Lawyers are old-fashioned creatures that can’t, or won’t keep up with the times, spending most of their days entertaining clients on the golf course or in private members clubs – and that would seem to be the extent of their marketing activity. Well, at least, that’s how they are often perceived. And unfortunately, that stereotype has been a hard one to shake off.
However, there is more to this industry than meets the eye – particularly in terms of its marketing techniques – and although law firms have never been known for big ad campaigns or national advertising, over the last few years, they have most defiantly pulled their socks up, with the last decade having seen many law firms undertake extensive and often expensive rebranding exercises to revamp their images. Even more recently though, with the advent of new technology, an emphasis on broader business development and an unstable economy, it is in the midst of facing new challenges that are forcing it to adopt new attitudes and strategies.
Future thinking
This is a complex industry made up of three tiers: at the top sits the Magic Circle of prestigious London and international firms, which typically target financial services companies and large corporates; next is the group of about 50 national or regional firms, which target mid-market and fast-growth businesses; then there are many smaller firms and sole practitioners that target the SME market. This means that it’s hard to generalise when it comes to discussing marketing techniques. However, one of the main trends that seems to be sweeping the board, is a move towards a more strategic type of marketing, with emphasis on long-term planning, rather than short-term fixes.
“Marketing within law firms is changing. Now, it’s not only about producing brochures, doing a bit of PR or designing a good website. It’s about client development, key account management and implementing client-listening programmes. “The language is changing – it’s becoming more strategic – and this is something lawyers can relate to – probably more then they can with traditional marketing language, so it’s a positive move forward,” says Matt Baldwin, director of Coast Communications, which specialises in the professional services industry.
This strategic, more targeted form of marketing is driven by a number of factors, explains John Simpson, product marketing manager of Hubbard One, which offers creative, consulting and technology services designed for the legal industry. “Law firms are increasingly behaving like corporate businesses, with growing focus on the bottom line and profits per partner, so they are much more likely to limit the scatter-gun approach and become more tightly focused in their marketing. It’s about making more out of what they already have, such as going back to existing clients and learning how to service them better, or targeting individual prospects with an enhanced offering that really shows they know what they’re talking about. It’s about providing added-value.”
Marketing in the legal industry is becoming about more than spending pots of money on fancy corporate logos, picking the right colour for your branding, or inviting random prospects to an impressive champagne and canapés party. What the experts are saying is that law firms are increasingly becoming focused on initatives – such as in-depth seminars on niche topics; hosting controversial round table events for a select few; or disseminating white papers and regular newsletters – to convince clients and prospects they really understand the business their clients are involved in and the issues they face.Matthew Fuller, global head of business development at international law firm Herbert Smith, says this more measured approach is also partly driven by what the clients themselves are looking for. “Companies are fed up with ‘ambulance chasing’ by law firms. They just don’t appreciate the random cold call – they’re not interested in that anymore,” he says. “They want to know that a law firm has been really thinking about their company and its issues and can demonstrate that knowledge and insight. So it’s now becoming more conducive for law firms to target specific companies and tailor their messages. If they don’t, then they know their competitor will.”
Business development
An important development that has led on from this is a move towards the displacement of traditional marcomms activity to make way for more formal business development strategies. “This shift began four or five years ago, but it’s only recently that a clear division is being made, as the market becomes increasingly sophisticated and the client-base becomes more international,” says Fuller. Business development is about supporting the marketing function so when a campaign is being developed the tools are there to reach the right clients and targets.
“Law firm marketing is moving away from its ‘events and umbrella’ roots (marcoms-led activity) to a more strategic client-led business development approach,” adds Baldwin. “This will gather pace as business development activity is easier to measure and quantify than marcoms-led.” Daryll Cross, vice president of client profitability at LexisNexis, agrees. “The skill sets of marketers within law firms is changing. I recently heard of a firm that underwent a complete restructuring of its marketing department, making 10 people redundant and bringing in people more skilled in business development. This wasn’t about cutting the budget – it was about changing the marketing flavour.”
So, is the role of the traditional marketer within law firms in danger of becoming sidestepped? Fuller says the importance of marketing should certainly not be diminished. “It still has a role to play – it just needs to be seen as one of the tools that goes towards helping client-relationship building,” he says. Cross agrees. He has noticed that alongside the trend for companies to be placing more emphasis on the in-house role of business development, there is a move towards outsourcing traditional marketing activity. “For branding, PR and advertising, law firms are increasingly using specialist agencies,” he says. “This means those entwined in the business are able to spend more time face-to-face with the fee earners, working alongside them on client-focused programmes.” So, it’s a case of re-shifting focus, rather than removing it completely.
Networking technology
This emphasis on business development means that a more formal way to organise your client base and contact list is becoming more popular and companies such as LexisNexis have seen an increase in the use of CRM technology by law firms. Traditionally, in a law firm each fee earner has their own relationship with each of their clients. But as the client-base becomes more global, there is increasing demand for them to work together, and share clients and knowledge. This is where a CRM system really comes in handy.
“There might be a number of fee earners that have contact with the same client and each one may not know the other one is dealing with the same client, which can cause confusion and looks unprofessional,” says Cross. “CRM means the entire firm’s contact list is synchronised on a central system, so all the data each fee earner has about someone is available for everyone to see, such as basic contact details, when they were last contacted, and by whom.” There is also the opportunity to use third party information within the database, for example, the latest financial news that might have an effect on clients.
This all comes back to the trend for concentrating on a targeted, niche audience. By using its CRM system, a firm is able to focus on its top 50 clients, know everything about them and the industry they work in, and from there, organise seminars or business development events that will be entirely relevant and nurture the relationship.
Cross adds that currently, it’s the mid-sized firms – those with 70 to 200 fee earners – that are most interested in utilising CRM. “They are competing against larger companies, but are smaller and nimbler, so with CRM they are able to act quickly on the information they learn.”
Old school techniques
CRM might be a technical form of networking, but that doesn’t mean the traditional form has died out. Networking on a personal level is still important to lawyers, explains Sue Bramall, MD of Berners Marketing, which provides marketing support to the professional services industry. “Lawyers can’t underestimate the importance of meeting other members of the professional services industry,” she says. “Bankers and accountants are always in the know about business deals, and it’s helpful for lawyers to know what’s going on. Although it is becoming more systematic and organised with the advent of CRM, that personal contact is vital to maintain.”
Nick Shrimpton, head of marketing at Guildford-based law firm Stevens & Bolton, agrees. “Using this network of relationships to encourage referrals isn’t just confined to the old boys network,” he says. “There are plenty of young lawyers building up their own contacts in a traditional way – ‘personal marketing’ is how they would term it. Now it’s probably also about marketing your firm’s brand too, as well as just yourself on a personal level.”
So the idea of branding and more traditional methods of marketing within the legal industry hasn’t yet withered and died. “There was a huge spate of rebranding a few years ago when the number of mergers and consolidation meant it was important to get the word out. Now, it’s less about expensive rebrands and more about consolidation strategies,” says Simpson. This includes initiatives such as sponsorship – Stevens & Bolton, for example, is the official legal partner of the BlackRock Masters Tennis, which involves a three-year deal including BBC TV coverage. “It’s an annual event where ex-Wimbledon champions take part, which gives us good exposure and helps raise our profile,” says Shrimpton. “It creates a positive image, gives us good status on a national level and also the opportunity to do some corporate entertaining.”
There’s no doubt marketing techniques in the legal industry are moving on to become more sophisticated and strategic. By tighter targeting, more long-term planning and a new emphasis on business development, law firms are more efficiently communicating their expertise to clients and prospects. However, whilst following the most modern marketing methods may be top of the agenda, it’s also vital law firms don’t ignore traditional marketing techniques – and along with them, the traditional marketer. Maintaining a balance of the two seems the best way to ensure success.
