77 and 75, respectively. Then compare them to Comcast, a notorious service laggard, whose clients give them a -25 NPS. While the legal industry increased this year, it is still ripe for further progress. And as firms achieve better service levels, clients’ expectations will rightfully get higher, meaning any firms that don’t keep are likely to flounder. Click here to learn more about the NPS methodology. Firms that manage to deliver an outstanding CX and earn a high NPS as a result will more easily outshine their competition. Get tips on how to improve your CX based on customer feedback.
How Does Your Service Stack Up?
The extent to which your firm feels the effects of a slowing economy may depend on the quality of your CX. An NPS survey program can help you measure, track and improve both. If you’re not already leveraging NPS at your firm, we hope you consider this article a call-to-action. Not only do client satisfaction and service quality represent opportunities to differentiate in an increasingly commodified service industry, they are fuel for firm growth. Remember the adage: “You can’t manage what you don’t measure” – and you certainly won’t be able to improve it either. Up against a reluctant firm culture? Get some tips on how to overcome common objections to survey programs to help build buy-in and get started.
Next steps
Ready to get started with NPS?Contact the ClearlyRated team for insights, best practices, and a tour of our survey platform (designed specifically to support professional services firms).
