The Chicken or Egg Dilemma of Client Insight

For firms looking to grow their client listening programmes, there's an age-old dilemma. Which should come first, collecting more data or generating more internal engagement? It's the classic "chicken or egg" conundrum applied to client feedback.

On one side, you have those who argue you need to start by collecting and analysing more client data to generate new insights. The thinking goes that insights drive engagement. You need compelling insights before you can get the attention and engagement of relationship holders.

On the other hand, there's the case for prioritizing stakeholder engagement first. This perspective says engagement drives insights. You need buy-in and active participation from client-facing teams to generate the feedback and compelling insights. They are the gatekeepers to the client relationships.

So which side are you on - the chicken or the egg? More data to fuel insights or more stakeholder involvement to expand data collection?

Team chicken - starting with more data

Starting with the data appears to be the easy route. Finding and analysing data seems easier for client listening teams to control. The thinking is that with richer, more expansive data sets, you can create insights that will impress stakeholders.

For firms that with existing client feedback or VoC programmes, this means doing more with that data. For example, that could be using AI to analyse text comments.

Another way to do more with existing data, is to blend data sources to discover new themes and trends. There is often additional client data being managed in different siloes. By combining internal data streams like complaints, testimonials, debriefs and operational data, new insights emerge.

The upside of the data-first approach, is that the insights team has more control of its own destiny. They already have some analytics and reporting tools, and existing data is easier to get hold of than new data. It feels like a quickler way to build momentum.

The downside of the data first approach, is that existing data sources have already been reported. There's a risk stakeholders dismiss the findings because "I already knew that." Even when you uncover fresh perspectives, they may be too familair to inspire change.

It's hard to change hearts and minds by telling a variation of an existing story.

Team Egg - starting with more engagement

An alternative approach is to start by getting stakeholder buy-in. Relationship Partners and fee-earners hold the keys to the kingdom when it comes to client feedback.

In many firms they decide which clients get asked for feedback and when it's "not the right time." They are also closest to the client relationships and have a wealth of anecdotal feedback to contribute.

But there's another important part of their role. They are the ones who need to take action on the resulting insights. Collecting client feedback is only valuable if you close the loop and take action - even if the action is just saying thank you.

If you take this approach, channel your inner Stephen Covey and begin with the end in mind. Don't start by asking them to request more feedback.

Start by asking them what insights they are missing. What insights would help them make more agile or informed decisions? What insights help strengthen relationships, win new work or mitigate risks? What else do they need to know to achieve key objectives?

In this way, you're treating them like customers. Uncovering their pain points, then working backwards to create the insights that can help.

The challenge with this approach is it takes time. You need to work around stakeholders individually. You're effectively taking orders for a product you haven't made yet. Making promises that you can't yet keep - and that's hard to do with senior stakeholders.

The potential mitigation for this is to show your approach is the same one the firm takes with clients. You asking about what they need and value so you can deliver the best experience. Once they see the insight gap, it becomes easier to build the case for change.

Which comes first - feedback data or stakeholder engagement?

So are you Team Chicken (data-first) or Team Egg (engagement-first) when it comes to evolving your client listening programme?

I'm an ex-consultant, so of course my answer is, it depends!

If you're sitting on a decent store of client feedback, then there may be an opportunity to squeeze out more insights. Particularly if it's unstructured text comments. These have often been analysed manually and benefit from a new analytical lens. Likewise, bringing together existing data sets - like survey responses and complaints - can yield new insights.

If your firm currently has a limited client feedback programme, then you'll need to start with boosting engagement. You need to get stakeholders to see what's possible. They need to see how existing insight gaps are holding them back.

The third way

Ultimately, these two paths don't need to be mutually exclusive. AI can help you quickly analyse existing data and feedback sources. Demonstrating the value of fresh thinking to deliver some new insights. Making these insights actionable, comes from knowing the decisions they need to inform.

So your initial stakeholders could be BD and Account teams. Discover what insights would help them boost relationships and new revenues.

At the same time, ask them to help create new feedback sources, even if it's just a survey of 20 new clients. Client listening is an iterative process. It evolves over time - just like the client experiences it's measuring.

By linking your approach to revenue - for example, looking for data and engagement that can lead to new work - you can create compelling quick wins.

So are you Team Chicken (data first) or Team Egg (engagement first) - or are you trying to avoid the chicken or egg dilemma all together?

#ListenDifferently #ClientListening #Feedback #ClientInsight

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