Whether do-it-yourself or independently conducted, effective market research can usefully expose a firm's shortcomings. Ross Cogan outlines the best strategies to ensure a high investment return



Market research should be like cleaning your teeth: 'little and often' guarantees the best results. In fact, the ideal law firm, like any business, will be doing research almost automatically.



Every member, from senior partner down, should be alert to new opportunities or clients' complaints. Specialists could be brought in occasionally as these issues present themselves. None of this should be a serious drain on time or resources.



So why is client research often more like having your teeth straightened: a painful and expensive luxury? I want to outline how you can increase your return on investment (ROI) by investing less in smaller and more carefully targeted projects, and maximising the informational return from each interview.



At its most basic level, research includes talking to clients regularly to check that your services match their expectations. Without a dialogue like this, grumbles can become annoyances that endanger relationships, and the firm can be left in the dark as a client's priorities or business model change. The most successful partners and firms will be those that build feedback into their everyday processes.



There are three situations where you might want to use an external agency. The first is when you are surveying your own employees. Obviously, no assistant is going to tell you that the firm's biggest biller is also its biggest bully, but he might tell a third party.



Second, it pays to get a neutral opinion if politics is likely to be an issue. For example, if you suspect that problems with a particular client stem from the attitude of the relationship partner, it can cause less ill-feeling if interviews are handled by someone with no axe to grind.



Third, it is worth cross-referencing the results of your investigations with those of an objective source. Clients are rarely as honest with an internal interviewer as with someone unconnected to the firm; for a warts-and-all reality check, you should consider involving specialists.



The problems with market research arise when boards decide that they need to do something, but are not sure what. Perhaps they feel that the firm needs a general 'health check.' The temptation is to agree to a survey of 40 or 50 clients in the hope that it will uncover something. The results are often disappointing.



If you are to avoid this sort of expensive mistake, it is important that you distinguish between qualitative and quantitative research. Many people assume that proper research entails talking to a large sample and producing something that can be presented statistically.



This classic quantitative research is the most appropriate methodology for political polling or consumer product surveys, where it is vital that your sample should be representative of the population as a whole. However, its value is limited in professional services.



To be blunt, if 75% of the country intends to vote for you, you can put the champagne on ice; if 75% of your sample clients are happy with your services, is that cause for congratulation or desperation? The answer depends on which of your clients are unhappy, why they are unhappy, and just how unhappy they are. And only qualitative research will answer these questions.



So pause before you commission a large quantitative survey. If you are clear about what you want, a smaller, quicker qualitative survey, targeted at the most important clients, will often tell you what you need to know.



Getting the focus right is just as important when you are carrying out the research yourself. Do-it-yourself research is sometimes seen as a cheaper option, but it will have considerable hidden costs in terms of partner time - it is vital that you get as much useful information as possible from each interview.



How do you do this? Interviewing is a skill that develops with experience, so designate a single partner to conduct interviews for each project. This should be someone senior, so that clients know their views will be taken seriously, and affable enough to put clients at ease.



Preparation is key, so make sure the interviewer knows who has done what for the client and understands their business. However, it should never be someone who works with them day-to-day. The client's awkwardness in bringing up complaints, combined with the interviewer's preconceived ideas, will guarantee you discover little of value.



During the meeting itself, allow the client to dictate the speed of the interview, but bear in mind that you will need at least 30 to 45 minutes to get the most from the process.



Do not be afraid of silences, and do not be afraid to push the client about what - and who - they do not like. This can be uncomfortable, so it helps if you start by asking them to single out people for praise. Not only does this allow the interviewee to feel more even-handed, and so increase the likelihood that they will be open about what they dislike, but who they identify can speak volumes.



Another tip is to start broadly and get more precise as you go through the interview. People like to feel that their views are consistent, and will subtly alter opinions expressed later to fit with earlier ones. So if you start by talking about the latest deal, there is a risk that this will colour feedback on the entire firm.



Also, do not make the mistake of using interviews for clumsy attempts at cross-selling. You risk annoying the client and making it harder to get feedback in the future. Instead, make a note of opportunities and find an excuse to approach the client about them on another occasion.



Finally, and most importantly, act on the information you get. Make the changes, whether they are as 'simple' as replacing a client partner, or as complex as rethinking your entire billing process. The best way to ensure you fail to get a return on your investment is to do nothing with what you have learnt.



Ross Cogan is a director of PanLegal, a research and strategy company specialising in the legal sector