As technology continually reshapes…everything…law firms are under mounting pressure to adapt. This adaptation is not only necessitated by advancements in technology like A.I., but also by an evolving workforce and, as always, client expectations. The stakes are high, and the firms that fail to transform risk being left behind.
The Pressure on Law Firm Marketing Departments
Challenge:
Today perhaps more than ever before, law firm marketing departments are confronted with the challenge of supporting strategic objectives of the firm and driving revenue growth. However, they often struggle against outdated systems, siloed technologies, and lackluster interdepartmental communication. The situation is further compounded by the failure to fully utilize existing tools that could streamline the marketing and business development process.
While the world is changing technologically, it’s also evolving within law firms. The emerging generation of law firm leaders is seeking ways to navigate this new landscape. At the same time, institutional rainmakers are nearing retirement at a rapid clip, often without a strong succession plan. These changes underscore the urgency for firms to make necessary infrastructure improvements that can shore up the knowledge and process gaps to support a seamless client experience.
Opportunity:
Turn the pressure into an opportunity by leveraging better data to support your firm’s strategic objectives. With the right data, you can gain insights into potential clients’ behavior, needs, and preferences, and refine your marketing and client outreach strategies. Data analytics can also help identify emerging markets, areas of practice that are increasing in demand, and effective communication channels.
Step one: Figure out what the data says. (Or, if you don’t have the data you need…figure out where to get it!!)
Step two: Construct a robust business case for a MarTech stack overhaul that illustrates an understanding of how data will be collected, analyzed, and utilized to determine marketing R.O.I. The necessary data to do so can be harvested using a variety of tools within the MarTech stack, including analytics platforms, C.R.M. systems, and marketing automation software.
Step three: Use the data to identify insights into client behavior, sentiment, and preferences. This analysis could involve techniques such as segmentation, predictive modeling, and A/B testing.
Ultimately, these insights can be used to calculate marketing R.O.I. by examining the correlation between marketing activities and key outcomes like client acquisition, retention, and revenue growth. This process underlines not only the significance of data in driving strategic decisions but also the necessity of a comprehensive MarTech stack to manage and interpret this data effectively.
The Shift in Client Relationships
Challenge:
A striking change in the legal industry is the diminishing value of institutional relationships. Increasingly, clients are less loyal to firms because of relationships. In fact, only 35% of clients now stay with a firm due to the relationship, according to Andrew Hutchinson, CEO at Databall. This shift is largely fueled by pressures being exerted on the buyers from a procurement perspective, as well as the changing behavior in how up-and-coming decision-makers make purchasing decisions. As such, law firms must rethink their strategies on how to find, win, and retain clients.
Opportunity:
This shift presents an opportunity for savvy marketers and attorneys to strategically leverage data to revolutionize their approach to client service. By leveraging data and analytics, they can detect patterns, understand client preferences, and predict future behaviors.
Imagine a fully developed MarTech infrastructure at your firm that leverages user behavior to deliver personalized website experiences. Or where an attorney or even a practice group has access to key business insights about their top clients, including flagging areas of risk for the firm/client relationship?
A data-driven approach allows firms to anticipate client needs before they even articulate them and to adapt marketing and client interaction strategies accordingly, thus delivering more personalized and timely services. Through effective use of data, you can focus your efforts on creating a client-centric, value-driven model focused on retaining existing clients and attracting new ones.
Time
Challenge:
In a world where everyone is time-poor (marketers and attorneys alike), genuinely important marketing activities such as having a real content strategy often take a backseat. Yet, value-driven content is the cornerstone of any effective marketing strategy. What’s a person to do?
Opportunity:
The time challenge presents an opportunity to leverage technology to streamline content production and reduce friction. Tools such as content management systems, content creation tools like Passle, and collaborative software can make a significant difference. (Not to mention the increasing number of A.I. tools that are cropping up daily!) By adopting these technologies, law firms can free up more time for their experts to focus on strategic activities, consequently enhancing productivity and fostering growth.
Law firms are at a critical juncture. While the challenges are formidable, there are also immense opportunities. By leveraging data, embracing new technologies, and adapting to changing client expectations, firms can not only survive but also thrive through this next industry evolution. This is the time for action, the train is at the station, and it’s time to get on board.
