The Barustors Report
Selling Legal Services
Speakers:
Mike Krenn, Managing Director
Gray Cary Venture Pipeline, LLC
mkrenn@graycary.com
Mozhgan Mizban, Partner
Zeughauser Group
mizban@zeughausergroup.com
David J. O'Brien, Managing Partner of Business Development
Ernst & Young Pacific Northwest Practice
David.o'brien@ey.com
Professional Sales Teams: The Next Phase in Legal Marketing
Law firms such as Womble Carlyle and Patton Boggs are leading the way in the next evolution of legal marketing: the creation of professional sales teams. This trend is developing because law firms are realizing what most other industries already know: if you want to maximize market share, you must actually go out and find, meet and persuade non-users to become clients. Last month's LMA Bay Area luncheon and speakers explored the structure of this trend, and how these teams will fit into the existing marketing cultures of law firms.
It's About Relationships
Professional business development is not about cold calling or hard selling. It is about reaching out to an ever-expanding warm market, identifying needs and coming up with business solutions, building relationships with the new clients you develop, and then reaching out to them and to those they know. The foundation for building these growing relationships is the firm's commitment to the client's goals and objectives through the marshalling of all sales efforts around those two issues. This point was repeatedly driven home by the speakers, probably for the benefit of those of us who came expecting to hear tips on cold calling and effective selling techniques. The point made by these speakers is that the underlying mechanisms of professional business development --- referrals and cross-selling --- will remain. What is different about this phase in legal marketing is that firms are beginning to dedicate this function to professionals, rather than relying solely on billing attorneys to incorporate this work into their other responsibilities.
Start with Strategic Planning
The first step to developing a professional sales team is to examine the law firm's strategic plan. If this plan is clearly defined, then the answer to the next question --- "Which clients will help us achieve our plan?" --- will be apparent. This second question should be answered at both the firm-wide and practice group levels, and must be quantified with time frames, responsible parties and even revenue goals. Once these goals are set, a commitment to developing these clients, and achieving these numbers, must be infused into the firm's culture.
As these clients are developed, a fundamental shift in thinking must occur. The law firm must now make a commitment to its clients' goals. This commitment goes beyond an obligation to good service. It requires law firms to participate with their clients' in the pursuit of their objectives. This commitment to the success of the client is the essence of the sales function, and is how law firms --- and all companies --- achieve their own goals: by helping their clients achieve theirs. The clients' goals and needs must pervade every decision made, and every action taken, on behalf of the client. It will be the duty of the client relationship partner and sales director to keep these goals in front of their sales and client teams at all times.
Build Your Sales Teams
It follows, then, that considerable thought must go into the creation of sales teams. Team members will represent your firm to prospective clients, and must possess the social skills necessary for acceptance into these target markets. Moreover, they must have strong connections into these groups, because their main value to the firm will be their ability to create face-to-face meetings between prospective clients and your attorneys. While excellent selling skills are a necessity, the more vital quality will be a tendency to know people, whom they will introduce to attorneys at the firm. They will be "introducers", not "closers".
Integrating and Managing Sales Teams
A model that exemplifies the marketing function is the one being developed at Preston, Gates & Ellis. Panelists discussed how ideally, a Chief Marketing Officer (or some variation of this title) will oversee three functional areas: Marcom (Marketing and Communications), Business Development/Sales, and Professional/Practice Development/Training. Marcom will use its branding and PR efforts to soften the terrain and open doors for the business development people, while the practice development group will improve the rates of new business, client retention, and cross-selling. Larger firms may have a Director of Sales who reports to the CMO. CMOs who oversee teams of this complexity for larger firms will most likely earn incomes in excess of $300,000 per year.
These sales professionals will have to be out of the office, networking, building relationships and making contacts with prospective clients whom they can introduce to the firm. When those introductions occur, the sales professional will likely remain in the meeting with the partner, in order to keep discussions focused on the client's interests and needs.
Outlook
The acceptance of professional sales teams in law firms will come gradually, but probably faster than it did in accounting firms, because the concept is no longer novel.
| 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. | |