Research, by Economic Insight, assessed whether there is a business case for good complaint handling. This research highlights that improving first tier complaints handling is likely to increase law firm profitability – and that there may be potential net benefits to the industry of between £53m and £80m over 10 years.
The research is intended to stimulate discussion and debate about the importance – including from a commercial perspective – of good complaints handling. It includes financial models for three different types of law firm (sole practitioners, small firms and medium size firms) and looks at how law firms could see an overall increase in demand for legal services as their reputations improve. The findings provide an outline business case for lawyers to improve complaint handling and to avoid the need for intervention by the Ombudsman.