The Barustors Report
BEST PRACTICES IN LEGAL MARKETING
Legal Marketing Association (LMA) Bay Area Program
Held at the
RENAISSANCE STANFORD COURT HOTEL
San Francisco, February 21, 2002
COPYRIGHT 2002 THE COSMIDES GROUP. ALL RIGHTS RESERVED.
What has the legal marketing profession learned from over a decade of growing acceptance and sophistication? What are the best practices in our field, and what have we learned from the corporate sector? David Geyer, head of Brobeck, Phleger & Harrison LLP's renowned marketing department, led an insightful exploration of these topics. Joining him were:
Bruce Allen, Catalyst, Deloitte & Touche. Bruce is a former marketer for Brobeck Phleger & Harrison LLP. He founded BAM!, a business communications and marketing agency working with early stage and tech companies. Today, Bruce leads Deloitte & Touche's technology marketing efforts.
Mark T. Greene, Ph.D., Managing Director, FGI Research. Mark has been conducting client and marketing research for the legal industry since 1985 and for the Fortune 500 since 1979. . He has been serving as FGI's Managing Director since 1993. Mark sits on LMA's national board and is a member of the Research, Sponsors and Conference committees. He teaches graduate courses in market research at George Mason University where he is an adjunct professor.
Michael Hinshaw, President, M Corp. Michael is recognized as an authority on Internet business strategy, marketing, branding for the New Economy and B2B e-commerce. He regularly speaks, writes, and is quoted on these topics. Michael is a professor of marketing for undergraduate and graduate courses at Golden Gate University, and has lectured at San Francisco State University.
BEST PRACTICES IN CLIENT SURVEYS
Greene's anecdotes came from his work with a mid-sized Atlanta practice, an AmLaw 100 firm and General Electric. He recommends that surveys be both qualitative and quantitative. On the qualitative side the law firm is ferreting out each client's unique needs, in order to serve them better. The key to success in this tactical research is that there must be follow-up with each client interviewed. Failure to do this can severely damage the client relationship. If these interviews are rigorously conducted over time, a quantitative analysis will become possible once approximately 100 interviews have been conducted. This analysis will point out areas in which the firm should change strategically to better serve its client base as a whole. Greene offered the following guidelines:
Use a professional interviewer with deep experience in professional services.
Uncover "actionable" information. The survey is not a report card on performance. Its purpose is to drive action at the client level and for the firm as a whole.
Do not design the survey as a veiled attempt to generate more business from the client. Concentrate on identifying and meeting their needs, and the additional business should follow.
Start with small survey pools and only grow the process when the firm is ready for more client-by-client follow-up. Greene's AmLaw 100 client only surveyed 10 clients each quarter during the first two quarters. They are now up to 50 clients per quarter.
Do not conduct the survey as an annual event. Conduct interviews each quarter so that following up on client surveys becomes a regular way of doing business every day.
Send client teams rather than just the responsible attorney to conduct the follow-up.
Win support for surveys by testing them on the most willing practice group. Then, boast about the results. Other practice groups will want the recognition, too.
Geyer empathized with marketers' frustrations over partners' reluctance to approve such surveys. He recounted that, while working at one of the (then) Big 6 accounting firms, less than 1% of managers interviewed their best clients for satisfaction levels, even though the request came from the CEO. Their reluctance stemmed from a fear of negative feedback.
According to Greene, however, such concern is unwarranted in the legal profession. In his experience, 80% of clients are pleased with their law firms. He has found them to be quite willing to be surveyed. Moreover, Greene claims that his clients have seen quantifiable improvements in ROI, image, client satisfaction, client stability, "share of wallet" and overall financial health, resulting from their surveys and follow-ups. He stressed that this demonstrable ROI is only possible when a rigorous process of client follow-up has been implemented.
BEST PRACTICES IN MARKETING
As to new client development, Michael Hinshaw offered the audience a fresh look at the basics of sound marketing:
Segment your target market and build intelligent profiles of your strongest prospects
Always explore your market's needs. Never fall for the illusion that they are buying you, rather than your service. While this may be true, it does not obviate the need to always know your client's changing needs.
Be able to succinctly differentiate your firm, and explain why the client will be better-served by your firm
Define the metrics by which you will measure progress and success. These can include annual growth in billables and the cross selling of existing clients into new practice groups.
Develop a repository of client data in your CRM program
BEST PRACTICES FROM THE CORPORATE WORLD
Bruce Allen offered sound guidelines from his experience in the corporate and professional services sectors:
Get on the street and market
Don't let your personal networks weaken or dissolve during busy times
Set clearly-defined goals for your industry and specialty groups
Get your attorneys behind podiums, on panels, and in associations
Give them research on the key "players" they need to develop
Micro network
80% of all deals are accomplished by 20% of the professional service providers. Find out who those players are, and build personal and professional growth groups around them
Personally facilitate as many meetings as you can
Do not create broad image campaigns. After recent events, clients are looking for practicality and balance in their lives. They are not looking for change and new ideas.
Do not reduce your pricing. Focus on value, instead. Unless you have more cash reserves than your competitors, you are likely to lose a price war. Moreover, a price war positions you as a low-cost service provider. Focus instead on the value you offer your clients. New client acquisition may slow, but your margins will remain intact. When the economy improves, people will remember where quality is available.
Conclusion
David Geyer wrapped up the presentation with encouraging words to legal marketers. He said, "The new marketing techniques being employed by law firms are generating organic growth. I believe that law firms that market during the recession will come out stronger when the economy improves."
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| Bay Area legal marketing consultant, John Cosmides, is principal of The Cosmides Group and director of Barustors, a State Bar-certified referral service for business and corporate clients. John can be reached at john@barustors.com or at 415-957-1330. |  |