Assessing effect of client relationship management on business development of law firms: a case of Nairobi County
Date
2017
Authors
Kamau, Caroline Muthoni
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Past studies on law firms indicate that for business development, client retention is key and would be best achieved through priority adoption of CRM strategies. The studies pointed out that law firms were suffering from a bad case of tunnel vision and were having slow uptake of CRM strategies. Our study therefore assessed the effect of CRM on Business Development of Law Firms with a focus on Nairobi County. This assessment was carried out in light of other general business development strategies in use by law firms so as to be able to capture the trueness of our problem statement in light of these general strategies. The research objectives were: -to establish and assess law firm business development strategies; to establish client relationship management strategies and to evaluate how client relationship management affects business development for law firms. Data was collected based on a sample size of 80 Law firms, with the respondents being a mix of proprietors, partners, senior associates and associates. The research design adopted a quantitative and qualitative design. A questionnaire was used to collect primary data and was administered by email as this was most convenient for the respondents. The analysis used for the data was descriptive analysis, correlation analysis, regression analysis and factor analysis. Factor analysis results indicate that Client friendly pricing : (Discounted fees), Client friendly pricing: (Installments payments), Feedback Surveys, Knowledge management and Online Services and IT Infrastructure have the highest cumulative significance to business development at 70%. The study results therefore indicate that CRM strategies are indeed considered as having a level of effect on business development by law firms with some, more significantly than others and there still being room for improvement for ultimate business development. Client loyalty was also said to be most likely sustainable where mode of service delivery was face to face with online platforms being the mode of service delivery with least impact on client loyalty. Qualitative analysis on an open-ended question, revealed that client retention, increased profitability, staff turnover and location and service expansion are most recognized as key performance indicators for law firms. Understanding the priority given by law firms with regard to business development strategies will enable existing and upcoming firms redirect their energy on strategies that are voted as being most effective for business development and most importantly client loyalty. The findings of the research will provide a platform for further studies into the client's point of view on service attributes for client loyalty and their expectations on service delivery by Law firms and also, since staff turnover is reported by firms as a key performance indicator, further studies can assess its effect on business development. The findings will go a long way in enabling firms to stream line their services to meet those expectations so as to have an edge in business development.
Description
Submitted in partial fulfillment of the requirements for the Degree of Master of Business Administration at Strathmore University Strathmore Business School