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Experience and Results from
Our Predictive Analytics Efforts
HARNESSING PREDICTIVE
ANALYTICS TO DRIVE CLIENT
GROWTH AND RETENTION
#ILTAG26
SPEAKERS
Barbara Taylor
Chief Marketing
Officer
DLA Piper LLP (US)
Heather Reid
Director of Practice
Marketing
DLA Piper LLP (US)
Kim Rennick
Director of Sector
Marketing
DLA Piper LLP (US)
David Kuhlman
Partner
Axiom Consulting
Partners LLC
OUR EXPERIENCE WITH PREDICTIVE ANALYTICS
• The problem we tried to solve
• What we did and why
• What we learned
• How we are applying lessons learned
WE THINK WE
KNOW WHAT
CLIENTS VALUE,
BUT WE REALLY
ONLY KNOW
WHAT PEOPLE
SAY THEY VALUE…
What do clientsreally want?
WE REALLY KNOW LESS THAN WE THINK WE DO
▪ Instinct rarely reveals the combination of needs
that really drive buying behavior.
▪ What exactly makes for a stronger relationship?
▪ Each person believes they have a
master recipe… and they are all different.
▪ “Big data” is NOT doing the same analyses
with more numbers.
▪ True data scientists still rare… and fewer still
know law firms.
COMMON MYTHS COMMON REALITY
“…We have strong analytic talent and can
meet all of our analytical needs in-house…”
“…This is a simple business – stronger
relationships will win us more work…”
“…We know our clients better than what
the data says...”
MORE OF A SKUNKWORKS
RATHER THAN A FIRM INITIATIVE
Concept developed by Marketing
Big data experience + law firm experience
Secured leadership permission
Sourced data internally: Marketing, Finance and HR
Early insights built support and momentum
PREDICT WHO
WOULD SHRINK
VS. GROW:
TURN
SHRINKERS
INTO GROWERS.
1. 7M records: Finance, HR and Marketing
2. 400 separate inputs
3. Two models: ~100 demographic, people, sales
and service, and operations factors
4. Drivers of client fees:
• Indicators
• Action Opportunities
5. Modeled the significant
economic opportunity Growth
Predictors
Growth
Drivers
Clients that
Grew
Clients that
Shrank
What did
we do
differently?
How growers
“look different”
than
shrinkers?
1. Double our
revenue growth
2. Substantially
improve client
retention
PILOT: FOCUSED ON THE CRITICAL FEW THINGS
THAT MATTER MOST.
Four Tactics Seem to Work
Broadly1. Reduce size of matter teams to five or less and
increase time per team member proportionately
where possible
2. Introduce one new professional to the relationship
3. Add one more industry expert to the team
(can be combined with #2)
4. Run a focused, relevant marketing initiative for
each client
Two Targeting Approaches
1. Predicting clients at risk of falling out of love
2. Predicting clients that value us less
FOCUSING
EFFORTS
TAKING
ACTION
SMART, TARGETED EFFORTS TO BUILD
A WILLING COALITION.
Focus
▪ Identify vulnerable clients
▪ Target four highest-impact actions
Target
▪ Prioritize clients based on risk, size
▪ Select Partners and practices open
to change
▪ Remaining become “control group”
for comparison
Compare and Measure
Action
Target Clients for Impact
B a s e d o n r i s k l e v e l a n d f e e p o t e n t i a l
Predictive
Confidence
OPPORTUNITY 2:
Add industry
experts
OPPORTUNITY 1:
Reduce matter
team sizeOPPORTUNITY 4:
Run marketing
campaigns
FY15 Fee
Contribution OPPORTUNITY 3:
Increase new
professionals
Prioritized
Listbased on
combined score
▪ Most at risk
▪ Next most
at risk
▪ Etc.
CONCERTED ACTION AND DILIGENT
MEASUREMENT PROVE IT WORKS.
Focus
Target
Compare and Measure
▪ Compare control to action group
▪ Build business case for broader change
Action
▪ Divide Partners and practices
▪ Tell the story and gain commitment
▪ Monitor to ensure action
CHANGE
MANAGEMENT
STRATEGY
Senior Involvement:
CMO and Directors
willing to pitch in at
a moment’s notice
Coalition of the Willing:
Focus on open-
minded and
interested partners
Steady Pace: Avoid one-
and-done, keeping up
the pace of activity
Accountability for Results:
Marketing Managers
know their ratings
depend on activity
and engagement
Monitor Activity:
More important
for accountability
than results
Flexibility: Willing to
change tactics and
approaches as needed
EMERGING OUTCOMES
• The pilot indicates significant impact to profitable growth…
…focusing our efforts on the Action group we prevented 85% of the projected fee loss
• Financial benefits of taking action appear between four and eight months later
• The more of the four levers pulled, the more likely (and greater) the effect
• Two levers (introducing new professionals and increasing expertise) appear to
individually demonstrate a material impact on fees
• Changes in matter team size alone do not appear to have had a material impact on
fees, at least not yet*
* We suspect that changes in team size are more challenging to execute and very likely take longer to materialize in terms of fee impact.
-32.2%
Actual Fees
JAN-APR’17
If in Action
Group
JAN-APR’16 JAN-APR’16
-4.9%
Actual Fees
JAN-APR’17
If in Control
Group
THE ACTIONS TAKEN IN THE ACTION GROUP
PREVENTED 85% OF THE EXPECTED FEE LOSS
Control Group Fees*(N = 168)
Action Group Fees(N = 154)**
* Comparing the first four months of 2017 with the same period in 2016 on an annualized basis.
** We trimmed four outliers from each group to ensure changes in a few clients were not driving the overall results.
Actual decline in fees is
only 15% of the equivalent
Control Group decline.
Actual decline in fees
for Control Group: 32%.
JAN-APR ’16 If in
Action Group
Actual Fees
JAN-APR ’17
JAN-APR ’16 If in
Control Group
Actual Fees
JAN-APR ’17
REGARDLESS OF GROUP AS WE PULL MORE
LEVERS WE OBSERVE A HIGHER IMPACT ON FEES
Average Monthly Fees vs. Levers Pulled(Action & Control Group Combined)
Levers Pulled
+14%
+20%
-48%
2 or More10
Jan-Apr ’17 Fees
Jan-Apr ’16 Fees
Greater fee increase with
more levers pulled
No levers pulled:
lost revenue
One lever turns
loss into growth
0 1 2 or More
Levers Pulled
NEXT STEPS
1. Update Relationship Partners on the pilot results and continue to
engage the Action group with more of the same actions
2. Expand our focus to include additional clients at risk from the pilot
group that demonstrate high levels of fee contribution
3. Re-run the complete at-risk client list to provide new targets for action
4. Adjust focus and resourcing to increase capacity to engage with
Partners on levers
QUESTIONS?