Client loyalty and defection in the corporate legal industry

Dayananda Palihawadana and Bradley R. Barnes

The Service Industries Journal, 2004, vol. 24, issue 4, 101-114

Abstract: As the legal service industry matures and becomes saturated, more traditional forms of marketing may need to be replaced by the adoption of newer relationship concepts. This article reports on a research investigation among corporate clients of UK law firms. The findings reveal that satisfaction with the service is the key factor that influences corporate clients to stay loyal to a particular law firm. The quality of legal advice, trust and honesty were also found to be important factors that drive client loyalty. Conversely, poor quality, as an outcome of the client -- legal firm interaction, is perceived to be a significant contributor of client defection. Overall, the findings emphasise the need for legal firms to focus on client retention for survival and profitability.

Date: 2004
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DOI: 10.1080/0264206042000275217

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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