The Gap Between Growing Law Firms And Stagnant Ones Is All About Marketing

There’s a notion that chalking up the distinction between two firms as “all about advertising” was a knock on the extra profitable entity. As although shoppers simply flocked to the larger model as a result of they’re silly lemmings that may’t discern the substantive similarities. Or at the very least that was once the notion. Maybe Mad Men radically improved everybody’s appreciation for promoting.
But advertising is extra than simply promoting. It’s the entire bundle of brand name leverage that will get the agency’s title on the market, builds relationships, maintains relationships, retains the agency top-of-mind always, and acknowledges networking alternatives earlier than they current themselves. When we are saying excessive progress companies are doing higher due to the advertising, that’s not a knock and it’s not a superficial high quality — advertising and enterprise growth contribute to the agency’s substantive technique.
The 2021 LexisNexis InterAction Marketing & Business Development Report for Law Firm and Legal Practices got here out this week and the largest takeaway — in addition to the understatement of the millennium that COVID was, the truth is, a problem final yr — is that the expansion hole activates which companies have strong advertising methods and which don’t.
The report is crammed with insights, however graphs like these stored leaping out:

Look at these disparities. That advertising funds determine is damning. On the one hand, stagnant companies don’t have the sources to spend as a lot outdoors of core authorized companies, however this overlooks advances in comparatively reasonably priced CRM options on the market that can provide companies a leg up in shopper relations with out breaking the financial institution.
Check out the benefits companies are getting merely by investing within the CRM element:

That’s fairly helpful information to have and it’s remarkably simple to seize if companies make the leap.
And it’s essential as a result of shopper retention is a matter and guess which companies it hurts extra?

As one would possibly suspect, the upper progress companies are those profitable competitions. But the extent of the disparity between classes of companies is spectacular. Competition is rising far and wide however the companies with extra funding in enterprise growth don’t understand it as almost the menace no-growth companies do.
In any occasion, try the total report.
And in case you’re questioning the place all of your shoppers are going, possibly it’s time to spend money on one thing that, I don’t know, tracks your relationships with them. Just a thought.
2021 LexisNexis InterAction Marketing & Business Development Report for Law Firm and Legal Practices
Joe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to electronic mail any ideas, questions, or feedback. Follow him on Twitter in case you’re concerned with legislation, politics, and a wholesome dose of faculty sports activities information. Joe additionally serves as a Managing Director at RPN Executive Search.

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