The top ten obstacles to law firm marketing success
By Janet Dean, Executive Director
Practice Development Group Inc.
In today's competitive market place, lawyers must compete to survive. And
yet, many lawyers believe that putting an ad in the yellow pages is their
best marketing tool. They are couldn't be more wrong. Today, surviving
means flexing your marketing muscle. Lawyers have let their muscles weaken
from lack of use.
Mike O'Horo, a Virginia marketing consultant tells us that each year a
successful law firm loses 20% of its clients. That means that each year at
least 20% of your marketing efforts and dollars walk out the door.
There are many reasons that these clients are leaving. Some of these
reasons are beyond your control: consolidation, failure, relocation, etc.
But many of these departures can be traced to controllable causal factors.
Let’s look at O'Horo's list of the top eight.
No differentiation
Clients see all law firms as more or less the same. A reputation for "top
quality" does not distinguish you from all the other "top quality" law
firms. Legal consumers can't identify the subtle differences between law
firms. Find a way to emphasize your firm's uniqueness -- through the eyes
of the client.
Too few lawyers selling
Whose job is it to bring in business? In many firms, a few lawyers
regularly bring in new business while the majority merely service existing
clients -- hoping that more business will come from somewhere. And, it
usually does. But to change the status quo, to build your practise and to
grow your firm: you need to seek clients, not trust that they will come.
Tunnel vision
Lawyers' training and practise strengths show a single-mindedness that
ensures clients' needs are met and cases won. Unfortunately this tunnel
vision often results in the singular focus of looking for business only in one
practise area. Servicing a corporate client may mean repeat business only
when he has another "corporate event." Build your practise through additional practise areas.
Chasing Fools Gold
About 30% of initial client contacts are merely "lookie-loos" or result in no sale. You lose your clients to no decision far more often than you lose them to a competitor. Learn to identify your key clients up front and spend your time with the 70% who plan to buy.
Pitching
Some lawyers, in an effort to market, take the pitching approach. Pitching
is when you hold a potential client hostage and barrage them with all the
information you have about your firm, yourself, your services, and your
reputation. Many hope that through the sheer volume of information and
obvious attractiveness and quality of the services, the potential client is
driven to say yes. Instead, use listening and questioning techniques to
find out what the client needs, then tell how you can meet that need, and finally
find a way to make it easy for the client to say yes.
Failure to cross-
A firm's top 100 clients buy only three or four of the more than two dozen services
typically available. Why? Learn to cross-sell to maximize your service to
existing clients. They are waiting to be mined -- you might just find gold!
Partner shock
New partners discover their new responsibilities include developing business
and bringing in new clients. Without marketing training, or knowledge of
some basic marketing tools, partners are thrown into shock. And
unfortunately along with shock often comes inaction, or uncoordinated
action. Have a marketing plan available for new partners and training
opportunities for them to build their own marketing muscle.
Product cycle blindness
In manufacturing, product cycles define the stages that consumer products go
through. There is a time of high price when the product is initially unique
and a time of falling prices as the market becomes competitive. Entire
industries also go through this cycle.
Law firms have traditionally been premium-priced manufacturers of custom
products but times are changing. Today's legal consumers have differing
needs and expectations. Nothing stays in demand or earns a premium price
forever. Look at what is going on around you. Look at the telephone wars
or examine the computer and retail industries for trends. Open your eyes to
the legal product cycle.
Here's two more to round out the top ten.
Uncoordinated efforts
Even firms who have made the decision to market actively may not coordinate
their efforts. And, lawyers may ignore the role of support staff in their
marketing efforts. Legal assistants and secretaries often spend a great
deal of time with customers, with no specific training in client relations
or client management. The result? Clients are handled at arm's length and
individual needs (and opportunities for cross-selling) are never addressed.
Ensure your support staff demonstrate strong client skills and play a role
in your marketing efforts.
Unseen value
Any lawyer who wants or expects their practise to expand must be prepared to
invest non-billable time, effort, and sometimes money. You can make yourself the lawyer or firm to hire, but it takes planning and determination. It also takes recognition of the value of investing your time in the marketing effort.
Firms can overcome these obstacles with education, training, and guidance.
Education will help with the underlying principles and processes, training
will help develop the skills, and guidance can ensure it all gets put into
practise.
Law schools have traditionally accepted the "best" as students. Law firms
have typically sought to employ the "best". Today, "best" means more than
good grades and strength of character. Today "best" includes possessing the
sales and marketing know-how to build a business. Today the "best" means a
reputation as a "rainmaker". Learn now. The "best" gets the most.