In professional services, pricing power and the way clients experience your firm are deeply connected.
Great client experience (CX) is fundamental to your pricing power, but many firms treat the two things separately. Pricing is often a spreadsheet exercise – plug in costs, factor in a margin, and land on a number – while the value of CX treated as something less tangible. But client perception shapes your firm’s price and value relationship in concrete ways, more than most realise.
Today’s clients expect transparency, personal attention, and consistently exceptional service – and they have no shortage of alternatives if they don’t get it. In this environment, delivering an outstanding experience isn’t just a differentiator; it’s central to pricing alignment, stronger margins, and sustainable success.
This article explores how aligning CX and pricing decisions — strengthening the CX and pricing connection — can protect revenue, reinforce relationships, and elevate your market positioning.
Clients expect you to be commercial, to be efficient, and to be cost-conscious – they’re not looking for surprises.
The influence of client experience on pricing power
Think about the last time you paid more for something simply because the experience felt effortless and considered, maybe even enjoyable. Perhaps you chose a more expensive internet provider after experiencing their brilliant customer service when something went wrong.
Clients, like customers, are often very happy to pay more if they have a great experience with your firm. When service feels seamless, they see your firm as a partner rather than a cost line. The result? A higher fee becomes no problem.
Our report on The State of Client Experience in Professional Services, which you can download here, examines how CX boosts profitability in practical ways. In short, our research shows that when you consistently deliver great CX, you elevate client perceptions of your expertise, service quality and reliability. Strong CX gives clients greater confidence in your firm, strengthening your pricing power and your position on what Beaton research describes as the fair value line (more on this below). In this scenario, clients are also far more open to price justification because the fee makes sense in the context of the experience.
Beaton Benchmarks data we have collected over more than 20 years backs this up: firms known for exceptional service build greater trust and loyalty, and their clients are more accepting of premium service pricing. Strong CX becomes a reputational engine – one that elevates your market positioning while supporting commercial decisions.
“If you are aligned with what your client wants and you are delivering, they are much more likely to accept your fees as fair value,” says Maynard.
How better service quality shapes CX and pricing alignment
Service quality is the foundation of strong CX. High service quality – characterised by things like your responsiveness, expertise and reliability – creates a smooth, consistent, and positive experience that clients notice and remember. It drives client satisfaction, loyalty, and supports your pricing power and market positioning.
When service is consistently strong, firms experience:
- Greater pricing power
- Stronger pricing alignment
- More successful pricing strategies
- Greater acceptance of price justification
- More pricing flexibility in commercial conversations
As Maynard puts it, “If you’re giving clients certainty, clarity and confidence, the fee conversation becomes much easier.”
A clear connection between the service delivered, experience received and the price charged is crucial. This makes it far easier to maintain trust, justify fees, and reinforce your firm’s position as a leader among competitors.
Avoiding the commodity trap in professional services
By contrast, when service feels slow, unclear, or transactional, pricing misalignment follows. In this situation the fees no longer match the service quality or experience clients believe they are receiving, leading to resistance, dissatisfaction, or lost work. Even relatively competitive fees can feel excessive to a client if the experience doesn’t measure up. That mismatch puts pressure on margins and pushes firms closer to what’s called the “commodity trap”.
The commodity trap is a situation where a firm’s service becomes relatively similar to that of competitors – resulting in competition based solely on price. It’s not a situation any professional services firm wants to be in, because the only way to win clients in that situation is by lowering pricing. Firms become trapped a cycle of price wars and are forced to operate in continually reducing margins.
The ‘Fair Value Line’ and the impact of misaligned pricing
The fair value line, drawn from Beaton Benchmarks research, visually represents how service quality and pricing interact. Firms in the top right offer premium service and charge premium fees – and clients often consider these fees fair because the CX and expertise align.
This model – shown in the chart below – is a practical way to understand how client perceptions impact pricing power in professional services firms.
Fair value firms:
Firms situated on the ‘fair value line’ are seen as providing a balanced proposition of either high service quality with high pricing, or poor client service and low pricing. This balance is perceived as fair.
For example
- Firm A (bottom left) has the poorest client service rating and also the lowest price. It sits on the fair value line indicating appropriate fees for the level of service. Clients see this firm as “cheap and cheerful”.
- Firm B (top right) also sits on the fair value line with the 2nd highest client service rating and 2nd highest price. Clients see this firm as a “top service for a premium price”.
In each profession there are firms that consistently occupy the top right position. When properly resourced, these firms generate large profits. Clients commenting on the value delivered by these firms typically say, “They are expensive but worth it”.
High-value firms vs low-value firms
The chart and discussion above illustrates the major differences between what clients see as high-value or low-value firms.
High-value firms are those that consistently deliver exceptional service while keeping fees competitive. They enjoy real pricing flexibility.
Take Firm C from our chart above: because clients see strong service quality at a reasonable fee, the firm earns the right to raise prices without triggering backlash. The firm has found the sweet spot – clients feel they are receiving fair value even when the price increases. In this position, firms can use their pricing alignment as a competitive advantage. They can keep fees slightly lower to capture more market share, or confidently increase them to reflect the strength of the service, knowing loyalty won’t waver.
Low-value firms have more at risk. These are firms that deliver below-average service compared to their fees, creating pricing misalignment.
For example, Firm D in our research combined one of the lowest service ratings with one of the highest price points, which is a recipe for client dissatisfaction. In this situation, if clients don’t understand the price justification, they quickly start exploring alternatives. The disconnect between cost and service quality fuels pricing pressures, damages market positioning, and erodes loyalty.
When clients genuinely feel you’re on their side and invested in their success, they don’t begrudge paying for it.
The risks of misalignment between pricing and CX
Many firms unintentionally disconnect their CX efforts from their pricing strategies. This misalignment can manifest in two ways:
- Overpricing with subpar service: Some firms charge high fees but fail to meet client expectations. Clients will likely seek alternatives if the service does not justify the price.
- Under-pricing for exceptional service: Less commonly discussed but equally damaging. When firms deliver outstanding service but charge too little, they miss opportunities to maximise margin and growth.
Over time, persistent misalignment damages reputation, reduces referrals, weakens loyalty, and erodes pricing power. Once clients begin questioning whether they’re receiving fair value, rebuilding trust becomes difficult.
“It’s very hard to rebuild once clients start questioning whether they’re really getting value for money,” says Maynard.
Early warning signs of pricing misalignment
Even the best firms can fall into pricing misalignment, when clients perceive your fees no longer reflect the service quality or CX being delivered. Recognising the mismatch early is critical.
There are a few telltale signs when clients feel your fees don’t align:
- Frequent client pushback or objections on fees
- Requests for write-offs and post-project discounts
- A need to utilise more discounting strategies to win or retain work
- Clients questioning the fairness of fees
- Declining client satisfaction or NPS
- Delays in client approvals or slow decision-making due to fee concern
- Client comparisons with competitors
- Fewer repeat engagements
If misalignment persists, you slide towards commodity trap. Once clients view your services as interchangeable, it becomes nearly impossible to maintain premium service pricing or strong market positioning.
As Maynard warns, “Once a client starts to see you as interchangeable, you’re on a slippery slope – price becomes the only differentiator.”
Competing on CX, not price, generates value for firms and their clients.
How to strengthen CX to maximise pricing potential
As we have established, pricing power is built from the way clients experience your firm. Strengthening CX should therefore sit at the core of your firm’s pricing strategies. The goal is simple (though not easy): deliver such excellent service quality and CX that clients feel every fee is reasonable and aligned to their expectations.
Here’s how firms can achieve it:
1. Map the CX journey
Identify where frustrations or gaps occur in your client interactions. Even small pain points can create pricing misalignment if clients feel the service doesn’t match the fee. Use an NPS tracking tool or consistently ask for client feedback via a survey system like Beaton Debrief to gain a better picture of where improvements can be made.
2. Invest in service quality
Consistently delivering high-quality CX is the foundation for pricing alignment. This requires a deep understanding of client needs and expectations, regular service evaluations, and feedback loops. Consider monitoring the market via competitor benchmarking to understand what competitors may be doing well and how you can better the experience of your own clients.
3. Communicate your value clearly
Don’t assume clients will connect the dots. Clear and transparent communication is essential for justifying higher fees. Show your clients where you saved them money, or how you helped them close a valuable deal, articulate your cost-consciousness. This article has tips on how to improve your communication to justify better prices.
4. Continuous improvement in CX
An effective CX strategy isn’t static, it requires continuous adaptation based on client feedback. By embracing a culture of continuous improvement, firms can stay ahead of evolving client expectations and market changes. This ongoing refinement helps to maintain high service standards while justifying periodic price increases.
5. Leverage real-time feedback
The ability to gather and act on real-time feedback during client engagements allows firms to adjust and refine service delivery on the fly. This responsiveness improves the CX and pricing connection, strengthens trust, and reinforces your firm’s pricing strategies.
Conclusion
Creating an exceptional client experience isn’t just a nice-to-have for your clients. It is a competitive tool that allows professional services firms to justify higher fees and foster sustained growth. When CX is strong and service quality is consistent, your firm benefits from greater pricing power, more stable work and stronger relationships.
In short: a strong CX and pricing connection empowers clients to see your fees as fair, consistent and aligned with their experience. When this connection is strong, clients don’t just pay your fees; they return, refer, and help your business grow.
Download 'The state of CX in professional services' report
Take a look into the client experience (CX) strategies of professional services firms across Asia Pacific.
